ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. US Foods Holding's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.82%.
As of today (2026-06-25), US Foods Holding's WACC % is 8.67%. US Foods Holding's ROC % is 8.82% (calculated using TTM income statement data).
US Foods Holding generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
US Foods Holding (NYSE:USFD) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, US Foods Holding's WACC % is 8.67%. US Foods Holding's ROC % is 8.82% (calculated using TTM income statement data).
US Foods Holding generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
US Foods Holding ROC % Related Terms
US Foods Holding ROC % Historical Data
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The historical data trend for US Foods Holding's ROC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
US Foods Holding (USFD) has a ROC % of 6.82% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on US Foods Holding and its competitors.
Is US Foods Holding's ROC % too high?
US Foods Holding's current ROC % is 6.82%. The Retail - Defensive industry median ROC % is 5.54. US Foods Holding's value of 6.82% is 23.1% above this industry median. Overall, US Foods Holding has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does US Foods Holding's ROC % compare to PFGC and CHEF?
US Foods Holding's ROC % of 6.82% can be compared against companies in the Retail - Defensive industry. The industry median ROC % is 5.54. US Foods Holding's value of 6.82% is 23.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Retail - Defensive company?
The median ROC % among Retail - Defensive companies is 5.54, based on 309 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. US Foods Holding's current ROC % of 6.82% is 23.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on US Foods Holding and its competitors. For the Retail - Defensive industry, the median ROC % is 5.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. US Foods Holding's current ROC % is 6.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is US Foods Holding stock overvalued right now?
Based on GuruFocus' analysis, US Foods Holding (USFD) is currently considered Modestly Overvalued. The stock's GF Value™ is $73.91, compared to a current price of $96.22 — trading 30.2% above its estimated fair value. The current ROC % is 6.82% and 23.1% above the Retail - Defensive industry median of 5.54. US Foods Holding's overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For US Foods Holding (USFD), the current ROC % is 6.82% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is US Foods Holding (USFD) Overvalued in 2026?
Based on GuruFocus' analysis, US Foods Holding stock appears to be overvalued.
The current stock price of $96.22 is trading 30.2% above its estimated GF Value™ of $73.91.
GuruFocus considers US Foods Holding to be Modestly Overvalued.
Key valuation signals for USFD:
ROC %: 6.82%
GF Value™: $73.91 vs. price of $96.22 (30.2% above fair value)
Industry Position: 23.1% above the Retail - Defensive median
No single metric tells the full story. See the USFD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
US Foods Holding Corp is a U.S. food service distributor that distributes food and nonfood products to the healthcare and hospitality industries, restaurants, education, government facilities, and grocers. It has various customer locations across the United States, with a vast network of distribution facilities, a fleet of trucks, and cash and carry locations offering food and non-food products, and a comprehensive suite of e-commerce, technology, and business solutions to its customers. The company operates in one business segment in which it markets, sells, and distributes fresh, frozen, and dry food and non-food products to foodservice customers throughout the U.S. The products offered are as snacks, beverages, fresh produce, sauces, condiments, canned/frozen fruits and others.
81GF Score
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