United Natural Foods (UNFI) AI Stock Analysis

• Market Cap: $2.40B
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 2.60%
• EPS Growth: -3.23%
• Country: US
• Employees: 28,333
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): -0.11
• Shares Outstanding: 60,652,400
• 10 Day Avg. Volume: 722,058
• 30 Day Avg. Volume: 1,267,378
• PEG Ratio: -3.72
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 3.46
• Enterprise Value/Market Cap: 2.10
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 1.20
• Enterprise Value/Ebitda: 22.43
• 1Y Price Target: $40.20
• Price Target Upside: 1.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 53 Neutral
• Price Target: $43.00 ▲(8.75% Upside)

United Natural Foods' overall stock score reflects significant financial challenges and valuation concerns, offset by strong technical momentum and positive earnings call guidance. The company's ability to improve cash flow and reduce debt provides some optimism, but operational and segment-specific issues remain.

Positive Factors

Free Cash Flow Improvement

Improved free cash flow enhances financial flexibility, allowing UNFI to invest in growth opportunities and reduce debt, strengthening its balance sheet over the long term.

Natural Segment Growth

Growth in the Natural segment indicates strong market demand and positions UNFI to capitalize on consumer trends towards healthier, organic products, supporting long-term revenue expansion.

Strategic Plan Execution

Successful execution of its strategic plan demonstrates UNFI's ability to meet targets, enhancing investor confidence and setting a foundation for sustained operational improvements.

Negative Factors

High Debt Levels

High debt levels can limit UNFI's financial flexibility and increase risk, potentially impacting its ability to invest in growth and weather economic downturns.

Cyber Incident Impact

The cyber incident highlights vulnerabilities in UNFI's operations, potentially undermining customer trust and leading to increased costs for security enhancements.

Conventional Segment Decline

Declining sales in the Conventional segment suggest challenges in maintaining market share, which could affect overall revenue growth if not addressed.

United Natural Foods Business Overview & Revenue Model

Company Description

United Natural Foods, Inc. (UNFI) is a leading distributor of natural, organic, and specialty food products in the United States and Canada. The company operates in two primary segments: wholesale distribution and retail, serving a diverse range of customers including independent grocery stores, conventional supermarket chains, and natural food retailers. UNFI offers an extensive portfolio of products, including fresh produce, grocery items, meat, dairy, and health and wellness products, as well as a variety of private-label brands.

How the Company Makes Money

UNFI generates revenue primarily through its wholesale distribution segment by selling a wide array of natural and organic food products to retailers and food service operations. Key revenue streams include the sale of grocery items, perishables, and bulk products. The company also benefits from its private-label brands, which typically offer higher margins compared to third-party products. Additionally, UNFI has established significant partnerships with various food manufacturers and suppliers, enhancing its product offerings and market reach. The company's scale allows it to negotiate favorable terms and leverage logistics efficiencies, contributing to its overall profitability.

United Natural Foods Financial Statement Overview

Summary

United Natural Foods faces significant financial challenges, with declining revenue and profitability metrics. The high leverage and negative return on equity highlight financial risks. However, improvements in cash flow provide some stability, suggesting potential for recovery if operational issues are addressed.

Income Statement

United Natural Foods has experienced declining revenue growth, with a negative growth rate in the most recent year. The gross profit margin has slightly decreased over the years, and the company is currently operating at a net loss, reflected in the negative net profit margin. EBIT and EBITDA margins have also turned negative, indicating operational challenges.

Balance Sheet

The company has a high debt-to-equity ratio, which has increased over time, indicating a reliance on debt financing. Return on equity has turned negative, reflecting the net losses. The equity ratio is relatively low, suggesting potential financial risk.

Cash Flow

Despite the challenges in profitability, United Natural Foods has shown improvement in free cash flow growth, with a significant positive change in the latest year. The operating cash flow to net income ratio is positive, indicating some cash flow stability, although the free cash flow to net income ratio is volatile.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	31.78B	31.78B	30.98B	30.27B	28.93B	26.95B
Gross Profit	4.22B	4.22B	4.20B	4.13B	4.18B	3.94B
EBITDA	225.00M	-31.00M	356.00M	502.00M	684.00M	599.00M
Net Income	-118.00M	-118.00M	-112.00M	24.00M	248.00M	149.00M
Balance Sheet
Total Assets	7.59B	7.59B	7.53B	7.39B	7.63B	7.53B
Cash, Cash Equivalents and Short-Term Investments	44.00M	44.00M	40.00M	37.00M	44.00M	41.00M
Total Debt	3.45B	3.45B	3.55B	3.27B	3.38B	3.43B
Total Liabilities	6.04B	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	288.00M	470.00M	-92.00M	301.00M	80.00M	304.00M
Operating Cash Flow	470.00M	470.00M	253.00M	624.00M	331.00M	614.00M
Investing Cash Flow	-218.00M	-218.00M	-342.00M	-339.00M	-49.00M	-237.00M
Financing Cash Flow	-248.00M	-248.00M	92.00M	-292.00M	-279.00M	-384.00M

United Natural Foods Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 39.54 is below the 20-day moving average (MA) of 40.54, above the 50-day MA of 33.35, and above the 200-day MA of 28.69, indicating a neutral trend. The MACD of 2.11 indicates Positive momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 13.98 is Positive, 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
ANDE	―	$1.62B	20.17	6.03%	1.65%	-6.66%	-21.70%
AVO	―	$821.30M	21.20	7.12%	―	25.34%	66.91%
CHEF	―	$2.39B	36.13	13.64%	―	7.90%	68.05%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SPTN	―	―	―	―	―	1.54%	-134.75%
CVGW	―	$415.80M	26.57	6.58%	3.43%	-5.33%	―
UNFI	―	$2.40B	―	-7.39%	―	2.60%	-3.23%

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.