The Chefs Warehouse Stock Buy Hold or Sell Recommendation
| CHEF Stock | USD 52.46 0.35 0.67% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding The Chefs Warehouse is 'Strong Hold'. Macroaxis provides Chefs Warehouse buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CHEF positions.
Check out Chefs Warehouse Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Chefs and provide practical buy, sell, or hold advice based on investors' constraints. The Chefs Warehouse. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.
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Execute Chefs Warehouse Buy or Sell Advice
The Chefs recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on The Chefs Warehouse. Macroaxis does not own or have any residual interests in The Chefs Warehouse or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Chefs Warehouse's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Chefs Warehouse Trading Alerts and Improvement Suggestions
| Chefs Warehouse is unlikely to experience financial distress in the next 2 years | |
| Over 95.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from zacks.com: How Sprouts Farmers Leverages Innovation and Expansion for Growth |
Chefs Warehouse Returns Distribution Density
The distribution of Chefs Warehouse's historical returns is an attempt to chart the uncertainty of Chefs Warehouse's future price movements. The chart of the probability distribution of Chefs Warehouse daily returns describes the distribution of returns around its average expected value. We use The Chefs Warehouse price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Chefs Warehouse returns is essential to provide solid investment advice for Chefs Warehouse.
| Mean Return | 0.17 | Value At Risk | -3.09 | Potential Upside | 2.85 | Standard Deviation | 2.26 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Chefs Warehouse historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Chefs Stock Institutional Investors
| Shares | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 789.9 K | Kennedy Capital Management Inc | 2024-12-31 | 754.6 K | Jennison Associates Llc | 2024-12-31 | 711.1 K | Bank Of New York Mellon Corp | 2024-12-31 | 512.8 K | Manufacturers Life Insurance Co | 2024-12-31 | 495.6 K | Victory Capital Management Inc. | 2024-12-31 | 480.9 K | Nuveen Asset Management, Llc | 2024-12-31 | 480.8 K | Schroder Investment Management Group | 2024-12-31 | 468.9 K | Charles Schwab Investment Management Inc | 2024-12-31 | 464.4 K | Blackrock Inc | 2024-12-31 | 5.3 M | Vanguard Group Inc | 2024-12-31 | 2.7 M |
Chefs Warehouse Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change To Inventory | 49.1M | (60.8M) | (49.9M) | (28.8M) | (32.2M) | (30.6M) | |
| Change In Cash | 53.0M | (78.1M) | 43.6M | (108.9M) | 64.8M | 68.0M | |
| Free Cash Flow | 35.8M | (58.7M) | (22.7M) | 4.2M | 103.6M | 108.7M | |
| Depreciation | 33.3M | 35.0M | 38.2M | 55.6M | 64.9M | 68.2M | |
| Other Non Cash Items | 38.4M | 2.8M | 31.9M | 18.5M | 13.4M | 11.9M | |
| Capital Expenditures | 7.0M | 38.8M | 45.8M | 57.4M | 49.5M | 52.0M | |
| Net Income | (82.9M) | (4.9M) | 27.8M | 34.6M | 55.5M | 58.3M | |
| End Period Cash Flow | 193.3M | 115.2M | 158.8M | 49.9M | 114.7M | 63.2M | |
| Change Receivables | (19.5M) | (13.2M) | 77.6M | (70.8M) | (81.4M) | (77.3M) | |
| Net Borrowings | 98.8M | (1.3M) | (5.9M) | 278.6M | 320.4M | 336.5M | |
| Change To Netincome | 11.5M | 36.6M | 10.1M | 53.8M | 61.9M | 65.0M | |
| Investments | (68.0M) | (49.0M) | (232.0M) | (294.1M) | (49.8M) | (52.3M) |
Chefs Warehouse Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Chefs Warehouse or Consumer Staples Distribution & Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Chefs Warehouse's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Chefs stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.27 | |
β | Beta against Dow Jones | 1.04 | |
σ | Overall volatility | 2.33 | |
Ir | Information ratio | 0.12 |
Chefs Warehouse Volatility Alert
The Chefs Warehouse currently demonstrates below-average downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.27. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Chefs Warehouse's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Chefs Warehouse's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Chefs Warehouse Fundamentals Vs Peers
Comparing Chefs Warehouse's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Chefs Warehouse's direct or indirect competition across all of the common fundamentals between Chefs Warehouse and the related equities. This way, we can detect undervalued stocks with similar characteristics as Chefs Warehouse or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Chefs Warehouse's fundamental indicators could also be used in its relative valuation, which is a method of valuing Chefs Warehouse by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Chefs Warehouse to competition |
| Fundamentals | Chefs Warehouse | Peer Average |
| Return On Equity | 0.11 | -0.31 |
| Return On Asset | 0.0446 | -0.14 |
| Profit Margin | 0.01 % | (1.27) % |
| Operating Margin | 0.04 % | (5.51) % |
| Current Valuation | 2.91 B | 16.62 B |
| Shares Outstanding | 40.27 M | 571.82 M |
| Shares Owned By Insiders | 11.80 % | 10.09 % |
| Shares Owned By Institutions | 95.36 % | 39.21 % |
| Number Of Shares Shorted | 3.02 M | 4.71 M |
| Price To Earning | 41.24 X | 28.72 X |
| Price To Book | 3.93 X | 9.51 X |
| Price To Sales | 0.56 X | 11.42 X |
| Revenue | 3.79 B | 9.43 B |
| Gross Profit | 914.15 M | 27.38 B |
| EBITDA | 128.21 M | 3.9 B |
| Net Income | 55.48 M | 570.98 M |
| Cash And Equivalents | 145.42 M | 2.7 B |
| Cash Per Share | 3.80 X | 5.01 X |
| Total Debt | 227.08 M | 5.32 B |
| Debt To Equity | 1.68 % | 48.70 % |
| Current Ratio | 2.50 X | 2.16 X |
| Book Value Per Share | 13.36 X | 1.93 K |
| Cash Flow From Operations | 153.06 M | 971.22 M |
| Short Ratio | 5.17 X | 4.00 X |
| Earnings Per Share | 1.32 X | 3.12 X |
| Price To Earnings To Growth | 3.20 X | 4.89 X |
| Target Price | 69.75 | |
| Number Of Employees | 5.03 K | 18.84 K |
| Beta | 2.28 | -0.15 |
| Market Capitalization | 2.11 B | 19.03 B |
| Total Asset | 1.86 B | 29.47 B |
| Retained Earnings | 141.94 M | 9.33 B |
| Working Capital | 442.65 M | 1.48 B |
Note: Disposition of 991 shares by Alexandros Aldous of Chefs Warehouse at 63.89 subject to Rule 16b-3 [view details]
Chefs Warehouse Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Chefs . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Chefs Warehouse Buy or Sell Advice
When is the right time to buy or sell The Chefs Warehouse? Buying financial instruments such as Chefs Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Chefs Warehouse Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Is Consumer Staples Distribution & Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Chefs Warehouse. If investors know Chefs will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Chefs Warehouse listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.289 | Earnings Share 1.32 | Revenue Per Share | Quarterly Revenue Growth 0.087 | Return On Assets |
The market value of Chefs Warehouse is measured differently than its book value, which is the value of Chefs that is recorded on the company's balance sheet. Investors also form their own opinion of Chefs Warehouse's value that differs from its market value or its book value, called intrinsic value, which is Chefs Warehouse's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Chefs Warehouse's market value can be influenced by many factors that don't directly affect Chefs Warehouse's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Chefs Warehouse's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chefs Warehouse is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chefs Warehouse's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.