United Natural Foods (UNFI) AI Stock Analysis

• Market Cap: $1.49B
• Dividend Yield: N/A
• Average Volume (3M): 830.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 4.73%
• EPS Growth: 29.70%
• Country: US
• Employees: 28,333
• Sector: Consumer Defensive
• Sector Strength: 90
• Industry: Food Distribution
• EPS (TTM): -1.38
• Shares Outstanding: 60,524,147
• 10 Day Avg. Volume: 688,203
• 30 Day Avg. Volume: 830,835
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.05
• Price to Cash Flow (P/CF): -3.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.86
• Price Target Upside: 22.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

United Natural Foods exhibits strong cash flow generation and operational improvements, which are promising for future performance. However, profitability challenges, high leverage, and valuation concerns weigh on the stock. Positive sentiment from the recent earnings call provides a boost, but declining retail sales and margin pressures remain risks.

Positive Factors

Financial Performance

UNFI's F2Q25 beat was supported by stronger sales and solid operating expense leverage, and Management raised the bottom-end of EBITDA guidance by 4%.

Operational Improvements

The network optimization, including distribution facility closures, is helping to achieve operating expense improvements and suggests potential for further savings.

Negative Factors

Sales Trends

New disclosures highlight weak natural sales trends, excluding Whole Foods, implying a high reliance on low-margin Whole Foods for top-line growth.

Structural Pressures

Longer-term structural pressures are facing UNFI's chain and independent customers, with a muted multi-year sales outlook.

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 generates revenue primarily through the wholesale distribution of natural, organic, and specialty foods and products. The company earns money by purchasing products from manufacturers and selling them to a diverse customer base, including supermarkets, independent retailers, and foodservice operators. UNFI's revenue streams are bolstered by its extensive distribution network, which ensures efficient delivery and availability of products across North America. Additionally, strategic partnerships with leading brands and the expansion of its private label offerings contribute to its earnings by capturing a larger market share and improving profit margins.

United Natural Foods Financial Statement Overview

Summary

United Natural Foods is facing challenges with profitability as indicated by a negative net profit margin and low EBIT margin. However, the company is showing resilience with positive cash flow trends, particularly in operating and free cash flows, which have improved significantly. The balance sheet shows high leverage, which remains a concern and requires careful management.

Income Statement

United Natural Foods shows modest revenue growth, with a slight increase in total revenue from $30.72 billion to $31.68 billion in TTM (Trailing-Twelve-Months). However, profitability remains a concern as the company reported a negative net income in TTM, with a net profit margin of approximately -0.26%. Gross profit margin is stable at around 13.16%, but the EBIT margin is quite low at 0.23%, indicating operational inefficiencies. The company needs to improve its cost management and operational efficiency to enhance profitability.

Balance Sheet

The balance sheet indicates a relatively high debt-to-equity ratio of approximately 2.29, suggesting significant leverage. While the equity ratio stands at about 21.02%, indicating a fair proportion of assets financed by equity, the return on equity is negative due to the net loss, highlighting the need for improved profitability. The company should focus on managing its debt levels and enhancing equity returns to strengthen its financial position.

Cash Flow

The cash flow statement reveals a positive trend in operating cash flow, increasing from $253 million to $461 million in the TTM. Free cash flow has improved significantly, turning positive at $203 million from a negative position previously. The operating cash flow to net income ratio is favorable due to strong operating cash flows despite the net loss. Continued focus on cash flow generation can provide stability and support financial obligations.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
31.68B	30.98B	30.27B	28.93B	26.95B	26.51B
	Gross Profit
4.17B	4.20B	4.13B	4.18B	3.94B	3.87B
	EBIT
72.00M	8.00M	120.00M	423.00M	439.00M	376.07M
	EBITDA
409.00M	356.00M	502.00M	684.00M	599.00M	115.00M
	Net Income Common Stockholders
-82.00M	-112.00M	24.00M	248.00M	149.00M	-254.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.71M	40.00M	37.00M	44.00M	41.00M	46.99M
	Total Assets
1.39B	7.53B	7.39B	7.63B	7.53B	7.59B
	Total Debt
198.35M	3.55B	3.27B	3.38B	3.43B	3.66B
	Net Debt
187.65M	3.51B	3.23B	3.34B	3.39B	3.61B
	Total Liabilities
603.87M	5.89B	5.65B	5.84B	6.01B	6.44B
	Stockholders Equity
789.79M	1.64B	1.74B	1.79B	1.51B	1.14B
Cash Flow		Free Cash Flow
203.00M	-92.00M	301.00M	80.00M	304.00M	283.97M
	Operating Cash Flow
461.00M	253.00M	624.00M	331.00M	614.00M	456.54M
	Investing Cash Flow
-300.00M	-342.00M	-339.00M	-49.00M	-237.00M	-1.47M
	Financing Cash Flow
-150.00M	92.00M	-292.00M	-279.00M	-384.00M	-453.07M

United Natural Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNFI, the sentiment is Negative. The current price of 23.63 is below the 20-day moving average (MA) of 26.47, below the 50-day MA of 28.83, and above the 200-day MA of 21.81, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 49.51 is Neutral, neither overbought nor oversold. The STOCH value of 78.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNFI.

United Natural Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USFD	79 Outperform	$13.93B	30.01	10.65%	―	6.41%	-2.01%
SYY	74 Outperform	$34.95B	18.35	87.49%	2.92%	3.95%	-5.04%
CHEF	71 Outperform	$2.03B	37.78	11.18%	―	10.50%	59.18%
PFGC	71 Outperform	$11.19B	28.95	9.54%	―	3.85%	-9.74%
SPTN	63 Neutral	$658.99M	2,237.93	0.04%	4.48%	-2.66%	8.18%
Sector *	62 Neutral	$19.87B	13.65	-16.14%	3.29%	1.16%	3.90%
UNFI	55 Neutral	$1.49B	―	-4.94%	―	4.73%	29.70%

United Natural Foods Corporate Events

United Natural Foods Clarifies Legal Status of 8-K Report

United Natural Foods has issued a Current Report on Form 8-K, clarifying that the information provided is not considered ‘filed’ under the Securities Exchange Act of 1934, nor subject to its liabilities. This announcement ensures stakeholders understand the legal status of the information and its limitations regarding incorporation into future filings.

United Natural Foods Releases FY2024 Impact Report

On January 22, 2025, United Natural Foods, Inc. released its FY2024 Impact Report, highlighting the company’s sustainability efforts throughout fiscal year 2024. The release of this report demonstrates United Natural Foods’ commitment to transparency and sustainability, potentially impacting its industry positioning and stakeholder relations.