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Performance Food Group Company (PFGC)

Undervalued
Consumer DefensiveFood DistributionUnited States

Fundamental

64

Price

$91.28

Market Cap

$14.19B

Part 1 · What the company is worth

Overview

Performance Food Group buys food and related products in bulk from manufacturers and resells them, delivered by truck, to restaurants, convenience stores and institutions across North America. It does not make the food it sells: its business is the logistics of buying, warehousing and distributing more than 300,000 products from over 150 distribution centers to more than 300,000 customer locations that would otherwise have to source from many separate suppliers.

How it makes money

Revenue comes from marking up products bought from suppliers and reselling them, mostly against individual purchase orders rather than long-term contracts. Because it only handles and moves goods rather than manufacturing them, margins are thin by nature, so profit depends on volume, purchasing scale and selling higher-margin private-label "Performance Brands" products rather than on pricing power over any single item.

Revenue by segment

Foodservice53.4%

Delivery of food, equipment and supplies to independent and chain restaurants and other food-away-from-home outlets.

Convenience38.9%

Distribution of snacks, beverages, tobacco and other packaged goods to convenience stores and gas-station retailers.

Specialty7.8%

Distribution of candy, snacks and other specialty products to vending operators, theaters and other non-traditional channels.

Competitive moat

Scale · Narrow

The company points to economies of scale in purchasing and a nationwide network of over 150 distribution centers as its edge in a business it itself calls low-margin and intensely competitive. Most customers buy order-by-order with no exclusivity, so the advantage lies in buying and routing goods more cheaply than smaller regional rivals, not in locking customers in.

What drives demand

Cyclical

Demand tracks how often people eat away from home, which the company itself ties to consumer confidence and discretionary spending — both of which contract in a downturn. Foodservice volumes therefore move with the broader economy more than a typical grocery distributor, even though eating is a basic need.

Key risks

  • Thin margins amplify swings — The company operates in what it calls a low-margin industry, so a small decline in sales or a small rise in costs can produce a disproportionately large swing in net income.
  • No exclusivity with customers — Many customers buy under individual purchase orders with no obligation to keep buying, so a competitor offering better pricing or service can take business away with little friction.
  • Reliance on third-party suppliers — The company depends on outside suppliers for the products it distributes, so labor shortages, weather, recalls or disease outbreaks upstream can interrupt supply or raise costs.
  • Significant debt load — Total indebtedness of about $6.8 billion constrains financial flexibility and increases exposure to interest-rate movements on variable-rate borrowings.
  • Sensitivity to consumer spending — Unfavorable economic conditions, inflation or tariffs can reduce consumer confidence and discretionary spending, directly lowering demand for food-away-from-home.

Customer concentration

The company states that no single customer accounted for more than 10% of consolidated net sales in fiscal 2025, 2024 or 2023, without disclosing an exact figure for the largest one.

The case for

Buyers argue that a nationwide distribution network built through years of acquisitions gives the company purchasing scale that smaller regional distributors cannot match, and that growing the mix of higher-margin independent restaurant and private-label sales can lift profitability even in a structurally thin-margin industry.

The case against

Sellers fear that a low-margin, largely order-by-order business tied to discretionary restaurant spending leaves little cushion in a downturn, and that nearly $6.8 billion of debt limits room to maneuver if sales volumes or interest rates move against the company.

Written by the editors, published on August 18, 2026

Direct competitors

Who this company fights with for the same customers

Compare

Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users

P/E: 21.3Score: 64Market cap: $37.64B

Named in Performance Food Group's own 10-K as one of the two large broadline distributors with a national footprint, Sysco supplies the same independent restaurants, chains and institutional kitchens across the United States.

P/E: 28.4Score: 73Market cap: $20.27B

The other national broadline distributor named in PFG's 10-K, competing case by case for the same restaurant and hospitality accounts, often with overlapping delivery territories.

McLane Company, Inc.Not tracked

A Berkshire Hathaway subsidiary and the largest wholesale supplier to US convenience stores, it competes head-on with PFG's Convenience segment for the same chain c-store and quick-service accounts.

Gordon Food Service, Inc.Not tracked

The largest privately held broadline foodservice distributor in North America, serving the same restaurants, schools and healthcare kitchens PFG's Foodservice segment targets, with particular strength in the Midwest and Canada.

The H.T. Hackney Co.Not tracked

A large private wholesaler of tobacco, candy, snacks and grocery items to convenience retailers across the eastern United States, overlapping directly with PFG's Convenience and Specialty distribution.

Balance Sheet & Liquidity

Revenue

$67.84B

Trailing 12 months (through 6/27/2026)

Net Income

$359M

Trailing 12 months (through 6/27/2026)

Free Cash Flow

$1.03B

Total Equity

$4.90B

Total Liabilities

$13.95B

Current Ratio

1.51

Interest Coverage

2.15

Debt/EBITDA

4.57

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseUndervalued

Fair Value

$242.12

Current Price

$91.28

Margin of Safety

+62.3%

Fair Value Range

$157.37 - $326.86

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$123.23
Discounted cash flow (DCF):$524.58
Earnings multiple (P/E):$36.52
Graham growth formula:$117.89
Earnings power value (EPV):$46.30
Justified P/B:$22.61
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:$119.16
Mid-cycle earnings:$90.66
Revenue multiple:$509.94
Analyst Consensus:Strong Buy (19B / 2H / 0S)
Last Earnings Surprise:-2.68%

Valuation Metrics

P/E Ratio

39.96

ROE

7.3%

P/B Ratio

2.94

P/FCF

14.00

Gross Margin

11.9%

ROIC

5.1%

Profitability Radar

Value Creation (Economic Moat)

ROIC

5.1%

WACC

7.7%

ROIC − WACC

-2.6 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (19)

  • EPS shows upward trend
  • EPS CAGR 23.61%
  • Price CAGR 14.23%
  • ROIC 5.1%
  • P/FCF 14.00
  • P/B Ratio 2.94
  • Debt/Equity ratio
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 7.6%
  • Revenue Growth 5Y 17.4%
  • Analyst Consensus 90% Buy
  • PEG Ratio 0.80
  • Earnings Quality (OCF/NI) 3.93
  • Share Dilution 0.5%
  • Piotroski F-Score 8/9

Failed (8)

  • Gross Margin 11.9%
  • Operating Margin 1.3%
  • CapEx intensity
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings Surprise avg -4.6%
  • Net Margin Trend 0.5% vs 0.5%

Unavailable (1)

  • Dividend Payout NaN%

Piotroski F-Score

8/9

Strong financial health

score
criteria

Earnings Quality

3.93

High quality: earnings backed by cash

Share Dilution

0.5%

Share count is stable

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. George L. HolmExecutive Chair70
Mr. Scott E. McPhersonCEO, President & Director55
Mr. H. Patrick HatcherExecutive VP & CFO55
Mr. Allen Brent King J.D.Executive VP, General Counsel & Secretary56
Ms. Chasity GroshSenior VP & Chief Accounting Officer47
Mr. Donald S. BulmerExecutive VP & Chief Information Officer60
Mr. Bill Marshall C.F.A.Senior Vice President of Investor Relations-
Mr. Scott GoldenDirector of Communications & Engagement-
Ms. Erika T. Davis CCPExecutive VP & Chief Human Resources Officer61
Mr. George HearnSenior VP & CFO of Performance Foodservice-

Audit Risk

5

Board Risk

4

Compensation Risk

1

Shareholder Rights Risk

1

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-08-12

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-05-06

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-24

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for PFGC, sourced from Markets Gazette.

No recent news for PFGC.