US Foods Holding Corp.
US Foods Holding Corp. Fundamental Analysis
US Foods Holding Corp. (USFD) shows weak financial fundamentals with a PE ratio of 30.25, profit margin of 1.71%, and ROE of 15.01%. The company generates $39.6B in annual revenue with moderate year-over-year growth of 6.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze USFD's fundamental strength across five key dimensions:
Efficiency Score
WeakUSFD struggles to generate sufficient returns from assets.
Valuation Score
ModerateUSFD shows balanced valuation metrics.
Growth Score
ModerateUSFD shows steady but slowing expansion.
Financial Health Score
ModerateUSFD shows balanced financial health with some risks.
Profitability Score
ModerateUSFD maintains healthy but balanced margins.
Key Financial Metrics
Is USFD Expensive or Cheap?
P/E Ratio
USFD trades at 30.25 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, USFD's PEG of 1.34 indicates fair valuation.
Price to Book
The market values US Foods Holding Corp. at 4.75 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.91 times EBITDA. This is generally considered low.
How Well Does USFD Make Money?
Net Profit Margin
For every $100 in sales, US Foods Holding Corp. keeps $1.71 as profit after all expenses.
Operating Margin
Core operations generate 3.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.01 in profit for every $100 of shareholder equity.
ROA
US Foods Holding Corp. generates $4.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
US Foods Holding Corp. generates limited operating cash flow of $1.37B, signaling weaker underlying cash strength.
Free Cash Flow
US Foods Holding Corp. generates weak or negative free cash flow of $962.20M, restricting financial flexibility.
FCF Per Share
Each share generates $4.32 in free cash annually.
FCF Yield
USFD converts 4.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How USFD Stacks Against Its Sector Peers
| Metric | USFD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.25 | 22.46 | Worse (Expensive) |
| ROE | 15.01% | 1260.00% | Weak |
| Net Margin | 1.71% | -5313.00% (disorted) | Weak |
| Debt/Equity | 1.33 | 0.84 | Weak (High Leverage) |
| Current Ratio | 1.16 | 2.49 | Neutral |
| ROA | 4.85% | -193380.00% (disorted) | Weak |
USFD outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews US Foods Holding Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
32.09%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
16.07%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
39.73%
Industry Style: Defensive, Dividend, Low Volatility
High Growth