DB:P5F

Stock Analysis Report

Performance Food Group

Executive Summary

Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products in the United States.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Performance Food Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: P5F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

P5F

0.2%

DE Consumer Retailing

0.3%

DE Market


1 Year Return

57.8%

P5F

0.6%

DE Consumer Retailing

13.8%

DE Market

Return vs Industry: P5F exceeded the German Consumer Retailing industry which returned 4.8% over the past year.

Return vs Market: P5F exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

P5FIndustryMarket
7 Day1.7%0.2%0.3%
30 Day3.1%-1.2%1.7%
90 Day24.2%0.5%5.7%
1 Year57.8%57.8%4.6%0.6%17.4%13.8%
3 Year126.2%126.2%2.7%-7.5%15.9%5.7%
5 Yearn/a14.5%-3.2%27.9%10.6%

Price Volatility Vs. Market

How volatile is Performance Food Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Performance Food Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: P5F (€45.4) is trading below our estimate of fair value (€66.07)

Significantly Below Fair Value: P5F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: P5F is poor value based on its PE Ratio (30.1x) compared to the Consumer Retailing industry average (19.2x).

PE vs Market: P5F is poor value based on its PE Ratio (30.1x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: P5F is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: P5F is overvalued based on its PB Ratio (4x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Performance Food Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: P5F's forecast earnings growth (20.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: P5F's earnings (20.4% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: P5F's revenue (10% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: P5F's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: P5F's Return on Equity is forecast to be low in 3 years time (16.4%).


Next Steps

Past Performance

How has Performance Food Group performed over the past 5 years?

31.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: P5F has high quality earnings.

Growing Profit Margin: P5F's current net profit margins (0.8%) are lower than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: P5F's earnings have grown significantly by 31.3% per year over the past 5 years.

Accelerating Growth: P5F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: P5F had negative earnings growth (-14.5%) over the past year, making it difficult to compare to the Consumer Retailing industry average (0.5%).


Return on Equity

High ROE: P5F's Return on Equity (13.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Performance Food Group's financial position?


Financial Position Analysis

Short Term Liabilities: P5F's short term assets ($3.8B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: P5F's short term assets ($3.8B) exceed its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: P5F's debt to equity ratio (165.9%) is considered high.

Reducing Debt: P5F's debt to equity ratio has reduced from 327.9% to 165.9% over the past 5 years.

Debt Coverage: P5F's debt is not well covered by operating cash flow (16.7%).

Interest Coverage: P5F's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Inventory Level: P5F has a high level of physical assets or inventory.

Debt Coverage by Assets: P5F's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Performance Food Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage3.5%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate P5F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate P5F's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if P5F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if P5F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of P5F's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Performance Food Group's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

George Holm (64yo)

17.3yrs

Tenure

US$6,061,690

Compensation

Mr. George L. Holm has been the Chief Executive Officer and President of Performance Food Group Company since September 2002. Mr. Holm served as an Acting Chief Executive Officer and President of Performan ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD6.06M) is above average for companies of similar size in the German market ($USD3.59M).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.8yrs

Average Tenure

57.5yo

Average Age

Experienced Management: P5F's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

62yo

Average Age

Experienced Board: P5F's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell€163,19820 Aug 19
Christine Vlahcevic
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & VP
Shares4,000
Max Price€40.80

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Erika Davis (55yo)

    Senior VP & Chief HR Officer

    • Tenure: 0.5yrs
  • Allen King (50yo)

    Senior VP

    • Tenure: 3.8yrs
  • George Holm (64yo)

    President

    • Tenure: 17.3yrs
    • Compensation: US$6.06m
  • Christine Vlahcevic (57yo)

    Chief Accounting Officer & VP

    • Jim Hope (59yo)

      Executive VP & CFO

      • Tenure: 1.8yrs
      • Compensation: US$2.21m
    • Craig Hoskins (58yo)

      President

      • Tenure: 0.9yrs
      • Compensation: US$1.46m
    • Pat Hagerty (61yo)

      Executive Vice President

      • Tenure: 11.3yrs
      • Compensation: US$1.72m
    • Trisha Meade

      Director of Communications & Engagement

      • Don Bulmer (54yo)

        Senior VP & Chief Information Officer

        • Tenure: 0.8yrs
      • Bill Marshall

        Vice President of Investor Relations


        Board Members

        • Manny Fernandez (73yo)

          Lead Independent Director

          • Tenure: 1yrs
          • Compensation: US$250.55k
        • Dave Singer (63yo)

          Independent Director

          • Tenure: 0.2yrs
        • Bill Dawson (55yo)

          Director

          • Tenure: 18yrs
          • Compensation: US$220.00k
        • Barbara Beck (58yo)

          Independent Director

          • Tenure: 0.2yrs
        • Matt Flanigan (57yo)

          Independent Director

          • Tenure: 0.2yrs
        • George Holm (64yo)

          President

          • Tenure: 17.3yrs
          • Compensation: US$6.06m
        • Jeff Overly (61yo)

          Independent Director

          • Tenure: 7yrs
          • Compensation: US$220.00k
        • Randy Spratt (67yo)

          Independent Director

          • Tenure: 1.7yrs
          • Compensation: US$226.25k
        • Kimberly Grant (48yo)

          Independent Director

          • Tenure: 2.5yrs
          • Compensation: US$220.00k
        • Meredith Adler (65yo)

          Independent Director

          • Tenure: 3.3yrs
          • Compensation: US$220.00k

        Company Information

        Performance Food Group Company's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Performance Food Group Company
        • Ticker: P5F
        • Exchange: DB
        • Founded: 2002
        • Industry: Food Distributors
        • Sector: Consumer Retailing
        • Market Cap: US$5.508b
        • Listing Market Cap: US$4.995b
        • Shares outstanding: 105.49m
        • Website: https://www.pfgc.com

        Number of Employees


        Location

        • Performance Food Group Company
        • 12500 West Creek Parkway
        • Richmond
        • Virginia
        • 23238
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        PFGCNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2015
        P5FDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2015

        Biography

        Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products in the United States. It operates in two segments, Foodservice and Vistar. The company offers a range of frozen foods, including meats, fully prepared appetizers and entrees, fruits, vegetables, and desserts; canned and dry foods; fresh meats; dairy products; beverage products; beverage products; imported specialties; fresh produce; and candy, snack, and other products, as well as beef, seafood, shortenings and oils, baked goods, salad dressings, teas and cocoas, pork, and others. It also supplies various non-food items, such as paper products comprising pizza boxes, disposable napkins, plates, and cups; tableware that include china and silverware; cookware, which comprise pots, pans, and utensils; restaurant and kitchen equipment and supplies; cigarettes and other tobacco products; and cleaning supplies. In addition, the company offers value-added services related to foodservice distribution, including electronic order-taking, payment, and other Internet based services; various reports and other data, menu planning advice, food safety training, and assistance in inventory control, as well as access to various third-party services designed to add value to its customers’ businesses. It serves street and chain restaurants, schools, business and industry locations, hospitals, vending distributors, office coffee service distributors, retailers, theaters, convenience stores, and hospitality providers, as well as franchises and other institutional customers. The company markets and distributes approximately 160,000 food and food-related products from 83 distribution centers to approximately 170,000 customer locations. Performance Food Group Company was founded in 2002 and is headquartered in Richmond, Virginia. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/25 23:00
        End of Day Share Price2020/01/24 00:00
        Earnings2019/09/28
        Annual Earnings2019/06/29


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.