United Natural Foods: Efficiency Improvements Are Showing (Rating Upgrade)

Caffital Research
1.62K Followers
(9min)

Summary

  • United Natural Foods, Inc. has shown significant progress in the company's distribution efficiency improvements, beginning to show as improving earnings momentum.
  • The sales outlook remains healthy as natural foods are gaining interest.
  • Leveraged by high debt, UNFI's efficiency gains are highly valuable for shareholders. I estimate 73% upside to a fair value of $40.7.

sivukuva aasialainen urbaani nainen, jolla on porkkanoita kärryssä, nojaa lähelle katsomaan hintalappua ostaessaan tuotteita paikallisesta ruokakaupasta.

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United Natural Foods, Inc. (NYSE:UNFI) has surged in the past year. The natural and organic -oriented food distributor has improved earnings prospects with a strategic multi-year plan for improved efficiencies, being critical as UNFI's debt remains extremely

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1.62K Followers
I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a stock's prospects to determine the risk-to-reward.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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