Traeger (COOK) AI Stock Analysis

• Market Cap: $171.22M
• Dividend Yield: N/A
• Average Volume (3M): 301.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: -2.55%
• EPS Growth: 33.49%
• Country: US
• Employees: 665
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.01
• Shares Outstanding: 135,886,230
• 10 Day Avg. Volume: 349,731
• 30 Day Avg. Volume: 301,064
• 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: 3.82
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 49.18
• 1Y Price Target: $1.79
• Price Target Upside: 42.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 46 Neutral
• Price Target: $1.50 ▲(19.05% Upside)

Traeger's overall stock score reflects significant financial challenges, with declining revenues and high leverage being major concerns. Technical analysis indicates bearish momentum, while valuation metrics are unattractive due to ongoing losses. Strategic initiatives from the earnings call offer some positive outlook, but near-term pressures remain substantial.

Positive Factors

Brand Performance

Recent checks suggest Traeger outperformed competitors during a key selling event, indicating strong brand performance.

Cost Management

Traeger plans to offset roughly 80% of the $60 million in gross tariff headwinds through price adjustments, sourcing diversification, and supplier negotiations.

Insider Confidence

Traeger CEO Mr. Jeremy Andrus increased his stake in the company through significant insider purchases, indicating confidence in the company's prospects.

Negative Factors

Macroeconomic Uncertainty

Traeger withdrew FY2025 guidance due to macroeconomic uncertainty, evolving trade policy, and consumer sentiment.

Sales Decline

Traeger reported weaker-than-expected second-quarter results with sales down 13.6% year-over-year.

Tariff Impact

Traeger’s grills produced in China were subject to a 45% tariff, impacting cost structure.

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 and related products. The company's revenue model is centered around multiple key revenue streams: sales of wood pellet grills, a consumable line of wood pellets that fuel the grills, and a variety of accessories and cooking tools that enhance the grilling experience. Traeger also benefits from a robust direct-to-consumer sales channel, which is complemented by partnerships with major retailers and online platforms, expanding its reach and accessibility to customers. Additionally, the company's brand loyalty and community-driven marketing efforts contribute significantly to its earnings by fostering a dedicated customer base and driving repeat purchases.

Traeger Financial Statement Overview

Summary

Traeger's financial health displays significant challenges with declining revenues and profitability, high leverage, and liquidity concerns. While there are some improvements in operating cash flow efficiency, overall financial stability and profitability remain weak. Continued strategic adjustments are needed to enhance financial performance and mitigate risks.

Income Statement

The income statement shows a declining trend in revenue with a significant drop in net income, indicating financial struggles. Gross profit margin is moderately strong at 40.43% TTM, but the net profit margin is negative at -5.00% TTM, reflecting ongoing profitability challenges. EBIT and EBITDA margins have improved slightly in the TTM period but remain low, indicating operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.62, indicating significant leverage which could pose risks. The return on equity is negative, reflecting the company's struggle to generate profits from shareholders' equity. The equity ratio at 33.85% TTM shows moderate financial stability, but the high leverage remains a concern.

Cash Flow

Cash flow analysis shows a positive turn with operating cash flow exceeding net income, suggesting improved cash generation efficiency. Free cash flow to net income ratio is positive, but free cash flow growth is negative compared to previous periods, pointing to potential liquidity issues.

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: 1.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1.26 is below the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.69, and below the 200-day MA of 2.03, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 33.56 is Neutral, neither overbought nor oversold. The STOCH value of 31.90 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	72 Outperform	$240.48M	13.02	12.67%	1.56%	6.86%	88.42%
HBB	68 Neutral	$192.05M	6.16	20.79%	3.26%	-2.09%	-5.04%
Sector *	61 Neutral	$17.75B	12.51	-5.49%	3.06%	1.43%	-14.10%
SNBR	52 Neutral	$246.84M	―	9.10%	―	-14.40%	-2.14%
LCUT	48 Neutral	$88.36M	―	-17.08%	4.36%	-1.14%	-95.76%
HOFT	47 Neutral	$108.84M	―	-5.55%	9.04%	-3.89%	-391.05%
COOK	46 Neutral	$171.22M	―	-12.22%	―	-2.55%	33.49%

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.