United Natural Foods (UNFI) AI Stock Analysis

• Market Cap: $1.31B
• Dividend Yield: N/A
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 6.62%
• EPS Growth: 53.12%
• Country: US
• Employees: 28,333
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Food Distribution
• EPS (TTM): 0.44
• Shares Outstanding: 60,565,533
• 10 Day Avg. Volume: 2,051,104
• 30 Day Avg. Volume: 1,180,723
• PEG Ratio: -0.57
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.08
• Enterprise Value/Market Cap: 3.39
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 1.07
• Enterprise Value/Ebitda: 2.91
• 1Y Price Target: $25.29
• Price Target Upside: 17.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 48 Neutral
• Price Target: $22.00 ▲(2.42%Upside)

United Natural Foods faces significant challenges, including profitability concerns, high leverage, and recent operational disruptions. While positive cash flow and strategic initiatives offer some optimism, the overall outlook remains cautious. The technical indicators suggest bearish momentum, and valuation metrics are unattractive. Immediate focus on resolving operational issues and improving profitability is critical.

Positive Factors

Earnings

UNFI delivered another encouraging result, paced by continued sales and margin progress.

Financial Performance

UNFI's F2Q25 beat was supported by stronger sales and solid operating expense leverage, and Management raised the bottom-end of EBITDA guidance by 4%.

Sales Growth

Sales growth was led by a 4% increase in wholesale unit volumes, and its natural segment grew +12% y/y.

Negative Factors

Cybersecurity

The recent cyberattack raises a number of concerns and visibility on the impact is low.

Operational Disruption

UNFI's IT systems have been down for ~100 hours following a cyberattack disclosed, the disruption looks to be material.

Reliance on Key Customer

New disclosures suggest weak natural sales trends, excluding Whole Foods, implying a high reliance on low-margin Whole Foods for top-line growth.

United Natural Foods Business Overview & Revenue Model

Company Description

United Natural Foods, Inc. (UNFI) is a leading distributor of natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. The company operates within the wholesale distribution sector, providing a comprehensive range of products to a variety of customers including natural product superstores, independent retailers, conventional supermarket chains, e-commerce platforms, and food service providers. UNFI is committed to offering an extensive selection of high-quality and sustainable products to meet the growing consumer demand for health and wellness options.

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 shows modest revenue growth, but profitability is a concern with negative net income and low margins. High leverage on the balance sheet adds to financial risk, although improved cash flow provides some stability.

Income Statement

United Natural Foods shows modest revenue growth, with a slight increase in total revenue from $30.72 billion to $31.68 billion in TTM (Trailing-Twelve-Months). However, profitability remains a concern as the company reported a negative net income in TTM, with a net profit margin of approximately -0.26%. Gross profit margin is stable at around 13.16%, but the EBIT margin is quite low at 0.23%, indicating operational inefficiencies. The company needs to improve its cost management and operational efficiency to enhance profitability.

Balance Sheet

The balance sheet indicates a relatively high debt-to-equity ratio of approximately 2.29, suggesting significant leverage. While the equity ratio stands at about 21.02%, indicating a fair proportion of assets financed by equity, the return on equity is negative due to the net loss, highlighting the need for improved profitability. The company should focus on managing its debt levels and enhancing equity returns to strengthen its financial position.

Cash Flow

The cash flow statement reveals a positive trend in operating cash flow, increasing from $253 million to $461 million in the TTM. Free cash flow has improved significantly, turning positive at $203 million from a negative position previously. The operating cash flow to net income ratio is favorable due to strong operating cash flows despite the net loss. Continued focus on cash flow generation can provide stability and support financial obligations.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	31.68B	30.98B	30.27B	28.93B	26.95B	26.51B
Gross Profit	4.17B	4.20B	4.13B	4.18B	3.94B	3.87B
EBITDA	408.00M	356.00M	502.00M	684.00M	599.00M	115.00M
Net Income	-82.00M	-112.00M	24.00M	248.00M	149.00M	-254.01M
Balance Sheet
Total Assets	7.73B	7.53B	7.39B	7.63B	7.53B	7.59B
Cash, Cash Equivalents and Short-Term Investments	44.00M	40.00M	37.00M	44.00M	41.00M	46.99M
Total Debt	3.72B	3.55B	3.27B	3.38B	3.43B	3.66B
Total Liabilities	6.11B	5.89B	5.65B	5.84B	6.01B	6.44B
Stockholders Equity	1.63B	1.64B	1.74B	1.79B	1.51B	1.14B
Cash Flow
Free Cash Flow	203.00M	-92.00M	301.00M	80.00M	304.00M	283.97M
Operating Cash Flow	461.00M	253.00M	624.00M	331.00M	614.00M	456.54M
Investing Cash Flow	-300.00M	-342.00M	-339.00M	-49.00M	-237.00M	-1.47M
Financing Cash Flow	-150.00M	92.00M	-292.00M	-279.00M	-384.00M	-453.07M

United Natural Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 21.48 is below the 20-day moving average (MA) of 24.65, below the 50-day MA of 26.36, and below the 200-day MA of 25.18, indicating a bearish trend. The MACD of -1.80 indicates Positive momentum. The RSI at 32.63 is Neutral, neither overbought nor oversold. The STOCH value of 39.65 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
SYY	78 Outperform	$36.38B	19.41	94.91%	2.72%	3.55%	-5.79%
USFD	77 Outperform	$17.63B	35.25	11.16%	―	6.32%	5.69%
CHEF	76 Outperform	$2.60B	42.08	12.90%	―	7.85%	79.89%
PFGC	76 Outperform	$13.35B	35.60	9.05%	―	6.20%	-10.58%
SPTN	71 Outperform	$894.97M	2,245.98	-1.38%	3.33%	0.26%	-119.66%
Sector *	68 Neutral	¥196.73B	21.07	8.29%	2.38%	5.00%	2.96%
UNFI	48 Neutral	$1.31B	―	-4.11%	―	6.62%	53.12%

United Natural Foods Corporate Events

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.