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.

Rewards

Trading at 42% below its fair value

Earnings are forecast to grow 19.9% per year

Earnings grew by 5.7% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Acceptable track record and slightly overvalued.


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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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.7%

CHEF

0.6%

US Consumer Retailing

-0.09%

US Market


1 Year Return

8.8%

CHEF

17.7%

US Consumer Retailing

23.9%

US Market

Return vs Industry: CHEF underperformed the US Consumer Retailing industry which returned 18.2% over the past year.

Return vs Market: CHEF underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

CHEFIndustryMarket
7 Day-4.7%0.6%-0.09%
30 Day-3.6%-1.3%3.1%
90 Day-2.3%0.5%10.4%
1 Year8.8%8.8%20.0%17.7%26.6%23.9%
3 Year128.3%128.3%54.8%44.9%50.9%41.2%
5 Year72.4%72.4%47.1%31.2%78.1%58.5%

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?

44.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHEF ($38.52) is trading below our estimate of fair value ($66.45)

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


Price To Earnings Ratio

PE vs Industry: CHEF is poor value based on its PE Ratio (51.2x) compared to the Consumer Retailing industry average (22.9x).

PE vs Market: CHEF is poor value based on its PE Ratio (51.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CHEF is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: CHEF is overvalued based on its PB Ratio (3.6x) compared to the US Consumer Retailing industry average (2.4x).


Next Steps

Future Growth

How is Chefs' Warehouse forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

19.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHEF's forecast earnings growth (19.9% per year) is above the savings rate (1.7%).

Earnings vs Market: CHEF's earnings (19.9% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: CHEF's revenue (6.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: CHEF's revenue (6.1% 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 (10.7%).


Next Steps

Past Performance

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

13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHEF has high quality earnings.

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


Past Earnings Growth Analysis

Earnings Trend: CHEF's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: CHEF's earnings growth over the past year (5.7%) is below its 5-year average (13.9% per year).

Earnings vs Industry: CHEF earnings growth over the past year (5.7%) exceeded the Consumer Retailing industry -24.1%.


Return on Equity

High ROE: CHEF's Return on Equity (6.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Chefs' Warehouse's financial position?


Financial Position Analysis

Short Term Liabilities: CHEF's short term assets ($325.4M) exceed its short term liabilities ($138.4M).

Long Term Liabilities: CHEF's short term assets ($325.4M) do not cover its long term liabilities ($429.9M).


Debt to Equity History and Analysis

Debt Level: CHEF's debt to equity ratio (87%) is considered high.

Reducing Debt: CHEF's debt to equity ratio has reduced from 102.5% to 87% over the past 5 years.

Debt Coverage: CHEF's debt is not well covered by operating cash flow (12.5%).

Interest Coverage: CHEF's interest payments on its debt are not well covered by EBIT (2.8x 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

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

What is the CEO of Chefs' Warehouse's salary, the management and board of directors tenure and is there insider trading?

8.1yrs

Average management tenure


CEO

Chris Pappas (59yo)

35yrs

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 ($USD2.36M) is about average for companies of similar size in the US market ($USD2.53M).

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


Management Age and Tenure

8.1yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CHEF's management team is seasoned and experienced (8.1 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

59yo

Average Age

Experienced Board: CHEF's board of directors are considered experienced (7.3 years average tenure).


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

SellUS$33,99023 May 19
Timothy McCauley
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares1,000
Max PriceUS$33.99
BuyUS$29,87410 May 19
Joseph Cugine
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares905
Max PriceUS$33.01

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.5%.


Management Team

  • John Austin (57yo)

    Consultant

    • Compensation: US$1.38m
  • Jonathan Steckler (50yo)

    Executive Vice President of Supply Chain & Business Intelligence

    • Tenure: 7.3yrs
  • Tim McCauley (54yo)

    Chief Accounting Officer

    • Tenure: 1.9yrs
  • Chris Pappas (59yo)

    Founder

    • Tenure: 35yrs
    • Compensation: US$2.36m
  • Patricia Lecouras (63yo)

    Chief Human Resources Officer

    • Tenure: 12.8yrs
    • Compensation: US$648.12k
  • Alexandros Aldous (38yo)

    General Counsel

    • Tenure: 8.8yrs
    • Compensation: US$823.72k
  • John Pappas (55yo)

    Founder & Vice Chairman

    • Tenure: 8.8yrs
    • Compensation: US$1.30m
  • Ed Kauffeld

    Executive Vice President

    • Alex Holian

      Executive Vice President of Business Intelligence

      • Tenure: 3.6yrs
    • Jim Leddy (56yo)

      CFO & Assistant Secretary

      • Tenure: 2.2yrs
      • Compensation: US$885.42k

    Board Members

    • Steven Goldstone (73yo)

      Independent Director

      • Tenure: 3.8yrs
      • Compensation: US$112.51k
    • Stephen Hanson (69yo)

      Independent Director

      • Tenure: 8.5yrs
      • Compensation: US$112.01k
    • Katherine Oliver (56yo)

      Independent Director

      • Tenure: 4.2yrs
      • Compensation: US$107.76k
    • Alan Guarino (59yo)

      Independent Director

      • Tenure: 7.2yrs
      • Compensation: US$119.01k
    • Chris Pappas (59yo)

      Founder

      • Tenure: 35yrs
      • Compensation: US$2.36m
    • John Pappas (55yo)

      Founder & Vice Chairman

      • Tenure: 8.8yrs
      • Compensation: US$1.30m
    • Dominick Cerbone (74yo)

      Lead Director

      • Compensation: US$135.51k
    • Joe Cugine (58yo)

      Independent Director

      • Tenure: 7.3yrs
      • Compensation: US$113.01k

    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$1.118b
    • Shares outstanding: 30.33m
    • 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 Analysis2020/01/24 01:03
    End of Day Share Price2020/01/23 00:00
    Earnings2019/09/27
    Annual Earnings2018/12/28


    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.