3 Consumer Stocks with Questionable Fundamentals

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2▲0 ▼3Impact / 5
Summary · why it matters

Three consumer discretionary stocks—Disney, Lindblad Expeditions, and US Foods—are flagged for having questionable fundamentals. Disney’s annual sales growth of 10.8% over the last five years lagged peers, its free cash flow margin of 9.4% over the last two years is low, and its return on capital is an underwhelming 7.3%. Lindblad Expeditions saw 17.4% annual sales growth over the last two years, below the typical consumer discretionary company, with a subpar operating margin of 5.8% and a weak free cash flow margin of 8.7%. US Foods posted unit sales growth of 2.4% over the past two years, an operating margin of 3% that is below the industry average, and lacks free cash flow generation.

Impact on assets 3

Communication Services▼ · 1 stocks
Walt Disney Company
DIS
▼ NegativeCapitalrelevance

Article flags Disney's low sales growth, weak free cash flow margin, and poor return on capital as questionable fundamentals.

Consumer Discretionary▼ · 1 stocks
Consumer Staples▼ · 1 stocks
US Foods Holding Corp
USFD
▼ NegativeCapitalrelevance

Article notes US Foods' low unit sales growth, below-average operating margin, and lack of free cash flow generation.

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