How Does This Food Distributor Operate?
US Foods Holding Corp is a foodservice distributor serving customers that buy food and related products for resale or preparation. The business centers on sourcing, warehousing, and delivering a broad assortment across a wide distribution footprint. Its model depends on high-volume throughput, tight logistics execution, and disciplined pricing to move product efficiently. At roughly USD 21.2 billion in market value, it operates at a scale where small margin shifts can matter.
Are Margins and Cash Flow Holding Up?
FundamentalsFor 2025, reported in USD, revenue reached USD 39.4 billion, alongside EBIT of USD 1.2 billion and net income of USD 676 million. Revenue grew 4.1% year over year, with a trailing gross margin of 17.40%, an operating margin of 3.00%, and a net margin of 1.71%.
Cash generation, as approximated by the provided proxy, was USD 1.44 billion, supported by USD 462 million of depreciation and amortization. The balance sheet snapshot shows USD 41 million of cash against USD 274 million of total debt, while ROE over the trailing period was 15.27%.
Is the Market Pricing Efficiency Fairly?
DCF / MultiplesAt USD 96.06, the stock trades below the central and upper outcomes implied by the model’s range but above the weaker scenario. The current pricing also comes with a 31.65x trailing P/E and 16.09x EV/EBITDA, framing valuation around ongoing earnings and cash conversion rather than a multiple reset.
Execution Supports a Thin Margin Model
TakeawayOperations are working, but the margin structure is still thin. The case leans on steady revenue growth and clean execution. Reinvestment has to keep supporting throughput without eroding margins. If cash conversion slips, the valuation support weakens quickly.