DB:UN3

Stock Analysis Report

Executive Summary

United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has United Natural Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UN3's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-27.4%

UN3

3.9%

DE Consumer Retailing

2.2%

DE Market


1 Year Return

-38.7%

UN3

-8.6%

DE Consumer Retailing

-17.2%

DE Market

Return vs Industry: UN3 underperformed the German Consumer Retailing industry which returned -9.4% over the past year.

Return vs Market: UN3 underperformed the German Market which returned -17.7% over the past year.


Shareholder returns

UN3IndustryMarket
7 Day-27.4%3.9%2.2%
30 Day30.2%-1.5%-15.7%
90 Day2.9%-9.5%-24.0%
1 Year-38.7%-38.7%-5.0%-8.6%-14.9%-17.2%
3 Year-81.1%-81.1%-1.5%-11.1%-16.4%-23.3%
5 Year-89.0%-89.0%-5.6%-20.1%-16.5%-27.8%

Price Volatility Vs. Market

How volatile is United Natural Foods's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is United Natural Foods 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: UN3 (€7.86) is trading below our estimate of fair value (€49.11)

Significantly Below Fair Value: UN3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UN3 is unprofitable, so we can't compare its PE Ratio to the Consumer Retailing industry average.

PE vs Market: UN3 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UN3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UN3 is good value based on its PB Ratio (0.4x) compared to the XE Consumer Retailing industry average (1.3x).


Next Steps

Future Growth

How is United Natural Foods forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

62.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UN3 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: UN3 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: UN3's is expected to become profitable in the next 3 years.

Revenue vs Market: UN3's revenue (2.8% per year) is forecast to grow slower than the German market (4.1% per year).

High Growth Revenue: UN3's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UN3's Return on Equity is forecast to be low in 3 years time (2.9%).


Next Steps

Past Performance

How has United Natural Foods performed over the past 5 years?

-57.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UN3 is currently unprofitable.

Growing Profit Margin: UN3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UN3 is unprofitable, and losses have increased over the past 5 years at a rate of -57.8% per year.

Accelerating Growth: Unable to compare UN3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: UN3 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (2.2%).


Return on Equity

High ROE: UN3 has a negative Return on Equity (-36.99%), as it is currently unprofitable.


Next Steps

Financial Health

How is United Natural Foods's financial position?


Financial Position Analysis

Short Term Liabilities: UN3's short term assets ($3.6B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: UN3's short term assets ($3.6B) do not cover its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: UN3's debt to equity ratio (275.1%) is considered high.

Reducing Debt: UN3's debt to equity ratio has increased from 42.5% to 275.1% over the past 5 years.


Balance Sheet

Inventory Level: UN3 has a high level of physical assets or inventory.

Debt Coverage by Assets: UN3's debt is covered by short term assets (assets are 1.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: UN3 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: UN3 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is United Natural Foods's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate UN3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate UN3'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 UN3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UN3'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 UN3's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Steve Spinner (59yo)

11.42s

Tenure

US$7,100,862

Compensation

Mr. Steven L. Spinner, also known as Steve, has been the Chief Executive Officer of United Natural Foods, Inc. (UNFI) since September 2008 and served as its President since September 2008 until August 1, 2 ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD7.10M) is above average for companies of similar size in the German market ($USD1.03M).

Compensation vs Earnings: Steve's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Spinner
Chairman & CEO11.42yrsUS$7.10m0.40% $1.7m
Christopher Testa
President & Chief Marketing Officer1.58yrsUS$1.52m0.035% $145.2k
Michael Funk
Co-Founder & Director24yrsUS$489.75k0.11% $468.4k
Jill Sutton
Chief Legal Officer1.83yrsUS$1.50m0.010% $42.6k
Sean Griffin
no dataUS$3.74m0.15% $626.0k
John Howard
Interim Chief Financial Officer0.58yrno datano data
Eric Dorne
Chief Operating Officerno dataUS$1.12m0.029% $121.4k
Steven Bloomquist
Vice President Investor Relationsno datano datano data
Jeffrey Swanson
Vice President of Corporate Communications & Media Relationsno datano datano data
Danielle Benedict
Chief Human Resource Officer2.42yrsno data0.020% $84.4k

1.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: UN3's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Steven Spinner
Chairman & CEO11.42yrsUS$7.10m0.40% $1.7m
Michael Funk
Co-Founder & Director24yrsUS$489.75k0.11% $468.4k
Daphne Dufresne
Independent Director3.42yrsUS$245.41k0.027% $110.9k
Peter Roy
Lead Independent Director0.42yrUS$256.75k0.092% $378.7k
James Heffernan
Independent Director20yrsUS$340.00k0.055% $227.6k
Jack Stahl
Independent Director0.67yrUS$23.98kno data
James Muehlbauer
Independent Director0.83yrUS$39.81k0.056% $231.1k
Ann Bates
Independent Director6.42yrsUS$297.75k0.078% $323.4k
Eric Artz
Independent Director4.42yrsUS$243.50k0.033% $136.5k
Denise Clark
Independent Director7yrsUS$243.77k0.046% $190.1k

3.9yrs

Average Tenure

61yo

Average Age

Experienced Board: UN3's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: UN3 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.


Top Shareholders

Company Information

United Natural Foods, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Natural Foods, Inc.
  • Ticker: UN3
  • Exchange: DB
  • Founded: 1976
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: US$455.752m
  • Listing Market Cap: US$413.093m
  • Shares outstanding: 53.62m
  • Website: https://www.unfi.com

Number of Employees


Location

  • United Natural Foods, Inc.
  • 313 Iron Horse Way
  • Providence
  • Rhode Island
  • 2908
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UNFINYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1996
UN3DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1996
UN3BRSE (Berne Stock Exchange)YesCommon StockCHCHFNov 1996

Biography

United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It operates through Wholesale and Other segments. The company offers grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements and sports nutrition, bulk and foodservice products, and personal care items. It also distributes an array of specialty protein, cheese, deli, food service, and bakery goods; and organic and conventional produce and non-produce perishable items, and natural and organic specialty and gourmet ethnic products, as well as vitamins, minerals, and supplements. In addition, the company is involved in importing, roasting, packaging, and distributing nuts, dried fruits, seeds, trail mixes, granola, natural and organic snack items, and confections; sale of natural foods and related products to the general public through retail storefronts; and marketing various products on behalf of food vendors. Further, it offers Blue Marble Brands products on wholesale basis through third-party distributors in organic, natural, and specialty food brands, as well as directly to retailers; and Field Day brand products primarily to customers through its independent channel. The company serves supermarket, supernatural, and independent customers, as well as foodservice, e-commerce, and international customers. United Natural Foods, Inc. was founded in 1976 and is headquartered in Providence, Rhode Island. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 21:59
End of Day Share Price2020/03/31 00:00
Earnings2020/02/01
Annual Earnings2019/08/03


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.