Last Updated: 13 Oct 2024
Executive Summary
Performance Food Group Co (PFGC) is a leading food distributor in the United States. The company has a strong market position, a diversified customer base, and a track record of consistent financial performance. However, the company faces challenges from rising costs and competition from other distributors. Overall, PFGC is a well-managed company with a solid financial foundation. The stock is currently trading at a fair valuation and offers investors a potential return of 6.3%.
Company Overview
Performance Food Group Co is a leading food distributor in the United States. The company markets and distributes a wide range of food and food-related products to a diverse customer base that includes restaurants, schools, hospitals, and other institutions. PFGC has a network of over 150 distribution centers and serves over 200,000 customers in the United States.
The company's products include fresh produce, meat, poultry, seafood, dairy products, frozen foods, and non-food items such as paper goods, cleaning supplies, and equipment. PFGC also provides a variety of value-added services to its customers, such as menu planning, recipe development, and training.
Fundamental Analysis
PFGC has a strong financial foundation. The company has a track record of consistent revenue and earnings growth. In fiscal 2023, the company reported revenue of $54.7 billion, an increase of 5.7% from the previous year. Net income was $1.0 billion, an increase of 11.6%.
The company's gross profit margin is 11.4%, which is in line with the industry average. The company's operating margin is 2.4%, which is below the industry average. However, the company's net profit margin is 1.8%, which is above the industry average.
PFGC has a strong balance sheet. The company has $1.3 billion in cash and equivalents and $2.6 billion in total debt. The company's debt-to-equity ratio is 0.5, which is below the industry average.
Technical Analysis
The stock price of PFGC has been in a downtrend since reaching a high of $81.31 in October 2022. The stock is currently trading at $81.24, below its 50-day moving average of $73.91 and its 200-day moving average of $71.43.
The relative strength index (RSI) for PFGC is 35.8, which indicates that the stock is oversold. The moving average convergence divergence (MACD) for PFGC is -0.13, which indicates that the stock is in a downtrend.
Short Term Outlook
The short-term outlook for PFGC is mixed. The company is facing challenges from rising costs and competition from other distributors. However, the company has a strong market position and a diversified customer base. The stock is currently trading at a fair valuation and offers investors a potential return of 6.3%.
Long Term Outlook
The long-term outlook for PFGC is positive. The company is well-positioned to benefit from the growing foodservice industry. The company has a strong management team and a track record of consistent financial performance. The stock is a good long-term investment for investors who are looking for a company with a solid financial foundation and a strong track record of growth.
Analyst Recommendations
The consensus analyst rating for PFGC is "Buy." The average analyst target price for the stock is $86.45, which represents a potential return of 6.3% from the current price.
