Last Updated: 14 Oct 2024
Executive Summary
US Foods Holding Corp. (USFD) is a leading wholesale distributor of food and non-food products to restaurants, healthcare facilities, and other foodservice operators in the United States. The company has a strong market position, with a broad product portfolio and a nationwide distribution network. USFD has consistently generated positive financial results, with revenue and earnings growth in recent years. The company's stock price has performed well, outperforming the broader market.
Company Overview
US Foods Holding Corp. was founded in 1989 and is headquartered in Rosemont, Illinois. The company operates through a network of distribution centers and sales offices throughout the United States. USFD offers a wide range of products, including fresh produce, meat, seafood, dairy, frozen foods, and non-food items such as paper goods, cleaning supplies, and equipment. The company's customer base includes restaurants, healthcare facilities, schools, hotels, and other foodservice operators.
Fundamental Analysis
US Foods Holding Corp. has a strong financial profile. The company has consistently generated positive revenue and earnings growth in recent years. In fiscal 2023, USFD reported revenue of $36.7 billion, an increase of 7.7% year-over-year. Net income for the year was $1.1 billion, an increase of 10.2% year-over-year. The company's gross profit margin and operating margin have also improved in recent years.
USFD has a strong balance sheet, with low levels of debt and ample liquidity. The company's cash and cash equivalents totaled $1.2 billion at the end of fiscal 2023, while its total debt was $3.3 billion. USFD's debt-to-equity ratio is 0.45, which is below the industry average.
The company's earnings per share (EPS) has also grown in recent years. In fiscal 2023, USFD reported EPS of $2.10, an increase of 9.6% year-over-year. The company's EPS is expected to continue to grow in the coming years.
Technical Analysis
US Foods Holding Corp. stock has performed well in recent years, outperforming the broader market. The stock price has been trending higher since the beginning of 2023, and it is currently trading near its 52-week high. The stock's technical indicators are also positive, with the relative strength index (RSI) and moving average convergence divergence (MACD) both indicating that the stock is in a bullish trend.
Short Term Outlook
The short-term outlook for US Foods Holding Corp. is positive. The company is expected to continue to benefit from the strong demand for foodservice products. The company's recent acquisition of Smart Foodservice will also provide a boost to its revenue and earnings. The stock price is expected to continue to trend higher in the short term.
Long Term Outlook
The long-term outlook for US Foods Holding Corp. is also positive. The company is well-positioned to benefit from the growing demand for foodservice products. The company's strong financial profile and its nationwide distribution network will also help it to continue to grow in the long term. The stock price is expected to continue to appreciate over the long term.
Analyst Recommendations
Analysts are bullish on US Foods Holding Corp. The consensus analyst rating for the stock is "Buy." The average analyst price target for the stock is $66.02, which represents a potential upside of 7.8% from the current price.
Conclusion
US Foods Holding Corp. is a leading wholesale distributor of food and non-food products to restaurants, healthcare facilities, and other foodservice operators in the United States. The company has a strong market position, a strong financial profile, and a positive long-term outlook. The stock price is expected to continue to trend higher in the short and long term.
