Performance Food Group Co (PFGC) stock analysis

P/E above its 5-year median

Performance Food's P/E of 44.3 is above its own 5-year median of 40.0.

P/E above the industry

Performance Food's P/E of 44.3 is above the Groceries and Related Products median of 27.7.

EV/EBITDA above its 5-year median

Performance Food's EV/EBITDA of 12.8 is above its 5-year median of 12.5.

P/B above the industry

Performance Food's price-to-book of 3.47 is above the Groceries and Related Products median of 3.47.

Trading above fair value

The share price of $111.21 is above our fair value estimate of $89.54.

Margin of safety under 20%

The price is 24.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 5.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -3.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 21.3% over the last twelve months, against a 5-year average of 54.6% a year.

Growing faster than the industry

Revenue grew 5.9% over the last twelve months; the Groceries and Related Products median is 5.2%.

Guidance lowered

Performance Food lowered its full fiscal year 2026 net sales outlook on Feb 4, 2026.

Gross margin improving

Gross margin was 12.0% over the last twelve months, against 11.8% a year earlier.

Return on equity under 15%

Return on equity was 8.2% over the last twelve months and averaged 8.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 6.8%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Performance Food's return on equity of 8.2% is above the Groceries and Related Products median of 7.2%.

Earnings grew over 5 years

Net income grew 54.6% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 0.6% over the last twelve months, against a 5-year average of 0.5%.

Net margin below the industry

Performance Food's net margin of 0.6% is below the Groceries and Related Products median of 1.0%.

High debt

Debt is 102% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 106% five years ago to 102%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 28.4% of total debt.

Interest not well covered

Operating income covers interest expense 2.3 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.61 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.91; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Performance Food has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.