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Traeger (COOK)
NYSE:COOK
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Traeger
(NYSE:COOK)
51Neutral
Positive Factors
Financial Performance
Traeger reported better-than-expected fourth-quarter results with both sales and earnings landing above the Street’s expectations.
Product Innovation
Traeger launched its new Woodridge series, hailed as the 'future of flavor, 40 years in the making,' which could sway consumers who remain selective on spending.
Sales Growth
Grills drove the sales upside, up more than 30% year-over-year for the second quarter in a row, to $78M driven by the initial load-in of its new Woodridge line and improved sell-through at retail.
Negative Factors
Demand Challenges
The high end of management's guided ranges fell below consensus given persistent demand headwinds, tough comparisons on prior-year promotions, and an uncertain macro environment.
Guidance Concerns
Guidance came in below expectations, which is not entirely surprising as the company is typically conservative.
Tariff Risks
Tariff risk is significant and while the situation remains fluid, it clouds visibility and increases the probability of the bear case.
Traeger (COOK) vs. S&P 500 (SPY)
Market Cap
$220.80M
Dividend YieldN/A
Average Volume (3M)195.59K
Price to Earnings (P/E)―
Beta (1Y)1.70
Revenue Growth-0.30%
EPS Growth61.01%
CountryUS
Employees665
SectorConsumer Cyclical
Sector Strength50
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.27
Shares Outstanding130,648,820
10 Day Avg. Volume196,004
30 Day Avg. Volume195,589
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.38
Price to Cash Flow (P/CF)7.80
P/FCF Ratio10.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.75Price Target Upside62.72% Upside
Rating ConsensusHold
Number of Analyst Covering8
Traeger Business Overview & Revenue Model
Company DescriptionTraeger Inc., operating under the ticker symbol COOK, is a leading manufacturer and marketer of wood pellet grills, known for revolutionizing outdoor cooking. The company specializes in high-quality grills that offer a unique blend of traditional and modern cooking techniques through its innovative wood pellet technology. Traeger's product line includes a variety of grills, grilling accessories, wood pellets, and other related cooking products, catering to both amateur and professional outdoor cooking enthusiasts.
How the Company Makes MoneyTraeger makes money primarily through the sale of its wood pellet grills, which are its flagship products. These grills are sold directly to consumers via the company's website, as well as through a network of third-party retailers. In addition to grill sales, Traeger generates revenue from the sale of wood pellets, which are used as fuel for the grills, and a range of accessories and consumables such as rubs, sauces, and other grilling tools. Traeger also benefits from strategic partnerships and collaborations that enhance its brand visibility and market reach. The combination of direct sales, retail partnerships, and a robust product offering contributes to Traeger's overall revenue generation.
Traeger Financial Statement Overview
Summary
Traeger has shown improvements in gross profit margin and cash flow efficiency. However, ongoing challenges include negative net income, high debt levels, and revenue contraction.Income Statement
Traeger has shown improvement in gross profit margin, increasing to 42.3% in 2024 from 36.9% in 2023. However, the net profit margin remains negative at -5.6%, indicating ongoing losses despite reduced net loss compared to the previous year. Revenue growth is slightly negative, declining by 0.3% from 2023 to 2024, highlighting a challenge in reversing the revenue contraction observed in earlier years.58
Neutral
Balance Sheet
The company's debt-to-equity ratio stands at 1.57, reflecting a high leverage position, though improved from previous years. Return on equity remains negative, impacted by consistent net losses. The equity ratio is stable at 33.3%, suggesting a balanced proportion of equity funding relative to total assets despite the high level of liabilities.65
Positive
Cash Flow
Traeger has demonstrated a positive free cash flow of $11.89 million in 2024, although this represents a decrease from the previous year. Operating cash flow to net income ratio is positive, indicating effective cash generation relative to net losses, while the reduction in free cash flow growth highlights challenges in maintaining cash efficiency.62
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 604.07M | 605.88M | 655.90M | 785.54M | 545.77M | Gross Profit |
| 255.47M | 223.56M | 228.77M | 303.71M | 235.36M | EBIT |
| -2.94M | -50.52M | -104.29M | -54.40M | 58.90M | EBITDA |
| -2.94M | 6.64M | -296.52M | -16.13M | 99.31M | Net Income Common Stockholders |
| -34.01M | -84.40M | -382.14M | -88.82M | 31.05M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 14.98M | 29.92M | 39.05M | 16.74M | 11.56M | Total Assets |
| 830.68M | 860.76M | 946.72M | 1.18B | 989.58M | Total Debt |
| 434.13M | 458.70M | 494.25M | 421.63M | 437.84M | Net Debt |
| 419.15M | 428.78M | 455.20M | 404.89M | 426.29M | Total Liabilities |
| 554.25M | 569.41M | 611.85M | 571.50M | 514.54M | Stockholders Equity |
| 276.43M | 291.35M | 334.87M | 609.52M | 475.04M |
| Cash Flow | Free Cash Flow | |||
| 11.89M | 43.64M | -13.81M | -51.47M | 31.96M | Operating Cash Flow |
| 23.89M | 64.04M | 5.09M | -27.19M | 46.60M | Investing Cash Flow |
| -12.33M | -17.38M | -18.90M | -81.13M | -27.34M | Financing Cash Flow |
| -26.50M | -68.30M | 48.63M | 113.51M | -14.78M |
Traeger Technical Analysis
Negative
1.69
Price Trends
2.20
Negative
2.53
Negative
2.74
Negative
Market Momentum
-0.15
Negative
26.94
Positive
24.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COOK, the sentiment is Negative. The current price of 1.69 is below the 20-day moving average (MA) of 1.88, below the 50-day MA of 2.20, and below the 200-day MA of 2.74, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 26.94 is Positive, neither overbought nor oversold. The STOCH value of 24.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COOK.
Traeger Risk Analysis
Traeger disclosed 80 risk factors in its most recent earnings report. Traeger 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
Traeger Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.74B | 16.09 | 24.01% | ― | 10.32% | 6.05% | |
69 Neutral | $499.79M | 9.24 | 5.75% | ― | -1.73% | -40.39% | |
63 Neutral | $11.85B | 27.86 | 33.41% | 1.49% | -4.16% | -15.44% | |
59 Neutral | $12.26B | 11.12 | -0.55% | 3.78% | 1.42% | -20.63% | |
54 Neutral | $109.26M | ― | -6.58% | 3.45% | -0.54% | -78.88% | |
51 Neutral | $220.80M | ― | -11.98% | ― | -0.30% | 61.01% | |
48 Neutral | $254.67M | ― | -9.70% | 5.30% | -9.98% | -348.96% |
* Consumer Cyclical Sector Average
Performance Comparison
COOK
Traeger
1.69
-0.79
-31.85%
JOUT
Johnson Outdoors
24.91
-18.81
-43.02%
LCUT
Lifetime Brands
4.93
-5.68
-53.53%
HZO
Marinemax
22.01
-11.11
-33.54%
POOL
Pool
314.92
-80.98
-20.45%
YETI
Yeti Holdings
33.09
-5.29
-13.78%
Traeger Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -21.76% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While the company demonstrated strong growth in the Grills and Consumables segments and achieved significant gross margin improvements, it faced challenges in its Accessories segment and international sales, coupled with potential tariff impacts. The overall sentiment is cautious optimism, recognizing both the achievements and the challenges ahead.Highlights
Strong Fourth Quarter Performance
Fourth quarter revenue growth of 3% with significant contributions from the Grills segment, which increased by 30%, and the Consumables segment, which grew by 25%.
Gross Margin Improvement
Gross margin improved by 410 basis points in Q4 and 540 basis points for the fiscal year 2024, driven by supply chain efficiencies and reduced transportation costs.
Grill Business Growth
Grill revenue increased by 8% for the year, surpassing initial expectations, with strong consumer reception and successful promotional strategies.
Launch of Woodridge Series
Successful launch of the Woodridge series of grills, featuring significant technological innovations and achieving over 1.2 billion social media impressions.
Consumables Distribution Expansion
Entered into a new distribution partnership with Walmart for pellets and rubs, offering a new market for consumables.
Lowlights
Challenges in Accessories Business
Accessories revenue declined by 24% in Q4, largely due to underperformance in Meater, which faced increased competition and reduced advertising effectiveness.
International Sales Decline
Rest of the world revenues decreased by 39%, primarily due to Meater's performance.
Tariff Concerns
Potential impact of recently enacted tariffs on future profitability remains uncertain, with 50% of sales driven by goods imported from China.
Net Loss in Q4
Reported a net loss of $7 million for the fourth quarter, compared to a net loss of $24 million in the same period the previous year.
Company Guidance
During the Traeger, Inc. fourth quarter and full year 2024 earnings call, guidance was provided for fiscal year 2025. The company anticipates revenues between $595 million and $615 million, fluctuating from a 2% decrease to a 2% increase compared to 2024. Adjusted EBITDA is projected to range from $75 million to $85 million. Traeger expects low single-digit growth in their Grills and consumables categories, but a decline in accessories, particularly due to the Meater product line. The gross margin is expected to be between 42.2% and 42.8%, with potential movement of down 10 basis points to up 50 basis points from 2024. The company is also preparing for potential impacts from recently enacted tariffs, particularly given that approximately 50% of their sales are linked to goods imported from China.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.