USFD

US Foods Holding Corp

Consumer


Presented:11/25/2020
Price:$31.98
Cap:$7.06B
Current Price:$62.54
Cap:$15.29B

Presented

Date11/25/2020
Price$31.98
Market Cap$7.06B
Ent Value$10.55B
P/E RatioN/A
Book Value$15.91
Div Yield0%
Shares O/S220.85M
Ave Daily Vol2,757,098
Short Int2.21%

Current

Price$62.54
Market Cap$15.29B
US Foods Holding Corp. operates as a foodservice distributor. Its products include frozen and dry food and non-food products to foodservice customers throughout the U.S. The company offers services under brands Chef's Line, del Pasado, Glenview Farms, Cattleman's Selection, Cross Valley Farms, Harbor Banks, Hilltop Hearth, Devonshire, and Metro Deli. The company is headquartered in Rosemont, IL.

Publicly traded companies mentioned herein: US Foods Holding Corp (USFD)

Highlights

The presenter is long shares of US Foods Holding Corp (USFD), which he views as one of the few reopening trades that are still priced below pre-COVID-19 levels. 2019 EBITDA, proforma for USFD’s acquisitions of SGA’s Food Group of Companies and Smart Foodservice Warehouse Stores and related synergies, was $1.425B. The Street is anticipating USFD to recover to $1.362B EBITDA in 2023, but the presenter believes that is based on outdated vaccine data with ~70% efficacy. Since the vaccine is now 95% effective, he believes behavior will normalize sooner. He now estimates USFD recovering to ~$1.4B EBITDA in 2022. Applying a 10x EBITDA multiple yields a price target of ~$40 per share by the end of next year. This represents ~30% upside from the current ~$31 share price with possible incremental upside from M&A deals. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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