The Chefs' Warehouse, Inc.
The Chefs' Warehouse, Inc. Fundamental Analysis
The Chefs' Warehouse, Inc. (CHEF) shows moderate financial fundamentals with a PE ratio of 31.81, profit margin of 1.74%, and ROE of 12.69%. The company generates $4.4B in annual revenue with strong year-over-year growth of 10.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CHEF's fundamental strength across five key dimensions:
Efficiency Score
WeakCHEF struggles to generate sufficient returns from assets.
Valuation Score
ModerateCHEF shows balanced valuation metrics.
Growth Score
ExcellentCHEF delivers strong and consistent growth momentum.
Financial Health Score
ModerateCHEF shows balanced financial health with some risks.
Profitability Score
WeakCHEF struggles to sustain strong margins.
Key Financial Metrics
Is CHEF Expensive or Cheap?
P/E Ratio
CHEF trades at 31.81 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CHEF's PEG of -8.86 indicates potential undervaluation.
Price to Book
The market values The Chefs' Warehouse, Inc. at 3.81 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.11 times EBITDA. This is generally considered low.
How Well Does CHEF Make Money?
Net Profit Margin
For every $100 in sales, The Chefs' Warehouse, Inc. keeps $1.74 as profit after all expenses.
Operating Margin
Core operations generate 3.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.69 in profit for every $100 of shareholder equity.
ROA
The Chefs' Warehouse, Inc. generates $3.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Chefs' Warehouse, Inc. generates limited operating cash flow of $135.79M, signaling weaker underlying cash strength.
Free Cash Flow
The Chefs' Warehouse, Inc. generates weak or negative free cash flow of $92.26M, restricting financial flexibility.
FCF Per Share
Each share generates $2.27 in free cash annually.
FCF Yield
CHEF converts 3.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-8.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How CHEF Stacks Against Its Sector Peers
| Metric | CHEF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.81 | 22.46 | Worse (Expensive) |
| ROE | 12.69% | 1260.00% | Weak |
| Net Margin | 1.74% | -5313.00% (disorted) | Weak |
| Debt/Equity | 1.95 | 0.84 | Weak (High Leverage) |
| Current Ratio | 2.05 | 2.49 | Strong Liquidity |
| ROA | 3.57% | -193380.00% (disorted) | Weak |
CHEF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Chefs' Warehouse, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
85.66%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
78.62%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
164.90%
Industry Style: Defensive, Dividend, Low Volatility
High Growth