United Natural Foods (UNFI) AI Stock Analysis

• Market Cap: $2.51B
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• 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: 1,697,414
• 30 Day Avg. Volume: 1,231,272
• 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: 2.01
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 1.20
• Enterprise Value/Ebitda: 22.43
• 1Y Price Target: $36.88
• Price Target Upside: -10.85% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 61 Neutral
• Price Target: $42.00 ▲(1.52% Upside)

United Natural Foods' stock score is primarily influenced by strong technical momentum, despite financial challenges and valuation concerns. The earnings call provided a mixed picture, with positive operational improvements overshadowed by significant risks from an IT security breach and contract termination. The stock's technical strength suggests potential for short-term gains, but caution is advised due to underlying financial and operational risks.

Positive Factors

Revenue Growth

Strong revenue growth, particularly in the Wholesale Natural Products segment, indicates robust market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Management

Strong free cash flow generation enhances financial flexibility, allowing for debt reduction and reinvestment in growth initiatives, which is crucial for sustainable business operations.

Margin Improvement

Improved EBITDA and margin rates reflect enhanced operational efficiency and cost management, contributing to better profitability and competitive positioning.

Negative Factors

IT Security Breach

The IT security breach poses significant operational risks and potential cost increases, impacting customer trust and operational continuity, which could hinder long-term growth.

Contract Termination

The termination of a major contract could lead to revenue loss and operational inefficiencies, challenging UNFI's market position and requiring strategic adjustments.

Profitability Challenges

Ongoing profitability issues, with negative net margins, highlight challenges in cost control and pricing strategy, potentially affecting long-term financial health.

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: 41.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 41.37 is above the 20-day moving average (MA) of 32.88, above the 50-day MA of 29.57, and above the 200-day MA of 27.76, indicating a bullish trend. The MACD of 3.40 indicates Negative momentum. The RSI at 85.14 is Negative, neither overbought nor oversold. The STOCH value of 96.82 is Negative, 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
AVO	66 Neutral	$828.36M	21.22	7.12%	―	25.34%	66.91%
ANDE	64 Neutral	$1.43B	17.85	6.03%	1.86%	-6.66%	-21.70%
CHEF	63 Neutral	$2.23B	33.71	13.64%	―	7.90%	68.05%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
UNFI	61 Neutral	$2.51B	―	-7.39%	―	2.60%	-3.23%
SPTN	58 Neutral	$910.78M	2,245.98	-2.08%	3.26%	1.54%	-134.75%
CVGW	57 Neutral	$448.48M	28.66	6.58%	3.18%	-5.33%	―

United Natural Foods Corporate Events

United Natural Foods CEO Andre Persaud to Step Down

United Natural Foods, Inc. announced that Andre Persaud will step down as President and CEO of Retail effective July 25, 2025, as part of the company’s strategy to accelerate its retail business. Persaud’s departure qualifies as a termination that entitles him to severance benefits under the Severance Agreement, which includes restrictive covenants and a release of claims against the company. His equity awards will vest on a prorated basis as outlined in the company’s 2020 Equity Incentive Plan.

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 Revises Fiscal 2025 Outlook

On July 16, 2025, United Natural Foods, Inc. provided a business update, revising its full-year outlook for fiscal 2025 due to strong performance in the first three quarters and the impact of a previously disclosed cyber incident. The company reported a 5.5% increase in net sales, a $44 million improvement in net loss, and a 16% rise in adjusted EBITDA. Despite the cyber incident’s estimated impact on fiscal 2025 net sales by $350 to $400 million and net income by $50 to $60 million, UNFI remains confident in achieving its long-term financial targets ahead of schedule. The company expects to reduce net leverage to nearly 2.5x by the end of fiscal 2026, a year earlier than initially projected.

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 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.