United Natural Foods (UNFI) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: N/A
• Average Volume (3M): 930.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 1.45%
• EPS Growth: -5.49%
• Country: US
• Employees: 28,333
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.56
• Shares Outstanding: 60,931,816
• 10 Day Avg. Volume: 1,198,646
• 30 Day Avg. Volume: 930,457
• 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: 2.75
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 1.35
• Enterprise Value/Ebitda: 17.87
• 1Y Price Target: $40.40
• Price Target Upside: 18.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $36.00 ▲(5.54% Upside)

United Natural Foods' overall stock score reflects a challenging financial environment with declining revenues and high leverage. However, strong earnings call results and improvements in cash flow generation provide a positive outlook. Technical indicators suggest bearish momentum, and valuation metrics are weak due to negative profitability.

Positive Factors

Cash Flow Generation

Improved cash flow generation enhances financial flexibility, enabling strategic investments and debt reduction, supporting long-term growth.

Network Optimization

Ahead-of-schedule network optimization boosts operational efficiency, reducing costs and enhancing service delivery, strengthening competitive position.

Natural Products Growth

Growth in the natural products segment aligns with consumer trends towards health-conscious options, driving sustainable revenue expansion.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Declining Revenue

Declining revenue growth reflects challenges in maintaining market share and could pressure margins, affecting long-term profitability.

Conventional Product Segment Decline

Decline in conventional product sales indicates potential market share loss, impacting overall revenue and necessitating strategic adjustments.

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 segment, where it sells a vast array of natural and organic products to retailers. The company earns money by marking up the products it purchases from manufacturers before distributing them to its customers. Key revenue streams include sales from grocery items, perishables, and private label products. Additionally, UNFI benefits from partnerships with numerous suppliers, enabling it to offer a broad selection of products. The company also leverages its e-commerce platform to reach customers directly, enhancing sales and driving growth. Factors contributing to its earnings include the increasing consumer demand for healthy and organic foods, strategic acquisitions to expand its product offerings, and operational efficiencies that improve profit margins.

United Natural Foods Financial Statement Overview

Summary

United Natural Foods is facing financial challenges with declining revenues and negative profitability metrics. The high debt-to-equity ratio indicates significant leverage, posing potential risks. However, the company shows resilience in cash flow generation, with a positive free cash flow growth rate of 25%.

Income Statement

United Natural Foods has experienced a decline in revenue growth, with a negative growth rate of -9.8% in the TTM period. The company is facing profitability challenges, as indicated by negative net profit and EBIT margins. Gross profit margin remains stable, but the overall income statement reflects financial stress due to declining revenues and negative profitability metrics.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.24, indicating significant leverage. Return on equity is negative, reflecting the company's struggles to generate profits from its equity base. The equity ratio is moderate, suggesting a balanced asset structure, but the high leverage poses potential risks.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 25% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash despite net losses. However, the free cash flow to net income ratio indicates reliance on cash flow rather than profitability.

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

United Natural Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.11
• 50DMA: Negative
• 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 Negative. The current price of 34.11 is below the 20-day moving average (MA) of 36.50, below the 50-day MA of 38.25, and above the 200-day MA of 29.70, indicating a neutral trend. The MACD of -0.91 indicates Positive momentum. The RSI at 40.83 is Neutral, neither overbought nor oversold. The STOCH value of 24.17 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
CHEF	72 Outperform	$2.42B	34.36	14.12%	―	8.88%	54.12%
ANDE	70 Outperform	$1.69B	23.37	5.85%	1.56%	2.19%	-39.07%
AVO	66 Neutral	$853.08M	22.02	7.12%	―	25.34%	66.91%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CVGW	58 Neutral	$369.03M	23.58	6.58%	3.87%	-5.33%	―
SPTN	58 Neutral	―	―	―	―	1.54%	-134.75%
UNFI	52 Neutral	$2.08B	―	-6.37%	―	1.45%	-5.49%

United Natural Foods Corporate Events

United Natural Foods Balances Growth and Challenges in Earnings Call

The recent earnings call for United Natural Foods presented a mixed outlook, balancing strong financial performance with notable challenges. The company demonstrated robust free cash flow and debt reduction, alongside successful execution of its strategic plan and growth in the Natural segment. However, these positives were offset by the impacts of a cyber incident and a decline in the Conventional segment, leading to a balanced sentiment overall.

United Natural Foods Reports Fiscal 2025 Results

United Natural Foods, Inc. (UNFI) is a leading grocery wholesaler in North America, specializing in delivering a wide range of fresh, branded, and owned brand products to various retail and foodservice locations. The company also offers value-added services and marketing expertise to support its customers and suppliers.

United Natural Foods Issues Regulation FD Disclosure

The information in this current report on Form 8-K is being furnished and is not deemed to be ‘filed’ for purposes of the Securities Exchange Act of 1934. It is also not subject to the liabilities of that section nor incorporated by reference into a filing under the Securities Act of 1933, except as expressly set forth by specific reference.

The most recent analyst rating on (UNFI) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on United Natural Foods stock, see the UNFI Stock Forecast page.