Traeger (COOK) AI Stock Analysis

• Market Cap: $175.29M
• Dividend Yield: N/A
• Average Volume (3M): 524.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -2.55%
• EPS Growth: 33.49%
• Country: US
• Employees: 665
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.01
• Shares Outstanding: 135,886,230
• 10 Day Avg. Volume: 838,305
• 30 Day Avg. Volume: 524,922
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.73
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 49.18
• 1Y Price Target: $1.79
• Price Target Upside: 32.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 47 Neutral
• Price Target: $1.50 ▲(11.11% Upside)

Traeger's overall stock score reflects significant financial and operational challenges, with declining revenues and high leverage being major concerns. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to ongoing losses. While strategic initiatives and positive consumer trends offer some hope, the overall outlook remains cautious.

Positive Factors

Strategic Partnerships

These partnerships enhance brand visibility and consumer engagement, potentially driving long-term growth through expanded market reach and cross-merchandising.

Cost Savings Initiatives

Project Gravity aims to improve efficiency and margins, providing a structural cost advantage that can enhance profitability over time.

Consumables Revenue Growth

Growth in consumables revenue indicates strong repeat purchase behavior, supporting a stable revenue stream beyond initial grill sales.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Declining Revenue

A significant decline in revenue suggests challenges in maintaining sales momentum, which could hinder long-term growth and market position.

Negative Profit Margins

Sustained negative profit margins indicate ongoing operational inefficiencies, which could undermine financial stability and investor confidence.

Traeger Business Overview & Revenue Model

Company Description

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbeque grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs and sauces, seasonings, and marinades; covers, drip trays, bucket liners, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise. The company was incorporated in 2017 and is headquartered in Salt Lake City, Utah.

How the Company Makes Money

Traeger generates revenue primarily through the sale of its wood pellet grills, which are the core of its product line, along with grilling accessories, wood pellets, and other related products. The company employs a direct-to-consumer sales model via its e-commerce platform and also distributes products through a network of retailers, enhancing market reach. Key revenue streams include not only the initial sale of grills but also ongoing sales of consumables such as wood pellets and accessories, leading to repeat customer purchases. Additionally, Traeger benefits from partnerships with various retailers and collaborations that enhance brand visibility and product availability. Seasonal promotions, product launches, and brand loyalty programs further contribute to its earnings.

Traeger Financial Statement Overview

Summary

Traeger's financial performance is challenged by declining revenues and persistent losses. The income statement shows negative growth and margins, while the balance sheet indicates high leverage and negative returns. Cash flow improvements are noted but are constrained by ongoing losses.

Income Statement

Traeger's income statement shows declining revenue with a negative growth rate of -3.82% TTM, indicating challenges in maintaining sales momentum. The gross profit margin has decreased to 40.91% TTM, reflecting pressure on profitability. The net profit margin remains negative at -6.02% TTM, highlighting ongoing losses. Despite a slight improvement in EBITDA margin to 2.30% TTM, the EBIT margin is still negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.59 TTM, indicating significant leverage and potential financial risk. Return on equity is negative at -12.58% TTM, reflecting poor profitability relative to shareholder equity. The equity ratio stands at 35.13% TTM, showing moderate reliance on equity financing. Overall, the balance sheet suggests financial instability with high leverage and negative returns.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 52.33% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.27 TTM, suggesting moderate cash flow coverage of net losses. The free cash flow to net income ratio is 0.57 TTM, reflecting some ability to generate cash despite negative net income. While cash flow metrics show improvement, they are still constrained by ongoing losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	579.45M	604.07M	605.88M	655.90M	785.54M	545.77M
Gross Profit	237.04M	255.47M	223.56M	228.77M	303.71M	235.36M
EBITDA	13.31M	53.86M	6.64M	-296.52M	-16.13M	99.31M
Net Income	-34.91M	-34.01M	-84.40M	-382.14M	-88.82M	31.05M
Balance Sheet
Total Assets	780.62M	830.68M	860.76M	946.72M	1.18B	989.58M
Cash, Cash Equivalents and Short-Term Investments	10.30M	14.98M	29.92M	39.05M	16.74M	11.56M
Total Debt	436.93M	434.13M	458.70M	494.25M	421.63M	437.84M
Total Liabilities	506.37M	554.25M	569.41M	611.85M	571.50M	514.54M
Stockholders Equity	274.25M	276.43M	291.35M	334.87M	609.52M	475.04M
Cash Flow
Free Cash Flow	11.46M	11.89M	43.64M	-13.81M	-51.47M	31.96M
Operating Cash Flow	20.07M	23.89M	64.04M	5.09M	-27.19M	46.60M
Investing Cash Flow	-9.09M	-12.33M	-17.38M	-18.90M	-81.13M	-27.34M
Financing Cash Flow	-18.71M	-26.50M	-68.30M	48.63M	113.51M	-14.78M

Traeger Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.35 is above the 20-day moving average (MA) of 1.32, below the 50-day MA of 1.53, and below the 200-day MA of 1.90, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.72 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COOK.

Traeger Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLXS	73 Outperform	252.09M	13.46	12.01%	1.37%	6.86%	88.42%
HBB	68 Neutral	197.84M	6.24	19.63%	3.08%	-2.09%	-5.04%
HOFT	52 Neutral	110.51M	-9.07	-6.12%	8.29%	-6.46%	-1110.82%
LCUT	48 Neutral	87.46M	-2.48	-18.65%	4.30%	-1.14%	-95.76%
COOK	47 Neutral	$175.29M	―	-12.22%	―	-2.55%	33.49%
SNBR	46 Neutral	199.93M	-4.88	8.62%	―	-14.40%	-2.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Traeger Corporate Events

Traeger Confirms Directors and Accounting Firm at Meeting

On May 20, 2025, Traeger, Inc. held its annual meeting of stockholders, where two key proposals were voted on. The election of Class I directors, including Jeremy Andrus, Wendy A. Beck, and Daniel James, was confirmed to serve until 2028. Additionally, the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified, indicating continued stability in the company’s financial oversight.

Traeger Announces Strategic Initiative for Cost Optimization

On May 15, 2025, Traeger, Inc.’s Board of Directors approved a strategic initiative aimed at streamlining the company’s organizational structure and rebalancing its cost base to enhance profitability and cash flow. This initiative involves a multi-step optimization plan, including workforce reductions and centralization efforts, expected to be largely completed by the end of fiscal year 2025. While the company has not yet determined the specific cost implications, further details will be announced as the plan progresses.