Performance Food Group Company Common Stock (PFGC)

FairStock Score: 37/100 — MIXED

Key Financials

Strengths

• Generates $615 million in annual free cash flow (4.3% yield on market cap)
• Established organization with 42,570 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($39) with negative 136% margin of safety—limited downside protection
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

Performance Food Group Company Common Stock is a mid-cap consumer defensive company valued at $14.3 billion. The business generates $62.4 billion in annual revenue with a 0.1% net margin and $615 million in free cash flow. From a quality standpoint, Performance shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 1.9 in the grey zone. On valuation, the stock is commanding a steep 40.8x multiple, with trades far above its Graham Number ($39) with no margin of safety. Growth dynamics show revenue growing at 5.2% and profit growth of 45.5%. Our composite FairStock Score of 37/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $615 million in annual free cash flow (4.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 41x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer