Traeger (COOK) AI Stock Analysis

• Market Cap: $124.47M
• Dividend Yield: N/A
• Average Volume (3M): 384.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: -2.69%
• EPS Growth: -94.09%
• Country: US
• Employees: 665
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.17
• Shares Outstanding: 137,026,320
• 10 Day Avg. Volume: 539,670
• 30 Day Avg. Volume: 384,875
• PEG Ratio: 0.15
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 25.61
• Enterprise Value/Market Cap: 4.70
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 2.60
• Enterprise Value/Ebitda: -15.21
• 1Y Price Target: $1.69
• Price Target Upside: 85.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): $546.96M

• Rating: 43 Neutral
• Price Target: $1.00 ▲(9.89% Upside)

Traeger's overall stock score is primarily impacted by its financial instability, with high leverage and negative profitability metrics. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to ongoing losses. The earnings call provides some positive strategic initiatives, but significant challenges remain.

Positive Factors

Revenue Growth in Consumables

The growth in consumables revenue indicates a strong recurring revenue stream, enhancing customer lifetime value and supporting long-term business sustainability.

Cost-Saving Initiatives

Cost-saving initiatives like Project Gravity enhance operational efficiency, potentially improving profitability and financial health over the long term.

Successful Tariff Mitigation

Effective tariff mitigation strategies reduce cost pressures, supporting margin stability and competitive pricing in the market.

Negative Factors

High Leverage

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

Net Loss Increase

The significant increase in net loss highlights ongoing profitability challenges, which may hinder the company's ability to achieve sustainable growth.

Revenue Loss from Channel Optimization

Channel optimization leading to revenue loss could impact market presence and sales volume, challenging the company's growth trajectory.

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 shows strong revenue growth but struggles with profitability and cash flow management. High leverage and negative returns on equity indicate financial instability, while declining free cash flow raises concerns about operational efficiency.

Income Statement

Traeger's income statement shows a mixed performance. The TTM data indicates a significant revenue growth rate of 57.7%, which is a positive sign. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively healthy at 40.9%, but the consistent net losses highlight ongoing challenges in managing costs and achieving profitability.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.59, indicating significant leverage, which could pose financial risks. The return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not explicitly calculated, but the high leverage and negative ROE are concerning.

Cash Flow

Cash flow analysis reveals challenges in generating free cash flow, with a significant decline of 58.4% in TTM. The operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. The free cash flow to net income ratio is positive, but overall cash flow performance is weak, reflecting operational inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	582.80M	604.07M	605.88M	655.90M	785.54M	545.77M
Gross Profit	225.08M	255.47M	223.56M	228.77M	300.76M	234.81M
EBITDA	-38.47M	53.86M	6.64M	-296.52M	-16.13M	106.84M
Net Income	-104.94M	-34.01M	-84.40M	-382.14M	-91.77M	31.05M
Balance Sheet
Total Assets	689.62M	830.68M	860.76M	946.72M	1.18B	989.58M
Cash, Cash Equivalents and Short-Term Investments	5.87M	14.98M	29.92M	39.05M	16.74M	11.56M
Total Debt	427.27M	434.13M	458.70M	494.25M	420.53M	437.84M
Total Liabilities	503.49M	554.25M	569.41M	611.85M	571.50M	514.54M
Stockholders Equity	186.14M	276.43M	291.35M	334.87M	606.02M	475.04M
Cash Flow
Free Cash Flow	4.77M	11.89M	43.64M	-13.81M	-51.47M	31.96M
Operating Cash Flow	12.48M	23.89M	64.04M	5.09M	-27.19M	46.60M
Investing Cash Flow	-7.96M	-12.33M	-17.38M	-18.90M	-81.13M	-27.34M
Financing Cash Flow	-15.53M	-26.50M	-68.30M	48.63M	113.51M	-14.78M

Traeger Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.91
• 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 0.91 is below the 20-day moving average (MA) of 0.96, below the 50-day MA of 1.11, and below the 200-day MA of 1.57, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 42.79 is Neutral, neither overbought nor oversold. The STOCH value of 59.85 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
BSET	66 Neutral	$128.03M	16.51	4.70%	5.43%	-2.74%	―
ETD	66 Neutral	$614.02M	13.07	9.96%	8.04%	-4.61%	-25.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HBB	61 Neutral	$190.75M	6.08	20.32%	3.31%	-6.24%	24.18%
LCUT	52 Neutral	$69.78M	―	-17.84%	5.52%	-1.76%	-67.05%
COOK	43 Neutral	$124.47M	―	-45.04%	―	-2.69%	-94.09%
SNBR	39 Underperform	$95.95M	―	―	―	-16.95%	-88.00%

Traeger Corporate Events

Traeger, Inc. Earnings Call: Mixed Sentiments and Strategic Shifts

In a recent earnings call, Traeger, Inc. presented a mixed sentiment with notable growth in sales and EBITDA, alongside significant challenges such as a substantial net loss and gross margin decline. The company has successfully implemented cost-saving initiatives and tariff mitigation strategies, yet faces expected revenue losses due to channel optimization efforts.

Traeger, Inc. Reports Q3 2025 Financial Results

Traeger, Inc., headquartered in Salt Lake City, is a leading innovator in the outdoor cooking industry, known for its wood pellet grills that offer a versatile cooking experience. The company recently reported its financial results for the third quarter of fiscal 2025, highlighting a modest increase in revenues and a significant goodwill impairment charge.