CHEF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 38 industry peers in the Consumer Staples Distribution & Retail industry. CHEF has an average financial health and profitability rating. While showing a medium growth rate, CHEF is valued expensive at the moment.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
The reported net income has been mixed in the past 5 years: CHEF reported negative net income in multiple years.
CHEF had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

CHEF's Return On Assets of 3.89% is in line compared to the rest of the industry. CHEF outperforms 50.00% of its industry peers.
CHEF has a Return On Equity of 12.94%. This is comparable to the rest of the industry: CHEF outperforms 57.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.49%, CHEF is in the better half of the industry, outperforming 60.53% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CHEF is significantly below the industry average of 28.24%.
The last Return On Invested Capital (6.49%) for CHEF is above the 3 year average (5.37%), which is a sign of increasing profitability.

		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

The Profit Margin of CHEF (1.85%) is comparable to the rest of the industry.
CHEF's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 3.67%, CHEF is doing good in the industry, outperforming 63.16% 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 of 24.22%. This is comparable to the rest of the industry: CHEF outperforms 55.26% of its industry peers.
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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CHEF is destroying value.
The number of shares outstanding for CHEF has been increased compared to 1 year ago.
Compared to 5 years ago, CHEF has more shares outstanding
Compared to 1 year ago, CHEF has an improved debt to assets ratio.

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 of 8.46. This is comparable to the rest of the industry: CHEF outperforms 42.11% of its industry peers.
CHEF has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
CHEF's Debt to Equity ratio of 1.23 is on the low side compared to the rest of the industry. CHEF is outperformed by 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.
A Quick Ratio of 1.19 indicates that CHEF should not have too much problems paying 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.
The Earnings Per Share has been growing slightly by 7.86% on average over the past years.
The Revenue has grown by 8.88% in the past year. This is quite good.
CHEF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.97% yearly.

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

The Earnings Per Share is expected to grow by 16.32% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.62% on average over the next years.

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

A Price/Earnings ratio of 34.56 indicates a quite expensive valuation of CHEF.
Based on the Price/Earnings ratio, CHEF is valued a bit more expensive than the industry average as 63.16% of the companies are valued more cheaply.
CHEF's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.32.
CHEF is valuated quite expensively with a Price/Forward Earnings ratio of 28.76.
CHEF's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 25.57. CHEF is around the same levels.

		Industry Rank	Sector Rank
PE	34.56
Fwd PE	28.76

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.
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	29.54
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.