US FOODS HOLDING CORP (USFD) Stock Fundamental Analysis
NYSE:USFD - New York Stock Exchange, Inc. - US9120081099 - Common Stock - Currency: USD
Taking everything into account, USFD scores 5 out of 10 in our fundamental rating. USFD was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. USFD has an average financial health and profitability rating. USFD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year USFD was profitable.
USFD had a positive operating cash flow in the past year.
USFD had positive earnings in 4 of the past 5 years.
Each year in the past 5 years USFD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.86%, USFD is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.42%, USFD is in line with its industry, outperforming 58.54% of the companies in the same industry.
USFD has a better Return On Invested Capital (8.56%) than 70.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for USFD is in line with the industry average of 8.08%.
The last Return On Invested Capital (8.56%) for USFD is above the 3 year average (6.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 11.42% | ||
| ROIC | 8.56% |
ROA(3y)3.08%
ROA(5y)1.63%
ROE(3y)8.83%
ROE(5y)4.61%
ROIC(3y)6.85%
ROIC(5y)N/A
1.3 Margins
USFD has a Profit Margin (1.38%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of USFD has declined.
USFD has a better Operating Margin (3.06%) than 65.85% of its industry peers.
In the last couple of years the Operating Margin of USFD has grown nicely.
USFD has a worse Gross Margin (17.38%) than 70.73% of its industry peers.
USFD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.06% | ||
| PM (TTM) | 1.38% | ||
| GM | 17.38% |
OM growth 3Y24.36%
OM growth 5Y2.04%
PM growth 3Y47.03%
PM growth 5Y-2.55%
GM growth 3Y3%
GM growth 5Y-0.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), USFD is destroying value.
USFD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, USFD has more shares outstanding
The debt/assets ratio for USFD is higher compared to a year ago.
2.2 Solvency
USFD has an Altman-Z score of 4.56. This indicates that USFD is financially healthy and has little risk of bankruptcy at the moment.
USFD's Altman-Z score of 4.56 is fine compared to the rest of the industry. USFD outperforms 65.85% of its industry peers.
The Debt to FCF ratio of USFD is 4.61, which is a neutral value as it means it would take USFD, 4.61 years of fcf income to pay off all of its debts.
USFD has a Debt to FCF ratio of 4.61. This is in the better half of the industry: USFD outperforms 60.98% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that USFD has dependencies on debt financing.
USFD has a Debt to Equity ratio of 1.06. This is in the lower half of the industry: USFD underperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 4.56 |
ROIC/WACC0.63
WACC13.49%
2.3 Liquidity
A Current Ratio of 1.17 indicates that USFD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, USFD is in line with its industry, outperforming 56.10% of the companies in the same industry.
A Quick Ratio of 0.74 indicates that USFD may have some problems paying its short term obligations.
USFD has a Quick ratio (0.74) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
USFD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.60%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.38% on average over the past years.
USFD shows a small growth in Revenue. In the last year, the Revenue has grown by 6.32%.
USFD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.87% yearly.
EPS 1Y (TTM)23.6%
EPS 3Y26.53%
EPS 5Y6.38%
EPS Q2Q%25.93%
Revenue 1Y (TTM)6.32%
Revenue growth 3Y8.7%
Revenue growth 5Y7.87%
Sales Q2Q%4.49%
3.2 Future
Based on estimates for the next years, USFD will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.42% on average per year.
The Revenue is expected to grow by 1.65% on average over the next years.
EPS Next Y22.68%
EPS Next 2Y20.86%
EPS Next 3Y18.88%
EPS Next 5Y11.42%
Revenue Next Year5.04%
Revenue Next 2Y5.46%
Revenue Next 3Y4.89%
Revenue Next 5Y1.65%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.98 indicates a rather expensive valuation of USFD.
USFD's Price/Earnings ratio is in line with the industry average.
USFD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
USFD is valuated rather expensively with a Price/Forward Earnings ratio of 17.14.
USFD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. USFD is cheaper than 70.73% of the companies in the same industry.
USFD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.98 | ||
| Fwd PE | 17.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, USFD is valued a bit more expensive than 60.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, USFD is valued a bit cheaper than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.82 | ||
| EV/EBITDA | 14.14 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of USFD may justify a higher PE ratio.
A more expensive valuation may be justified as USFD's earnings are expected to grow with 18.88% in the coming years.
PEG (NY)1.06
PEG (5Y)3.76
EPS Next 2Y20.86%
EPS Next 3Y18.88%
5. Dividend
5.1 Amount
USFD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79.12
+0.57 (+0.73%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.37%
Inst Owner Change3.35%
Ins Owners0.36%
Ins Owner Change4.89%
Market Cap18.30B
Analysts80
Price Target80.63 (1.91%)
Short Float %2.52%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.68%
Min EPS beat(2)-3.94%
Max EPS beat(2)2.58%
EPS beat(4)2
Avg EPS beat(4)-0.68%
Min EPS beat(4)-3.94%
Max EPS beat(4)2.58%
EPS beat(8)3
Avg EPS beat(8)-0.88%
EPS beat(12)5
Avg EPS beat(12)0.39%
EPS beat(16)7
Avg EPS beat(16)7.01%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.95%
Revenue beat(4)0
Avg Revenue beat(4)-1.79%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)-1.08%
Revenue beat(8)0
Avg Revenue beat(8)-2.11%
Revenue beat(12)0
Avg Revenue beat(12)-1.78%
Revenue beat(16)3
Avg Revenue beat(16)-0.68%
PT rev (1m)-0.98%
PT rev (3m)-1.12%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.98 | ||
| Fwd PE | 17.14 | ||
| P/S | 0.48 | ||
| P/FCF | 16.82 | ||
| P/OCF | 12.84 | ||
| P/B | 3.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.14 |
EPS(TTM)3.3
EY4.17%
EPS(NY)4.62
Fwd EY5.83%
FCF(TTM)4.7
FCFY5.94%
OCF(TTM)6.16
OCFY7.79%
SpS165.46
BVpS19.95
TBVpS-8.56
PEG (NY)1.06
PEG (5Y)3.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 11.42% | ||
| ROCE | 11.55% | ||
| ROIC | 8.56% | ||
| ROICexc | 8.65% | ||
| ROICexgc | 24.2% | ||
| OM | 3.06% | ||
| PM (TTM) | 1.38% | ||
| GM | 17.38% | ||
| FCFM | 2.84% |
ROA(3y)3.08%
ROA(5y)1.63%
ROE(3y)8.83%
ROE(5y)4.61%
ROIC(3y)6.85%
ROIC(5y)N/A
ROICexc(3y)6.97%
ROICexc(5y)N/A
ROICexgc(3y)19.6%
ROICexgc(5y)N/A
ROCE(3y)9.24%
ROCE(5y)N/A
ROICexcg growth 3Y33.4%
ROICexcg growth 5Y8.01%
ROICexc growth 3Y33.9%
ROICexc growth 5Y7.28%
OM growth 3Y24.36%
OM growth 5Y2.04%
PM growth 3Y47.03%
PM growth 5Y-2.55%
GM growth 3Y3%
GM growth 5Y-0.49%
F-Score7
Asset Turnover2.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 4.61 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 75.96% | ||
| Cap/Sales | 0.88% | ||
| Interest Coverage | 4.14 | ||
| Cash Conversion | 88.13% | ||
| Profit Quality | 206.45% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 4.56 |
F-Score7
WACC13.49%
ROIC/WACC0.63
Cap/Depr(3y)75.77%
Cap/Depr(5y)68.92%
Cap/Sales(3y)0.85%
Cap/Sales(5y)0.86%
Profit Quality(3y)184.82%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.6%
EPS 3Y26.53%
EPS 5Y6.38%
EPS Q2Q%25.93%
EPS Next Y22.68%
EPS Next 2Y20.86%
EPS Next 3Y18.88%
EPS Next 5Y11.42%
Revenue 1Y (TTM)6.32%
Revenue growth 3Y8.7%
Revenue growth 5Y7.87%
Sales Q2Q%4.49%
Revenue Next Year5.04%
Revenue Next 2Y5.46%
Revenue Next 3Y4.89%
Revenue Next 5Y1.65%
EBIT growth 1Y14.78%
EBIT growth 3Y35.18%
EBIT growth 5Y10.06%
EBIT Next Year45.45%
EBIT Next 3Y20.1%
EBIT Next 5Y8.72%
FCF growth 1Y72.15%
FCF growth 3Y79.1%
FCF growth 5Y10.66%
OCF growth 1Y60.95%
OCF growth 3Y40.98%
OCF growth 5Y9.09%