US FOODS HOLDING CORP (USFD) Stock Fundamental Analysis
NYSE:USFD - New York Stock Exchange, Inc. - US9120081099 - Common Stock - Currency: USD
Taking everything into account, USFD scores 5 out of 10 in our fundamental rating. USFD was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. USFD has only an average score on both its financial health and profitability. USFD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
USFD had positive earnings in the past year.
USFD had a positive operating cash flow in the past year.
Of the past 5 years USFD 4 years were profitable.
Each year in the past 5 years USFD had a positive operating cash flow.
1.2 Ratios
USFD has a Return On Assets (3.68%) which is in line with its industry peers.
The Return On Equity of USFD (10.91%) is better than 61.54% of its industry peers.
USFD has a better Return On Invested Capital (8.20%) than 69.23% of its industry peers.
USFD had an Average Return On Invested Capital over the past 3 years of 6.85%. This is in line with the industry average of 8.44%.
The 3 year average ROIC (6.85%) for USFD is below the current ROIC(8.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 10.91% | ||
| ROIC | 8.2% |
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
USFD's Profit Margin of 1.30% is in line compared to the rest of the industry. USFD outperforms 56.41% of its industry peers.
In the last couple of years the Profit Margin of USFD has declined.
With a decent Operating Margin value of 2.96%, USFD is doing good in the industry, outperforming 64.10% of the companies in the same industry.
USFD's Operating Margin has improved in the last couple of years.
The Gross Margin of USFD (17.25%) is worse than 79.49% of its industry peers.
In the last couple of years the Gross Margin of USFD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.96% | ||
| PM (TTM) | 1.3% | ||
| GM | 17.25% |
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
USFD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for USFD has been reduced compared to 1 year ago.
Compared to 5 years ago, USFD has more shares outstanding
The debt/assets ratio for USFD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.49 indicates that USFD is not in any danger for bankruptcy at the moment.
USFD's Altman-Z score of 4.49 is fine compared to the rest of the industry. USFD outperforms 61.54% of its industry peers.
The Debt to FCF ratio of USFD is 6.18, which is on the high side as it means it would take USFD, 6.18 years of fcf income to pay off all of its debts.
USFD's Debt to FCF ratio of 6.18 is fine compared to the rest of the industry. USFD outperforms 61.54% of its industry peers.
USFD has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.11, USFD is doing worse than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 4.49 |
ROIC/WACC1.05
WACC7.84%
2.3 Liquidity
A Current Ratio of 1.21 indicates that USFD should not have too much problems paying its short term obligations.
The Current ratio of USFD (1.21) is better than 61.54% of its industry peers.
A Quick Ratio of 0.71 indicates that USFD may have some problems paying its short term obligations.
USFD has a Quick ratio (0.71) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
USFD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.15%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.38% on average over the past years.
The Revenue has been growing slightly by 6.41% in the past year.
USFD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.87% yearly.
EPS 1Y (TTM)20.15%
EPS 3Y26.53%
EPS 5Y6.38%
EPS Q2Q%31.25%
Revenue 1Y (TTM)6.41%
Revenue growth 3Y8.7%
Revenue growth 5Y7.87%
Sales Q2Q%6.21%
3.2 Future
Based on estimates for the next years, USFD will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.42% on average per year.
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 Y23.53%
EPS Next 2Y21.72%
EPS Next 3Y19.88%
EPS Next 5Y11.42%
Revenue Next Year5.26%
Revenue Next 2Y5.52%
Revenue Next 3Y5.11%
Revenue Next 5Y1.65%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.19 indicates a rather expensive valuation of USFD.
Compared to the rest of the industry, the Price/Earnings ratio of USFD is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.75, USFD is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.96 indicates a rather expensive valuation of USFD.
Based on the Price/Forward Earnings ratio, USFD is valued a bit cheaper than the industry average as 64.10% of the companies are valued more expensively.
USFD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.19 | ||
| Fwd PE | 17.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as USFD.
USFD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. USFD is cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.61 | ||
| EV/EBITDA | 13.82 |
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.
The decent profitability rating of USFD may justify a higher PE ratio.
USFD's earnings are expected to grow with 19.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)3.48
EPS Next 2Y21.72%
EPS Next 3Y19.88%
5. Dividend
5.1 Amount
No dividends for USFD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
70.11
-1.57 (-2.19%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.37%
Inst Owner Change-1.36%
Ins Owners0.36%
Ins Owner Change1.83%
Market Cap16.33B
Analysts82.5
Price Target81.54 (16.3%)
Short Float %1.28%
Short Ratio1.5
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)2
Avg EPS beat(2)1.51%
Min EPS beat(2)0.43%
Max EPS beat(2)2.58%
EPS beat(4)2
Avg EPS beat(4)0.19%
Min EPS beat(4)-1.8%
Max EPS beat(4)2.58%
EPS beat(8)4
Avg EPS beat(8)1.84%
EPS beat(12)6
Avg EPS beat(12)5.57%
EPS beat(16)8
Avg EPS beat(16)16.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)-1.86%
Revenue beat(4)0
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)-1.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.99%
Revenue beat(12)1
Avg Revenue beat(12)-1.38%
Revenue beat(16)4
Avg Revenue beat(16)-0.31%
PT rev (1m)5.08%
PT rev (3m)9.78%
EPS NQ rev (1m)-2.28%
EPS NQ rev (3m)-1.36%
EPS NY rev (1m)0.25%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.19 | ||
| Fwd PE | 17.96 | ||
| P/S | 0.43 | ||
| P/FCF | 19.61 | ||
| P/OCF | 13.91 | ||
| P/B | 3.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.82 |
EPS(TTM)3.16
EY4.51%
EPS(NY)3.9
Fwd EY5.57%
FCF(TTM)3.58
FCFY5.1%
OCF(TTM)5.04
OCFY7.19%
SpS162.6
BVpS19.44
TBVpS-8.9
PEG (NY)0.94
PEG (5Y)3.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 10.91% | ||
| ROCE | 11.07% | ||
| ROIC | 8.2% | ||
| ROICexc | 8.25% | ||
| ROICexgc | 22.98% | ||
| OM | 2.96% | ||
| PM (TTM) | 1.3% | ||
| GM | 17.25% | ||
| FCFM | 2.2% |
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-Score5
Asset Turnover2.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 6.18 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 77.85% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 3.95 | ||
| Cash Conversion | 75.26% | ||
| Profit Quality | 168.62% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 4.49 |
F-Score5
WACC7.84%
ROIC/WACC1.05
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)20.15%
EPS 3Y26.53%
EPS 5Y6.38%
EPS Q2Q%31.25%
EPS Next Y23.53%
EPS Next 2Y21.72%
EPS Next 3Y19.88%
EPS Next 5Y11.42%
Revenue 1Y (TTM)6.41%
Revenue growth 3Y8.7%
Revenue growth 5Y7.87%
Sales Q2Q%6.21%
Revenue Next Year5.26%
Revenue Next 2Y5.52%
Revenue Next 3Y5.11%
Revenue Next 5Y1.65%
EBIT growth 1Y8.83%
EBIT growth 3Y35.18%
EBIT growth 5Y10.06%
EBIT Next Year47.33%
EBIT Next 3Y19.58%
EBIT Next 5Y8.72%
FCF growth 1Y0.24%
FCF growth 3Y79.1%
FCF growth 5Y10.66%
OCF growth 1Y2.98%
OCF growth 3Y40.98%
OCF growth 5Y9.09%