United Natural Foods (UNFI)
NYSE:UNFI
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United Natural Foods
(NYSE:UNFI)
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Rating:56Neutral
Price Target:
$52.00
▲(6.34% Upside)
Action:Reiterated
Date:06/13/26
The score is driven primarily by mixed financial performance—thin/negative earnings and elevated leverage offset by solid free cash flow—along with a constructive earnings call pointing to improving profitability and deleveraging. Technicals are moderately supportive with an established uptrend and neutral momentum, while valuation is constrained by a negative P/E and no dividend yield.
Positive Factors
Cash generation
Persistent positive operating cash flow and material free cash flow provide durable internal funding for deleveraging, capex, logistics investments and occasional buybacks. For a low-margin distributor, recurring cash conversion reduces refinancing risk and supports multi-quarter execution despite accounting losses.
Negative Factors
Reliance on asset-based liquidity
Dependence on a secured ABL with tighter availability triggers and coverage covenants increases liquidity risk if receivables or inventory fall. In a high-leverage, low-margin distribution model, covenant or availability pressure could force asset dispositions, constrain working capital or accelerate repayment under stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Persistent positive operating cash flow and material free cash flow provide durable internal funding for deleveraging, capex, logistics investments and occasional buybacks. For a low-margin distributor, recurring cash conversion reduces refinancing risk and supports multi-quarter execution despite accounting losses.
Read all positive factors
United Natural Foods (UNFI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.13B
Dividend YieldN/A
Average Volume (3M)695.60K
Price to Earnings (P/E)―
Beta (1Y)0.75
Revenue Growth-3.22%
EPS Growth44.69%
CountryUS
Employees28,333
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)-0.63
Shares Outstanding60,519,140
10 Day Avg. Volume1,030,918
30 Day Avg. Volume695,597
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 Cap1.95
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit1.46
Enterprise Value/Ebitda13.53
Forecast
1Y Price Target
$49.80Price Target Upside1.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.55
Revenue Forecast (FY)$31.31B
United Natural Foods Business Overview & Revenue Model
Company Description
United Natural Foods, Inc. (UNFI), founded in 1976 and based in Providence, Rhode Island, functions as a prominent distributor of a wide spectrum of products across the United States and Canada. The company supplies natural, organic, and specialty...
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:Jun 09, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Oct 06, 2026
Earnings Call Sentiment Positive
The call highlighted meaningful progress on profitability, cash generation and balance sheet improvement — with adjusted EBITDA up ~17%, adjusted EPS improving materially, free cash flow growth and a lower net leverage ratio. Management also emphasized tangible early benefits from AI and supply chain investments, new digital offerings and private brand innovation. However, these positives are tempered by a reported 4.2% sales decline driven by strategic optimization actions (450 bps impact), a nearly 14% drop in conventional sales, retail store closures, the unwind of project-based work (~200 bps drag), and near-term pressure from rising fuel/transportation costs and consumer headwinds. On balance, the company demonstrated strong execution on margins, cash flow and deleveraging while acknowledging top-line and macro challenges, and reiterated confidence in returning to low-single-digit sales growth in fiscal 2027.Positive Updates
Strong Profitability and Margin Expansion
Adjusted EBITDA grew nearly 17% year-over-year to $183 million, with adjusted EBITDA margin expanding ~40 basis points to ~2.4% of net sales. Adjusted EPS increased to $0.77 from $0.44 in the prior year.
Negative Updates
Reported Sales Decline
Third quarter net sales were approximately $7.7 billion, a decline of 4.2% year-over-year. Reported top-line was pressured by strategic actions and one-off items.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Profitability and Margin Expansion
Adjusted EBITDA grew nearly 17% year-over-year to $183 million, with adjusted EBITDA margin expanding ~40 basis points to ~2.4% of net sales. Adjusted EPS increased to $0.77 from $0.44 in the prior year.
Read all positive updates
Company Guidance
UNFI reiterated midpoints and narrowed expected ranges for net sales, net income, EPS, adjusted EBITDA and adjusted EPS—anchoring the year at an adjusted EBITDA midpoint of $695 million—while noting it has embedded Q4 fuel/transportation pressure and stepped‑up technology/supply‑chain investments into that guidance. Key metrics driving the outlook: Q3 net sales ≈ $7.7B (‑4.2% YoY; ≈450 bps headwind from accretive optimization), gross margin 13.6% (+≈20 bps), operating expense rate 12.4% (‑≈40 bps), adjusted EBITDA $183M (+≈17%, ≈2.4% margin), adjusted EPS $0.77 vs $0.44 prior year, free cash flow $54M in Q3 and $243M YTD (+$90M), net leverage 2.5x (‑0.8 turns) with net debt $1.63B, and share repurchases ~1M shares for ~$38M. Operational datapoints informing guidance include natural sales +4%+, conventional sales ≈‑14%, retail sales ≈‑10% (SSS ≈‑4%), DC productivity +7%+, on‑time deliveries +4% YTD, avg miles/delivery ≈‑5%, and lean deployed in 40 DCs; management expects to fully cycle a large project by Q3 FY27 and to return to low‑single‑digit sales growth in FY27, with low‑single‑digit food inflation through year‑end.United Natural Foods Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
45
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.21B | 31.78B | 30.98B | 30.27B | 28.93B | 26.95B |
| Gross Profit | 4.18B | 4.22B | 4.20B | 4.13B | 4.18B | 3.94B |
| EBITDA | 452.00M | 498.00M | 328.00M | 444.00M | 732.00M | 599.00M |
| Net Income | -38.00M | -118.00M | -112.00M | 24.00M | 248.00M | 149.00M |
Balance Sheet | ||||||
| Total Assets | 7.19B | 7.59B | 7.53B | 7.39B | 7.63B | 7.53B |
| Cash, Cash Equivalents and Short-Term Investments | 43.00M | 44.00M | 40.00M | 37.00M | 44.00M | 41.00M |
| Total Debt | 3.15B | 3.45B | 3.55B | 3.27B | 3.38B | 3.43B |
| Total Liabilities | 5.59B | 6.04B | 5.89B | 5.65B | 5.84B | 6.01B |
| Stockholders Equity | 1.60B | 1.55B | 1.64B | 1.74B | 1.79B | 1.51B |
Cash Flow | ||||||
| Free Cash Flow | 329.00M | 239.00M | -92.00M | 301.00M | 80.00M | 304.00M |
| Operating Cash Flow | 503.00M | 470.00M | 253.00M | 624.00M | 331.00M | 614.00M |
| Investing Cash Flow | -158.00M | -218.00M | -342.00M | -339.00M | -49.00M | -237.00M |
| Financing Cash Flow | -354.00M | -248.00M | 92.00M | -292.00M | -279.00M | -384.00M |
United Natural Foods Technical Analysis
Positive
48.90
Price Trends
50.02
Positive
45.16
Positive
40.19
Positive
Market Momentum
0.10
Positive
53.56
Neutral
59.51
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 48.9 is below the 20-day moving average (MA) of 50.99, below the 50-day MA of 50.02, and above the 200-day MA of 40.19, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 59.51 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.89B | 46.59 | 13.54% | ― | 10.01% | 22.30% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | $1.01B | 35.63 | 3.93% | ― | -10.53% | -37.53% | |
56 Neutral | $3.13B | -82.74 | -2.43% | ― | -3.22% | 44.69% | |
53 Neutral | $2.43B | 18.83 | 10.17% | 1.44% | -1.98% | 18.34% |
* Consumer Defensive Sector Average
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United Natural Foods Corporate Events
Business Operations and StrategyPrivate Placements and Financing
United Natural Foods Amends and Extends Asset-Based Credit Facility
Neutral
Apr 2, 2026
Effective April 1, 2026, United Natural Foods and its key U.S. and Canadian subsidiaries amended and restated their asset-based revolving credit facility, replacing a prior $2.6 billion arrangement with a $2.4 billion secured facility plus an exis...
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.