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 Buy'. 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.

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

Execute Advice
Sell Chefs WarehouseBuy Chefs Warehouse
Strong Buy

Market Performance

InsignificantDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Very SmallDetails

Economic Sensitivity

Almost mirrors the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon The Chefs Warehouse has a Risk Adjusted Performance of 0.0709, Jensen Alpha of 0.271, Total Risk Alpha of 0.4404, Sortino Ratio of 0.1173 and Treynor Ratio of 0.152
Our advice module provides unbiased investment recommendation that can be used to complement current average analyst sentiment on The Chefs Warehouse. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon. To make sure Chefs Warehouse is not overpriced, please confirm all Chefs Warehouse fundamentals, including its current valuation, price to book, cash and equivalents, as well as the relationship between the shares owned by institutions and gross profit . Given that Chefs Warehouse has a price to earning of 41.24 X, we suggest you to validate The Chefs Warehouse market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

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 Accounts2024-12-31
789.9 K
Kennedy Capital Management Inc2024-12-31
754.6 K
Jennison Associates Llc2024-12-31
711.1 K
Bank Of New York Mellon Corp2024-12-31
512.8 K
Manufacturers Life Insurance Co2024-12-31
495.6 K
Victory Capital Management Inc.2024-12-31
480.9 K
Nuveen Asset Management, Llc2024-12-31
480.8 K
Schroder Investment Management Group2024-12-31
468.9 K
Charles Schwab Investment Management Inc2024-12-31
464.4 K
Blackrock Inc2024-12-31
5.3 M
Vanguard Group Inc2024-12-31
2.7 M
Note, although Chefs Warehouse's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Chefs Warehouse Cash Flow Accounts

202020212022202320242025 (projected)
Change To Inventory49.1M(60.8M)(49.9M)(28.8M)(32.2M)(30.6M)
Change In Cash53.0M(78.1M)43.6M(108.9M)64.8M68.0M
Free Cash Flow35.8M(58.7M)(22.7M)4.2M103.6M108.7M
Depreciation33.3M35.0M38.2M55.6M64.9M68.2M
Other Non Cash Items38.4M2.8M31.9M18.5M13.4M11.9M
Capital Expenditures7.0M38.8M45.8M57.4M49.5M52.0M
Net Income(82.9M)(4.9M)27.8M34.6M55.5M58.3M
End Period Cash Flow193.3M115.2M158.8M49.9M114.7M63.2M
Change Receivables(19.5M)(13.2M)77.6M(70.8M)(81.4M)(77.3M)
Net Borrowings98.8M(1.3M)(5.9M)278.6M320.4M336.5M
Change To Netincome11.5M36.6M10.1M53.8M61.9M65.0M
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 Jones1.04
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
FundamentalsChefs WarehousePeer Average
Return On Equity0.11-0.31
Return On Asset0.0446-0.14
Profit Margin0.01 %(1.27) %
Operating Margin0.04 %(5.51) %
Current Valuation2.91 B16.62 B
Shares Outstanding40.27 M571.82 M
Shares Owned By Insiders11.80 %10.09 %
Shares Owned By Institutions95.36 %39.21 %
Number Of Shares Shorted3.02 M4.71 M
Price To Earning41.24 X28.72 X
Price To Book3.93 X9.51 X
Price To Sales0.56 X11.42 X
Revenue3.79 B9.43 B
Gross Profit914.15 M27.38 B
EBITDA128.21 M3.9 B
Net Income55.48 M570.98 M
Cash And Equivalents145.42 M2.7 B
Cash Per Share3.80 X5.01 X
Total Debt227.08 M5.32 B
Debt To Equity1.68 %48.70 %
Current Ratio2.50 X2.16 X
Book Value Per Share13.36 X1.93 K
Cash Flow From Operations153.06 M971.22 M
Short Ratio5.17 X4.00 X
Earnings Per Share1.32 X3.12 X
Price To Earnings To Growth3.20 X4.89 X
Target Price69.75
Number Of Employees5.03 K18.84 K
Beta2.28-0.15
Market Capitalization2.11 B19.03 B
Total Asset1.86 B29.47 B
Retained Earnings141.94 M9.33 B
Working Capital442.65 M1.48 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.

Use Investing Ideas to Build Portfolios

In addition to having Chefs Warehouse in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether Chefs Warehouse is a strong investment it is important to analyze Chefs Warehouse's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Chefs Warehouse's future performance. For an informed investment choice regarding Chefs Stock, refer to the following important reports:
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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
100.074
Quarterly Revenue Growth
0.087
Return On Assets
0.0446
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.