Is US Foods Stock a Good Investment?
US Foods Investment Advice | USFD |
- Examine US Foods' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research US Foods' leadership team and their track record. Good management can help US Foods navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Consumer Staples Distribution & Retail space and any emerging trends that could impact US Foods' business and its evolving consumer preferences.
- Compare US Foods' performance and market position to its competitors. Analyze how US Foods is positioned in terms of product offerings, innovation, and market share.
- Check if US Foods pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about US Foods' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in US Foods Holding stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if US Foods Holding is a good investment.
Sell | Buy |
Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine US Foods Stock
Researching US Foods' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 100.0% of the company outstanding shares are owned by institutional investors. The book value of US Foods was at this time reported as 19.57. The company has Price/Earnings To Growth (PEG) ratio of 0.24. US Foods Holding had not issued any dividends in recent years.
To determine if US Foods is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding US Foods' research are outlined below:
| US Foods Holding has a strong financial position based on the latest SEC filings | |
| Over 100.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from gurufocus.com: US Foods to Host Fourth Quarter and Fiscal Year 2024 Financial Results Conference Call and Webcast |
US Foods Quarterly Cost Of Revenue |
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US Foods uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in US Foods Holding. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to US Foods' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 15th of February 2024 Upcoming Quarterly Report | View | |
| 9th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 15th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact US Foods' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises US Foods' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2020-11-02 | 2020-09-30 | 0.17 | 0.15 | -0.02 | 11 | ||
2018-05-08 | 2018-03-31 | 0.31 | 0.35 | 0.04 | 12 | ||
2021-02-16 | 2020-12-31 | 0.1 | 0.05 | -0.05 | 50 | ||
2016-11-08 | 2016-09-30 | 0.33 | 0.39 | 0.06 | 18 | ||
2021-05-10 | 2021-03-31 | 0.05 | 0.12 | 0.07 | 140 | ||
2020-05-05 | 2020-03-31 | 0.22 | 0.15 | -0.07 | 31 | ||
2017-02-15 | 2016-12-31 | 0.46 | 0.53 | 0.07 | 15 | ||
2023-05-11 | 2023-03-31 | 0.42 | 0.5 | 0.08 | 19 |
US Foods Target Price Consensus
USFD target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. US Foods' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 17 | Strong Buy |
Most USFD analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand USFD stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of US Foods Holding, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationUS Foods Target Price Projection
US Foods' current and average target prices are 71.72 and 76.95, respectively. The current price of US Foods is the price at which US Foods Holding is currently trading. On the other hand, US Foods' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On US Foods Target Price
US Foods Analyst Ratings
US Foods' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about US Foods stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of US Foods' financials, market performance, and future outlook by experienced professionals. US Foods' historical ratings below, therefore, can serve as a valuable tool for investors.Know US Foods' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as US Foods is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading US Foods Holding backward and forwards among themselves. US Foods' institutional investor refers to the entity that pools money to purchase US Foods' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Sachem Head Capital Management Lp | 2024-09-30 | 4.8 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 4.7 M | Dorsal Capital Management Llc | 2024-09-30 | 4.5 M | Jpmorgan Chase & Co | 2024-09-30 | 4 M | Geode Capital Management, Llc | 2024-09-30 | 4 M | Ci Investments Inc | 2024-09-30 | 3.8 M | Atalan Capital Partners, Lp | 2024-09-30 | 2.9 M | Norges Bank | 2024-06-30 | 2.3 M | Ameriprise Financial Inc | 2024-09-30 | 2.1 M | Vanguard Group Inc | 2024-09-30 | 24.1 M | Fmr Inc | 2024-09-30 | 22 M |
US Foods' market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 16.66 B.Market Cap |
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US Foods' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.04 | 0.03 | |
| Return On Capital Employed | 0.05 | 0.04 | |
| Return On Assets | 0.02 | 0.02 | |
| Return On Equity | 0.05 | 0.05 |
Determining US Foods' profitability involves analyzing its financial statements and using various financial metrics to determine if US Foods is a good buy. For example, gross profit margin measures US Foods' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of US Foods' profitability and make more informed investment decisions.
Please note, the presentation of US Foods' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, US Foods' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of US Foods' management manipulating its earnings.
Evaluate US Foods' management efficiency
US Foods Holding has return on total asset (ROA) of 0.0521 % which means that it generated a profit of $0.0521 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1237 %, meaning that it created $0.1237 on every $100 dollars invested by stockholders. US Foods' management efficiency ratios could be used to measure how well US Foods manages its routine affairs as well as how well it operates its assets and liabilities. As of January 30, 2025, Return On Tangible Assets is expected to decline to 0.03. In addition to that, Return On Capital Employed is expected to decline to 0.04. At present, US Foods' Deferred Long Term Asset Charges is projected to decrease significantly based on the last few years of reporting. The current year's Debt To Assets is expected to grow to 0.51, whereas Non Current Assets Total are forecasted to decline to about 8.1 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 18.06 | 11.82 | |
| Tangible Book Value Per Share | (7.69) | (8.08) | |
| Enterprise Value Over EBITDA | 10.94 | 11.51 | |
| Price Book Value Ratio | 1.95 | 2.50 | |
| Enterprise Value Multiple | 10.94 | 11.51 | |
| Price Fair Value | 1.95 | 2.50 | |
| Enterprise Value | 8.4 B | 7.8 B |
The strategic decisions made by US Foods management significantly impact its financial stability and market performance. Evaluating these factors helps determine whether the stock is a worthwhile investment.
Beta 1.661 |
Basic technical analysis of USFD Stock
As of the 30th of January, US Foods owns the Downside Deviation of 1.17, mean deviation of 0.916, and Risk Adjusted Performance of 0.1715. Concerning fundamental indicators, the technical analysis model makes it possible for you to check potential technical drivers of US Foods Holding, as well as the relationship between them. Please validate US Foods Holding information ratio, and the relationship between the downside deviation and value at risk to decide if US Foods Holding is priced correctly, providing market reflects its prevailing price of 71.72 per share. Given that US Foods Holding has jensen alpha of 0.1932, we advise you to double-check US Foods's latest market performance to make sure the company can sustain itself at some future date.US Foods' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific US Foods insiders, such as employees or executives, is commonly permitted as long as it does not rely on US Foods' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases US Foods insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
US Foods' Outstanding Corporate Bonds
US Foods issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. US Foods Holding uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most USFD bonds can be classified according to their maturity, which is the date when US Foods Holding has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| BNP Paribas FRN Corp BondUSF1R15XK367 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand US Foods' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing US Foods' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1715 | |||
| Market Risk Adjusted Performance | 0.4322 | |||
| Mean Deviation | 0.916 | |||
| Semi Deviation | 0.9264 | |||
| Downside Deviation | 1.17 | |||
| Coefficient Of Variation | 498.26 | |||
| Standard Deviation | 1.22 | |||
| Variance | 1.49 | |||
| Information Ratio | 0.1311 | |||
| Jensen Alpha | 0.1932 | |||
| Total Risk Alpha | 0.126 | |||
| Sortino Ratio | 0.1371 | |||
| Treynor Ratio | 0.4222 | |||
| Maximum Drawdown | 7.68 | |||
| Value At Risk | (1.47) | |||
| Potential Upside | 2.03 | |||
| Downside Variance | 1.36 | |||
| Semi Variance | 0.8581 | |||
| Expected Short fall | (1.03) | |||
| Skewness | 0.0267 | |||
| Kurtosis | 1.61 |
| Risk Adjusted Performance | 0.1715 | |||
| Market Risk Adjusted Performance | 0.4322 | |||
| Mean Deviation | 0.916 | |||
| Semi Deviation | 0.9264 | |||
| Downside Deviation | 1.17 | |||
| Coefficient Of Variation | 498.26 | |||
| Standard Deviation | 1.22 | |||
| Variance | 1.49 | |||
| Information Ratio | 0.1311 | |||
| Jensen Alpha | 0.1932 | |||
| Total Risk Alpha | 0.126 | |||
| Sortino Ratio | 0.1371 | |||
| Treynor Ratio | 0.4222 | |||
| Maximum Drawdown | 7.68 | |||
| Value At Risk | (1.47) | |||
| Potential Upside | 2.03 | |||
| Downside Variance | 1.36 | |||
| Semi Variance | 0.8581 | |||
| Expected Short fall | (1.03) | |||
| Skewness | 0.0267 | |||
| Kurtosis | 1.61 |
Consider US Foods' intraday indicators
US Foods intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of US Foods stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 30044.01 | |||
| Daily Balance Of Power | 0.1681 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 72.04 | |||
| Day Typical Price | 71.93 | |||
| Price Action Indicator | (0.22) | |||
| Period Momentum Indicator | 0.19 |
US Foods Corporate Filings
8K | 13th of January 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 7th of January 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 6th of December 2024 An amended filing to the original Schedule 13G | ViewVerify |
F3 | 13th of August 2024 An amendment to the original Schedule 13D filing | ViewVerify |
USFD Stock media impact
Far too much social signal, news, headlines, and media speculation about US Foods that are available to investors today. That information is available publicly through USFD media outlets and privately through word of mouth or via USFD internal channels. However, regardless of the origin, that massive amount of USFD data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of US Foods news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of US Foods relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to US Foods' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive US Foods alpha.
US Foods Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards US Foods can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
US Foods Maximum Pain Price Across April 17th 2025 Option Contracts
US Foods' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of US Foods close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of US Foods' options.
US Foods Corporate Directors
| John Lederer | Independent Director | Profile | |
| Ann Ziegler | Independent Director | Profile | |
| Nathaniel Taylor | Independent Director | Profile | |
| Cheryl Bachelder | Independent Director | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in US Foods Holding. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Is Consumer Staples Distribution & Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of US Foods. If investors know USFD will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about US Foods listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.605 | Earnings Share 2.33 | Revenue Per Share | Quarterly Revenue Growth 0.068 | Return On Assets |
The market value of US Foods Holding is measured differently than its book value, which is the value of USFD that is recorded on the company's balance sheet. Investors also form their own opinion of US Foods' value that differs from its market value or its book value, called intrinsic value, which is US Foods' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because US Foods' market value can be influenced by many factors that don't directly affect US Foods' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between US Foods' value and its price, as these two are different measures arrived at by various means. Investors typically determine if US Foods is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, US Foods' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.