United Natural Foods:Great Opportunity Amid Volatility, Or Cause For Concern?
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Ragmar Rikberg350 FollowersFollow5ShareSavePlay(8min)CommentsSummaryUnited Natural Foods, Inc. remains a Buy, supported by improving profitability and a compelling risk-reward profile despite modest revenue growth.UNFI's natural segment is growing robustly, while the conventional segment lags, reflecting mixed business exposure post-Supervalu acquisition.Management reaffirmed FY2026 guidance and targets a net debt-to-EBITDA ratio of 2.5x, with adjusted EBITDA projected to reach $800 million by FY2028.UNFI trades at a significant discount to peers on forward EV/EBITDA, with a conservative stock value estimate of approximately $43.80. Malandrino/Stockbyte via Getty Images When I last covered United Natural Foods, Inc. (UNFI) in September, following their Q4 2025 earnings (the company’s fiscal year runs from August to August), I rated it as a Buy, anticipating smoother timesThis article was written byRagmar Rikberg350 FollowersFollowI’ve managed my investments since 1999, gaining perspective across multiple market cycles. With a background in Economics and ongoing CFA certification, my focus is on uncovering mispriced assets that the market has overlooked. I conduct my analyses in a way that allows me to use them myself — not just casually handed-out buy or sell decisions. While I acknowledge that sentiment and technicals matter — and that today’s algorithm-driven investment environment often prioritizes them over fundamentals — I’m still guided by a fundamentals-first approach.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You