CHEFS' WAREHOUSE INC/THE (CHEF) Stock Fundamental Analysis
NASDAQ:CHEF - Nasdaq - US1630861011 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CHEF. CHEF was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of CHEF get a neutral evaluation. Nothing too spectacular is happening here. CHEF is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CHEF had positive earnings in the past year.
In the past year CHEF had a positive cash flow from operations.
In multiple years CHEF reported negative net income over the last 5 years.
CHEF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of CHEF (3.47%) is comparable to the rest of the industry.
The Return On Equity of CHEF (11.79%) is comparable to the rest of the industry.
CHEF has a Return On Invested Capital of 6.23%. This is comparable to the rest of the industry: CHEF outperforms 55.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CHEF is below the industry average of 8.23%.
The last Return On Invested Capital (6.23%) for CHEF is above the 3 year average (5.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 11.79% | ||
| ROIC | 6.23% |
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 of 1.65%. This is comparable to the rest of the industry: CHEF outperforms 57.50% of its industry peers.
In the last couple of years the Profit Margin of CHEF has remained more or less at the same level.
With a decent Operating Margin value of 3.49%, CHEF is doing good in the industry, outperforming 67.50% of the companies in the same industry.
CHEF's Operating Margin has been stable in the last couple of years.
CHEF has a Gross Margin (24.05%) which is comparable to the rest of the industry.
CHEF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.49% | ||
| PM (TTM) | 1.65% | ||
| GM | 24.05% |
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%
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 3.94. This indicates that CHEF is financially healthy and has little risk of bankruptcy at the moment.
CHEF's Altman-Z score of 3.94 is in line compared to the rest of the industry. CHEF outperforms 50.00% of its industry peers.
CHEF has a debt to FCF ratio of 5.52. This is a neutral value as CHEF would need 5.52 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.52, CHEF is in line with its industry, outperforming 57.50% of the companies in the same industry.
A Debt/Equity ratio of 1.26 is on the high side and indicates that CHEF has dependencies on debt financing.
CHEF's Debt to Equity ratio of 1.26 is on the low side compared to the rest of the industry. CHEF is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 3.94 |
ROIC/WACC0.79
WACC7.93%
2.3 Liquidity
A Current Ratio of 2.05 indicates that CHEF has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.05, CHEF belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
A Quick Ratio of 1.27 indicates that CHEF should not have too much problems paying its short term obligations.
CHEF has a better Quick ratio (1.27) than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.00% over the past year.
The Earnings Per Share has been growing slightly by 7.86% on average over the past years.
CHEF shows a small growth in Revenue. In the last year, the Revenue has grown by 7.86%.
The Revenue has been growing by 18.97% on average over the past years. This is quite good.
EPS 1Y (TTM)20%
EPS 3YN/A
EPS 5Y7.86%
EPS Q2Q%66.67%
Revenue 1Y (TTM)7.86%
Revenue growth 3Y29.53%
Revenue growth 5Y18.97%
Sales Q2Q%8.72%
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 18.26% on average per year.
Based on estimates for the next years, CHEF will show a small growth in Revenue. The Revenue will grow by 8.00% on average per year.
EPS Next Y19.61%
EPS Next 2Y19.09%
EPS Next 3Y17.72%
EPS Next 5Y18.26%
Revenue Next Year7.22%
Revenue Next 2Y5.22%
Revenue Next 3Y7.83%
Revenue Next 5Y8%
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
CHEF is valuated quite expensively with a Price/Earnings ratio of 41.80.
Based on the Price/Earnings ratio, CHEF is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CHEF is valued quite expensively.
A Price/Forward Earnings ratio of 31.49 indicates a quite expensive valuation of CHEF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHEF is on the same level as its industry peers.
CHEF is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.8 | ||
| Fwd PE | 31.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHEF is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHEF is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.9 | ||
| EV/EBITDA | 15.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CHEF does not grow enough to justify the current Price/Earnings ratio.
CHEF's earnings are expected to grow with 17.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.13
PEG (5Y)5.32
EPS Next 2Y19.09%
EPS Next 3Y17.72%
5. Dividend
5.1 Amount
CHEF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
65.21
+1.84 (+2.9%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.71%
Inst Owner Change0%
Ins Owners11.28%
Ins Owner Change-1.93%
Market Cap2.65B
Analysts85.71
Price Target72.8 (11.64%)
Short Float %11.25%
Short Ratio8.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.51%
Min EPS beat(2)6.25%
Max EPS beat(2)26.78%
EPS beat(4)4
Avg EPS beat(4)11.73%
Min EPS beat(4)4.96%
Max EPS beat(4)26.78%
EPS beat(8)6
Avg EPS beat(8)15.21%
EPS beat(12)10
Avg EPS beat(12)18.77%
EPS beat(16)14
Avg EPS beat(16)91.84%
Revenue beat(2)2
Avg Revenue beat(2)0.82%
Min Revenue beat(2)0.6%
Max Revenue beat(2)1.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)1.03%
Revenue beat(8)6
Avg Revenue beat(8)1.51%
Revenue beat(12)10
Avg Revenue beat(12)3.22%
Revenue beat(16)14
Avg Revenue beat(16)4.58%
PT rev (1m)3.07%
PT rev (3m)2.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.02%
EPS NY rev (1m)1.54%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.8 | ||
| Fwd PE | 31.49 | ||
| P/S | 0.69 | ||
| P/FCF | 20.9 | ||
| P/OCF | 15.45 | ||
| P/B | 4.9 | ||
| P/tB | 85.59 | ||
| EV/EBITDA | 15.59 |
EPS(TTM)1.56
EY2.39%
EPS(NY)2.07
Fwd EY3.18%
FCF(TTM)3.12
FCFY4.79%
OCF(TTM)4.22
OCFY6.47%
SpS95.14
BVpS13.31
TBVpS0.76
PEG (NY)2.13
PEG (5Y)5.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 11.79% | ||
| ROCE | 9.43% | ||
| ROIC | 6.23% | ||
| ROICexc | 6.78% | ||
| ROICexgc | 11.08% | ||
| OM | 3.49% | ||
| PM (TTM) | 1.65% | ||
| GM | 24.05% | ||
| FCFM | 3.28% |
ROA(3y)2.29%
ROA(5y)-0.42%
ROE(3y)8.28%
ROE(5y)-0.12%
ROIC(3y)5.37%
ROIC(5y)N/A
ROICexc(3y)5.85%
ROICexc(5y)N/A
ROICexgc(3y)9.92%
ROICexgc(5y)N/A
ROCE(3y)8.12%
ROCE(5y)N/A
ROICexcg growth 3Y80.28%
ROICexcg growth 5Y4.02%
ROICexc growth 3Y84.08%
ROICexc growth 5Y6.73%
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%
F-Score8
Asset Turnover2.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 5.52 | ||
| Debt/EBITDA | 3.36 | ||
| Cap/Depr | 65.99% | ||
| Cap/Sales | 1.16% | ||
| Interest Coverage | 3.33 | ||
| Cash Conversion | 84.68% | ||
| Profit Quality | 198.86% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 3.94 |
F-Score8
WACC7.93%
ROIC/WACC0.79
Cap/Depr(3y)99.81%
Cap/Depr(5y)86.31%
Cap/Sales(3y)1.58%
Cap/Sales(5y)1.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20%
EPS 3YN/A
EPS 5Y7.86%
EPS Q2Q%66.67%
EPS Next Y19.61%
EPS Next 2Y19.09%
EPS Next 3Y17.72%
EPS Next 5Y18.26%
Revenue 1Y (TTM)7.86%
Revenue growth 3Y29.53%
Revenue growth 5Y18.97%
Sales Q2Q%8.72%
Revenue Next Year7.22%
Revenue Next 2Y5.22%
Revenue Next 3Y7.83%
Revenue Next 5Y8%
EBIT growth 1Y22.49%
EBIT growth 3Y121.04%
EBIT growth 5Y20.35%
EBIT Next Year84.85%
EBIT Next 3Y31.84%
EBIT Next 5Y26.66%
FCF growth 1Y526.7%
FCF growth 3YN/A
FCF growth 5Y29.05%
OCF growth 1Y1521.6%
OCF growth 3YN/A
OCF growth 5Y27.74%