Wholesale-Groceries, General Line
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
Discounted Cash Flow Valuation of Performance Food Group Co
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
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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 |
In the chart Earnings are multiplied by this value.
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.
Years | 06-2015 | 07-2016 | 06-2017 | 06-2018 | 06-2019 | 06-2020 | 07-2021 | 07-2022 | 06-2023 | TTM |
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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% |
The average Net Margin over the past 5 years is +0.43%.
The trend of Net Margin over the past 5 years is -0.1%.
The average ROA over the past 5 years is +3.75%.
The trend of ROA over the past 5 years is -0.22%.
The average ROE over the past 5 years is +6.77%.
The trend of ROE over the past 5 years is -1.58%.
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.
Years | 06-2015 | 07-2016 | 06-2017 | 06-2018 | 06-2019 | 06-2020 | 07-2021 | 07-2022 | 06-2023 | TTM |
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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% |
The Debt/FCF trailing twelve month is 4.05.
The trend of Debt/FCF over the past 5 years is 4.36.
Graham’s Stability measure stands at -0.74.
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.
Years | 07-2016 | 06-2018 | 06-2020 | 07-2022 | Trend |
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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% |
The Revenue CAGR over the past 5 years is +26.58%.
The trend of Revenue growth rate over the past 5 years is +4.09%.
The Earnings CAGR over the past 5 years is +14.86%.
The trend of Earnings growth rate over the past 5 years is +11.08%.
The Equity CAGR over the past 5 years is +26.96%.
The trend of Equity growth rate over the past 5 years is -0.13%.
The FCF CAGR over the past 5 years is +19.91%.
The trend of FCF growth rate over the past 5 years is +79.13%.