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Performance Food Group (PFGC)
NYSE:PFGC
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Performance Food Group
(NYSE:PFGC)
Rating:79Outperform
Price Target:
$100.00
▲( 18.13% Upside)
Positive Factors
Acquisitions
Recent acquisitions are contributing to margin expansion and are expected to unlock further opportunities.
Share Gains
PFGC is seen as having significant share gain momentum in a highly fragmented industry, which is a key factor for future growth.
Negative Factors
Earnings
Headline EPS of $0.79 fell short of the $0.87 consensus, with EBITDA also missing by about 4%.
Operating Expenses
EBITDA missed expectations due to higher operating expenses and lower sales.
Performance Food Group (PFGC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.66B
Dividend YieldN/A
Average Volume (3M)1.22M
Price to Earnings (P/E)35.2
Beta (1Y)0.81
Revenue Growth6.20%
EPS Growth-10.58%
CountryUS
Employees36,630
SectorConsumer Defensive
Sector Strength69
IndustryFood Distribution
Share Statistics
EPS (TTM)0.79
Shares Outstanding156,090,900
10 Day Avg. Volume1,410,868
30 Day Avg. Volume1,217,122
Financial Highlights & Ratios
PEG Ratio-3.35
Price to Book (P/B)2.66
Price to Sales (P/S)0.00
P/FCF Ratio21.37
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$100.71Price Target Upside18.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Performance Food Group Business Overview & Revenue Model
Company DescriptionPerformance Food Group (PFGC) is a leading American foodservice distribution company that operates across multiple sectors, including foodservice, convenience stores, and vending. The company provides a broad range of food and related products, catering primarily to restaurants, institutions, and other foodservice establishments. PFGC is known for its extensive distribution network and dedication to offering high-quality products and services to its customers.
How the Company Makes MoneyPerformance Food Group makes money through the distribution and sale of food and related products to various segments of the foodservice industry. The company's primary revenue streams include supplying independent and chain restaurants, educational institutions, health care facilities, and hospitality businesses with fresh and frozen foods, beverages, and other kitchen essentials. PFGC leverages its expansive distribution network and logistics capabilities to efficiently deliver products across its service regions. Additionally, PFGC benefits from strategic partnerships with food manufacturers and suppliers, allowing it to offer a wide variety of products and maintain competitive pricing. The company's earnings are also influenced by factors such as market demand, cost management, and operational efficiencies.
Performance Food Group Financial Statement Overview
Summary
Performance Food Group is demonstrating solid financial health with consistent revenue growth and efficient cash flow management. The company maintains a strong gross profit margin and manageable debt levels. While there are challenges with high debt, the overall trajectory is positive, indicating sound financial management and growth potential.Income Statement
Performance Food Group shows strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 2.98% from the previous annual period. Gross Profit Margin is healthy at 11.02%, and Net Profit Margin, while lower, remains positive at 0.64%. EBIT and EBITDA margins are stable, indicating good operational efficiency. Overall, the income statement reflects a solid financial performance with continued growth.85
Very Positive
Balance Sheet
The company's balance sheet is stable with a Debt-to-Equity Ratio of 1.85, indicating moderate leverage. Return on Equity (ROE) is 9.10%, showcasing decent profitability for shareholders. The Equity Ratio is 24.89%, suggesting a reasonable level of equity financing. However, high debt levels pose a potential risk if not managed carefully.75
Positive
Cash Flow
There is a positive trend in Free Cash Flow with a growth rate of -30.21% in the TTM period, which is a decline from the previous period. The Operating Cash Flow to Net Income Ratio stands at 2.55, indicating strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio is 1.38, suggesting effective cash utilization. While there is a slight decrease in free cash flow, overall cash flow management remains robust.80
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 60.10B | 58.28B | 57.25B | 50.89B | 30.40B | 25.09B | Gross Profit |
| 6.91B | 6.58B | 6.25B | 5.26B | 3.53B | 2.87B | EBIT |
| 810.40M | 826.40M | 765.80M | 327.40M | 200.70M | -105.30M | EBITDA |
| 1.43B | 1.39B | 1.26B | 809.10M | 539.60M | 155.60M | Net Income Common Stockholders |
| 387.30M | 435.90M | 397.20M | 112.50M | 40.70M | -114.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 16.50M | 20.00M | 12.70M | 11.60M | 11.10M | 420.70M | Total Assets |
| 12.87B | 13.39B | 12.50B | 12.38B | 7.85B | 7.72B | Total Debt |
| 4.84B | 4.98B | 4.74B | 5.00B | 3.00B | 3.02B | Net Debt |
| 4.83B | 4.96B | 4.73B | 4.99B | 2.99B | 2.60B | Total Liabilities |
| 8.92B | 9.27B | 8.75B | 9.08B | 5.74B | 5.71B | Stockholders Equity |
| 3.95B | 4.13B | 3.75B | 3.30B | 2.11B | 2.01B |
| Cash Flow | Free Cash Flow | ||||
| 535.60M | 767.40M | 562.40M | 61.00M | -124.20M | 465.60M | Operating Cash Flow |
| 988.00M | 1.16B | 832.10M | 276.50M | 64.60M | 623.60M | Investing Cash Flow |
| -2.98B | -682.70M | -294.60M | -1.86B | -199.80M | -2.15B | Financing Cash Flow |
| 1.99B | -472.60M | -536.20M | 1.58B | -274.40M | 1.93B |
Performance Food Group Technical Analysis
Positive
84.65
Price Trends
79.56
Positive
82.45
Positive
81.12
Positive
Market Momentum
2.29
Negative
54.60
Neutral
64.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFGC, the sentiment is Positive. The current price of 84.65 is above the 20-day moving average (MA) of 83.99, above the 50-day MA of 79.56, and above the 200-day MA of 81.12, indicating a bullish trend. The MACD of 2.29 indicates Negative momentum. The RSI at 54.60 is Neutral, neither overbought nor oversold. The STOCH value of 64.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFGC.
Performance Food Group Risk Analysis
Performance Food Group disclosed 37 risk factors in its most recent earnings report. Performance Food Group reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Performance Food Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $13.66B | 35.23 | 9.05% | ― | 6.20% | -10.58% | |
77 Outperform | $18.01B | 34.98 | 11.16% | ― | 6.32% | 5.69% | |
74 Outperform | $2.66B | 42.66 | 12.90% | ― | 7.85% | 79.89% | |
74 Outperform | $35.74B | 19.07 | 94.91% | 2.82% | 3.55% | -5.79% | |
64 Neutral | $8.88B | 14.67 | 4.78% | 173.89% | 3.39% | 2.18% | |
63 Neutral | $676.92M | 2,298.85 | 0.04% | 4.36% | -2.66% | 8.18% | |
63 Neutral | $1.87B | ― | -4.94% | ― | 4.73% | 29.70% |
* Consumer Defensive Sector Average
Performance Comparison
PFGC
Performance Food Group
83.70
13.35
18.98%
SPTN
SpartanNash Co
18.96
-0.70
-3.56%
SYY
Sysco
71.98
1.09
1.54%
CHEF
The Chefs' Warehouse
61.77
23.30
60.57%
UNFI
United Natural Foods
29.43
17.41
144.84%
USFD
US Foods Holding
75.89
22.60
42.41%
Performance Food Group Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q3-2025)
| % Change Since: 4.40%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call depicted a mixed environment with strong recovery signs in April following a challenging February. The company's strategic focus on expansion and acquisitions is yielding results, but the market remains competitive and volatile.Q3-2025 Updates
Positive Updates
Strong April Rebound
April showed strong top and bottom line results, with a record sales week for Foodservice, Convenience, and the total company, indicating improvement from earlier challenges.
Successful Sales Force Expansion
The sales force headcount in the Foodservice segment increased by 250 associates or 8% year-over-year, which is expected to drive future growth.
Robust M&A Activity
The company successfully executed two acquisitions, Cheney Brothers and Jose Santiago, which contributed to the 10.5% net sales growth in the quarter.
Convenience Segment Growth
The Convenience segment grew volume by approximately 1%, outperforming the industry, and saw a pipeline of new business wins expected to boost future results.
Adjusted EBITDA Growth
Adjusted EBITDA increased 20.1% to $385.1 million, with strong operating expense control and productivity efforts in play.
Negative Updates
February Challenges
February posed significant challenges across the industry due to weather disruptions and economic uncertainty, impacting sales and expenses.
Specialty Segment Struggles
The Specialty segment faced difficulties with low-single digit volume decline due to a lack of theater content and consumer challenges in the value segment.
Competitive Market Environment
The market has become more competitive, especially in pricing, as growth becomes harder to come by in the current economic climate.
Varying Performance by Geography
Florida experienced challenges with restaurant closures, impacting performance, unlike the Northeast which showed better increases.
Company Guidance
During the PFG Fiscal Year Q3 2025 earnings call, the company provided guidance reflecting cautious optimism for the remainder of the fiscal year. Despite facing a challenging macroeconomic environment and adverse weather conditions early in the quarter, PFG anticipates net sales in the range of $63 billion to $63.5 billion and adjusted EBITDA between $1.725 billion and $1.75 billion for the full fiscal year. The company reported a 10.5% increase in total net sales and a 20.1% rise in adjusted EBITDA for the third quarter. PFG saw a rebound in sales and profit in April, with organic independent restaurant case growth reaching 6%. However, the company remains cautious due to the dynamic market conditions and potential impacts of tariffs on inflation. PFG continues to invest in growth initiatives, including expanding its sales force and pursuing strategic M&A opportunities.Performance Food Group Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Performance Food Group Announces Leadership Changes for 2025
Positive
Dec 16, 2024
Performance Food Group announced executive leadership changes effective January 1, 2025, appointing Scott McPherson as President and Chief Operating Officer and Craig Hoskins as Executive Vice President and Chief Development Officer. McPherson will focus on growth across PFG’s business segments, while Hoskins will lead the integration of recent acquisitions to leverage their strengths. These changes are part of PFG’s strategy to strengthen its leadership team and drive innovation and growth in a dynamic marketplace.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.