US FOODS HOLDING CORP (USFD) Stock Fundamental Analysis
NYSE:USFD - New York Stock Exchange, Inc. - US9120081099 - Common Stock - Currency: USD
Overall USFD gets a fundamental rating of 4 out of 10. We evaluated USFD against 40 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of USFD get a neutral evaluation. Nothing too spectacular is happening here. USFD is not valued too expensively and it also shows a decent 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.
Of the past 5 years USFD 4 years were profitable.
USFD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
USFD has a Return On Assets (3.86%) which is comparable to the rest of the industry.
USFD has a Return On Equity of 11.42%. This is comparable to the rest of the industry: USFD outperforms 57.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.56%, USFD is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for USFD is in line with the industry average of 8.23%.
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
With a Profit Margin value of 1.38%, USFD perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
In the last couple of years the Profit Margin of USFD has declined.
Looking at the Operating Margin, with a value of 3.06%, USFD is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
USFD's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 17.38%, USFD is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
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) just above the Cost of Capital (WACC), USFD is creating some value.
USFD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for USFD has been increased compared to 5 years ago.
The debt/assets ratio for USFD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.65 indicates that USFD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.65, USFD is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
USFD has a debt to FCF ratio of 4.61. This is a neutral value as USFD would need 4.61 years to pay back of all of its debts.
USFD has a Debt to FCF ratio of 4.61. This is comparable to the rest of the industry: USFD outperforms 60.00% 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 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 4.65 |
ROIC/WACC1.06
WACC8.05%
2.3 Liquidity
A Current Ratio of 1.17 indicates that USFD should not have too much problems paying its short term obligations.
The Current ratio of USFD (1.17) is comparable to the rest of the industry.
USFD has a Quick Ratio of 1.17. This is a bad value and indicates that USFD is not financially healthy enough and could expect problems in meeting its short term obligations.
USFD's Quick ratio of 0.74 is in line compared to the rest of the industry. USFD outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.60% over the past year.
USFD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.38% yearly.
The Revenue has been growing slightly by 6.32% in the past year.
Measured over the past years, USFD shows a small growth in Revenue. The Revenue has been growing by 7.87% on average per year.
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
The Earnings Per Share is expected to grow by 11.42% on average over the next years. This is quite good.
Based on estimates for the next years, USFD will show a small growth in Revenue. The Revenue will grow by 1.65% on average per year.
EPS Next Y23.09%
EPS Next 2Y21.05%
EPS Next 3Y19.24%
EPS Next 5Y11.42%
Revenue Next Year4.98%
Revenue Next 2Y5.45%
Revenue Next 3Y5.18%
Revenue Next 5Y1.65%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 25.49, which means the current valuation is very expensive for USFD.
USFD's Price/Earnings is on the same level as the industry average.
USFD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.53.
The Price/Forward Earnings ratio is 18.17, which indicates a rather expensive current valuation of USFD.
67.50% of the companies in the same industry are more expensive than USFD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of USFD to the average of the S&P500 Index (36.71), we can say USFD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 18.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, USFD is valued a bit more expensive than 60.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of USFD indicates a somewhat cheap valuation: USFD is cheaper than 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.89 | ||
| EV/EBITDA | 14.94 |
4.3 Compensation for Growth
USFD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
USFD's earnings are expected to grow with 19.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)4
EPS Next 2Y21.05%
EPS Next 3Y19.24%
5. Dividend
5.1 Amount
No dividends for USFD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
84.12
+0.71 (+0.85%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners101.83%
Inst Owner Change-0.2%
Ins Owners0.4%
Ins Owner Change3.84%
Market Cap19.46B
Analysts81.6
Price Target87.12 (3.57%)
Short Float %2.78%
Short Ratio2.98
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)3.77%
PT rev (3m)6.99%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)0.83%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 18.17 | ||
| P/S | 0.51 | ||
| P/FCF | 17.89 | ||
| P/OCF | 13.65 | ||
| P/B | 4.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.94 |
EPS(TTM)3.3
EY3.92%
EPS(NY)4.63
Fwd EY5.5%
FCF(TTM)4.7
FCFY5.59%
OCF(TTM)6.16
OCFY7.33%
SpS165.46
BVpS19.95
TBVpS-8.56
PEG (NY)1.1
PEG (5Y)4
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 | 4.65 |
F-Score7
WACC8.05%
ROIC/WACC1.06
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 Y23.09%
EPS Next 2Y21.05%
EPS Next 3Y19.24%
EPS Next 5Y11.42%
Revenue 1Y (TTM)6.32%
Revenue growth 3Y8.7%
Revenue growth 5Y7.87%
Sales Q2Q%4.49%
Revenue Next Year4.98%
Revenue Next 2Y5.45%
Revenue Next 3Y5.18%
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%