ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. US Foods Holding's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 6.82%.
As of today (2026-06-26), US Foods Holding's WACC % is 8.67%. US Foods Holding's ROIC % 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) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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 ROIC % 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 %, ROIC % 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 ROIC % Related Terms
US Foods Holding ROIC % Historical Data
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The historical data trend for US Foods Holding's ROIC % 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.
For the Food Distribution subindustry, US Foods Holding's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
US Foods Holding ROIC % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, US Foods Holding's ROIC % distribution charts can be found below:
* The bar in red indicates where US Foods Holding's ROIC % falls into.
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 ROIC % of 6.82% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on US Foods Holding and its competitors.
Is US Foods Holding's ROIC % too high?
US Foods Holding's current ROIC % is 6.82%. The Retail - Defensive industry median ROIC % 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 ROIC % compare to PFGC and CHEF?
US Foods Holding's ROIC % of 6.82% can be compared against companies in the Retail - Defensive industry. The industry median ROIC % 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 ROIC % for a Retail - Defensive company?
The median ROIC % among Retail - Defensive companies is 5.54, based on 309 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. US Foods Holding's current ROIC % 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on US Foods Holding and its competitors. For the Retail - Defensive industry, the median ROIC % 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 ROIC % 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 ROIC % 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For US Foods Holding (USFD), the current ROIC % 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:
ROIC %: 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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