Armanino Foods of Distinction (AMNF) AI Stock Analysis

• Market Cap: $381.55M
• Dividend Yield: 1.47%
• Average Volume (3M): 19.44K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.18
• Revenue Growth: 12.16%
• EPS Growth: 41.19%
• Country: US
• Employees: 34
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.15
• Shares Outstanding: 32,066,000
• 10 Day Avg. Volume: 26,157
• 30 Day Avg. Volume: 19,442
• PEG Ratio: 0.25
• Price to Book (P/B): 7.02
• Price to Sales (P/S): 3.66
• P/FCF Ratio: 17.15
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 4.77
• Enterprise Value/Gross Profit: 11.47
• Enterprise Value/Ebitda: 31.33
• 1Y Price Target: $15.00
• Price Target Upside: 23.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $13.50 ▲(11.57% Upside)

Armanino Foods scores well due to its strong financial performance and positive technical indicators. The company's robust balance sheet and consistent revenue growth are significant strengths. The valuation is fair, supporting the overall positive outlook.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a large equity buffer materially reduce financial risk and increase resilience to shocks. A 40% ROE shows management efficiently converts capital into profits, supporting reinvestment and strategic initiatives without reliance on heavy external financing.

Margin Sustainability

High gross and operating margins reflect product differentiation and efficient production in the gourmet frozen segment. Sustained margin levels provide pricing power and a buffer against input cost volatility, enabling consistent profitability and funding for product development and channel expansion.

Cash Conversion Ability

Operating cash flow consistently exceeds net income and free cash flow roughly tracks earnings, indicating reliable cash conversion. This durability supports working capital, modest capex, and potential distributions, preserving financial flexibility through business cycles.

Negative Factors

Free Cash Flow Trend

A declining free cash flow trend reduces the pool of internally available capital for expansion, dividends, or debt reduction. If the negative FCF growth persists, management may need to prioritize investments or seek external funding, which could dilute returns or slow strategic initiatives.

Growth Execution Risk

Fast revenue expansion can strain supply chains, quality control, and working capital. Without proportional operational scaling and controls, margin compression or service issues could occur, undermining brand reputation and channel relationships critical for long-term durable growth.

Scale & Market Access

A very small employee base and OTC listing indicate limited scale and corporate resources versus larger packaged-food competitors. This constrains negotiating leverage with large retailers, slows national distribution rollouts, and raises per-unit costs for major strategic investments.

Armanino Foods of Distinction Business Overview & Revenue Model

Company Description

Armanino Foods of Distinction, Inc. produces and markets frozen food products in the United States. The company offers gourmet beef, Italian style beef and pork, and smoked turkey meatballs; grated parmesan and 3 cheese blend cheese; and various pesto, such as basil, artichoke, cilantro, dried tomato and garlic, roasted garlic, roasted red bell pepper, and southwest chipotle. It also provides frozen pasta, which includes beef cannelloni, cheese manicotti, cheese stuffed shells, cheese tortellini; pasta sheets, potato gnocchi, and tricolor cheese tortellini, as well as beef, butternut squash, four cheese, cheese and spinach, and wild mushroom ravioli; and various sauces, comprising creamy garlic, alfresco, Bolognese, chimichurri, harissa, and romesco. The company offers its products under the Armanino brand. It markets its products through a network of food brokers and sells to retail and foodservice distributors, club-type stores, and industrial accounts. The company was founded in 1978 and is based in Hayward, California.

How the Company Makes Money

Armanino Foods generates revenue through the sale of its frozen food products, which are distributed to grocery stores, restaurants, and food service establishments. The company's revenue model is primarily based on wholesale distribution, where it sells its products in bulk to retailers and food service operators. Key revenue streams include direct sales to supermarkets, distribution agreements with food service companies, and specialty food distributors. Additionally, Armanino Foods may benefit from partnerships with larger retailers and promotional campaigns that enhance product visibility and drive sales. The company's focus on high-quality, premium products allows it to maintain competitive pricing and strong demand in the gourmet food market.

Armanino Foods of Distinction Financial Statement Overview

Summary

Armanino Foods demonstrates strong financial health with consistent revenue growth and solid profitability metrics. The balance sheet is robust with low leverage and high equity, while cash flow remains healthy despite a slight decline in free cash flow. Overall, the company is well-positioned for future opportunities.

Income Statement

Armanino Foods has demonstrated strong and consistent revenue growth, with a healthy revenue growth rate of 9.11% from 2023 to 2024. The company maintains solid profitability with a gross profit margin of 35.14% and a net profit margin of 21.06% in 2024. EBIT and EBITDA margins are also robust at 26.27% and 28.82%, respectively, indicating efficient operations. However, the rapid growth may necessitate careful resource management to sustain profitability.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.04, reflecting minimal leverage and financial risk. Armanino Foods has a commendable return on equity of 40.37%, indicating effective use of shareholder capital to generate profits. The equity ratio stands at 68.48%, demonstrating a substantial equity buffer and financial stability. The company’s cash and short-term investments also provide a significant liquidity cushion.

Cash Flow

Armanino Foods shows a positive cash flow trajectory, with a free cash flow growth rate of -6.28% from 2023 to 2024, reflecting stable cash generation. The operating cash flow to net income ratio of 1.21 indicates strong cash conversion from operations. Despite a slight decline in free cash flow, the company maintains a healthy free cash flow to net income ratio of 1.01, suggesting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.61M	69.35M	63.56M	57.87M	43.82M	31.82M
Gross Profit	31.06M	24.37M	16.64M	13.21M	14.22M	8.95M
EBITDA	11.37M	19.99M	11.77M	9.63M	7.87M	3.03M
Net Income	17.55M	14.61M	8.76M	6.60M	5.73M	2.02M
Balance Sheet
Total Assets	52.72M	52.85M	44.13M	39.19M	35.51M	26.33M
Cash, Cash Equivalents and Short-Term Investments	23.01M	28.16M	22.18M	10.50M	11.85M	10.05M
Total Debt	1.10M	1.46M	2.11M	2.71M	2.72M	1.03M
Total Liabilities	16.50M	16.67M	13.62M	13.21M	12.29M	5.47M
Stockholders Equity	25.71M	36.18M	30.51M	25.98M	23.22M	20.86M
Cash Flow
Free Cash Flow	10.18M	14.82M	15.81M	1.99M	5.97M	5.54M
Operating Cash Flow	11.98M	17.74M	16.68M	2.55M	6.28M	6.29M
Investing Cash Flow	-1.79M	-2.92M	-435.63K	-4.66M	-1.10M	-335.65K
Financing Cash Flow	-7.74M	-8.83M	-4.14M	-3.77M	-3.73M	-4.30M

Armanino Foods of Distinction Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMNF, the sentiment is Positive. The current price of 12.1 is above the 20-day moving average (MA) of 11.73, above the 50-day MA of 11.23, and above the 200-day MA of 9.45, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 60.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMNF.

Armanino Foods of Distinction Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	80 Outperform	$441.24M	32.58	9.52%	―	6.62%	-7.85%
AMNF	76 Outperform	$381.55M	21.12	48.67%	1.47%	12.16%	41.19%
MAMA	76 Outperform	$613.87M	131.99	12.82%	―	29.92%	30.02%
LWAY	69 Neutral	$335.49M	30.72	14.46%	―	12.14%	-17.80%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
STKL	58 Neutral	$553.06M	-915.69	2.23%	―	11.31%	99.83%
BGS	50 Neutral	$349.50M	-1.41	-40.86%	17.12%	-6.04%	-844.18%