Performance Food Intrinsic Value Calculation – Performance Food Group Acquires Orion Food Systems

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Performance Food ($NYSE:PFGC) Group (PFG), a leading U.S. foodservice distributor, has recently acquired Orion Food Systems, a restaurant supply and equipment company.

Additionally, PFG has a portfolio of well-known brands that include Gordon Food Service, Reinhart Food Service, Cash-Wa Distributing and Doerle Food Services. The acquisition of Orion Food Systems will add new capabilities to PFG and allow for further growth. Orion Food Systems is a leading provider of restaurant supply and equipment solutions for multi-unit restaurants in the quick-service and casual dining sectors. With this acquisition, PFG will be able to expand their expertise and offerings to their customers and provide even better value. This acquisition is just one of the many strategic moves made by PFG in recent years. They have recently expanded their operations into Canada and continue to develop other initiatives that will further enhance their services and offerings. With these efforts, PFG is well-positioned to remain a leader in the foodservice industry for many years to come.

Price History

On Friday, Performance Food Group (PFG) announced that it had acquired Orion Food Systems. This news pushed PFG’s stock down slightly, with the stock opening at $61.3 and closing at $60.6, down 0.4% from its prior closing price of $60.8. The acquisition of Orion Food Systems is expected to immediately enhance PFG’s top line and bottom line growth opportunities in the coming quarters. PFG is a leading marketer and distributor of food products to independent restaurants, quick service operators, and other foodservice customers nationwide. This purchase is part of PFG’s strategic expansion efforts, as the company seeks to capitalize on the growth potential of the food industry.

With Orion Food Systems, PFG gains access to an extensive portfolio of high-quality specialty food products. The acquisition will also aid PFG in its goal of becoming a leader in the foodservice industry with a wide range of offerings and services. Overall, the acquisition of Orion Food Systems by Performance Food Group is expected to provide enhanced growth opportunities and broader product offerings for the company. The acquisition solidifies PFG’s position as a leader in the foodservice industry and furthers their goal of providing customers with an extensive portfolio of high-quality specialty food products. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Performance Food. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Performance Food. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Performance Food. More…

Key Ratios Snapshot

Some of the financial key ratios for Performance Food are shown below. More…

Analysis – Performance Food Intrinsic Value Calculation

At GoodWhale, we have conducted an extensive analysis of PERFORMANCE FOOD‘s overall wellbeing, from which we were able to draw some interesting conclusions. Our proprietary Valuation Line suggests that the intrinsic value of PERFORMANCE FOOD share is around $64.9. Currently, PERFORMANCE FOOD stock is traded at $60.6, which suggests that it is being undervalued by 6.7%. This makes it a fair price for those looking to invest in the company at this time. More…

Peers

The company operates through three segments: Performance Foodservice, PFG Customized, and Vistar. Performance Foodservice segment offers food and non-food products to independent restaurants, quick-service restaurants, caterers, and national restaurant chains. PFG Customized segment provides food and non-food products to customers who desire a customized distribution solution. Vistar segment supplies non-food products, equipment, and solutions to customers in the vending, office coffee service, theatre, and foodservice management industries.

– US Foods Holding Corp ($NYSE:USFD)

With a market capitalization of $6.66 billion as of 2022, US Foods Holding Corp is a publicly traded foodservice distributor. The company operates a network of nearly 300 distribution centers across the United States, serving more than 250,000 customers. US Foods Holding Corp also offers a variety of foodservice solutions, including custom-cut meat, seafood, and poultry; branded and private label products; and kitchen supplies and equipment. The company’s return on equity was 6.98% as of 2022.

– Sysco Corp ($NYSE:SYY)

Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of brands includesSysco, Brakes, FreshPoint and EFS. The company operates approximately 330 distribution facilities worldwide and serves more than 625,000 customer locations.

– Sligro Food Group NV ($LTS:0MKM)

Sligro Food Group is a Dutch food retailer and wholesaler. The company has a market cap of 662.56M as of 2022 and a return on equity of 8.07%. The company operates a chain of supermarkets and hypermarkets under the brand name “Sligro”.

Summary

Performance Food Group, a foodservice distribution company, recently purchased Orion Food Systems for an undisclosed amount. The acquisition is expected to enhance the company’s portfolio of services, improve its operational capabilities, and increase its market presence. Financial analysts suggest that the acquisition could be a strategic move to help Performance Food Group become a leader in the industry. The transaction is expected to generate strong revenue growth and create long-term cost savings for both companies.

Analysts believe that the synergies created by the combination of companies should lead to improved competitive advantages in the future. Analysts expect the company to benefit from the additional products, increased distribution capabilities, and improved service offerings from the combined entities. Ultimately, this acquisition is likely to create value for shareholders through increased earnings and higher market presence.