Maximus and United Natural Foods - Worth Taking a Look

Today is Friday, September 11th 2026. Macro events dominated this week with the price of Diesel climbing over $6 per gallon, and the US 10-year bond approaching 5%.

What Worked in Value:

Frank Value Fund just filed its annual report and holdings as of June 30, 2026. We disclosed positions in healthcare companies Icon Plc and Becton Dickinson, as well as defense contractors Maximus, Science Applications International, and Leidos Holdings.

Maximus is a compelling idea. The company market cap is around $3 billion and they produce nearly $500 million of free cash flow annually. That is nearly 15% of the company value hitting the balance sheet every year. It won't take long for this cash to materially reduce shares outstanding as repurchases, enrich shareholders as dividends, or reduce the debt significantly.

What didn't work?

However, even at $45 this week, UNFI is extremely under-valued. The company has a 10% FCF/Mcap yield, announced a $200 million repurchase which is around 7% of shares outstanding, and has a better balance sheet than its publicly traded peers.

Next up is On the Hunting Trail for Value

As I mentioned last week and in the previous segment, consumer staples are once again the target of the market's disrespect. I added another staples company to my portfolio this week, and it is not only trading at a low valuation, but it also has the ability to grow EBITDA, or pre-tax cash flow, at a low double digit rate.

Wrapping Up:

The macro is making things a lot more difficult but we have yet to see fear show up in the stock market indices. Value investing in healthcare and defense contractors has so far paid off well in 2026, and consumer staples continue to lead the way in compelling opportunities looking forward. Thanks for listening and have a great weekend.

Website: https://frankfunds.com

Brian X Account: https://x.com/bfrankvalue

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