We assign a fundamental rating of 4 out of 10 to CHEF. CHEF was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. CHEF has an average financial health and profitability rating. CHEF is valied quite expensively at the moment, while it does show a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CHEF was profitable.
CHEF had a positive operating cash flow in the past year.
In multiple years CHEF reported negative net income over the last 5 years.
Of the past 5 years CHEF 4 years had a positive operating cash flow.

1.2 Ratios

CHEF has a Return On Assets (3.89%) which is comparable to the rest of the industry.
CHEF has a Return On Equity (12.94%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 6.49%, CHEF is doing good in the industry, outperforming 60.53% of the companies in the same industry.
CHEF had an Average Return On Invested Capital over the past 3 years of 5.37%. This is significantly below the industry average of 28.25%.
The 3 year average ROIC (5.37%) for CHEF is below the current ROIC(6.49%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	3.89%
ROE	12.94%
ROIC	6.49%

ROA(3y)2.29%

ROA(5y)-0.42%

ROE(3y)8.28%

ROE(5y)-0.12%

ROIC(3y)5.37%

ROIC(5y)N/A

1.3 Margins

CHEF has a Profit Margin (1.85%) which is comparable to the rest of the industry.
CHEF's Profit Margin has been stable in the last couple of years.
CHEF has a better Operating Margin (3.67%) than 63.16% of its industry peers.
CHEF's Operating Margin has been stable in the last couple of years.
The Gross Margin of CHEF (24.22%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CHEF has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	3.67%
PM (TTM)	1.85%
GM	24.22%

OM growth 3Y70.65%

OM growth 5Y1.16%

PM growth 3YN/A

PM growth 5Y-0.78%

GM growth 3Y2.51%

GM growth 5Y-0.16%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CHEF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CHEF has more shares outstanding than it did 1 year ago.
CHEF has more shares outstanding than it did 5 years ago.
CHEF has a better debt/assets ratio than last year.

2.2 Solvency

CHEF has an Altman-Z score of 3.93. This indicates that CHEF is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.93, CHEF perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
The Debt to FCF ratio of CHEF is 8.46, which is on the high side as it means it would take CHEF, 8.46 years of fcf income to pay off all of its debts.
CHEF has a Debt to FCF ratio (8.46) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.23 is on the high side and indicates that CHEF has dependencies on debt financing.
CHEF has a worse Debt to Equity ratio (1.23) than 73.68% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.23
Debt/FCF	8.46
Altman-Z	3.93

ROIC/WACC0.83

WACC7.83%

2.3 Liquidity

A Current Ratio of 2.14 indicates that CHEF has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.14, CHEF belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
CHEF has a Quick Ratio of 1.19. This is a normal value and indicates that CHEF is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.19, CHEF belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.14
Quick Ratio	1.19

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 31.88% over the past year.
Measured over the past 5 years, CHEF shows a small growth in Earnings Per Share. The EPS has been growing by 7.86% on average per year.
The Revenue has grown by 8.88% in the past year. This is quite good.
The Revenue has been growing by 18.97% on average over the past years. This is quite good.

EPS 1Y (TTM)31.88%

EPS 3YN/A

EPS 5Y7.86%

EPS Q2Q%38.89%

Revenue 1Y (TTM)8.88%

Revenue growth 3Y29.53%

Revenue growth 5Y18.97%

Sales Q2Q%9.65%

3.2 Future

Based on estimates for the next years, CHEF will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.32% on average per year.
CHEF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.62% yearly.

EPS Next Y32.04%

EPS Next 2Y22.4%

EPS Next 3Y20.33%

EPS Next 5Y16.32%

Revenue Next Year9.04%

Revenue Next 2Y8.13%

Revenue Next 3Y7.96%

Revenue Next 5Y7.62%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 34.82, the valuation of CHEF can be described as expensive.
63.16% of the companies in the same industry are cheaper than CHEF, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.41. CHEF is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 28.97 indicates a quite expensive valuation of CHEF.
CHEF's Price/Forward Earnings is on the same level as the industry average.
CHEF is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.64, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	34.82
Fwd PE	28.97

4.2 Price Multiples

CHEF's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CHEF is more expensive than 63.16% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CHEF.

		Industry Rank	Sector Rank
P/FCF	29.76
EV/EBITDA	14.48

4.3 Compensation for Growth

CHEF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as CHEF's earnings are expected to grow with 20.33% in the coming years.