# US Foods Holding Corp. (USFD) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-28  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/USFD/thesis · /stocks/USFD/memo

## Financial Snapshot

---
ticker: USFD
step: 04
title: Financial Snapshot & Quality
source: coverage-next-full
retrieved: 2026-05-28
---

### Step 04 — Financial Snapshot & Quality

#### Executive Summary
USFD's financial profile is **investment-grade-equivalent fundamentals with junk-rated leverage** — a classic LBO-derived public co. FY25 GAAP revenue $39.4B, Adj EBITDA $1.9B (4.9% margin), Adj EPS $3.98, FCF $959M. Adjusted-vs-GAAP gap is modest (~$700M of D&A + ~$80M SBC + ~$50M restructuring). Cash conversion FCF/NI = 1.42x (high quality). Working capital is well managed. **No major red flags** in adversarial sweep — no short reports, no SEC investigations, no major lawsuits. Watchpoints: high goodwill ($5.8B vs $4.3B equity), 22% unionized workforce, customer concentration (no >10% but top 5 ~12%).

#### GAAP vs Non-GAAP Reconciliation (FY25)
| Item | $M | % of Sales |
|---|---|---|
| GAAP Net Income | 676 | 1.71% |
| (+) Interest Expense | ~400 | 1.0% |
| (+) Tax | ~200 | 0.5% |
| (+) D&A | 462 | 1.2% |
| **EBITDA (GAAP-derived)** | **~1,738** | **4.4%** |
| (+) SBC | 83 | 0.2% |
| (+) Restructuring + Acquisition | ~50 | 0.1% |
| (+) Other non-recurring | ~29 | 0.1% |
| **Adjusted EBITDA (mgmt)** | **~1,900** | **4.9%** |

**Quality of Adjustments**: most add-backs are real cash costs (SBC dilutes; restructuring recurs). Genuine adjustments are limited to true one-time M&A integration. Adj-vs-EBITDA gap = $162M = 8.5% of Adj EBITDA = moderate; acceptable but worth scrutinizing if it expands.

#### Cash Conversion Quality
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Net Income | 121 | 228 | 499 | 494 | 676 |
| OCF | 419 | 765 | 1,140 | 1,174 | 1,369 |
| OCF/NI | 3.46x | 3.36x | 2.28x | 2.38x | 2.03x |
| FCF | 145 | 500 | 831 | 833 | 959 |
| FCF/NI | 1.20x | 2.19x | 1.66x | 1.69x | **1.42x** |
| FCF Margin | 0.49% | 1.47% | 2.33% | 2.20% | 2.43% |

**Verdict**: FCF/NI of 1.4x indicates non-cash earnings drags (D&A > CapEx). Cash earnings are higher than reported earnings — a sign of conservative GAAP earnings.

#### Working Capital Profile (FY25, $M)
- Accounts Receivable: ~$2,700 (~25 DSO)
- Inventory: ~$1,400 (~16 days)
- Accounts Payable: ~$2,800 (~31 DPO)
- **Cash Conversion Cycle: ~10 days** — efficient; floats payables to fund receivables

#### Customer Concentration
- No single customer >10% of revenue [S1]
- Top 5 chain customers estimated ~12% of revenue [Estimate]
- **Verdict**: low concentration risk; healthcare and education contracts laddered

#### Supplier Concentration
- Top 10 vendors ~25–30% of COGS [Estimate]
- Largest are protein producers (Tyson, JBS, Smithfield) + CPG (Tyson, Conagra)
- Multi-sourcing on most categories; Exclusive Brands give negotiating leverage

#### Off-Balance-Sheet Items
- Operating leases (capitalized under ASC 842): ~$700M ROU asset [S2]
- Multi-employer pension obligations: ongoing union DC mix; ~$50–80M annual contribution
- No material guarantees, VIEs, or hidden obligations flagged in 10-K

#### Foreign Exchange / Tax Quality
- **FX**: immaterial — US-only operations [S1]
- **Effective Tax Rate**: ~25% (federal + state blended)
- **Cash taxes paid vs effective**: roughly equal (no major book-tax timing diffs)

#### Goodwill & Intangibles (FY25)
- Goodwill: $5,794M (~42% of total assets)
- Intangibles (net): est. ~$1.5B (customer relationships, trade names)
- Last impairment test: no impairment recorded
- **Watch**: high goodwill is legacy of KKR/CD&R pre-IPO PP + 2017 SuperValu's Save-A-Lot integration + ongoing tuck-ins; risk of impairment in deep recession

#### Insurance & Litigation
- Standard product liability + auto + workers' comp self-insurance program
- No material outstanding litigation flagged in latest 10-K
- Class action coverage: standard

#### ADVERSARIAL RESEARCH SWEEP

##### Short Reports
- **No active short-seller reports** identified (Hindenburg, Muddy Waters, Kerrisdale, Citron, etc.) — none have published on USFD in 2024–2026 [S3]
- Short interest: 3.79% of float — modest, no unusual squeeze setup

##### SEC Investigations / Enforcement
- **None disclosed in 10-K Item 3 (Legal Proceedings)** [S1]
- **No 8-K notice of investigation** in 2024–2026

##### Class Action Lawsuits
- No material securities class actions flagged
- Standard PI / employment litigation (driver claims, slip-and-fall) — managed via insurance

##### Whistleblower / Investigative Reporting
- No major investigative journalism on accounting or governance issues identified
- Standard restaurant industry coverage in Restaurant Business, Trucking Dive, MDM

##### Auditor / Auditor Changes
- KPMG remains auditor (continuous since pre-IPO)
- No auditor disputes / changes
- No critical audit matter flags suggesting accounting concerns [S1]

##### Material Weakness / Restatements
- **No restatements** in past 5+ years
- **No material weakness** in ICFR disclosed
- All quarterly + annual filings on time

##### Trade Press / Activist Critique
- **Sachem Head campaign (2022)** — historical; resolved by board settlement + CEO change. Current activist position appears constructive, not adversarial
- No other public activist letters or campaigns identified

##### Insider Behavior Red Flags
- No unusual insider selling clusters
- No 10b5-1 plan terminations
- No SOX certification refusals or auditor resignations

##### Government Contracts / Subsidies
- Government channel ~3–5% of revenue (military, federal, state); no material reliance on subsidies
- No DOJ contract disputes identified

##### Customer / Supplier Disputes
- No major public disputes with anchor suppliers
- No major chain customer departures in 2024–2026 flagged

##### Cybersecurity Incidents
- Risk factor in 10-K, but no disclosed material breach
- No Form 8-K cyber incident notice in 2024–2026

##### **Adversarial Sweep Verdict: CLEAN**
No red flags requiring downward revision of base-case thesis. The Sachem Head legacy is constructive (governance discipline), not adversarial.

#### Financial Quality Score
| Dimension | Score (A–F) | Comment |
|---|---|---|
| Earnings Quality (GAAP-cash gap) | A- | FCF > NI; modest adj add-backs |
| Cash Conversion | A | FCF/NI 1.4x; high quality |
| Working Capital Management | A- | ~10-day CCC; well managed |
| Balance Sheet Strength | B+ | High leverage offset by stable FCF; goodwill heavy |
| Off-Balance-Sheet Discipline | A | Minimal hidden obligations |
| Disclosure Quality | A- | Single-segment limits transparency, but MD&A is detailed |
| Adversarial Sweep | A | Clean |
| **Composite** | **A-** | |

#### Source Index
- [S1] US Foods 10-K FY2025 filed 2026-02-12
- [S2] US Foods 10-Q FY2026 Q1 (leases note)
- [S3] Web search for adversarial reports (Hindenburg, MW, etc.) — none found 2024–2026
- [S4] StockAnalysis.com (FY21–FY25 P&L + CF)
- [S5] SEC EDGAR submissions catalog (clean filing history)

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/USFD/fundamental

## Navigation

- Overview: /stocks/USFD
- Financials (this page): /stocks/USFD/financials
- Thesis: /stocks/USFD/thesis
- Investment Memo: /stocks/USFD/memo
- Coverage universe: /stocks