United Natural Foods (UNFI)
NYSE:UNFI
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United Natural Foods
(NYSE:UNFI)
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Rating:61Neutral
Price Target:
$48.00
▲(2.19% Upside)
Action:ReiteratedDate:04/01/26
The score is driven primarily by mixed financial fundamentals—strong free cash flow but weak profitability and elevated leverage—tempered by a constructive earnings update (higher EBITDA/EPS/FCF and deleveraging targets). Technicals are supportive with strong upward trend and positive momentum, while valuation remains a constraint given the 28.34 P/E and no dividend yield provided.
Positive Factors
Strong cash generation
Sustained positive operating and free cash flow gives UNFI durable liquidity to fund capex, service debt and buy back stock. Over the next 2–6 months this cash conversion supports deleveraging targets and funds supply‑chain investments without relying on external financing.
Negative Factors
Elevated leverage
High absolute debt for a low‑margin distributor constrains financial flexibility and raises interest and refinancing risk. Even with improving cash flow, leverage requires continued deleveraging; failure to sustain FCF or EBITDA gains would pressure liquidity and capex plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained positive operating and free cash flow gives UNFI durable liquidity to fund capex, service debt and buy back stock. Over the next 2–6 months this cash conversion supports deleveraging targets and funds supply‑chain investments without relying on external financing.
Read all positive factors
United Natural Foods (UNFI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.85B
Dividend YieldN/A
Average Volume (3M)837.19K
Price to Earnings (P/E)28.3
Beta (1Y)0.85
Revenue Growth1.45%
EPS Growth-5.49%
CountryUS
Employees28,333
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)0.62
Shares Outstanding60,751,965
10 Day Avg. Volume568,946
30 Day Avg. Volume837,191
Financial Highlights & Ratios
PEG Ratio-3.72
Price to Book (P/B)1.05
Price to Sales (P/S)0.05
P/FCF Ratio6.80
Enterprise Value/Market Cap2.12
Enterprise Value/Revenue0.19
Enterprise Value/Gross Profit1.44
Enterprise Value/Ebitda16.08
Forecast
1Y Price Target
$47.20Price Target Upside0.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.58
Revenue Forecast (FY)$31.31B
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 co...
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 s...
United Natural Foods Earnings Call Summary
Earnings Call Date:Mar 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Positive
The call balanced clear operational and financial progress—strong profitability (adjusted EBITDA +23%), margin expansion, meaningful free cash flow improvement, and notable deleveraging—against top-line pressure driven largely by planned network optimization and some external retail demand softness. Management framed sales declines as temporary and attributable to accretive optimization actions, with a path back to growth in fiscal 2027, while highlighting execution on RELEX, lean, private brands and cost initiatives that are driving sustainable margin and cash-flow improvements.Positive Updates
Adjusted EBITDA Growth
Adjusted EBITDA grew ~23.4% year-over-year to $179 million in Q2, representing a margin expansion to 2.3% of net sales (up ~50 basis points YoY).
Negative Updates
Overall Sales Decline
Second quarter net sales were nearly $8.0 billion, down 2.6% year-over-year, driven in part by strategic optimization actions and weaker food retail trends.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EBITDA Growth
Adjusted EBITDA grew ~23.4% year-over-year to $179 million in Q2, representing a margin expansion to 2.3% of net sales (up ~50 basis points YoY).
Read all positive updates
Company Guidance
UNFI updated its fiscal 2026 guidance, lowering full‑year sales to $31.0–31.4 billion (≈1.9% down at the midpoint) while increasing adjusted EBITDA to $680–710 million (≈$695M midpoint, ~26% YoY improvement and roughly +50 bps margin expansion) and raising adjusted EPS to $2.30–$2.70; management is maintaining capital spending at $250 million, increasing expected full‑year free cash flow to about $330 million, and now expects year‑end net leverage of ~2.3x (improved from a prior 2.5x target) with further deleveraging targeted into FY27 (management cited ~2.2x and a goal below 2.0x by FY27 end); management also cited FY27/FY28 EBITDA targets of roughly $730M and $800M and expects the cycling of optimization actions and a completed RELEX rollout to support a return to growth in fiscal 2027.United Natural Foods Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
42
Neutral
Cash Flow
71
Positive
| 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
Positive
46.97
Price Trends
41.22
Positive
37.89
Positive
34.77
Positive
Market Momentum
1.92
Negative
63.31
Neutral
84.00
Negative
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 46.97 is above the 20-day moving average (MA) of 44.18, above the 50-day MA of 41.22, and above the 200-day MA of 34.77, indicating a bullish trend. The MACD of 1.92 indicates Negative momentum. The RSI at 63.31 is Neutral, neither overbought nor oversold. The STOCH value of 84.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNFI.
United Natural Foods Risk Analysis
United Natural Foods disclosed 25 risk factors in its most recent earnings report. United Natural Foods reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
United Natural Foods Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $476.17M | 155.30 | 7.82% | 3.70% | -5.33% | ― | |
69 Neutral | $2.63B | 34.00 | 12.69% | ― | 8.88% | 54.12% | |
69 Neutral | $974.14M | -339.58 | 5.77% | ― | 12.68% | 3.09% | |
68 Neutral | $2.41B | 6.70 | 7.44% | 1.44% | 2.19% | -39.07% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $2.85B | 28.34 | -4.97% | ― | 1.45% | -5.49% |
* Consumer Defensive Sector Average
UNFI
United Natural Foods
47.00
22.34
90.59%
CVGW
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26.67
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4.42%
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The Andersons
71.01
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89.44%
CHEF
The Chefs' Warehouse
62.98
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AVO
Mission Produce
13.78
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35.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.