Thinking to trade Performance (NYSE:PFGC) based on its current debt commitments?


USD 43.64  1.19  2.65%   

Performance Food is scheduled to announce its earnings today. The next fiscal year end is expected on the 18th of August 2022. Performance Food Free Cash Flow is projected to increase significantly based on the last few years of reporting. The past year's Free Cash Flow was at 263 Million. The current year Invested Capital is expected to grow to about 3.5 B, whereas Average Assets are forecasted to decline to about 4.5 B. Although many aggressive traders are getting into consumer defensive space, Performance Food Group may or may not be your first choice.
Published over a month ago
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This firm currently holds 4.82 B in liabilities with Debt to Equity (D/E) ratio of 1.5, which is about average as compared to similar companies.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Performance Food has an asset utilization ratio of 1269.03 percent. This suggests that the company is making $12.69 for each dollar of assets. An increasing asset utilization means that Performance Food Group is more efficient with each dollar of assets it utilizes for everyday operations.
Performance Food financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Performance Food, including all of Performance Food's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Performance Food assets, the company is considered highly leveraged. Understanding the composition and structure of overall Performance Food debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

How important is Performance Food's Liquidity

Performance Food financial leverage refers to using borrowed capital as a funding source to finance Performance Food Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Performance Food financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Performance Food's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Performance Food, but it might be worth checking our own buy vs. sell analysis

Payment of 297 shares by Donald Bulmer of Performance Food subject to Rule 16b-3

Legal trades by Performance Food insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Performance insider trading alert for payment of common stock by Donald Bulmer, Title: Executive Vice President and Chief Information Officer, on 20th of September 2022. This event was filed by Performance Food Group Co with SEC on 2022-09-20. Statement of changes in beneficial ownership - SEC Form 4. Donald Bulmer currently serves as senior vice president, chief information officer of Performance Food [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Performance Food Investor Appetite?

The current rise in Performance Food short term price appreciation may encourage investors to take a closer look at the company as it is trading at a share price of 52.46 on 1,618,389 in trading volume. The company directors and management have successfully maneuvered the company at convenient times to take advantage of all market conditions in July. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.85. The current volatility is consistent with the ongoing market swings in July 2022 as well as with Performance Food unsystematic, company-specific events.

Asset Breakdown

Assets Non Current
1.1 B
2.2 B
Current Assets
Total Assets4.11 Billion
Current Assets2.19 Billion
Assets Non Current2.04 Billion
Goodwill1.09 Billion
Tax Assets17.65 Million

Our take on Performance Food small slip

Current Total Risk Alpha is up to 0.1. Price may slip again. Performance Food Group currently demonstrates below-average downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.19. However, we advise investors to further question Performance Food Group expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Performance Food's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Performance Food's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Performance Food

Whereas some firms within the food distribution industry are still a little expensive, even after the recent corrections, Performance Food may offer a potential longer-term growth to investors. All things considered, as of the 17th of August 2022, our final 90 days 'Buy-Sell' recommendation on the company is Strong Buy. We believe Performance Food is fairly valued with very low odds of financial distress for the next two years.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Performance Food Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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