United Natural Foods (UNFI) AI Stock Analysis

• Market Cap: $2.36B
• Dividend Yield: N/A
• Average Volume (3M): 754.80K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 1.03
• Revenue Growth: 1.45%
• EPS Growth: -5.49%
• Country: US
• Employees: 28,333
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.62
• Shares Outstanding: 60,751,965
• 10 Day Avg. Volume: 1,166,890
• 30 Day Avg. Volume: 754,797
• PEG Ratio: -3.72
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 6.80
• Enterprise Value/Market Cap: 2.35
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 1.32
• Enterprise Value/Ebitda: 14.75
• 1Y Price Target: $44.00
• Price Target Upside: 13.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 2.52
• Revenue Forecast (FY): $31.37B

• Rating: 62 Neutral
• Price Target: $43.00 ▲(10.91% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven by improving operating momentum and cash flow (strong FCF and positive earnings-call trends including EBITDA growth and lower leverage), supported by constructive technicals. Offsetting these positives are still-weak profitability and relatively high leverage for a low-margin distributor, alongside a valuation (P/E ~28) that leaves less room for execution setbacks.

Positive Factors

Cash generation

Sustained, sizable operating cash flow and positive free cash flow provide durable internal funding to support capex, working capital and debt reduction. For a low-margin distributor, consistent cash conversion materially improves financial flexibility and resilience over the next several quarters.

Adjusted EBITDA improvement

A clear, multi-quarter uptick in adjusted EBITDA indicates operating leverage is returning as network optimizations and expense discipline take hold. Higher EBITDA supports deleveraging and reinvestment, making profit recovery more sustainable beyond a single quarter.

Natural products growth

Outperformance in natural products points to structural demand and higher-margin mix shift versus conventional lines. Growing exposure to natural/organic channels supports better long-term margins and differentiation versus commodity-focused distributors.

Negative Factors

High leverage

Elevated absolute debt and a multi-turn net leverage ratio constrain strategic flexibility for M&A, buybacks or weathering margin shocks. For a low-margin distributor, meaningful leverage increases refinancing and interest-risk sensitivity across the 2–6 month horizon.

Thin profitability

Very thin operating margins and a small net loss reduce the margin for error against cost inflation or pricing pressure. Low earnings power makes deleveraging and durable return generation harder, requiring sustained cash flow improvement to alter the structural risk profile.

Conventional/retail weakness

Declines in conventional and retail channels reflect structural customer mix shifts and store rationalizations. Continued share losses or closures can reduce scale, lower utilization of logistics assets, and blunt margin recovery even if natural products grow.

United Natural Foods Business Overview & Revenue Model

Company Description

United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It operates in two segments, Wholesale and Retail. The company offers grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements and sports nutrition, bulk and foodservice products, and personal care items. It also provides Woodstock brand imports, roasts, packages, and distributes nuts, dried fruits, seeds, trail mixes, granola, natural and organic snack items, and confections. In addition, the company is involved in importing, roasting, packaging, and distributing nuts, dried fruits, seeds, trail mixes, granola, natural and organic snack items, and confections. Further, it offers Blue Marble Brands products through wholesale segment, third-party distributors, and directly to retailers; and Field Day brand products primarily to customers through its independent channel. Additionally, the company provides general merchandise, home, health and beauty care, and pharmacy products, as well as private label products through a network of 74 Cub Foods and Shoppers retail grocery stores; professional services, such as retail store support, advertising, couponing, e-commerce, consumer convenience services, store design, equipment sourcing, electronic payments processing, network and data hosting solutions, and administrative back-office solutions; and marketing services comprising consumer and trade marketing programs, as well as programs to support suppliers in understanding its markets. The company serves chains, independent retailers, and supernatural chains, as well as foodservice, e-commerce, conventional military business, and other sales customers. United Natural Foods, Inc. was founded in 1976 and is headquartered in Providence, Rhode Island.

How the Company Makes Money

UNFI primarily makes money by selling products it sources from manufacturers and brands to retail and other food customers at a markup, recognizing revenue when those goods are delivered under wholesale distribution arrangements. Its key revenue stream is wholesale distribution across natural/organic and conventional product categories, where earnings are driven by sales volume, product mix, and gross margin on distributed goods. In addition to product resale margins, UNFI generates revenue from logistics and value-added supply chain services (e.g., warehousing, transportation, and programs that help retailers with merchandising or related support), which can provide service fees and/or strengthen customer retention and volumes. A significant factor influencing UNFI’s earnings is long-term customer relationships and distribution agreements that secure recurring order flow and improve network utilization; specific partnership/customer names and contract terms are null.

United Natural Foods Financial Statement Overview

Summary

Results are mixed: cash generation is strong (TTM operating cash flow ~$579M and free cash flow ~$395M), but profitability remains weak with TTM net losses and very thin operating margins. Leverage is elevated (debt ~$3.24B vs equity ~$1.55B), limiting flexibility despite improving cash flow.

Income Statement

Profitability has weakened materially versus prior years. TTM (Trailing-Twelve-Months) revenue is about $31.5B, but growth is sharply negative (down ~66.5% as provided), and the company remains loss-making with a small negative net margin (~-0.25%). Operating profitability is also thin, with very low EBITDA margin (~0.8%) and modest EBIT dollars. Positives include generally stable gross margin around ~13–14% over time and a clear improvement from the deeper losses seen in FY2024–FY2025, but overall earnings quality and pricing/expense leverage remain key concerns.

Balance Sheet

Leverage is elevated for a low-margin distributor. TTM (Trailing-Twelve-Months) debt is ~$3.24B against equity of ~$1.55B, implying high debt relative to equity (about 2.1x), though slightly improved from FY2024–FY2025 levels. Equity has been broadly stable, but returns on equity are currently negative in TTM due to net losses. The balance sheet is serviceable given asset scale (~$7.25B), yet the combination of high leverage and weak profitability reduces financial flexibility.

Cash Flow

Cash generation is the standout. TTM (Trailing-Twelve-Months) operating cash flow is strong (~$579M) with solid free cash flow (~$395M), improving from FY2024 when free cash flow was negative. Free cash flow growth is also strong in the latest period (as provided). The main watch-out is that cash flow strength has been volatile year-to-year, and the company still needs consistent profitability to make deleveraging more durable, but near-term liquidity and cash conversion look favorable.

Breakdown	TTM	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	31.54B	31.78B	30.98B	30.27B	28.93B	26.95B
Gross Profit	4.21B	4.22B	4.20B	4.13B	4.18B	3.94B
EBITDA	376.00M	498.00M	328.00M	444.00M	732.00M	599.00M
Net Income	-78.00M	-118.00M	-112.00M	24.00M	248.00M	149.00M
Balance Sheet
Total Assets	7.25B	7.59B	7.53B	7.39B	7.63B	7.53B
Cash, Cash Equivalents and Short-Term Investments	52.00M	44.00M	40.00M	37.00M	44.00M	41.00M
Total Debt	3.24B	3.45B	3.55B	3.27B	3.38B	3.43B
Total Liabilities	5.69B	6.04B	5.89B	5.65B	5.84B	6.01B
Stockholders Equity	1.55B	1.55B	1.64B	1.74B	1.79B	1.51B
Cash Flow
Free Cash Flow	395.00M	239.00M	-92.00M	301.00M	80.00M	304.00M
Operating Cash Flow	579.00M	470.00M	253.00M	624.00M	331.00M	614.00M
Investing Cash Flow	-164.00M	-218.00M	-342.00M	-339.00M	-49.00M	-237.00M
Financing Cash Flow	-409.00M	-248.00M	92.00M	-292.00M	-279.00M	-384.00M

United Natural Foods Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNFI, the sentiment is Positive. The current price of 38.77 is below the 20-day moving average (MA) of 39.03, above the 50-day MA of 37.93, and above the 200-day MA of 32.91, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 49.06 is Neutral, neither overbought nor oversold. The STOCH value of 55.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNFI.

United Natural Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVGW	69 Neutral	$425.22M	155.30	7.82%	3.70%	-5.33%	―
CHEF	69 Neutral	$2.36B	28.36	12.69%	―	8.88%	54.12%
ANDE	64 Neutral	$2.25B	6.70	7.44%	1.44%	2.19%	-39.07%
AVO	63 Neutral	$865.74M	-339.58	5.77%	―	12.68%	3.09%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
UNFI	62 Neutral	$2.36B	28.34	-4.97%	―	1.45%	-5.49%

United Natural Foods Corporate Events

United Natural Foods Holds Annual Meeting on Governance

At its Annual Meeting held on December 16, 2025, United Natural Foods, Inc.’s stockholders voted to approve several key proposals, including the election of directors, ratification of KPMG LLP as its auditors, approval of executive compensation, and an amendment to its equity incentive plan, adding 1.5 million shares. Additionally, the Board’s repurchase program, authorized in 2022 for up to $200 million, has $138 million remaining, with repurchases planned to resume subject to financial leverage and market conditions. These actions demonstrate the company’s focus on strengthening governance, financial strategies, and shareholder value.

The most recent analyst rating on (UNFI) stock is a Hold with a $37.00 price target. To see the full list of analyst forecasts on United Natural Foods stock, see the UNFI Stock Forecast page.