USFD 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. Both the profitability and the financial health of USFD get a neutral evaluation. Nothing too spectacular is happening here. USFD has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year USFD was profitable.
In the past year USFD had a positive cash flow from operations.
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

USFD has a Return On Assets (3.97%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 12.48%, USFD is in line with its industry, outperforming 55.26% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.74%, USFD is doing good in the industry, outperforming 65.79% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for USFD is significantly below the industry average of 28.30%.
The 3 year average ROIC (6.85%) for USFD is below the current ROIC(8.74%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	3.97%
ROE	12.48%
ROIC	8.74%

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

Looking at the Profit Margin, with a value of 1.43%, USFD is in line with its industry, outperforming 50.00% of the companies in the same industry.
USFD's Profit Margin has declined in the last couple of years.
USFD's Operating Margin of 3.07% is in line compared to the rest of the industry. USFD outperforms 57.89% of its industry peers.
USFD's Operating Margin has improved in the last couple of years.
USFD has a Gross Margin of 17.41%. This is in the lower half of the industry: USFD underperforms 68.42% 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	3.07%
PM (TTM)	1.43%
GM	17.41%

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%

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ROA

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ROIC

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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.
The number of shares outstanding for USFD has been increased compared to 5 years ago.
The debt/assets ratio for USFD is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 4.50 indicates that USFD is not in any danger for bankruptcy at the moment.
USFD has a better Altman-Z score (4.50) than 60.53% of its industry peers.
The Debt to FCF ratio of USFD is 5.23, which is a neutral value as it means it would take USFD, 5.23 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.23, USFD is in line with its industry, outperforming 55.26% of the companies in the same industry.
USFD has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.12, USFD is not doing good in the industry: 71.05% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	1.12
Debt/FCF	5.23
Altman-Z	4.5

ROIC/WACC1.11

WACC7.87%

2.3 Liquidity

USFD has a Current Ratio of 1.15. This is a normal value and indicates that USFD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.15, USFD is in line with its industry, outperforming 52.63% of the companies in the same industry.
A Quick Ratio of 0.70 indicates that USFD may have some problems paying its short term obligations.
USFD has a Quick ratio of 0.70. This is in the better half of the industry: USFD outperforms 60.53% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.15
Quick Ratio	0.7

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 27.70% over the past year.
USFD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.38% yearly.
USFD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.80%.
The Revenue has been growing slightly by 7.87% on average over the past years.

EPS 1Y (TTM)27.7%

EPS 3Y26.53%

EPS 5Y6.38%

EPS Q2Q%25.88%

Revenue 1Y (TTM)4.8%

Revenue growth 3Y8.7%

Revenue growth 5Y7.87%

Sales Q2Q%4.76%

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 Y27.32%

EPS Next 2Y23.03%

EPS Next 3Y21.13%

EPS Next 5Y11.42%

Revenue Next Year4.41%

Revenue Next 2Y5.3%

Revenue Next 3Y4.91%

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.
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

The Price/Earnings ratio is 21.23, which indicates a rather expensive current valuation of USFD.
The rest of the industry has a similar Price/Earnings ratio as USFD.
USFD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.78, which indicates a correct valuation of USFD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of USFD indicates a somewhat cheap valuation: USFD is cheaper than 63.16% of the companies listed in the same industry.
USFD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	21.23
Fwd PE	16.78

4.2 Price Multiples

USFD's Enterprise Value to EBITDA ratio is in line with the industry average.
63.16% 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	18.3
EV/EBITDA	13.88

4.3 Compensation for Growth

USFD's 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 USFD's earnings are expected to grow with 21.13% in the coming years.