United Natural Foods Inc. Common Stock (UNFI)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business: UNFI is a low-margin distributor of natural, organic and conventional groceries. In FY2026, the year ended 2026-08-01, it earned $84.0M on $31.2B of revenue, a net margin well under 1%. That is not a wonderful business. Low margins and modest returns — FairStock's ROE of 5.29% and ROCE of 2.79% — tell me there is no wide moat. Scale and efficiency are the only real defenses. The turnaround is real, though. FY2025, ended 2025-08-02, produced a $118.0M loss and diluted EPS of -$1.95; FY2024, ended 2024-08-03, lost $112.0M. FY2026 flipped to $84.0M profit and $1.34 diluted EPS. In fiscal Q3 2026, the quarter ended 2026-05-02, revenue was $7.7B, net income $33.0M and diluted EPS $0.52. Free cash flow is $323.0M, an 11.7% FCF yield, and FairStock's Piotroski F-Score is 8/9. That cash generation is the strongest part of the story. But the balance sheet worries me. Debt-to-equity is 1.87, Altman Z is 1.74, and revenue slipped from $31.8B in FY2025 to $31.2B in FY2026. At the $45.79 close on 2026-10-13, FairStock calculates a P/E of 34.17 and a Graham Number of $28.47, implying the price is about 60.84% above that conservative value. The PEG of 0.24 looks cheap only if the profit rebound is durable. FairStock labels it a TURNAROUND for returning to profit after losses. I see a speculative turnaround with decent cash flow, not a Graham bargain.

In plain English: United Natural Foods distributes natural, organic, specialty, produce and other food and non-food products across the U.S. and Canada. The business looks somewhat stronger after returning to profit in fiscal 2026, though margins are very thin and it carries a lot of debt. At the recent $45.79 close, the shares look expensive against modest earnings and accounting value, even though cash generation is solid.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-05-02) · fiscal Q2 2026 10-Q (period ended 2026-01-31) · fiscal Q1 2026 10-Q (period ended 2025-11-01) · fiscal Q3 2025 10-Q (period ended 2025-05-03) · FY2026 10-K (period ended 2026-08-01) · FY2025 10-K (period ended 2025-08-02) · FY2024 10-K (period ended 2024-08-03)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer