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Relative to Consumer Staples Sector Median (N=180)
Metric
USFD
Benchmark
P/E Ratio
30.8x
-7%
EV/EBITDA
17.0x
+145%
Price / Book
4.6x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-52.7%
$43.27Spot: $91.42
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Staples sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
14.9%
Sector: 7.7%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, US Foods Holding Corp. (USFD) receives a "Hold" rating with a composite score of 53.1/100, ranked #570 out of 4446 stocks. Key factor scores: Quality 50/100, Value 63/100, Momentum 62/100. This is quantitative analysis only — not investment advice.
US Foods Holding Corp. (USFD) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does US Foods Holding Corp. Do?
US Foods Holding Corp., through its subsidiary, US Foods, Inc., markets and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's 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. As of January 1, 2022, it operated 69 distribution facilities; and 80 cash and carry 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. US Foods Holding Corp. (USFD) is classified as a large-cap stock in the Consumer Staples sector, specifically within the Wholesale industry. The company is led by CEO Andrew Iacobucci and employs approximately 29,000 people, headquartered in ROSEMONT, Illinois. With a market capitalization of $20.0B, USFD is one of the prominent companies in the Consumer Staples sector.
US Foods Holding Corp. (USFD) Stock Rating — Hold (April 2026)
As of April 2026, US Foods Holding Corp. receives a Hold rating with a composite score of 53.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.USFD ranks #570 out of 4,446 stocks in our coverage universe. Within the Consumer Staples sector, US Foods Holding Corp. ranks #21 of 180 stocks, placing it in the top quartile of its Consumer Staples peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
USFD Stock Price and 52-Week Range
US Foods Holding Corp. (USFD) currently trades at $91.42. The stock lost $0.65 (0.7%) in the most recent trading session. The 52-week high for USFD is $102.13, which means the stock is currently trading -10.5% from its annual peak. The 52-week low is $57.36, putting the stock 59.4% above its annual trough. Recent trading volume was 2.1M shares, reflecting moderate market activity.
Is USFD Overvalued or Undervalued? — Valuation Analysis
US Foods Holding Corp. (USFD) carries a value factor score of 63/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 30.75x, compared to the Consumer Staples sector average of 33.11x — a discount of 7%. The price-to-book ratio stands at 4.57x, versus the sector average of 1.74x. The price-to-sales ratio is 0.50x, compared to 0.35x for the average Consumer Staples stock. On an enterprise value basis, USFD trades at 17.01x EV/EBITDA, versus 6.93x for the sector.
Overall, USFD's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
US Foods Holding Corp. Profitability — ROE, Margins, and Quality Score
US Foods Holding Corp. (USFD) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 14.9%, compared to the Consumer Staples sector average of 7.7%, which is within a healthy range. Return on assets (ROA) comes in at 4.6% versus the sector average of 3.1%.
On a margin basis, US Foods Holding Corp. reports gross margins of 17.3%, compared to 26.2% for the sector. The operating margin is 2.9% (sector: 2.9%). Net profit margin stands at 1.6%, versus 1.6% for the average Consumer Staples stock. Revenue growth is running at 5.0% on a trailing basis, compared to 3.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
USFD Debt, Balance Sheet, and Financial Health
US Foods Holding Corp. has a debt-to-equity ratio of 224.0%, compared to the Consumer Staples sector average of 72.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.16x, suggesting adequate working capital coverage. Cash and equivalents stand at $56M.
USFD has a beta of 0.77, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for US Foods Holding Corp. is 82/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
US Foods Holding Corp. Revenue and Earnings History — Quarterly Trend
In TTM 2026, US Foods Holding Corp. reported revenue of $39.35B and earnings per share (EPS) of $2.98. Net income for the quarter was $640M. Gross margin was 17.3%. Operating income came in at $1.16B.
In FY 2025, US Foods Holding Corp. reported revenue of $39.42B and earnings per share (EPS) of $2.98. Net income for the quarter was $676M. Gross margin was 17.4%. Revenue grew 4.1% year-over-year compared to FY 2024. Operating income came in at $1.20B.
In Q3 2025, US Foods Holding Corp. reported revenue of $10.19B and earnings per share (EPS) of $0.68. Net income for the quarter was $153M. Gross margin was 17.2%. Revenue grew 4.8% year-over-year compared to Q3 2024. Operating income came in at $282M.
In Q2 2025, US Foods Holding Corp. reported revenue of $10.08B and earnings per share (EPS) of $0.97. Net income for the quarter was $224M. Gross margin was 17.6%. Revenue grew 3.8% year-over-year compared to Q2 2024. Operating income came in at $372M.
Over the past 8 quarters, US Foods Holding Corp. has demonstrated a growth trajectory, with revenue expanding from $9.71B to $39.35B. Investors analyzing USFD stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
USFD Dividend Yield and Income Analysis
US Foods Holding Corp. (USFD) does not currently pay a dividend. This is common among growth-oriented companies in the Wholesale industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Consumer Staples dividend stocks may want to explore other Consumer Staples stocks or use the stock screener to filter by dividend yield.
USFD Momentum and Technical Analysis Profile
US Foods Holding Corp. (USFD) has a momentum factor score of 62/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 31/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 17/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
USFD vs Competitors — Consumer Staples Sector Ranking and Peer Comparison
Comparing USFD against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full USFD vs S&P 500 (SPY) comparison to assess how US Foods Holding Corp. stacks up against the broader market across all factor dimensions.
USFD Next Earnings Date
No upcoming earnings date has been announced for US Foods Holding Corp. (USFD) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy USFD? — Investment Thesis Summary
US Foods Holding Corp. presents a balanced picture with arguments on both sides. The value score of 63/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 62/100, suggesting the trend favors buyers. Low volatility (stability score 82/100) reduces downside risk.
In summary, US Foods Holding Corp. (USFD) earns a Hold rating with a composite score of 53.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on USFD stock.
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Institutional Research Dossier
US Foods Holding Corp. (USFD) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on US Foods Holding Corp. (USFD). While the company operates in a relatively stable industry and demonstrates some operational efficiencies, its current valuation appears to reflect these strengths, leaving limited upside potential. The company's debt levels and reliance on macroeconomic conditions present ongoing challenges that temper our enthusiasm.
US Foods benefits from its scale and established relationships within the foodservice distribution industry. However, its narrow margins and sensitivity to economic fluctuations limit its ability to generate substantial outperformance. The Hold rating reflects a balanced view of the company's strengths and weaknesses, suggesting that investors should maintain their current positions rather than initiating new ones.
Business Strategy & Overview
US Foods operates as a major foodservice distributor, providing a wide array of products to restaurants, healthcare facilities, hospitality providers, and educational institutions. The company's core strategy revolves around offering a comprehensive suite of products, including fresh produce, frozen foods, dry goods, and non-food items, coupled with value-added services like menu planning and inventory management. This broad offering aims to serve as a one-stop shop for its diverse customer base, fostering long-term relationships and increasing customer retention.
A key component of US Foods' strategy is its focus on independent restaurants and smaller chains, which often lack the purchasing power and logistical capabilities of larger national chains. By catering to these customers, US Foods aims to capture a significant share of a fragmented market. The company also invests in technology and supply chain optimization to improve efficiency and reduce costs, enhancing its competitive position. The 80 cash and carry locations provide an additional avenue for smaller customers to access products and services.
US Foods' strategic positioning within the foodservice distribution industry is characterized by its scale and geographic reach. The company operates a network of distribution centers across the United States, enabling it to efficiently serve customers nationwide. This extensive network provides a logistical advantage, allowing US Foods to deliver products quickly and reliably. The company also focuses on private-label brands, which offer higher margins and increased customer loyalty.
The foodservice distribution industry is highly competitive, with major players like Sysco and Performance Food Group vying for market share. US Foods differentiates itself through its customer service, product selection, and value-added services. The company's ability to adapt to changing customer preferences and market trends is crucial for maintaining its competitive edge. Furthermore, the company's growth strategy includes strategic acquisitions to expand its geographic footprint and product offerings.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
5.0%
Sector: 3.1%
+58% VS SCTR
Economic Moat Analysis
US Foods possesses a narrow economic moat, primarily derived from its scale and established distribution network. While the company's size allows it to achieve some cost efficiencies and negotiate favorable terms with suppliers, the foodservice distribution industry is inherently competitive, limiting the extent of its competitive advantage. The company's ability to offer a wide range of products and services provides some differentiation, but this is not a significant barrier to entry for other large distributors.
Switching costs for customers are relatively low, as restaurants and other foodservice operators can easily switch between distributors based on price, product availability, and service quality. While US Foods strives to build strong relationships with its customers, these relationships are not always exclusive or binding. The company's private-label brands offer some degree of differentiation, but they are not unique enough to create a substantial moat.
The company's distribution network represents a significant investment and provides a logistical advantage, but it is not insurmountable for competitors. Other large distributors have similar networks, and new entrants can potentially build their own networks over time. The industry is also characterized by relatively low barriers to entry for smaller, regional distributors, which can compete effectively in local markets.
Efficient scale is not a major factor in the foodservice distribution industry, as there are numerous regional and national players. While larger distributors like US Foods can achieve some economies of scale, these advantages are not sufficient to create a wide moat. The company's intangible assets, such as brand recognition and customer relationships, are valuable but not unique enough to provide a sustainable competitive advantage. Therefore, we believe US Foods' economic moat is narrow, providing some protection against competition but not guaranteeing long-term outperformance.
Financial Health & Profitability
US Foods' financial health presents a mixed picture. The company's revenue has shown consistent growth over the past few years, with FY2025 revenue reaching $39.42 billion, up from $37.88 billion in FY2024 and $35.60 billion in FY2023. This growth indicates a healthy demand for the company's products and services. However, the company's margins are relatively thin, with a gross margin of 17.4% and an operating margin of 3.0% in FY2025. These margins are slightly below the sector averages of 26.0% and 3.1%, respectively, suggesting that US Foods faces challenges in maintaining profitability.
The company's net income has also shown improvement, with FY2025 net income reaching $676 million, up from $494 million in FY2024 and $506 million in FY2023. This increase in net income is a positive sign, but the company's net margin of 1.6% remains below the sector average of 1.7%. The company's ROE of 14.9% is significantly higher than the sector average of 7.8%, indicating that US Foods is effectively utilizing its equity to generate profits.
US Foods' balance sheet is characterized by a high level of debt. The company's debt-to-equity ratio of 224.00 is significantly higher than the sector average of 70.50, indicating that the company is highly leveraged. This high level of debt could pose a risk to the company's financial stability, particularly in the event of an economic downturn. The company's current ratio of 1.16 indicates that it has sufficient current assets to cover its current liabilities, but this ratio is not particularly strong.
The absence of free cash flow data makes it difficult to assess the company's cash flow generation capabilities. However, the company's consistent revenue growth and improving net income suggest that it is generating sufficient cash flow to support its operations. Overall, US Foods' financial health is characterized by consistent revenue growth, improving profitability, and a high level of debt. The company's high ROE is a positive sign, but its thin margins and high leverage remain concerns.
Valuation Assessment
US Foods' valuation presents a mixed picture. The company's P/E ratio of 30.0x is slightly below the sector average of 34.2x, suggesting that the stock is reasonably valued relative to its earnings. However, the company's EV/EBITDA ratio of 3.1x is significantly below the sector average of 7.3x, indicating that the stock may be undervalued relative to its enterprise value and earnings before interest, taxes, depreciation, and amortization. This discrepancy could be due to the company's high level of debt, which reduces its enterprise value.
The company's valuation is also influenced by its growth prospects. US Foods has demonstrated consistent revenue growth over the past few years, but its growth rate is not particularly high. The company's revenue growth of 5.0% in FY2025 is slightly above the sector average of 4.3%, but it is not sufficient to justify a significantly higher valuation. The company's earnings growth has been more impressive, but this growth is partly due to cost-cutting measures and operational efficiencies, which may not be sustainable in the long term.
The absence of free cash flow data makes it difficult to assess the company's valuation based on its cash flow generation capabilities. However, the company's consistent revenue growth and improving net income suggest that it is generating sufficient cash flow to support its operations. Overall, US Foods' valuation appears to be fair, reflecting its growth prospects, profitability, and financial health. The company's P/E ratio is slightly below the sector average, while its EV/EBITDA ratio is significantly below the sector average. This suggests that the stock may be undervalued, but its high level of debt and moderate growth rate limit its upside potential.
Considering the company's financial health, growth prospects, and competitive position, we believe that US Foods' current valuation is reasonable. The Hold rating reflects our view that the stock is neither significantly undervalued nor significantly overvalued. Investors should maintain their current positions rather than initiating new ones.
Risk & Uncertainty
US Foods faces several risks and uncertainties that could impact its financial performance. One of the primary risks is the company's reliance on macroeconomic conditions. A slowdown in economic growth could lead to a decrease in restaurant spending, which would negatively impact US Foods' revenue. The company is also exposed to fluctuations in food prices, which could affect its gross margins. The company attempts to mitigate this risk through hedging and supply chain management, but these efforts may not always be successful.
Competition is another significant risk for US Foods. The foodservice distribution industry is highly competitive, with major players like Sysco and Performance Food Group vying for market share. Smaller, regional distributors also pose a threat, particularly in local markets. US Foods must continuously innovate and improve its service offerings to maintain its competitive edge. The company's ability to differentiate itself through its product selection, customer service, and value-added services is crucial for mitigating this risk.
The company's high level of debt also poses a risk to its financial stability. A significant increase in interest rates could increase the company's debt service costs, which would negatively impact its profitability. The company's ability to generate sufficient cash flow to service its debt is crucial for mitigating this risk. Furthermore, the company's reliance on a limited number of suppliers could also pose a risk. A disruption in the supply chain could lead to product shortages and higher costs, which would negatively impact the company's financial performance.
Bulls Say / Bears Say
The Bull Case
BULL VIEWUS Foods' focus on independent restaurants provides a stable customer base less susceptible to national economic downturns, ensuring consistent revenue streams.
BULL VIEWThe company's strategic acquisitions and supply chain optimizations will drive margin expansion and improve profitability in the long term.
BULL VIEWUS Foods' superior ROE compared to the sector indicates efficient capital allocation and strong management, justifying a premium valuation.
The Bear Case
BEAR VIEWUS Foods' high debt levels expose it to significant financial risk, especially if interest rates rise or economic conditions worsen.
BEAR VIEWThe company's narrow margins and intense competition limit its ability to generate substantial profit growth, making it difficult to outperform its peers.
BEAR VIEWThe lack of free cash flow data raises concerns about the company's ability to invest in future growth and return capital to shareholders.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score USFD and 4,400+ other equities.
US Foods Holding Corp. exhibits a 86% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
4.6%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
17.3%
Sector: 26.2%
Operating Margin
Core business profitability
2.9%
Sector: 2.9%
Net Margin
Bottom-line profitability
1.6%
Sector: 1.6%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
