United Natural Foods, Inc. (NYSE:UNFI) is a prominent player in the organic and specialty foods distribution sector. The company supplies natural and organic foods, as well as non-food products, to various retailers across North America. Despite facing challenges, UNFI has recently shown signs of recovery, as highlighted by its latest financial performance.
On September 30, 2025, UNFI reported an earnings per share (EPS) of -$0.11, surpassing the estimated EPS of -$0.27. This marks a significant earnings surprise of 59.26%, as highlighted by Zacks. The company's stock has experienced a notable surge, reaching a 52-week high, driven by this positive earnings performance. The stock's rally is further supported by the synergies from a prior acquisition, as noted by George Tsilis.
UNFI generated a revenue of approximately $7.7 billion, slightly below the estimated $7.93 billion. However, this revenue figure exceeded the Zacks Consensus Estimate by 0.92%. Despite a decrease from the $8.16 billion reported a year ago, UNFI has consistently outperformed consensus revenue estimates over the past four quarters, showcasing its resilience in a competitive market.
The company's financial metrics reveal a mixed picture. UNFI has a negative price-to-earnings (P/E) ratio of approximately -19.75, indicating current losses. However, the price-to-sales ratio of 0.073 and enterprise value to sales ratio of 0.18 suggest that the stock may be undervalued relative to its sales. The enterprise value to operating cash flow ratio is 11.27, showing the company's ability to cover its enterprise value with operating cash flow.
UNFI's debt-to-equity ratio stands at 2.23, indicating a higher level of debt compared to equity, which could be a concern for investors. However, the current ratio of 1.32 suggests that the company has a reasonable level of liquidity to cover its short-term liabilities. Despite a negative earnings yield of -5.06%, UNFI's recent performance and strategic moves indicate potential for future growth.
