Performance Food Group Co
Performance Food Group Co has a market price of $93.63, with a market capitalization of $14.71 billion. The company's price-to-earnings ratio is 43.24, and its price-to-book ratio is 3.29, indicating a relatively high valuation compared to its book value. The enterprise value to EBITDA ratio is 26.58, and the enterprise value to revenue ratio is 0.34, suggesting a moderate valuation relative to its revenue. In terms of profitability, the company's return on equity is 7.61%, and its return on assets is 1.90%. These figures are below the industry median for return on equity and return on assets, indicating that the company is not as efficient in generating returns from its equity and assets as its peers. The company's revenue is concentrated in the Food Retail & Distribution segment, with no significant geographic diversification reported. The company's exposure to a single segment may increase its vulnerability to market fluctuations in that sector. The company's growth trajectory is expected to be moderate, with a current fiscal year outlook indicating a slight increase in revenue. The company's capital expenditure is negative, suggesting a reduction in investment in new projects or assets. The company's free cash flow is $552.10 million, indicating a positive cash flow from operations after accounting for capital expenditures. The company's risk assessment indicates a medium liquidity risk and a low dilution risk. The company has a debt-to-equity ratio of 1.56, which is relatively high, and its current ratio is 1.58, indicating a moderate ability to meet short-term obligations. Recent events include analyst estimates with a mean price target of $118.85 and a median price target of $117.50. The mean recommendation from analysts is 1.80, indicating a generally positive outlook, with 4 strong-buy recommendations and 10 buy recommendations.
Business. Performance Food Group Co operates in the Food Retail & Distribution industry, providing food products and services to foodservice operators, including restaurants, schools, and healthcare facilities.
Classification. The company is classified under the Food Retail & Distribution industry within the Food & Drug Retailing business sector, with a classification confidence of 0.92.
- Performance Food Group Co has a high price-to-earnings ratio, indicating a premium valuation.
- The company's return on equity and return on assets are below the industry median, suggesting lower efficiency in generating returns.
- The company's revenue is concentrated in a single segment, increasing its vulnerability to market fluctuations.
- Analysts have a generally positive outlook, with a mean recommendation of 1.80 and a median price target of $117.50.
- # RATIONALES
- {
- "margin_outlook_rationale": "The company's gross profit margin is expected to remain stable, driven by consistent demand for food products.",
- "rd_outlook_rationale": "Research and development spending is not a significant factor in the company's operations.",
- Net cash is negative after subtracting total debt.