Alta Fox believes Premium Brands’ shares are ‘materially undervalued’

Alta Fox Capital Management, a top 10 shareholder of Premium Brands (PRBZF) Holdings Corporation with ownership of approximately 1.51% of the shares outstanding, published an investment presentation outlining the firm’s view that the Company’s shares are materially undervalued. Alta Fox said, “Premium Brands is a competitively advantaged specialty food manufacturer with a strong long-term track record. The business is emerging from a significant, multi-year capital investment cycle and is inflecting both earnings and free cash flow metrics. The stock now trades at decade-low valuation multiples more reflective of ex-growth, structurally challenged peers despite Premium Brands’ consistent organic volume growth, which has accelerated to double digits in the last two quarters. We see meaningful upside from the Company’s current share price and are excited to be long-term shareholders alongside the current management team. Details of our analysis, including our financial model and valuation framework, are available in the full presentation linked above. We believe investor sentiment could improve materially with clearer messaging around 2027 earnings power. Specifically, we recommend that management address the following when reporting Q1 2026 results: Provide an updated FY2027 EBITDA target, offering investors a clear view of the Company’s pro forma earnings power following recent acquisitions and divestitures. Commit to a defined FY2027 free cash flow target-specifically unadjusted FCFE-along with key underlying assumptions, including total FY2027 capex and a plan to improve working capital efficiency. As earnings growth translates into a meaningful free cash flow inflection, we believe Premium Brands’ valuation should re-rate significantly from its current decade-low multiples. We estimate more than 75% upside to the current share price.”