United Natural Foods (UNFI) AI Stock Analysis

• Market Cap: $1.42B
• Dividend Yield: N/A
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 6.62%
• EPS Growth: 53.12%
• Country: US
• Employees: 28,333
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Food Distribution
• EPS (TTM): 0.44
• Shares Outstanding: 60,565,533
• 10 Day Avg. Volume: 904,227
• 30 Day Avg. Volume: 1,394,696
• PEG Ratio: -1.26
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.25
• Enterprise Value/Market Cap: 3.49
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 1.15
• Enterprise Value/Ebitda: 3.09
• 1Y Price Target: $26.63
• Price Target Upside: 1.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 62 Neutral
• Price Target: $28.00 ▲(6.63%Upside)

United Natural Foods' stock score reflects a balance of moderate financial performance with strong cash flow but ongoing profitability challenges. Technical indicators present a mixed outlook, while valuation remains a concern with a negative P/E ratio. The recent earnings call and corporate events, including an IT security breach, further complicate the company's near-term prospects.

Positive Factors

Financial Guidance

UNFI actually raised its FY25 sales guidance, suggesting a constructive underlying top-line trend persisted.

Market Exposure

UNFI's large natural segment renders it favorably exposed to a healthy-eating market growing at an outsized rate, supporting top-line growth.

Negative Factors

Customer Base Challenges

Structural hurdles remain for UNFI with a share-losing customer base.

Cyber Incident Impact

UNFI reported a $350-400 million top-line headwind from the recent cyber incident with a $40-50 million hit to EBITDA from the lost sales.

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 its wholesale distribution services by purchasing products from manufacturers and suppliers and selling them to its diverse customer base, which includes grocery stores, supermarkets, and food service businesses. Key revenue streams include the sale of natural and organic foods, specialty products, and conventional grocery items. The company also earns from providing value-added services such as marketing support, merchandising assistance, and logistical solutions. In addition, UNFI's partnerships with leading grocery retailers, including its significant supply arrangement with Whole Foods Market, owned by Amazon, contribute notably to its earnings by ensuring consistent demand for its products. UNFI's strategic acquisitions and expansion into different geographic markets further bolster its revenue by increasing its distribution network and customer reach.

United Natural Foods Financial Statement Overview

Summary

United Natural Foods is experiencing moderate revenue growth and strong cash flow management. Despite these positives, the company struggles with negative net income and low EBIT margins, suggesting ongoing profitability challenges.

Income Statement

United Natural Foods shows a moderate revenue growth of 4.07% TTM (Trailing-Twelve-Months) compared to the previous year, driven by increased market demand. However, net profit margins remain negative at -0.21%, indicating profitability issues. The gross profit margin is stable at 13.36%, but the EBIT margin is quite low at 0.15%, reflecting challenges in operational efficiency.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio of 2.20. Stockholders' equity as a percentage of total assets is 21.34%, indicating a reasonable equity buffer. Return on equity (ROE) is negative due to net losses, highlighting ongoing profitability challenges.

Cash Flow

United Natural Foods demonstrates strong cash flow management with a significant improvement in free cash flow, recording a growth rate of 396.74% TTM. The operating cash flow to net income ratio is robust at 7.49, indicating strong cash generation capabilities despite net losses.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	30.98B	30.27B	28.93B	26.95B	26.51B
Gross Profit	4.20B	4.13B	4.18B	3.94B	3.87B
EBITDA	356.00M	502.00M	684.00M	599.00M	115.00M
Net Income	-112.00M	24.00M	248.00M	149.00M	-254.01M
Balance Sheet
Total Assets	7.53B	7.39B	7.63B	7.53B	7.59B
Cash, Cash Equivalents and Short-Term Investments	40.00M	37.00M	44.00M	41.00M	46.99M
Total Debt	3.55B	3.27B	3.38B	3.43B	3.66B
Total Liabilities	5.89B	5.65B	5.84B	6.01B	6.44B
Stockholders Equity	1.64B	1.74B	1.79B	1.51B	1.14B
Cash Flow
Free Cash Flow	-92.00M	301.00M	80.00M	304.00M	283.97M
Operating Cash Flow	253.00M	624.00M	331.00M	614.00M	456.54M
Investing Cash Flow	-342.00M	-339.00M	-49.00M	-237.00M	-1.47M
Financing Cash Flow	92.00M	-292.00M	-279.00M	-384.00M	-453.07M

United Natural Foods Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.26
• 50DMA: Positive
• 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 Positive. The current price of 26.26 is above the 20-day moving average (MA) of 22.84, above the 50-day MA of 25.79, and above the 200-day MA of 25.69, indicating a bullish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 62.98 is Neutral, neither overbought nor oversold. The STOCH value of 76.62 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
SYY	78 Outperform	$37.02B	19.75	94.91%	2.83%	3.55%	-5.79%
PFGC	78 Outperform	$15.09B	41.59	9.05%	―	6.20%	-10.58%
CHEF	76 Outperform	$2.61B	42.97	12.90%	―	7.85%	79.89%
USFD	75 Outperform	$18.76B	38.12	11.16%	―	6.32%	5.69%
SPTN	71 Outperform	$897.34M	2,245.98	-1.38%	3.32%	0.26%	-119.66%
Sector *	65 Neutral	$26.77B	15.22	-4.18%	3.21%	1.01%	1.53%
UNFI	62 Neutral	$1.42B	―	-4.11%	―	6.62%	53.12%

United Natural Foods Corporate Events

United Natural Foods Revises Fiscal 2025 Outlook

On July 16, 2025, United Natural Foods, Inc. provided a business update, revising its full-year outlook for fiscal 2025 due to strong performance in the first three quarters and the impact of a previously disclosed cyber incident. The company reported a 5.5% increase in net sales, a $44 million improvement in net loss, and a 16% rise in adjusted EBITDA. Despite the cyber incident’s estimated impact on fiscal 2025 net sales by $350 to $400 million and net income by $50 to $60 million, UNFI remains confident in achieving its long-term financial targets ahead of schedule. The company expects to reduce net leverage to nearly 2.5x by the end of fiscal 2026, a year earlier than initially projected.

The most recent analyst rating on (UNFI) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on United Natural Foods stock, see the UNFI Stock Forecast page.

United Natural Foods Issues Clarification on Form 8-K

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. This announcement ensures that the details shared are not subject to the liabilities of Section 18 of the Exchange Act, impacting how stakeholders should interpret the information.

The most recent analyst rating on (UNFI) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on United Natural Foods stock, see the UNFI Stock Forecast page.

United Natural Foods Faces IT Security Breach

On June 5, 2025, United Natural Foods, Inc. discovered unauthorized activity on its IT systems, leading to temporary disruptions in fulfilling and distributing customer orders. The company has implemented containment measures and workarounds to mitigate the impact, with ongoing efforts to restore systems and assess the incident’s scope with the help of cybersecurity professionals and law enforcement.

The most recent analyst rating on (UNFI) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on United Natural Foods stock, see the UNFI Stock Forecast page.