The capital turnover (annual revenue relative to shareholder's equity) for CHEF is 5.04 -- better than 90.95% of US stocks.
In terms of volatility of its share price, CHEF is more volatile than 89.32% 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 -42.72%, greater than the shareholder yield of merely 10.25% of stocks in our set.
Stocks that are quantitatively similar to CHEF, based on their financial statements, market capitalization, and price volatility, are PAHC, ZEUS, CJJD, CRI, and HWCC.
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 63th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 112.83%. The most interesting components of our discounted cash flow analysis for Chefs' Warehouse Inc ended up being:
41% of the company's capital comes from equity, which is greater than only 23.18% of stocks in our cash flow based forecasting set.
Chefs' Warehouse Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Consumer Defensive), Chefs' Warehouse Inc has a reliance on debt greater than 89.26% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TSN, VGR, TAP, UL, and MO 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.
Moody's Investors Service (Moody's) assigned a B2 rating to The Chefs' Warehouse, Inc.'s (Chefs) proposed amended first lien term loan due 2025. Moody's views the transaction as credit positive because it extends the company's debt maturity profile and modestly lowers debt levels. Moody's expects the company to have adequate liquidity over the next 12-18 months, with a $227 million pro-forma cash balance and $80 million borrowings under the $150 million asset-based revolving credit facility.
What happened Shares of The Chefs' Warehouse (NASDAQ: CHEF) were headed higher on Wednesday, at one point trading 12% higher. As of 11:45 a.m. EDT, shares had given a little back, but were still up 7% for the session.
The Chefs’ Warehouse, Inc. (CHEF) (the “Company”), a premier distributor of specialty food products in the United States and Canada, announced today the closing of its previously announced underwritten public offering of 5,769,231 shares of its common stock (the “Offering”). Jefferies LLC (“Jefferies”) and BMO Capital Markets Corp. acted as the underwriters for the Offering (collectively, the “Underwriters”), pursuant to an underwriting agreement entered into between the Company and Jefferies, as representative of the underwriters named therein, dated May 11, 2020. The Company sold a total of 5,769,231 shares, at a price of $13.00 per share to the Underwriters, to be reoffered by the Underwriters at variable prices.
Shares of The Chefs' Warehouse (NASDAQ: CHEF) fell sharply in early trading on Tuesday after the company announced a secondary offering of its common stock. The Chefs' Warehouse stock has recovered some in recent weeks, but shares are still down substantially in 2020. The company just reported earnings for the first quarter of 2020, and organic net sales fell 6.6% year over year.
The Chefs’ Warehouse, Inc. (CHEF) (the “Company”), a premier distributor of specialty food products in the United States and Canada, today announced that Jefferies LLC (“Jefferies”) has agreed to purchase $75,000,000 of the Company’s common stock (the “Shares”), to be reoffered by Jefferies at variable prices. In addition, the Company has granted Jefferies an option, exercisable for up to 30 days, to purchase up to an aggregate of an additional $11,250,000 of shares of common stock. In addition to adding liquidity to the balance sheet, the Company currently intends to use the net proceeds from this offering for general corporate purposes, which may include, among other things, working capital, repayment of outstanding debt and opportunistic investment in sales and distribution infrast...