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BellRing Brands Inc Class A (BRBR)
NYSE:BRBR
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BellRing Brands
(NYSE:BRBR)
71Outperform
Positive Factors
Innovation and Marketing
Increased innovation and marketing supported by incremental capacity gains are expected to drive growth for BRBR.
Market Position
BRBR is well positioned to deliver outsized topline growth driven by its exposure to the attractive convenient nutrition category.
Product Leadership
BRBR's Premier Protein RTD shake is the number one brand in the space and the overall convenient nutrition category, boasting a rare combination of growing household penetration, distribution, and innovation while at the same time increasing both buy and repeat rates.
Negative Factors
Margin Risks
There are perceptions of risks to gross margins and sales which are considered excessive.
Valuation Concerns
There is less room for valuation multiple expansion in the future.
BellRing Brands (BRBR) vs. S&P 500 (SPY)
Market Cap
$9.90B
Dividend YieldN/A
Average Volume (3M)1.25M
Price to Earnings (P/E)36.4
Beta (1Y)0.80
Revenue Growth21.00%
EPS Growth72.21%
CountryUS
Employees485
SectorConsumer Defensive
Sector Strength89
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.12
Shares Outstanding128,283,140
10 Day Avg. Volume1,101,226
30 Day Avg. Volume1,249,518
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.08
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit15.07
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$84.63Price Target Upside9.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
BellRing Brands Business Overview & Revenue Model
Company DescriptionBellRing Brands, Inc., together with its subsidiaries, provides various nutrition products in the United States and internationally. It offers ready-to-drink shake and powder protein products primarily under the Premier Protein and Dymatize brands. The company sells its products through club, food, drug, mass, eCommerce, specialty, and convenience channels. BellRing Brands, Inc. was incorporated in 2019 and is headquartered in Saint Louis, Missouri.
How the Company Makes MoneyBellRing Brands generates revenue primarily through the sale of its protein-centric nutritional products across various channels. The company leverages a diverse distribution network that includes retail stores, online platforms, and specialty channels to reach consumers globally. Key revenue streams include sales from ready-to-drink protein shakes, protein powders, and nutrition bars under its well-recognized brand portfolio. Significant partnerships with retailers and distributors have enhanced its market presence and accessibility to consumers. Additionally, BellRing Brands invests in marketing and innovation to maintain brand strength and meet evolving consumer preferences, further contributing to its financial performance.
BellRing Brands Financial Statement Overview
Summary
BellRing Brands demonstrates strong revenue growth and profitability, driven by effective cost management. However, high leverage and negative equity pose financial risks. The company maintains solid cash flow generation, supporting its operations and potential growth initiatives. Despite its strengths, addressing balance sheet vulnerabilities is crucial for long-term stability.Income Statement
BellRing Brands shows robust revenue growth with a TTM revenue of $2.1 billion, up from $1.37 billion in 2022, indicating strong demand for its products. The company's gross profit margin of 35.96% and net profit margin of 13.31% are commendable, reflecting efficient cost management and profitability. However, the EBIT margin of 20.49% suggests room for improvement in operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet reflects high leverage with a significant debt-to-equity ratio due to negative equity. Total debt of $833.4 million exceeds total assets, indicating financial risk. Despite this, BellRing Brands has managed to sustain operations, but negative equity remains a concern.40
Negative
Cash Flow
The cash flow statement highlights a strong free cash flow of $123.8 million in TTM, showing effective cash management. The operating cash flow to net income ratio is favorable, suggesting good quality of earnings. However, the company's cash flow from financing activities indicates significant debt servicing costs.75
Positive
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.00B | 1.67B | 1.37B | 1.25B | 988.30M | Gross Profit |
| 707.30M | 530.20M | 421.80M | 386.20M | 338.00M | EBIT |
| 387.70M | 287.30M | 212.40M | 168.00M | 164.00M | EBITDA |
| 387.70M | 315.60M | 248.20M | 217.60M | 189.30M | Net Income Common Stockholders |
| 246.50M | 165.50M | 116.00M | 114.40M | 100.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 71.10M | 48.40M | 35.80M | 152.60M | 48.70M | Total Assets |
| 837.00M | 691.60M | 707.20M | 696.50M | 653.50M | Total Debt |
| 833.10M | 856.80M | 929.50M | 597.50M | 686.40M | Net Debt |
| 762.00M | 808.40M | 893.70M | 444.90M | 637.70M | Total Liabilities |
| 1.04B | 1.02B | 1.08B | 762.00M | 814.50M | Stockholders Equity |
| -205.90M | -323.50M | -376.20M | -3.06B | -2.18B |
| Cash Flow | Free Cash Flow | |||
| 197.80M | 213.80M | 19.20M | 224.50M | 95.10M | Operating Cash Flow |
| 199.60M | 215.60M | 21.00M | 226.10M | 97.20M | Investing Cash Flow |
| -1.80M | -1.80M | -1.80M | -1.60M | -2.10M | Financing Cash Flow |
| -175.10M | -201.70M | -135.00M | -120.90M | -52.60M |
BellRing Brands Technical Analysis
Positive
77.14
Price Trends
72.50
Positive
74.30
Positive
67.74
Positive
Market Momentum
0.94
Negative
59.32
Neutral
76.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRBR, the sentiment is Positive. The current price of 77.14 is above the 20-day moving average (MA) of 74.28, above the 50-day MA of 72.50, and above the 200-day MA of 67.74, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 59.32 is Neutral, neither overbought nor oversold. The STOCH value of 76.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRBR.
BellRing Brands Risk Analysis
BellRing Brands disclosed 47 risk factors in its most recent earnings report. BellRing Brands reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BellRing Brands Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $9.90B | 36.36 | -190.65% | ― | 21.00% | 72.21% | |
70 Outperform | $6.35B | 18.91 | 10.01% | ― | 7.32% | 34.44% | |
68 Neutral | $12.50B | 38.32 | 3.67% | 5.67% | -3.15% | -65.38% | |
68 Neutral | $7.90B | 21.95 | 21.63% | 2.75% | -2.49% | -65.96% | |
66 Neutral | $11.37B | 21.97 | 13.43% | 4.11% | 9.15% | -31.94% | |
64 Neutral | $9.01B | 14.73 | 3.76% | 178.62% | 3.83% | 6.05% | |
61 Neutral | $12.34B | 22.22 | -3.55% | 3.73% | 7.07% | -181.54% |
* Consumer Defensive Sector Average
Performance Comparison
BRBR
BellRing Brands
76.97
19.79
34.61%
CPB
Campbell Soup
35.89
-8.41
-18.98%
CAG
Conagra Brands
24.18
-5.12
-17.47%
SJM
JM Smucker
113.77
5.19
4.78%
POST
Post Holdings
112.45
7.55
7.20%
LW
Lamb Weston Holdings
52.81
-30.27
-36.43%
BellRing Brands Earnings Call Summary
Earnings Call Date:Feb 03, 2025
(Q1-2025)
| % Change Since: -1.42%|
Next Earnings Date:May 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and growth, particularly from Premier Protein and international markets for Dymatize. However, domestic challenges for Dymatize and potential cost pressures in the second half were noted. The positive aspects of growth and raised guidance outweigh the challenges.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Net sales for the first quarter were $533 million and adjusted EBITDA was $125 million, with net sales growing 24% over the prior year and adjusted EBITDA increasing 25%.
Premier Protein Growth
Premier Shake consumption growth accelerated, up 23% in the quarter, driven by distribution expansion, accelerating velocities, and incremental promotional activity.
Raised Guidance for Fiscal Year
The company raised its outlook for the year, expecting net sales to grow between 13% and 17% over fiscal '24 and adjusted EBITDA to grow between 7% and 14%.
Successful National Marketing Campaign
Premier Protein launched a national marketing campaign, with traffic to the website up 80% versus a year ago, indicating strong consumer engagement.
International Growth for Dymatize
Dymatize net sales increased 13% this quarter, primarily driven by double-digit sales growth in the international business.
Negative Updates
Challenges in Dymatize Domestic Market
Despite international success, Dymatize faced domestic headwinds with pricing pressures due to elevated whey protein costs.
Potential Second Half Cost Pressures
Protein costs are expected to be more unfavorable in the second half of the fiscal year, with potential impacts on gross margins.
Company Guidance
During the BellRing Brands First Quarter Fiscal Year 2025 Earnings Conference Call, the company provided updated guidance, indicating a strong start to the fiscal year with net sales and adjusted EBITDA both growing approximately 25%, primarily driven by Premier Protein. The company raised its full-year outlook, expecting net sales growth between 13% and 17% over fiscal 2024, and adjusted EBITDA growth between 7% and 14%. The guidance reflects confidence stemming from robust Q1 performance, improved gross margins, and favorable timing of marketing expenditures. The Convenient Nutrition category, where BellRing operates, grew by 12% in Q1, with ready-to-drink products leading the category growth at 18%. Premier Protein, the company's flagship brand, experienced a 23% increase in shake consumption and maintained its status as the number one brand in the ready-to-drink segment with a 26% market share.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.