- UNFI recently acquired a competitor, Supervalu, forcing it to take on a lot of debt, which it had previously reduced significantly.
- The company's EBITDA has soared to more than $600 million this year, but the market cannot seem to keep up with it.
- Management came up with a new development plan that aimed to show numerous hidden synergies, reduce debt, and start shares buyback in 2023.
- Even though the plan is overly optimistic, modeling company cash flow with growth below management's lowest estimation gives more than a 90% potential upside to the stock.
For further details see:
United Natural Foods: A Value Stock At A Depressed Valuation