US Foods Price To Earning vs. Gross Profit
| USFD Stock | USD 69.77 0.08 0.11% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.19 | 0.1613 |
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| Operating Profit Margin | 0.0137 | 0.0157 |
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For US Foods profitability analysis, we use financial ratios and fundamental drivers that measure the ability of US Foods to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well US Foods Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between US Foods's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of US Foods Holding over time as well as its relative position and ranking within its peers.
USFD |
US Foods' Revenue Breakdown by Earning Segment
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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 152.802 | Quarterly Revenue Growth 0.068 | Return On Assets 0.0521 |
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.
Please note, there is a significant difference between US Foods' value and its price as these two are different measures arrived at by different 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.
US Foods Holding Gross Profit vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining US Foods's current stock value. Our valuation model uses many indicators to compare US Foods value to that of its competitors to determine the firm's financial worth. US Foods Holding is rated first in price to earning category among its peers. It is rated fourth in gross profit category among its peers fabricating about 30,065,145 of Gross Profit per Price To Earning. At present, US Foods' Gross Profit is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value US Foods by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.USFD Gross Profit vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
US Foods |
| = | 182.67 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
US Foods |
| = | 5.49 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
USFD Gross Profit Comparison
US Foods is currently under evaluation in gross profit category among its peers.
US Foods Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in US Foods, profitability is also one of the essential criteria for including it into their portfolios because, without profit, US Foods will eventually generate negative long term returns. The profitability progress is the general direction of US Foods' change in net profit over the period of time. It can combine multiple indicators of US Foods, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -115 M | -120.8 M | |
| Operating Income | 1 B | 1.1 B | |
| Income Before Tax | 678 M | 711.9 M | |
| Total Other Income Expense Net | -339 M | -322.1 M | |
| Net Income | 506 M | 531.3 M | |
| Income Tax Expense | 172 M | 180.6 M | |
| Net Income From Continuing Ops | 506 M | 531.3 M | |
| Net Income Applicable To Common Shares | 262.2 M | 210.4 M | |
| Interest Income | 206.1 M | 205.7 M | |
| Net Interest Income | -324 M | -340.2 M | |
| Non Operating Income Net Other | 25.3 M | 26.6 M | |
| Change To Netincome | 84 M | 46.1 M | |
| Net Income Per Share | 1.06 | 0.64 | |
| Income Quality | 2.60 | 2.73 | |
| Net Income Per E B T | 0.84 | 1.66 |
USFD Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on US Foods. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of US Foods position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the US Foods' important profitability drivers and their relationship over time.
Use US Foods in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if US Foods position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in US Foods will appreciate offsetting losses from the drop in the long position's value.US Foods Pair Trading
US Foods Holding Pair Trading Analysis
The ability to find closely correlated positions to US Foods could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace US Foods when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back US Foods - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling US Foods Holding to buy it.
The correlation of US Foods is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as US Foods moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if US Foods Holding moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for US Foods can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your US Foods position
In addition to having US Foods in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Investment Grade ETFs theme has 260 constituents at this time.
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Check out World Market Map. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
To fully project US Foods' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of US Foods Holding at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include US Foods' income statement, its balance sheet, and the statement of cash flows.