US Foods Holding Corp Ranks High in Growth Strategy

According to a recent report, US Foods Holding Corp has received a strong rating from the Growth Investor model, showcasing its potential for growth. The company has met several important growth criteria which may positively influence its stock price.

Date: 20-09-2024

AI Rating: 6

The report highlights the performance of US Foods Holding Corp (USFD) under the Growth Investor model created by Martin Zweig. With a score of 62%, USFD shows strong fundamentals in the Food Processing industry but has room for improvement to achieve a rating above 80%, typically considered favorable by the model.

Earnings Per Share (EPS)
The analysis indicates that while the current quarter's EPS growth must be greater than the prior three quarters, USFD has passed on historical growth, but failed to demonstrate earnings persistence. This inconsistency could lead to skepticism among investors regarding the reliability of earnings, hence affecting future stock prices.

Revenue Growth
Positive revenue growth is noted as the company is meeting the expectations regarding revenue growth in relation to EPS growth and its sales growth rate, as it has successfully passed the respective criteria. This suggests continued operational efficiency, which might tempt investors looking for stability.

Net Income and Profit Margins
The report lacks definitive information on net income and profit margins, which are critical for gauging the company’s profitability and operational efficiency at a deeper level.

Free Cash Flow (FCF)
There’s no mention of free cash flow metrics, which could provide insight into the cash generation capability post-investment, potentially affecting perceptions of financial health.

Return on Equity (ROE)
Likewise, ROE evaluations are absent, which makes it difficult to analyze how effectively the company is generating profits from equity investments.

Overall, US Foods has a compelling outlook based on growth criteria, though challenges remain in earnings sustainability and additional financial metrics.

Stocks: USFD