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US Foods Holding Corp. (USFD) Fundamental Analysis & AI Grade 2026

USFD NYSE Wholesale-Groceries & Related Products IL CIK: 0001665918
Updated This Month • Analysis: May 9, 2026 • SEC Data: 2026-03-28
Combined AI Grade
B
70% Confidence
N/A
B
70% Conf
Pending
Analysis scheduled

📊 USFD Key Takeaways

Revenue: $9.6B
Net Margin: 1.2%
Free Cash Flow: $196.0M
Current Ratio: 1.14x
Debt/Equity: 1.16x
EPS: $0.52
AI Grade: B with 70% confidence
US Foods Holding Corp. (USFD) receives a B fundamental grade with 70% confidence from our AI analysis based on SEC 10-K filings. With revenue of $9.6B, net profit margin of 1.2%, and return on equity (ROE) of 2.7%, US Foods Holding Corp. demonstrates mixed fundamentals in the Market sector. Below is our complete USFD stock analysis for 2026.

Is US Foods Holding Corp. (USFD) a Good Investment?

Claude

USFD demonstrates strong earnings growth momentum (+45.5% EPS, +36.8% net income) driven by operational improvements in the challenging wholesale grocery distribution market. However, elevated leverage (1.16x D/E, only $49M cash), thin margins (1.2% net margin), and liquidity constraints (0.70x quick ratio) create material financial risks that offset recent profitability gains.

US Foods Holding Corp. Key Strengths (USFD)

Claude
  • + Strong earnings growth trajectory: +45.5% EPS and +36.8% net income YoY growth from operational improvements
  • + Positive free cash flow generation of $196M despite industry-typical thin 1.2% net margins
  • + Solid operating cash flow of $294M demonstrates underlying business cash generation capability

USFD Stock Risks: US Foods Holding Corp. Investment Risks

Claude
  • ! High financial leverage with Debt/Equity of 1.16x, only $49M cash reserves, and 0.70x quick ratio creates vulnerability to disruptions
  • ! Chronically thin margins (1.2% net, 2.2% operating) with limited pricing power in competitive wholesale grocery sector
  • ! Interest coverage of 2.7x and extremely low returns on capital (2.7% ROE, 0.8% ROA) leave minimal cushion for rate increases or margin pressure

Key Metrics to Watch

Claude
  • * Debt reduction trajectory and free cash flow sustainability
  • * Gross margin trends amid competitive and inflationary pressures
  • * Working capital efficiency and quick ratio improvement toward 1.0x threshold

US Foods Holding Corp. (USFD) Financial Metrics & Key Ratios

Revenue
$9.6B
Net Income
$116.0M
EPS (Diluted)
$0.52
Free Cash Flow
$196.0M
Total Assets
$14.2B
Cash Position
$49.0M

💡 AI Analyst Insight

The relatively thin 2.0% FCF margin may limit capital allocation flexibility.

USFD Profit Margin, ROE & Profitability Analysis

Gross Margin 17.2%
Operating Margin 2.2%
Net Margin 1.2%
ROE 2.7%
ROA 0.8%
FCF Margin 2.0%

USFD vs Market Sector: How US Foods Holding Corp. Compares

How US Foods Holding Corp. compares to Market sector averages

Net Margin
USFD 1.2%
vs
Sector Avg 12.0%
USFD Sector
ROE
USFD 2.7%
vs
Sector Avg 15.0%
USFD Sector
Current Ratio
USFD 1.1x
vs
Sector Avg 1.8x
USFD Sector
Debt/Equity
USFD 1.2x
vs
Sector Avg 0.7x
USFD Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is US Foods Holding Corp. Stock Overvalued? USFD Valuation Analysis 2026

Based on fundamental analysis, US Foods Holding Corp. shows some fundamental concerns relative to the Market sector in 2026.

Return on Equity
2.7%
Sector avg: 15%
Net Profit Margin
1.2%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
1.16x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

US Foods Holding Corp. Balance Sheet: USFD Debt, Cash & Liquidity

Current Ratio
1.14x
Quick Ratio
0.70x
Debt/Equity
1.16x
Debt/Assets
69.4%
Interest Coverage
2.73x
Long-term Debt
$5.0B

USFD Revenue & Earnings Growth: 5-Year Financial Trend

USFD 5-year financial data: Year 2021: Revenue $29.5B, Net Income $385.0M, EPS $1.75. Year 2022: Revenue $34.1B, Net Income -$226.0M, EPS $-1.15. Year 2023: Revenue $35.6B, Net Income $164.0M, EPS $0.54. Year 2024: Revenue $37.9B, Net Income $265.0M, EPS $1.01. Year 2025: Revenue $39.4B, Net Income $506.0M, EPS $2.02.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: US Foods Holding Corp.'s revenue has grown significantly by 34% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.02 reflects profitable operations.

USFD Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
2.0%
Free cash flow / Revenue

USFD Quarterly Earnings & Performance

Quarterly financial performance data for US Foods Holding Corp. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $9.4B $115.0M $0.49
Q3 2025 $9.7B $82.0M $0.61
Q2 2025 $9.7B $82.0M $0.80
Q1 2025 $8.9B $82.0M $0.33
Q3 2024 $9.1B $82.0M $0.38
Q2 2024 $9.0B $82.0M $0.73
Q1 2024 $8.5B $82.0M $0.32
Q3 2023 $8.9B -$7.0M $0.38

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

US Foods Holding Corp. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$294.0M
Cash generated from operations
Stock Buybacks
$75.0M
Shares repurchased (TTM)
Capital Expenditures
$98.0M
Investment in assets
Dividends
None
No dividend program

USFD SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for US Foods Holding Corp. (CIK: 0001665918)

📋 Recent SEC Filings

Date Form Document Action
May 21, 2026 4 xslF345X06/wk-form4_1779395500.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779137957.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779137897.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779137832.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779137681.xml View →

Frequently Asked Questions about USFD

What is the AI rating for USFD?

US Foods Holding Corp. (USFD) has an AI grade of B with 70% confidence, based on fundamental analysis of SEC EDGAR filings.

What are USFD's key strengths?

Claude: Strong earnings growth trajectory: +45.5% EPS and +36.8% net income YoY growth from operational improvements. Positive free cash flow generation of $196M despite industry-typical thin 1.2% net margins.

What are the risks of investing in USFD?

Claude: High financial leverage with Debt/Equity of 1.16x, only $49M cash reserves, and 0.70x quick ratio creates vulnerability to disruptions. Chronically thin margins (1.2% net, 2.2% operating) with limited pricing power in competitive wholesale grocery sector.

What is USFD's revenue and growth?

US Foods Holding Corp. reported revenue of $9.6B.

Does USFD pay dividends?

US Foods Holding Corp. does not currently pay dividends.

Where can I find USFD SEC filings?

Official SEC filings for US Foods Holding Corp. (CIK: 0001665918) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is USFD's EPS?

US Foods Holding Corp. has a diluted EPS of $0.52.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is USFD's fundamental grade?

Based on our AI fundamental analysis in June 2026, US Foods Holding Corp. has a B grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is USFD stock overvalued or undervalued?

Valuation metrics for USFD: ROE of 2.7% (sector avg: 15%), net margin of 1.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is USFD's AI grade for 2026?

Our dual AI analysis gives US Foods Holding Corp. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is USFD's free cash flow?

US Foods Holding Corp.'s operating cash flow is $294.0M, with capital expenditures of $98.0M. FCF margin is 2.0%.

How does USFD compare to other Market stocks?

Vs Default sector averages: Net margin 1.2% (avg: 12%), ROE 2.7% (avg: 15%), current ratio 1.14 (avg: 1.8).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-03-28 | Powered by Claude AI