Performance Food Group Co

PFGC

Wholesale-Groceries, General Line

Mkt Cap

$10.64B

PE

25.35

Debt

$3.215B

Cash

$16.5M

EV

$13.83B

FCF

$794.7M

Market Cap

$10.64B

P/E Ratio

25.35

Debt

$3.215B

Cash

$16.5M

EV

$13.83B

FCF

$794.7M

Charts data: {"Earnings":[{"time":"2014-06-27","value":15500000},{"time":"2015-06-26","value":56500000},{"time":"2016-07-01","value":68300000},{"time":"2017-06-30","value":96300000},{"time":"2018-06-29","value":198700000},{"time":"2019-06-28","value":166800000},{"time":"2020-06-26","value":-114100000},{"time":"2021-07-02","value":40700000},{"time":"2022-07-01","value":112500000},{"time":"2023-06-30","value":397200000}],"Sales":[{"time":"2014-06-27","value":13685700000},{"time":"2015-06-26","value":15270000000},{"time":"2016-07-01","value":16104800000},{"time":"2017-06-30","value":16761800000},{"time":"2018-06-29","value":17619900000},{"time":"2019-06-28","value":19743500000},{"time":"2020-06-26","value":25086300000},{"time":"2021-07-02","value":30398900000},{"time":"2022-07-01","value":50894100000},{"time":"2023-06-30","value":57254700000}],"Net Margins":[{"time":"2014-06-27","value":0.0011325690319092191},{"time":"2015-06-26","value":0.0037000654878847415},{"time":"2016-07-01","value":0.004240971635785604},{"time":"2017-06-30","value":0.005745206362085218},{"time":"2018-06-29","value":0.0112770220035301},{"time":"2019-06-28","value":0.008448350089903005},{"time":"2020-06-26","value":-0.0045482992709167955},{"time":"2021-07-02","value":0.0013388642352190375},{"time":"2022-07-01","value":0.002210472333728271},{"time":"2023-06-30","value":0.006937421731316381}],"Assets":[{"time":"2015-06-26","value":3390900000},{"time":"2016-07-01","value":3455400000},{"time":"2017-06-30","value":3804100000},{"time":"2018-06-29","value":4000900000},{"time":"2019-06-28","value":4653500000},{"time":"2020-06-26","value":7719700000},{"time":"2021-07-02","value":7845700000},{"time":"2022-07-01","value":12378000000},{"time":"2023-06-30","value":12499000000}],"Stockholders Equity":[{"time":"2014-06-27","value":434100000},{"time":"2015-06-26","value":493000000},{"time":"2016-07-01","value":802800000},{"time":"2017-06-30","value":925500000},{"time":"2018-06-29","value":1135300000},{"time":"2019-06-28","value":1298200000},{"time":"2020-06-26","value":2010600000},{"time":"2021-07-02","value":2106100000},{"time":"2022-07-01","value":3299500000},{"time":"2023-06-30","value":3745500000}],"ROE":[{"time":"2014-06-27","value":0.03570605851186363},{"time":"2015-06-26","value":0.11460446247464504},{"time":"2016-07-01","value":0.08507722969606378},{"time":"2017-06-30","value":0.10405186385737439},{"time":"2018-06-29","value":0.17501981855016296},{"time":"2019-06-28","value":0.12848559543983978},{"time":"2020-06-26","value":-0.056749229085845024},{"time":"2021-07-02","value":0.019324818384692084},{"time":"2022-07-01","value":0.03409607516290347},{"time":"2023-06-30","value":0.10604725670804965}],"ROA":[{"time":"2015-06-26","value":0.047214603792503466},{"time":"2016-07-01","value":0.058517103663830526},{"time":"2017-06-30","value":0.05546647038721379},{"time":"2018-06-29","value":0.06336074383263765},{"time":"2019-06-28","value":0.060878908348554854},{"time":"2020-06-26","value":-0.012824332551783101},{"time":"2021-07-02","value":0.025580891443720763},{"time":"2022-07-01","value":0.026450153498141865},{"time":"2023-06-30","value":0.06126890151212097}]}

Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products in the United States. It operates through three segments: Foodservice, Vistar, and Convenience. The company offers a range of frozen foods, groceries, candy, snacks, beverages, cigarettes, and other tobacco products; beef, pork, poultry, and seafood; and health and beauty care products. It also sells disposables, cleaning and kitchen supplies, and related products. In addition, the company offers value-added services, such as product selection and procurement, menu development, and operational strategy. It serves independent and chain restaurants, schools, business and industry locations, hospitals, vending distributors, office coffee service distributors, retailers, convenience stores, theaters, hospitality providers, concessionaires, airport gift shops, college bookstores, corrections facilities, and impulse locations, as well as franchises and other institutional customers. Performance Food Group Company was founded in 1885 and is headquartered in Richmond, Virginia.

Sector

CHEF

10-Q
9/30/23
10-K
7/1/23
10-Q
4/1/23
10-Q
12/31/22
10-Q
10/1/22
10-K
7/2/22
10-Q
4/2/22
10-Q
1/1/22
10-Q
10/2/21
10-K
7/3/21
10-Q
3/27/21
10-Q
12/26/20
10-Q
9/26/20
10-K
6/27/20
10-Q
3/28/20
10-Q
12/28/19
10-Q
9/28/19
10-K
6/29/19
10-Q
3/30/19
10-Q
12/29/18
10-Q
9/29/18
10-K
6/30/18
10-Q
3/31/18
10-Q
12/30/17

DCF

Discounted Cash Flow Valuation of Performance Food Group Co

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$794.7M	$963.8M	$1.151B	$1.355B	$1.57B	$1.79B	$2.009B	$2.218B	$2.41B	$2.574B	$2.702B	$27.02B
DCF		$838.1M	$870.6M	$890.8M	$897.4M	$889.9M	$868.5M	$834M	$787.7M	$731.6M	$668M	$6.68B
Value	$14.96B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 15%

Earnings Stability 22%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	06-2015	07-2016	06-2017	06-2018	06-2019	06-2020	07-2021	07-2022	06-2023	TTM
Net Margin	0.37%	0.42%	0.57%	1.1%	0.84%	-0.45%	0.13%	0.22%	0.69%	0.72%
ROA	4.7%	5.9%	5.5%	6.3%	6.1%	-1.3%	2.6%	2.6%	6.1%	6.3%
ROE	11%	8.5%	10%	18%	13%	-5.7%	1.9%	3.4%	11%	11%

What is the average Net Margin?

The average Net Margin over the past 5 years is +0.43%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.1%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +3.75%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.22%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +6.77%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.58%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	06-2015	07-2016	06-2017	06-2018	06-2019	06-2020	07-2021	07-2022	06-2023	TTM
Debt FCF	50.09	9.94	21.10	5.22	7.57	5.38	-18.29	64.65	6.20	4.05
Debt Equity	2.93	1.43	1.40	1.04	1.04	1.24	1.08	1.20	0.93	0.81
MIN
Graham Stability	-	-	100%	100%	100%	-74%	49%	100%	100%	-74%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 4.05.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 4.36.

What is the Graham’s Stability?

Graham’s Stability measure stands at -0.74.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	07-2016	06-2018	06-2020	07-2022	Trend
Revenue	20%	27%	32%	12%	4.1%
Net Income	29%	15%	-	250%	11%
Stockholders Equity	25%	27%	23%	14%	-0.13%
FCF	25%	20%	6.5%	820%	79%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +26.58%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +4.09%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +14.86%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +11.08%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +26.96%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.13%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +19.91%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +79.13%.