Of note is the ratio of Chefs' Warehouse Inc's sales and general administrative expense to its total operating expenses; 87.65% of US stocks have a lower such ratio.
In terms of volatility of its share price, CHEF is more volatile than 93.14% of stocks we're observing.
Chefs' Warehouse Inc's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is -37.08%, greater than the shareholder yield of just 11.78% of stocks in our set.
If you're looking for stocks that are quantitatively similar to Chefs' Warehouse Inc, a group of peers worth examining would be PAHC, SCS, JBT, VIRC, and HIL.
The Chef's Warehouse is a distributor of specialty food products in the United States and Canada focused on serving the specific needs of chefs who own and/or operate some of the nation's independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos and specialty food stores. The company was founded in 1985 and is based in Ridgefield, Connecticut.
CHEF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CHEF, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Chefs' Warehouse Inc ranked in the 58th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 90%. In terms of the factors that were most noteworthy in this DCF analysis for CHEF, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 48. Notably, its equity weight is greater than only 16.44% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
Chefs' Warehouse Inc's effective tax rate, as measured by taxes paid relative to net income, is at 51 -- greater than 94.15% of US stocks with positive free cash flow.
Chefs' Warehouse Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.68. This coverage rate is greater than that of merely 21.89% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
UL, DLTR, CCEP, SJM, and KHC can be thought of as valuation peers to CHEF, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
BTIG upgrades Chefs' Warehouse ([[CHEF]] +1.6%) on its view that the restaurant sales recovery coupled with a leaner cost structure will lead to profitability before the end of the year. Analyst Peter Saleh: "The recently announced indoor dining reopening in New York City, following similar actions in Massachusetts, California and...
Chef's Warehouse ([[CHEF]] -11.6%) was initiated with a Hold rating, $18 price target indicating 21% upside from current levels.Analyst Lynne Collier is positive on the company's differentiated positioning, growth opportunities and strong liquidity; sees the stock's risk-reward as "balanced" at current levels given the lack of visibility around sales (-51.3%...
As of 1:45 p.m. EDT, The Chefs' Warehouse stock had fallen 11% for the session. According to The Fly, Lynne Collier from Loop Capital started covering The Chefs' Warehouse and gave it a price target of $18 per share. If you bought The Chefs' Warehouse stock in 2020, it makes a huge difference when you bought shares.