* Note: Prices are in Million (M) USD.
Description:
US Foods Holding Corp. The company is headquartered in Rosemont, Illinois.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $61 M
Debt : $5,012 M
EBITDA : $1,377 M
Net Debt (Debt - Cash): $4,951 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Consumer defensive
Industry: Food distribution
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 25.36
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 13 overlapping fiscal years (max 20).Average Free Cash Flow: $374 M
Average Revenue: $26,595 M
Revenue Converted To Free Cash Flow (%): 1.4%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $37,877 M
Revenue 4 Years Ago (2020-12-31): $22,885 M
Last 5 Years Average Revenue Growth: 13%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $244 M
Share Count 5 Years Ago (2020-12-31): $220 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $3.81
Trailing 12-Month Earnings Per Share (EPS): $2.30
Average Earnings Per Share (EPS): $3.05
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 12 valid ROE years (max 20).Average ROE: 5.2%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $77
52-Week Low: $56
Threshold Price (15% Above 52-Week Low): $65
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $17,793 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 11 points to above US Foods Holding Corp (USFD) stock.
Last 8 Years Avg PE 18.99, Fair Value PE 12, Industry Based PE 18, Growth Based PE 13, RCFC Based PE 11.13, ROE Based PE 14.18, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 14.91. Value-Trades has assined P/E value 14.91. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.05.
The fair value of US Foods Holding Corp (USFD) stock should be (14.91 x $3.05) = $45.48.
