NasdaqGS:CHEF

Stock Analysis Report

Executive Summary

The Chefs' Warehouse, Inc., together with its subsidiaries, distributes specialty food products in the United States and Canada.


Snowflake Analysis

Very undervalued with solid track record.


Similar Companies

Share Price & News

How has Chefs' Warehouse's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-15.2%

CHEF

4.2%

US Consumer Retailing

-2.0%

US Market


1 Year Return

-71.3%

CHEF

9.3%

US Consumer Retailing

-15.1%

US Market

Return vs Industry: CHEF underperformed the US Consumer Retailing industry which returned 9.2% over the past year.

Return vs Market: CHEF underperformed the US Market which returned -14.9% over the past year.


Shareholder returns

CHEFIndustryMarket
7 Day-15.2%4.2%-2.0%
30 Day-69.6%-5.4%-19.7%
90 Day-76.3%-7.4%-23.2%
1 Year-71.3%-71.3%11.3%9.3%-13.4%-15.1%
3 Year-35.1%-35.1%38.9%30.1%10.9%3.7%
5 Year-57.9%-57.9%37.6%23.4%28.4%14.4%

Price Volatility Vs. Market

How volatile is Chefs' Warehouse's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chefs' Warehouse 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: CHEF ($9.08) is trading below our estimate of fair value ($39.99)

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


Price To Earnings Ratio

PE vs Industry: CHEF is good value based on its PE Ratio (11.1x) compared to the Consumer Retailing industry average (16.2x).

PE vs Market: CHEF is good value based on its PE Ratio (11.1x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: CHEF is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: CHEF is good value based on its PB Ratio (0.8x) compared to the US Consumer Retailing industry average (1.2x).


Next Steps

Future Growth

How is Chefs' Warehouse forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHEF's forecast earnings growth (14.3% per year) is above the savings rate (1.7%).

Earnings vs Market: CHEF's earnings (14.3% per year) are forecast to grow faster than the US market (12.2% per year).

High Growth Earnings: CHEF's earnings are forecast to grow, but not significantly.

Revenue vs Market: CHEF's revenue (1.3% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: CHEF's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHEF's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Chefs' Warehouse performed over the past 5 years?

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHEF has high quality earnings.

Growing Profit Margin: CHEF's current net profit margins (1.5%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: CHEF's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: CHEF's earnings growth over the past year (18.5%) exceeds its 5-year average (16.9% per year).

Earnings vs Industry: CHEF earnings growth over the past year (18.5%) exceeded the Consumer Retailing industry -0.6%.


Return on Equity

High ROE: CHEF's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is Chefs' Warehouse's financial position?


Financial Position Analysis

Short Term Liabilities: CHEF's short term assets ($453.2M) exceed its short term liabilities ($150.2M).

Long Term Liabilities: CHEF's short term assets ($453.2M) do not cover its long term liabilities ($527.6M).


Debt to Equity History and Analysis

Debt Level: CHEF's debt to equity ratio (114%) is considered high.

Reducing Debt: CHEF's debt to equity ratio has increased from 97.8% to 114% over the past 5 years.

Debt Coverage: CHEF's debt is not well covered by operating cash flow (11.8%).

Interest Coverage: CHEF's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

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

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


Next Steps

Dividend

What is Chefs' Warehouse's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

Chris Pappas (59yo)

35.25s

Tenure

US$2,356,196

Compensation

Mr. Christopher Pappas, also known as Chris, serves as Chairman, Chief Executive Officer and President at Qzina Specialty Foods, Inc. Mr. Pappas Founded The Chefs' Warehouse, Inc., an affiliate of DAIRYLAN ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.36M) is above average for companies of similar size in the US market ($USD1.49M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Pappas
Founder35.25yrsUS$2.36m10.64% $29.4m
John Pappas
Founder & Vice Chairman9.08yrsUS$1.30m4.61% $12.8m
James Leddy
CFO & Assistant Secretary2.42yrsUS$885.42k0.28% $764.5k
Alexandros Aldous
General Counsel9.08yrsUS$823.72k0.38% $1.0m
Patricia Lecouras
Chief Human Resources Officer13.08yrsUS$648.12k0.33% $920.9k
Timothy McCauley
Chief Accounting Officer2.17yrsno data0.18% $492.7k
Ed Kauffeld
Executive Vice Presidentno datano datano data
Jonathan Steckler
Executive Vice President of Supply Chain & Business Intelligence7.58yrsno datano data
Alex Holian
Executive Vice President of Business Intelligence3.83yrsno datano data

8.3yrs

Average Tenure

55yo

Average Age

Experienced Management: CHEF's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Pappas
Founder35.25yrsUS$2.36m10.64% $29.4m
John Pappas
Founder & Vice Chairman9.08yrsUS$1.30m4.61% $12.8m
Steven Goldstone
Independent Director4.08yrsUS$112.51k0.040% $110.9k
Stephen Hanson
Independent Director8.75yrsUS$112.01k0.20% $563.2k
Katherine Oliver
Independent Director4.42yrsUS$107.76k0.053% $146.0k
Alan Guarino
Independent Director7.42yrsUS$119.01k0.10% $285.4k
Dominick Cerbone
Lead Directorno dataUS$135.51k0.068% $188.5k
Joseph Cugine
Independent Director7.58yrsUS$113.01k0.080% $220.7k

7.6yrs

Average Tenure

59yo

Average Age

Experienced Board: CHEF's board of directors are considered experienced (7.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CHEF 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 2.9%.


Top Shareholders

Company Information

The Chefs' Warehouse, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Chefs' Warehouse, Inc.
  • Ticker: CHEF
  • Exchange: NasdaqGS
  • Founded: 1985
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: US$276.619m
  • Shares outstanding: 30.46m
  • Website: https://www.chefswarehouse.com

Number of Employees


Location

  • The Chefs' Warehouse, Inc.
  • 100 East Ridge Road
  • Ridgefield
  • Connecticut
  • 6877
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHEFNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJul 2011
2CFDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2011

Biography

The Chefs' Warehouse, Inc., together with its subsidiaries, distributes specialty food products in the United States and Canada. Its product portfolio includes approximately 55,000 stock-keeping units comprising specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products. The company also offers a line of center-of-the-plate products, including custom cut beef, seafood, and hormone-free poultry, as well as food products, such as cooking oils, butter, eggs, milk, and flour. It serves menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos, and specialty food stores. The company markets its center-of-the-plate products directly to consumers through a mail and e-commerce platform. The Chefs' Warehouse, Inc. was founded in 1985 and is headquartered in Ridgefield, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 03:58
End of Day Share Price2020/04/02 00:00
Earnings2019/12/27
Annual Earnings2019/12/27


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.