US FOODS HOLDING CORP (USFD) Stock Fundamental Analysis
NYSE:USFD - New York Stock Exchange, Inc. - US9120081099 - Common Stock - Currency: USD
USFD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 40 industry peers in the Consumer Staples Distribution & Retail industry. USFD has an average financial health and profitability rating. USFD has a correct valuation and a medium growth rate.
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.
Of the past 5 years USFD 4 years were profitable.
USFD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
USFD has a Return On Assets (3.68%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 10.91%, USFD is in line with its industry, outperforming 57.50% of the companies in the same industry.
The Return On Invested Capital of USFD (8.20%) is better than 70.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for USFD is in line with the industry average of 8.15%.
The last Return On Invested Capital (8.20%) for USFD is above the 3 year average (6.85%), which is a sign of increasing profitability.
| 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
The Profit Margin of USFD (1.30%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of USFD has declined.
USFD has a Operating Margin of 2.96%. This is in the better half of the industry: USFD outperforms 62.50% of its industry peers.
In the last couple of years the Operating Margin of USFD has grown nicely.
Looking at the Gross Margin, with a value of 17.25%, USFD is doing worse than 72.50% of the companies in the same industry.
USFD's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so USFD is still 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.
USFD has a worse debt/assets ratio than last year.
2.2 Solvency
USFD has an Altman-Z score of 4.31. This indicates that USFD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.31, USFD is in line with its industry, outperforming 60.00% of the companies in the same industry.
USFD has a debt to FCF ratio of 6.18. This is a slightly negative value and a sign of low solvency as USFD would need 6.18 years to pay back of all of its debts.
USFD has a Debt to FCF ratio (6.18) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.11 is on the high side and indicates that USFD has dependencies on debt financing.
USFD has a worse Debt to Equity ratio (1.11) than 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 4.31 |
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.
Looking at the Current ratio, with a value of 1.21, USFD is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
USFD has a Quick Ratio of 1.21. This is a bad value and indicates that USFD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.71, USFD is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.15% over the past year.
The Earnings Per Share has been growing slightly by 6.38% on average over the past years.
USFD shows a small growth in Revenue. In the last year, the Revenue has grown by 6.41%.
The Revenue has been growing slightly by 7.87% on average over the past years.
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
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 Y22.94%
EPS Next 2Y21.25%
EPS Next 3Y19.65%
EPS Next 5Y11.42%
Revenue Next Year5.11%
Revenue Next 2Y5.4%
Revenue Next 3Y4.95%
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
USFD is valuated rather expensively with a Price/Earnings ratio of 20.02.
The rest of the industry has a similar Price/Earnings ratio as USFD.
Compared to an average S&P500 Price/Earnings ratio of 28.33, USFD is valued a bit cheaper.
USFD is valuated correctly with a Price/Forward Earnings ratio of 16.29.
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 (21.37), we can say USFD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.02 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as USFD.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of USFD indicates a somewhat cheap valuation: USFD is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.51 | ||
| EV/EBITDA | 12.16 |
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 USFD's earnings are expected to grow with 19.65% in the coming years.
PEG (NY)0.87
PEG (5Y)3.14
EPS Next 2Y21.25%
EPS Next 3Y19.65%
5. Dividend
5.1 Amount
USFD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.27
+2.12 (+3.47%)
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 Change0.04%
Ins Owners0.36%
Ins Owner Change4.9%
Market Cap14.59B
Analysts81.67
Price Target81.43 (28.7%)
Short Float %2.36%
Short Ratio2.35
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)-0.59%
PT rev (3m)7.18%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-1.76%
EPS NY rev (1m)-0.48%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.02 | ||
| Fwd PE | 16.29 | ||
| P/S | 0.39 | ||
| P/FCF | 17.51 | ||
| P/OCF | 12.42 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.16 |
EPS(TTM)3.16
EY4.99%
EPS(NY)3.88
Fwd EY6.14%
FCF(TTM)3.61
FCFY5.71%
OCF(TTM)5.09
OCFY8.05%
SpS164.31
BVpS19.64
TBVpS-9
PEG (NY)0.87
PEG (5Y)3.14
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 | 4.31 |
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 Y22.94%
EPS Next 2Y21.25%
EPS Next 3Y19.65%
EPS Next 5Y11.42%
Revenue 1Y (TTM)6.41%
Revenue growth 3Y8.7%
Revenue growth 5Y7.87%
Sales Q2Q%6.21%
Revenue Next Year5.11%
Revenue Next 2Y5.4%
Revenue Next 3Y4.95%
Revenue Next 5Y1.65%
EBIT growth 1Y8.83%
EBIT growth 3Y35.18%
EBIT growth 5Y10.06%
EBIT Next Year47.18%
EBIT Next 3Y20.23%
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%