One-glance verdict
Within fair range
$134.06 our estimate vs market $90.25
Wall Street consensus: $123.23 (-8.1% lower than our fair-value estimate)
33% below our estimate
Fundamentals snapshot
Performance Food Group Company
PFGC · NYQ · Consumer Defensive · Food Distribution
Current price
$90.25
52-week range
$80.82 - $117.47
Market cap
$14.18B
Balance sheet
Stretched
2.15x Stretched
Net debt $7.69B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 4.6% last year.
- Reward Returns 7.7% on equity, ahead of 20% of its peers.
- Risk Net debt grew 62.5% over 3 years.
- Risk Stock trades 15.6% above its 5-year average P/E.
What this company does
Performance Food Group Company
Performance Food Group acts like a giant shopping and delivery service for other businesses, selling them food and related products. The company primarily makes money by buying food in bulk to supply restaurants and by stocking convenience stores with everything from snacks to cleaning supplies. This matters because their vast delivery network, or supply chain (the system of getting products from the maker to the final seller), is essential for keeping thousands of restaurants and local stores stocked and open for business.
How the company got here
Performance Food Group's story starts way back in 1885 with a small food business. For much of its history, it grew by combining with and buying other food distributors. A key turning point was its 2008 merger with Vistar, which expanded its business into new areas like vending machine snacks and candy for movie theaters. After becoming a public company in 2015, it made several large acquisitions, including Reinhart Foodservice and Core-Mark, which significantly scaled up its core restaurant and convenience store supply businesses.
What it actually does
Think of Performance Food Group as a giant middleman for places that sell food. The company buys massive quantities of food and kitchen-related products from manufacturers, stores them in its warehouses, and then delivers smaller, mixed orders to over 300,000 locations. So, while you don't buy things directly from them, they likely supplied the ingredients for the pizza at your local independent restaurant, the snacks at a convenience store, or the popcorn at a movie theater. They deliver everything from fresh meat and produce to candy, drinks, and cleaning supplies.
Foodservice
This is the company's largest and most central business, making up more than half of its sales. It supplies a huge variety of food and kitchen products to restaurants, schools, hospitals, and other places that serve meals. Customers range from independent, family-owned restaurants to large national chains like Burger King and Subway. This part of the business focuses on being a one-stop shop for chefs and kitchen managers, even helping them with things like menu ideas.
Convenience
This segment, which operates under the well-known Core-Mark brand, is the company's second-largest business line. It stocks the shelves of convenience stores, gas stations, and other small retailers with everything from cigarettes and snacks to fresh food and drinks. Through major acquisitions, this has become a huge part of the company, supplying over 50,000 locations across North America. They don't just deliver products; they also help these small stores manage their inventory and marketing.
Vistar
This is a more specialized, but still significant, part of the company. Vistar focuses on distributing candy, snacks, and beverages to places outside of traditional restaurants and grocery stores. Its customers include vending machine operators, movie theaters, office coffee suppliers, and hotel gift shops. This segment is a leader in supplying the kinds of impulse-buy items you'd find in these unique locations.
What management is betting on now
The company's main focus is on profitable growth in its key areas, especially with independent restaurants where relationships and service matter a lot. They are also pushing to sell more fresh food and higher-margin (more profitable per item) products to convenience stores, moving beyond just snacks and tobacco. Management is also investing in technology and making their warehouse and delivery network more efficient to improve profitability. Finally, after making several large acquisitions, a key priority is to successfully integrate these new businesses to realize the full benefits of their larger scale.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$-43.00M
FY2025 Q2
$218.10M
FY2025 Q3
$319.30M
FY2025 Q4
$209.70M
FY2026 Q1
$-224.10M
FY2026 Q2
$487.80M
FY2026 Q3
$542.30M
FY2026 Q4
$223.60M
Revenue
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Net income
$162.30M
Diluted EPS
1.03
Operating cash flow
$341.80M
Free cash flow
$223.60M
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Sources
Revenue
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Net income
$41.70M
Diluted EPS
0.27
Operating cash flow
$615.90M
Free cash flow
$542.30M
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Sources
Revenue
—
Net income
$61.70M
Diluted EPS
0.39
Operating cash flow
$601.20M
Free cash flow
$487.80M
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Sources
Revenue
—
Net income
$93.60M
Diluted EPS
0.60
Operating cash flow
$-145.20M
Free cash flow
$-224.10M
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Sources
Revenue
—
Net income
$131.50M
Diluted EPS
0.85
Operating cash flow
$383.00M
Free cash flow
$209.70M
Fetching…
Sources
Revenue
—
Net income
$58.30M
Diluted EPS
0.37
Operating cash flow
$448.10M
Free cash flow
$319.30M
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Sources
Revenue
—
Net income
$42.40M
Diluted EPS
0.27
Operating cash flow
$325.50M
Free cash flow
$218.10M
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Sources
Revenue
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Net income
$108.00M
Diluted EPS
0.69
Operating cash flow
$53.50M
Free cash flow
$-43.00M
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Sources
Is it cheap or expensive?
Fair value $134.06 vs current price $90.25
Wall Street consensus is the average analyst price target: $123.23 (-8.1% lower than our fair-value estimate).
Our most-likely fair value is $134.06 a share — about 48.6% away from today's price of $90.25, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $7.7B. Interest coverage 2.1x.
Net debt
$7.69B
Interest coverage
2.15x
Performance Food Group Company's profit covers its interest bill about 2.1 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
PFGC
BASELINE
Performance Food Group Company
Total debt $7.78B Interest coverage 2.15x This is the baseline the peer rows are being compared against.
Total debt $15.05B Interest coverage 4.32x +101% vs PFGC Carries about 2.0x more debt cushion than PFGC.
Total debt $5.41B Interest coverage 4.04x +88% vs PFGC Carries about 1.9x more debt cushion than PFGC.
Total debt $946.61M Interest coverage 3.68x +72% vs PFGC Carries about 1.7x more debt cushion than PFGC.
Total debt $3.04B Interest coverage 0.76x -65% vs PFGC Carries about 2.8x less debt cushion than PFGC.
What you should know
The case for and against PFGC
3 Rewards
2 Risks
Rewards
-
Revenue grew 4.6% last year.
-
Returns 7.7% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Net debt grew 62.5% over 3 years.
-
Stock trades 15.6% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
39.41x
Forward P/E
13.53x
P/B
2.88x
P/S
0.22x
EV/EBITDA
13.14x
PEG ratio
0.78x
Profitability
How much profit each dollar creates
Gross margin
12.6%
Operating margin
2.2%
Net margin
0.6%
ROE
7.7%
ROA
3.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.59x
Current ratio
1.51x
Quick ratio
0.62x
Total debt
$7.78B
Total cash
$93.20M
Growth
How the business has been compounding
Revenue TTM
$18.44B
Revenue 5Y CAGR
6.5%
EPS TTM
2.29
EPS 5Y CAGR
-3.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.41B
Free CF TTM
$1.03B
FCF margin
5.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—