Overall UNFI gets a fundamental rating of 3 out of 10. We evaluated UNFI against 38 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and financial health of UNFI have multiple concerns. UNFI is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

UNFI had positive earnings in the past year.
In the past year UNFI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: UNFI reported negative net income in multiple years.
Each year in the past 5 years UNFI had a positive operating cash flow.

1.2 Ratios

UNFI's Return On Assets of -1.34% is on the low side compared to the rest of the industry. UNFI is outperformed by 71.05% of its industry peers.
The Return On Equity of UNFI (-6.53%) is worse than 71.05% of its industry peers.
The Return On Invested Capital of UNFI (2.90%) is worse than 63.16% of its industry peers.
UNFI had an Average Return On Invested Capital over the past 3 years of 2.42%. This is significantly below the industry average of 28.24%.
The 3 year average ROIC (2.42%) for UNFI is below the current ROIC(2.90%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	-1.34%
ROE	-6.53%
ROIC	2.9%

ROA(3y)-0.91%

ROA(5y)0.5%

ROE(3y)-4.35%

ROE(5y)2.13%

ROIC(3y)2.42%

ROIC(5y)3.62%

1.3 Margins

UNFI has a worse Operating Margin (0.58%) than 68.42% of its industry peers.
In the last couple of years the Operating Margin of UNFI has declined.
The Gross Margin of UNFI (13.38%) is worse than 76.32% of its industry peers.
In the last couple of years the Gross Margin of UNFI has declined.

		Industry Rank	Sector Rank
OM	0.58%
PM (TTM)	N/A
GM	13.38%

OM growth 3Y-27.09%

OM growth 5Y-17.78%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-2.78%

GM growth 5Y-1.93%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

UNFI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, UNFI has more shares outstanding
Compared to 5 years ago, UNFI has more shares outstanding
The debt/assets ratio for UNFI has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 4.85 indicates that UNFI is not in any danger for bankruptcy at the moment.
The Altman-Z score of UNFI (4.85) is better than 71.05% of its industry peers.
The Debt to FCF ratio of UNFI is 5.63, which is a neutral value as it means it would take UNFI, 5.63 years of fcf income to pay off all of its debts.
UNFI's Debt to FCF ratio of 5.63 is in line compared to the rest of the industry. UNFI outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that UNFI has dependencies on debt financing.
The Debt to Equity ratio of UNFI (1.25) is worse than 76.32% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.25
Debt/FCF	5.63
Altman-Z	4.85

ROIC/WACC0.36

WACC7.99%

2.3 Liquidity

A Current Ratio of 1.38 indicates that UNFI should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.38, UNFI is doing good in the industry, outperforming 71.05% of the companies in the same industry.
UNFI has a Quick Ratio of 1.38. This is a bad value and indicates that UNFI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.50, UNFI is doing worse than 63.16% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.38
Quick Ratio	0.5

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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 226.47% over the past year.
The earnings per share for UNFI have been decreasing by -24.53% on average. This is quite bad
Looking at the last year, UNFI shows a small growth in Revenue. The Revenue has grown by 1.45% in the last year.
UNFI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.66% yearly.

EPS 1Y (TTM)226.47%

EPS 3Y-45.84%

EPS 5Y-24.53%

EPS Q2Q%250%

Revenue 1Y (TTM)1.45%

Revenue growth 3Y3.19%

Revenue growth 5Y3.66%

Sales Q2Q%-0.39%

3.2 Future

UNFI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.84% yearly.
Based on estimates for the next years, UNFI will show a small growth in Revenue. The Revenue will grow by 2.07% on average per year.

EPS Next Y210.47%

EPS Next 2Y98.76%

EPS Next 3Y70.6%

EPS Next 5Y36.84%

Revenue Next Year0.62%

Revenue Next 2Y1.38%

Revenue Next 3Y1.71%

Revenue Next 5Y2.07%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 33.54, which means the current valuation is very expensive for UNFI.
60.53% of the companies in the same industry are cheaper than UNFI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.30. UNFI is around the same levels.
With a Price/Forward Earnings ratio of 13.27, UNFI is valued correctly.
Based on the Price/Forward Earnings ratio, UNFI is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
UNFI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	33.54
Fwd PE	13.27

4.2 Price Multiples

68.42% of the companies in the same industry are more expensive than UNFI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, UNFI is valued cheaply inside the industry as 92.11% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	6.59
EV/EBITDA	8.29

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as UNFI's earnings are expected to grow with 70.60% in the coming years.