US FOODS HOLDING CORP (USFD) Stock Fundamental Analysis
NYSE:USFD - New York Stock Exchange, Inc. - US9120081099 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to USFD. 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year USFD was profitable.
USFD had a positive operating cash flow in the past year.
USFD had positive earnings in 4 of the past 5 years.
USFD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of USFD (3.86%) is comparable to the rest of the industry.
USFD has a Return On Equity (11.42%) which is comparable to the rest of the industry.
The Return On Invested Capital of USFD (8.56%) is better than 67.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for USFD is in line with the industry average of 8.23%.
The 3 year average ROIC (6.85%) for USFD is below the current ROIC(8.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 11.42% | ||
| ROIC | 8.56% |
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
With a Profit Margin value of 1.38%, USFD perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
In the last couple of years the Profit Margin of USFD has declined.
The Operating Margin of USFD (3.06%) is better than 62.50% of its industry peers.
In the last couple of years the Operating Margin of USFD has grown nicely.
USFD's Gross Margin of 17.38% is on the low side compared to the rest of the industry. USFD is outperformed by 70.00% 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 | 3.06% | ||
| PM (TTM) | 1.38% | ||
| GM | 17.38% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), USFD is creating some value.
USFD has less shares outstanding than it did 1 year ago.
USFD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, USFD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.56 indicates that USFD is not in any danger for bankruptcy at the moment.
USFD has a Altman-Z score of 4.56. This is in the better half of the industry: USFD outperforms 65.00% of its industry peers.
USFD has a debt to FCF ratio of 4.61. This is a neutral value as USFD would need 4.61 years to pay back of all of its debts.
USFD has a Debt to FCF ratio of 4.61. This is comparable to the rest of the industry: USFD outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that USFD has dependencies on debt financing.
USFD has a worse Debt to Equity ratio (1.06) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 4.56 |
ROIC/WACC1.07
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.17 indicates that USFD should not have too much problems paying its short term obligations.
USFD has a Current ratio (1.17) which is comparable to the rest of the industry.
USFD has a Quick Ratio of 1.17. This is a bad value and indicates that USFD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of USFD (0.74) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
USFD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.60%, 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 6.32% 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)23.6%
EPS 3Y26.53%
EPS 5Y6.38%
EPS Q2Q%25.93%
Revenue 1Y (TTM)6.32%
Revenue growth 3Y8.7%
Revenue growth 5Y7.87%
Sales Q2Q%4.49%
3.2 Future
The Earnings Per Share is expected to grow by 11.42% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.65% on average over the next years.
EPS Next Y22.99%
EPS Next 2Y20.94%
EPS Next 3Y19.09%
EPS Next 5Y11.42%
Revenue Next Year5%
Revenue Next 2Y5.46%
Revenue Next 3Y5.19%
Revenue Next 5Y1.65%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.76, USFD is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of USFD is on the same level as its industry peers.
USFD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 16.97, which indicates a correct valuation of USFD.
Based on the Price/Forward Earnings ratio, USFD is valued a bit cheaper than 70.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of USFD to the average of the S&P500 Index (21.90), we can say USFD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.76 | ||
| Fwd PE | 16.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, USFD is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
72.50% of the companies in the same industry are more expensive than USFD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.68 | ||
| EV/EBITDA | 14.12 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
USFD's earnings are expected to grow with 19.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)3.73
EPS Next 2Y20.94%
EPS Next 3Y19.09%
5. Dividend
5.1 Amount
USFD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
78.42
+0.69 (+0.89%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners101.83%
Inst Owner Change3.37%
Ins Owners0.4%
Ins Owner Change5.34%
Market Cap18.14B
Analysts81.6
Price Target86.78 (10.66%)
Short Float %2.53%
Short Ratio2.87
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)1
Avg EPS beat(2)-0.68%
Min EPS beat(2)-3.94%
Max EPS beat(2)2.58%
EPS beat(4)2
Avg EPS beat(4)-0.68%
Min EPS beat(4)-3.94%
Max EPS beat(4)2.58%
EPS beat(8)3
Avg EPS beat(8)-0.88%
EPS beat(12)5
Avg EPS beat(12)0.39%
EPS beat(16)7
Avg EPS beat(16)7.01%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.95%
Revenue beat(4)0
Avg Revenue beat(4)-1.79%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)-1.08%
Revenue beat(8)0
Avg Revenue beat(8)-2.11%
Revenue beat(12)0
Avg Revenue beat(12)-1.78%
Revenue beat(16)3
Avg Revenue beat(16)-0.68%
PT rev (1m)7.64%
PT rev (3m)6.39%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)0.46%
EPS NY rev (1m)0.25%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.76 | ||
| Fwd PE | 16.97 | ||
| P/S | 0.47 | ||
| P/FCF | 16.68 | ||
| P/OCF | 12.72 | ||
| P/B | 3.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.12 |
EPS(TTM)3.3
EY4.21%
EPS(NY)4.62
Fwd EY5.89%
FCF(TTM)4.7
FCFY6%
OCF(TTM)6.16
OCFY7.86%
SpS165.46
BVpS19.95
TBVpS-8.56
PEG (NY)1.03
PEG (5Y)3.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 11.42% | ||
| ROCE | 11.55% | ||
| ROIC | 8.56% | ||
| ROICexc | 8.65% | ||
| ROICexgc | 24.2% | ||
| OM | 3.06% | ||
| PM (TTM) | 1.38% | ||
| GM | 17.38% | ||
| FCFM | 2.84% |
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-Score7
Asset Turnover2.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 4.61 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 75.96% | ||
| Cap/Sales | 0.88% | ||
| Interest Coverage | 4.14 | ||
| Cash Conversion | 88.13% | ||
| Profit Quality | 206.45% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 4.56 |
F-Score7
WACC7.97%
ROIC/WACC1.07
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)23.6%
EPS 3Y26.53%
EPS 5Y6.38%
EPS Q2Q%25.93%
EPS Next Y22.99%
EPS Next 2Y20.94%
EPS Next 3Y19.09%
EPS Next 5Y11.42%
Revenue 1Y (TTM)6.32%
Revenue growth 3Y8.7%
Revenue growth 5Y7.87%
Sales Q2Q%4.49%
Revenue Next Year5%
Revenue Next 2Y5.46%
Revenue Next 3Y5.19%
Revenue Next 5Y1.65%
EBIT growth 1Y14.78%
EBIT growth 3Y35.18%
EBIT growth 5Y10.06%
EBIT Next Year45.45%
EBIT Next 3Y20.1%
EBIT Next 5Y8.72%
FCF growth 1Y72.15%
FCF growth 3Y79.1%
FCF growth 5Y10.66%
OCF growth 1Y60.95%
OCF growth 3Y40.98%
OCF growth 5Y9.09%