USFD US Foods Holding

US Foods is one of the largest US food distributors, delivering a wide range of fresh, frozen, and dry food products to restaurants, healthcare facilities, and hospitality clients. Sector: Consumer Staples.

US Foods Holding (USFD) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

On the question of capital productivity, ROIC is 9.21%, WACC is 8.31%, and the economic spread is 0.90%. On balance, returns on capital just exceed funding costs, implying limited but real value creation at the margin. Supporting metrics show ROE at 15.14% and ROA at 5.30%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

Assessed on a multiple basis, trailing P/E of 30.58, forward P/E of 18.82, PEG of 0.88. The difference between trailing and forward multiples is significant, suggesting investors are paying today for earnings that have not yet been fully delivered. At this PEG level, the company offers what growth investors typically look for: earnings expansion priced at a reasonable relative multiple. The company carries an aggregate current ratio of 1.16, pointing to constrained near-term balance sheet coverage. Overall, the valuation setup reads as a balance between expected growth and execution risk, with liquidity acting as an important stabilizer if macro conditions become less favorable.

The margin stack reads as follows: gross margin sits at 17.41%, operating margin at 3.15%, and free cash flow margin at 2.43%. Thin gross margins leave limited room for operational leverage — cost discipline at every layer becomes critical. Operating margins this compressed indicate businesses where the path to earnings remains dependent on future scale. FCF margins are negligible or negative, indicating businesses where cash generation has not yet caught up with operational or growth spending. The profile is not weak, but it is uneven enough that execution and cost control remain central to the forward case.

The forward view combines two signals: the estimated 12-month price change of 15.40%, where analyst assumptions support a moderate upside case if execution remains steady, while TTM revenue growth of 3.26% indicating muted but still positive top-line momentum across the company. The projected 12-month EPS growth rate of 62.5% is a standout component of the forward case — meaningful earnings expansion at this scale typically warrants attention from growth-oriented investors. One metric reflects operational reality, the other market expectation — both are useful inputs, but neither should be read in isolation. The interaction between revenue execution and analyst repricing will ultimately determine how closely realized returns track current expectations. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The overall evidence base is constructive, with more signals pointing up than down and no obvious structural impairment to the forward case.

This summary is based on publicly available quantitative data and is not intended as investment advice. Carefully consider your personal financial circumstances before making any decisions.