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Better Choice Company (BTTR)
:BTTR
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Better Choice Company
(NYSE MKT:BTTR)
50Neutral
Better Choice Company (BTTR) vs. S&P 500 (SPY)
Market Cap
$4.14M
Dividend YieldN/A
Average Volume (3M)82.04K
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth-9.37%
EPS Growth97.75%
CountryUS
Employees31
SectorConsumer Defensive
Sector Strength94
IndustryPackaged Foods
Share Statistics
EPS (TTM)-0.71
Shares Outstanding2,422,005
10 Day Avg. Volume71,754
30 Day Avg. Volume82,040
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.10
Price to Cash Flow (P/CF)-0.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Better Choice Company Business Overview & Revenue Model
Company DescriptionBetter Choice Company Inc. operates as an animal health and wellness company. Its products portfolio includes naturally formulated kibble and canned dog and cat foods, freeze-dried raw dog foods and treats, vegan dog foods and treats, oral care products and supplements, as well as toppers, dental products, chews, and grooming products. The company provides its products for dogs, cats, and pet parents under the Halo and TruDog brand names. Better Choice Company Inc. primarily sells its products through its online portals, as well as through online retailers and pet specialty stores. It has operations in the United States, Canada, China, and Asia. The company was formerly known as Sports Endurance, Inc. and changed its name to Better Choice Company Inc. in March 11, 2019. Better Choice Company Inc. was founded in 1986 and is based in Tampa, Florida.
How the Company Makes MoneyThe company makes money primarily through the sale of its premium pet food and nutritional products. Better Choice Company generates revenue by distributing its products through various channels, including direct-to-consumer sales via its online platform, as well as partnerships with retail chains and specialty pet stores. Key revenue streams include product sales in both domestic and international markets. The company's earnings are bolstered by strategic partnerships with distributors and retailers, as well as by leveraging its brand reputation and product quality to capture a loyal customer base seeking healthier options for their pets.
Better Choice Company Financial Statement Overview
Summary
Better Choice Company faces revenue decline and persistent losses, impacting profitability. However, there has been an improvement in financial leverage and cash flow management, indicating a strategic shift towards stability. Operational inefficiencies need addressing for sustainable growth.Income Statement
The company has a declining revenue trend with a significant drop from $54.66M in 2022 to $33.52M in TTM (Trailing-Twelve-Months). Gross profit margin remains relatively stable but low at approximately 31.2% TTM, indicating moderate profitability. However, persistent net losses and negative EBIT and EBITDA margins signal operational inefficiencies and challenges in achieving profitability.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has improved significantly due to increased stockholder equity, from a negative equity position in 2020 to $10.3M in TTM. This improvement suggests better financial leverage management. However, the equity ratio stands at 60%, indicating reliance on equity rather than debt financing, which can be a cautious approach given the industry's competitive nature.50
Neutral
Cash Flow
Positive free cash flow growth indicates improved cash management with a positive focus on operating cash flow, which increased to $991K in TTM. The operating cash flow to net income ratio suggests effective cash conversion, although the consistent net losses remain a concern for long-term sustainability. The free cash flow to net income ratio is positive, showing better cash flow management relative to earnings.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 33.52M | 38.59M | 54.66M | 46.01M | 42.59M | 15.58M | Gross Profit |
| 10.46M | 11.80M | 15.26M | 15.37M | 16.10M | 5.86M | EBIT |
| -8.51M | -21.18M | -20.17M | -17.28M | -27.32M | -35.44M | EBITDA |
| -14.53M | -19.74M | -37.09M | -15.62M | -48.34M | -183.58M | Net Income Common Stockholders |
| -13.35M | -22.77M | -39.32M | 3.39M | -66.83M | -185.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 170.00 | 4.46M | 3.17M | 21.73M | 3.93M | 2.36M | Total Assets |
| 25.41K | 16.74M | 38.68M | 74.66M | 51.25M | 53.53M | Total Debt |
| 0.00 | 4.75M | 11.62M | 10.33M | 32.97M | 38.24M | Net Debt |
| -170.00 | 291.00K | 8.45M | -11.40M | 29.04M | 35.88M | Total Liabilities |
| 4.13K | 13.76M | 17.15M | 16.79M | 79.36M | 50.04M | Stockholders Equity |
| 21.27K | 2.98M | 21.53M | 57.88M | -28.10M | 3.50M |
| Cash Flow | Free Cash Flow | ||||
| 954.00K | 79.00K | -20.75M | -12.21M | -7.66M | -21.08M | Operating Cash Flow |
| 991.00K | 97.00K | -20.55M | -11.86M | -7.50M | -20.97M | Investing Cash Flow |
| -1.49M | -18.00K | -198.00K | -353.00K | -151.00K | -20.21M | Financing Cash Flow |
| 4.63M | -5.10M | 1.28M | 37.16M | 9.11M | 39.76M |
Better Choice Company Technical Analysis
Negative
1.71
Price Trends
1.77
Negative
1.94
Negative
2.29
Negative
Market Momentum
-0.02
Negative
49.26
Neutral
48.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTTR, the sentiment is Negative. The current price of 1.71 is below the 20-day moving average (MA) of 1.73, below the 50-day MA of 1.77, and below the 200-day MA of 2.29, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.26 is Neutral, neither overbought nor oversold. The STOCH value of 48.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BTTR.
Better Choice Company Risk Analysis
Better Choice Company disclosed 44 risk factors in its most recent earnings report. Better Choice Company 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
Better Choice Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $14.34B | 38.54 | 101.78% | ― | 6.40% | 891.13% | |
70 Outperform | $2.13B | 19.79 | 8.18% | ― | -2.85% | -27.70% | |
63 Neutral | $21.18B | 14.33 | -16.36% | 3.22% | 1.30% | 4.55% | |
61 Neutral | $3.91B | 85.97 | 4.67% | ― | 27.16% | ― | |
56 Neutral | $1.51B | ― | -3.07% | ― | 15.97% | 78.77% | |
53 Neutral | $909.66M | ― | -8.86% | ― | -2.22% | 92.17% | |
50 Neutral | $4.14M | ― | -2.87% | ― | -9.37% | 97.75% |
* Consumer Defensive Sector Average
Performance Comparison
BTTR
Better Choice Company
1.71
-3.39
-66.47%
CENT
Central Garden Pet
36.41
-3.07
-7.78%
FRPT
Freshpet
81.24
-24.45
-23.13%
TRUP
Trupanion
35.45
13.29
59.97%
CHWY
Chewy
34.25
17.68
106.70%
WOOF
Petco Health and Wellness Company
3.28
1.63
98.79%
Better Choice Company Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -7.57% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in profitability measures, including gross profit margins, net loss, and EBITDA. Revenue growth, particularly in the fourth quarter and international markets, was strong. However, there were challenges such as a decline in annual net revenues and ongoing EBITDA losses. Overall, the company's strategic pivots and financial health improvements contributed to a positive outlook.Highlights
Improved Gross Profit Margin
The company reported a gross profit margin of 37% for the full year, representing an increase of over 600 basis points.
Significant Improvement in Adjusted EBITDA
Adjusted EBITDA loss improved by 78% year-over-year to $1.9 million.
Fourth Quarter Revenue Growth
Fourth quarter revenue grew by 26% year-over-year, driven by 32% growth across Amazon and Chewy.
Debt Extinguishment and Financial Health
The company achieved a $6.2 million gain from extinguishing debt and accounts payable, contributing to a healthier balance sheet with a working capital position of $7.9 million.
International Growth
International revenue grew by 18%, with significant contributions from the Asia Pacific market.
Improved Net Loss and EPS
Year-to-date GAAP net loss improved by 99% year-over-year, with EPS improving to a $0.11 loss per share from a $32 loss per share in 2023.
Lowlights
Decline in Annual Net Revenues
Annual net revenues were down 9% due to strategic exits from non-core sales channels and the closure of an unprofitable direct-to-consumer business.
Ongoing Adjusted EBITDA Loss
Despite improvements, the company still reported an adjusted EBITDA loss of approximately $700,000 for the fourth quarter.
Company Guidance
In the fourth quarter of 2024, Better Choice Company reported notable financial achievements and strategic advancements. The company delivered a gross profit margin of 37%, improving by over 600 basis points year-over-year, and adjusted EBITDA loss was reduced by 78% to approximately $1.9 million on annual net revenues of $35 million. The company experienced a 26% increase in fourth-quarter revenue, driven by 32% growth on platforms like Amazon and Chewy, and 18% international growth. Key operational improvements included a 22% reduction in SG&A expenses and a more than 40% reduction in inventory, leading to a working capital position of $7.9 million. Additionally, Better Choice successfully negotiated a $6.2 million gain from extinguishing debt and accounts payable. The company's focus on e-commerce channels is expected to continue propelling growth into 2025, as evidenced by the profitability improvements and strategic exits from non-core sales channels. Looking forward, Better Choice is poised for expanded growth through its acquisition of SRx Health Solutions, which is anticipated to close in April, further solidifying its position as a leader in the pet health and wellness sector.Better Choice Company Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Better Choice Releases Investor Presentation Highlighting Risks
Neutral
Nov 5, 2024
Better Choice Company has released a presentation on their website, which may be used in future discussions with investors and analysts. The report includes forward-looking statements, highlighting potential risks and uncertainties, such as securing additional capital and competition in the industry. Investors are encouraged to review the company’s upcoming proxy statement and other SEC filings for vital details on a proposed transaction.
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.