Latest news with #USFoodsHolding
Yahoo
14-05-2025
- Business
- Yahoo
Bowyer Research Opposes Special Meeting Proposal at US Foods Holding (NYSE:USFD)
US Foods Holding experienced significant investor activity when Bowyer Research filed a statement with the SEC opposing a proposal for new stockholder meeting thresholds. Over the past month, US Foods' stock price increased by 18%, a move bolstered by strong Q1 2025 earnings where both sales and net income rose notably. Additionally, the company announced a substantial share buyback program, enhancing investor confidence. This positive momentum within US Foods paralleled broader market growth of nearly 4% over the same period, suggesting the company's developments added weight to the upward market trend. Be aware that US Foods Holding is showing 1 weakness in our investment analysis. AI is about to change healthcare. These 23 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. The recent developments surrounding US Foods Holding, particularly the opposition to the proposal for new stockholder meeting thresholds and the company's enhanced momentum due to the strong Q1 2025 earnings, could potentially influence its narrative and strategic outlook. The substantial share buyback program may bolster investor confidence, while reinforcing the company's focus on delivering shareholder value. These actions are likely to reflect positively in the revenue and earnings forecasts, particularly as the company leverages its investments in e-commerce and strategic acquisitions like Pronto and Jake's Finer Foods to broaden its market presence. Over a longer-term period of five years, US Foods has delivered a total return of 302.40%. This stark contrast to the past year's 4.2% earnings growth highlights the company's extensive value creation during this time frame. Over the last year, US Foods has outperformed the US Market, which returned 11.6%, further solidifying its position in the industry. The company's share performance compared to the broader market suggests that investors have responded favorably to its ongoing initiatives and strategic plans. With the share price currently at US$67.04, presenting a 15.3% discount to the consensus analyst price target of US$79.16, there appears to be room for growth if the company's projected revenue and earnings improvements are realized. If US Foods continues on its current trajectory, focusing on enhancing customer engagement and optimizing operations, it may narrow the gap between its current market value and the analysts' target in the foreseeable future, while fostering sustained investor interest. Click here to discover the nuances of US Foods Holding with our detailed analytical financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:USFD. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Why US Foods Holding Corp. (NYSE:USFD) Could Be Worth Watching
Today we're going to take a look at the well-established US Foods Holding Corp. (NYSE:USFD). The company's stock saw a decent share price growth of 11% on the NYSE over the last few months. The recent share price gains has brought the company back closer to its yearly peak. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. But what if there is still an opportunity to buy? Let's take a look at US Foods Holding's outlook and value based on the most recent financial data to see if the opportunity still exists. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Is US Foods Holding Still Cheap? According to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average, the stock currently looks expensive. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. We find that US Foods Holding's ratio of 31.28x is above its peer average of 24.99x, which suggests the stock is trading at a higher price compared to the Consumer Retailing industry. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since US Foods Holding's share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Check out our latest analysis for US Foods Holding What does the future of US Foods Holding look like? NYSE:USFD Earnings and Revenue Growth May 7th 2025 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 100% over the next couple of years, the future seems bright for US Foods Holding. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. What This Means For You Are you a shareholder? USFD's optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe USFD should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Yahoo
08-03-2025
- Business
- Yahoo
Should We Be Cautious About US Foods Holding Corp.'s (NYSE:USFD) ROE Of 11%?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of US Foods Holding Corp. (NYSE:USFD). Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. Check out our latest analysis for US Foods Holding The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for US Foods Holding is: 11% = US$494m ÷ US$4.5b (Based on the trailing twelve months to December 2024). The 'return' refers to a company's earnings over the last year. That means that for every $1 worth of shareholders' equity, the company generated $0.11 in profit. One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. If you look at the image below, you can see US Foods Holding has a lower ROE than the average (14%) in the Consumer Retailing industry classification. Unfortunately, that's sub-optimal. Although, we think that a lower ROE could still mean that a company has the opportunity to better its returns with the use of leverage, provided its existing debt levels are low. When a company has low ROE but high debt levels, we would be cautious as the risk involved is too high. You can see the 2 risks we have identified for US Foods Holding by visiting our risks dashboard for free on our platform here. Virtually all companies need money to invest in the business, to grow profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the use of debt will improve the returns, but will not change the equity. That will make the ROE look better than if no debt was used. US Foods Holding clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.03. The combination of a rather low ROE and significant use of debt is not particularly appealing. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to check this FREE visualization of analyst forecasts for the company. If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
15-02-2025
- Business
- Yahoo
US Foods Holding Full Year 2024 Earnings: EPS Misses Expectations
Revenue: US$37.9b (up 6.4% from FY 2023). Net income: US$494.0m (down 1.0% from FY 2023). Profit margin: 1.3% (down from 1.4% in FY 2023). EPS: US$2.05 (down from US$2.09 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 15%. In the last 12 months, the only revenue segment was Wholesale - Groceries contributing US$37.9b. Notably, cost of sales worth US$31.3b amounted to 83% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to US$4.91b (81% of total expenses). Explore how USFD's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Consumer Retailing industry in the US. Performance of the American Consumer Retailing industry. The company's shares are up 1.3% from a week ago. You should always think about risks. Case in point, we've spotted 2 warning signs for US Foods Holding you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
