United Natural Foods distributes and retails natural, organic, and specialty foods, as well as non-food products primarily in the United States and Canada. The company was founded in 1976 and is based in Providence, Rhode Island.
UNFI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for United Natural Foods Inc. To summarize, we found that United Natural Foods Inc ranked in the 89th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1439.5%. The most interesting components of our discounted cash flow analysis for United Natural Foods Inc ended up being:
24% of the company's capital comes from equity, which is greater than merely 10.13% of stocks in our cash flow based forecasting set.
United Natural Foods Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.93. This coverage rate is greater than that of merely 20.8% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 16. This value is greater than 96.95% stocks in the Consumer Defensive sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FDP, LOPE, COKE, ACU, and NGVC can be thought of as valuation peers to UNFI, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
United Natural Foods, Inc. (NYSE: UNFI) ("UNFI" or the "Company"), North America's premier and largest food wholesaler delivering the widest variety of products to a diverse and expansive customer base across the country, today issued the below statements regarding a strike initiated by Teamsters Local 414 ("Local 414") in Fort Wayne, Indiana:
United Natural Foods (UNFI) represents a small-cap, deep-value opportunity, which had gotten a recent lockdown tailwind to accelerate its story. As integration issues subside, the company will be able to even more focus on growing revenues. Backstory UNFI operates a large network of food distribution centers throughout the United States,...
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