Performance Food Group PFGC
United StatesConsumer Defensive · Food DistributionUSD
125.58 USD (+34.3%)
12 analysts
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Performance Food Group is one of the largest food and consumer products distributors in the US, supplying restaurants, quick-service chains, and convenience stores, operating on a low-margin, high-volume model.
Key points
from its scores- ✕Little or no dividend1.5
- ✕Fragile balance sheet3.0
- ✕Little competitive advantage4.1
AI analysis
bottom line, main risk, context and newsGrowth and valuation are attractive, but high leverage and a thin margin warrant caution in a rising rate environment.
PFGC shows solid growth (revenue +7.30%, earnings +22.70%) and a reasonable valuation (forward P/E 13.85, FCF yield 4.86%), but its high leverage (Net Debt/EBITDA 4.52x) and thin operating margin (2.23%) make it vulnerable to rising interest rates in the US.
The main risk is financial: with a Net Debt/EBITDA of 4.52x and an operating margin of only 2.23%, any further rise in interest rates or a slowdown in consumption could further compress its ability to generate profits.
Context and risks
PFGC's food distribution business operates with very thin margins (operating margin of 2.23%) and high leverage (Net Debt/EBITDA of 4.52x). In a rising US interest rate environment (10-year Treasury at 5.28%), the cost of refinancing its debt pressures an already slim margin, adding risk to the company's profile.
Is Performance Food Group stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 64% above the Consumer Defensive median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 40.8 | 19.8 | +107% |
| EV / EBITDA | 13.2 | 10.8 | +22% |
| Price / book | 3.0 | 2.7 | +10% |
| Price / sales | 0.2 | 1.2 | −81% |
Sector: median of the 124 Consumer Defensive companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.2 out of 10 (median for Consumer Defensive: 6.3).
Average analyst target: 125.58 USD, +34.3% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 4.1 (sector 5.7), Growth 6.9 (sector 5.3).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Defensive medianValuation
- P/E
- 40.8
- Forward P/E
- 13.8
- EV / EBITDA
- 13.2
- Price / book
- 3.0
- Price / sales
- 0.2
- PEG
- 0.57
- Market cap
- 14.7B USD
- Enterprise value
- 22.4B USD
Profitability
- ROE
- 7.7%
- ROA
- 3.0%
- ROIC (approx.)
- 11.3%
- Gross margin
- 12.6%
- Operating margin
- 2.2%
- Net margin
- 0.6%
- Free cash flow
- 713.8M USD
- FCF yield
- 4.9%
- Cash conversion
- 42%
Solvency
- Total debt
- 7.8B USD
- Net debt
- 7.7B USD
- Cash
- 93.2M USD
- EBITDA
- 1.7B USD
- Net debt / EBITDA
- 4.52
- Debt / equity
- 158.85
- Current ratio
- 1.51
- Quick ratio
- 0.62
Growth
- Revenue growth
- +7.3%
- Earnings growth
- +22.7%
- EPS (TTM)
- 2.29 USD
- EPS (forward)
- 6.75 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 0.87
- Analyst consensus
- Strong buy (12)
- Target price
- 125.58 USD
- 52-week range
- 80.82 – 117.47
Recent news
All PFGC news →Compare it with its sector
All 124 in Consumer Defensive →Frequently asked questions about Performance Food Group
Is Performance Food Group stock cheap or expensive?
On P/E and EV / EBITDA, it trades 64% above the Consumer Defensive median on average. Valuation score: 5.2 out of 10 (median for Consumer Defensive: 6.3). Average analyst target: 125.58 USD, +34.3% versus the price. This is not investment advice.
What score does Performance Food Group get on MeridIAn Screener?
It scores 4.5 out of 10, rank 1,882 of 2,130 (better than 11% of the companies analysed). Its strongest category is Growth (6.9) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Performance Food Group's P/E ratio?
Its P/E is 40.8: the share price equals 40.8 times earnings per share over the last 12 months. The Consumer Defensive median is 19.8. Based on the earnings analysts expect, the forward P/E is 13.8.
How much is Performance Food Group worth on the stock market?
Its market capitalisation is 14.7B USD and its enterprise value, debt included, is 22.4B USD.
How much debt does Performance Food Group have?
Its net debt (debt minus cash) is 7.7B USD. That is 4.52 times its EBITDA; the Consumer Defensive median is 2.38.
Does Performance Food Group pay a dividend?
It pays no dividend, or almost none.
How has Performance Food Group stock performed over the last year?
It has fallen 6.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 80.82 and 117.47 USD. Past performance does not guarantee future results.
What do analysts think of Performance Food Group?
12 analysts cover it; their average recommendation is “Strong buy” and their average target is 125.58 USD (+34.3% versus the price). It is an estimate, not market data.