NYSE:USFD

Stock Analysis Report

Executive Summary

US Foods Holding Corp., through its subsidiary, US Foods, Inc., markets and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.0%

USFD

0.6%

US Consumer Retailing

-1.1%

US Market


1 Year Return

13.1%

USFD

17.6%

US Consumer Retailing

17.8%

US Market

Return vs Industry: USFD underperformed the US Consumer Retailing industry which returned 17.6% over the past year.

Return vs Market: USFD underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

USFDIndustryMarket
7 Day-2.0%0.6%-1.1%
30 Day-4.0%2.5%1.5%
90 Day0.2%0.3%6.6%
1 Year13.1%13.1%19.8%17.6%20.2%17.8%
3 Year42.5%42.5%48.6%39.0%47.5%38.1%
5 Yearn/a48.3%32.9%71.2%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is US Foods Holding undervalued compared to its fair value and its price relative to the market?

46.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: USFD ($39.7) is trading below our estimate of fair value ($74.39)

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


Price To Earnings Ratio

PE vs Industry: USFD is poor value based on its PE Ratio (22.5x) compared to the Consumer Retailing industry average (22.1x).

PE vs Market: USFD is poor value based on its PE Ratio (22.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: USFD is overvalued based on its PB Ratio (2.4x) compared to the US Consumer Retailing industry average (2.1x).


Next Steps

Future Growth

How is US Foods Holding forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: USFD's forecast earnings growth (15.3% per year) is above the savings rate (1.7%).

Earnings vs Market: USFD's earnings (15.3% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: USFD's revenue (5.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: USFD's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: USFD's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has US Foods Holding performed over the past 5 years?

31.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: USFD has high quality earnings.

Growing Profit Margin: USFD's current net profit margins (1.5%) are lower than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: USFD has become profitable over the past 5 years, growing earnings by 31.7% per year.

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

Earnings vs Industry: USFD had negative earnings growth (-5.8%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-6%).


Return on Equity

High ROE: USFD's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is US Foods Holding's financial position?


Financial Position Analysis

Short Term Liabilities: USFD's short term assets ($3.3B) exceed its short term liabilities ($2.4B).

Long Term Liabilities: USFD's short term assets ($3.3B) do not cover its long term liabilities ($5.2B).


Debt to Equity History and Analysis

Debt Level: USFD's debt to equity ratio (124.2%) is considered high.

Reducing Debt: USFD's debt to equity ratio has reduced from 290.2% to 124.2% over the past 5 years.

Debt Coverage: USFD's debt is not well covered by operating cash flow (16.5%).

Interest Coverage: USFD's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: USFD's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is US Foods Holding's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years0%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if USFD'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 USFD'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?

4.3yrs

Average management tenure


CEO

Pietro Satriano (57yo)

4.6yrs

Tenure

US$8,607,146

Compensation

Mr. Pietro Satriano served as President at US Foods Holding Corp. Mr. Satriano has been an Independent Director at CarMax, Inc. since October 01, 2018. He has been the Chief Executive Officer and President ...


CEO Compensation Analysis

Compensation vs Market: Pietro's total compensation ($USD8.61M) is above average for companies of similar size in the US market ($USD6.37M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Pietro Satriano
Chairman & CEO4.6yrsUS$8.61m0.12% $10.6m
Dirk Locascio
Chief Financial Officer3yrsUS$1.76m0.018% $1.6m
Keith Rohland
Chief Information Officer8.8yrsUS$2.28m0.033% $2.9m
Steven Guberman
Executive Vice President of Nationally Managed Business4.6yrsUS$2.26m0.017% $1.5m
Jay Kvasnicka
Executive Vice President of Locally Managed Sales & Field Operations4.5yrsUS$2.19m0.012% $1.1m
Melissa Napier
Senior VP of Investor Relations & Treasurer4yrsno datano data
Kristin Coleman
Executive VP3yrsUS$2.56m0.0098% $853.6k
Sara Matheu
Director of Media Relations0yrsno datano data
David Works
Executive VP & Chief Human Resources Officer2yrsno datano data
David Rickard
Executive Vice President of Strategy4.3yrsno data0.019% $1.6m

4.3yrs

Average Tenure

51yo

Average Age

Experienced Management: USFD's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pietro Satriano
Chairman & CEO4.6yrsUS$8.61m0.12% $10.6m
Robert Dutkowsky
Lead Independent Director0yrsUS$245.02k0.0014% $126.6k
David Tehle
Independent Director3.6yrsUS$225.02k0.0018% $152.7k
Ann Ziegler
Independent Director2.1yrsUS$200.02k0.0017% $149.3k
Cheryl Bachelder
Independent Director1.3yrsUS$25.00k0.0015% $127.4k
Court Carruthers
Independent Director3.6yrsUS$220.02k0.0018% $152.7k
John Lederer
Director9.4yrsUS$200.02k0.059% $5.1m
Carl Pforzheimer
Independent Director3.1yrsUS$200.02k0.0014% $126.6k
Sunil Gupta
Independent Director1.9yrsUS$183.35k0.0017% $149.3k

2.6yrs

Average Tenure

61yo

Average Age

Experienced Board: USFD's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

US Foods Holding Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: US Foods Holding Corp.
  • Ticker: USFD
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: US$8.728b
  • Shares outstanding: 219.86m
  • Website: https://www.usfoods.com

Number of Employees


Location

  • US Foods Holding Corp.
  • 9399 West Higgins Road
  • Suite 100
  • Rosemont
  • Illinois
  • 60018
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
USFDNYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 2016
UFHDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2016
USFD *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNMay 2016

Biography

US Foods Holding Corp., through its subsidiary, US Foods, Inc., markets and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company’s customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. As of February 13, 2020, it maintained 92 operating facilities. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 00:59
End of Day Share Price2020/02/21 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


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.