US Foods Holding Corp. (USFD)
Consumer Defensive · NYQ · US
Fundamentals
Valuation and ratings
US Foods Holding Corp. trades at USD99.13, which is 47% above the USD52.24 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 32 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 34.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About US Foods Holding Corp.
US Foods Holding Corp., together with its subsidiaries, markets, sells, and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company also provides MOXe, an all-in-one foodservice business application. Its customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.
Smart money ownership
14 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Stephen Mandel, LONE PINE CAPITAL LLC$350.03M · 2.8% of book
- Burgundy Asset Management, Burgundy Asset Management Ltd.$230.61M · 2.2% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$156.67M · 0.1% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$94.32M · 0.1% of book
- Parnassus Investments, PARNASSUS INVESTMENTS, LLC$74.70M · 0.2% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is US Foods Holding Corp. (USFD) undervalued?
Against our discounted cash flow estimate of USD52.24, USFD at USD99.13 is 47% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own USFD?
14 of the institutions we track reported a position in USFD in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is USFD's P/E ratio?
USFD trades at 34.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for USFD, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.