Freshpet (FRPT) AI Stock Analysis

• Market Cap: $2.75B
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.10
• Revenue Growth: 16.34%
• EPS Growth: 177.51%
• Country: US
• Employees: 1,296
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 1.86
• Shares Outstanding: 48,808,340
• 10 Day Avg. Volume: 866,915
• 30 Day Avg. Volume: 1,340,289
• PEG Ratio: -0.64
• Price to Book (P/B): 6.80
• Price to Sales (P/S): 7.36
• P/FCF Ratio: -218.92
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 3.06
• Enterprise Value/Gross Profit: 7.64
• Enterprise Value/Ebitda: 22.34
• 1Y Price Target: $63.82
• Price Target Upside: 14.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 2.49
• Revenue Forecast (FY): $1.10B

• Rating: 66 Neutral
• Price Target: $61.00 ▲(9.34% Upside)

Freshpet's overall stock score reflects strong financial performance, particularly in cash flow generation, and a mixed earnings call outlook. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates overvaluation. The company's strategic adjustments and future growth targets provide some optimism, but challenges remain in maintaining profitability and market position.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Market Leadership

Dominant market position in the dog food segment solidifies Freshpet's competitive advantage and brand strength, ensuring sustained consumer loyalty.

Free Cash Flow

Achieving positive free cash flow earlier than expected enhances financial flexibility and supports future growth investments.

Negative Factors

Profitability Challenges

Low profitability margins indicate challenges in cost management, potentially limiting reinvestment capacity and shareholder returns.

Competitive Market Challenges

Rising competition could pressure market share and margins, necessitating strategic adjustments to maintain leadership.

Margin Decline

Declining margins reflect reduced cost efficiency, which could impact profitability and require operational improvements.

Freshpet Business Overview & Revenue Model

Company Description

Freshpet, Inc. is a leading pet food company specializing in the production of fresh, refrigerated pet food products for dogs and cats. Founded in 2006 and headquartered in Secaucus, New Jersey, Freshpet operates in the pet care sector, focusing on providing natural and nutritious food options that cater to the growing demand for healthier pet diets. The company's core offerings include a variety of fresh pet food recipes made with high-quality ingredients, available through various retail channels including grocery stores, pet specialty shops, and online platforms.

How the Company Makes Money

Freshpet generates revenue primarily through the sale of its fresh pet food products. The company's revenue model is built around direct sales to retailers, where Freshpet's products are sold in refrigerated sections, often requiring specialized distribution and handling. Key revenue streams include sales from major supermarket chains, pet stores, and e-commerce platforms. Freshpet benefits from strong brand recognition and consumer loyalty, which help drive sales growth. Additionally, the company has entered into strategic partnerships with retailers to enhance product placement and visibility, further contributing to its earnings. Marketing campaigns and promotions aimed at educating pet owners about the benefits of fresh pet food also play a significant role in increasing consumer demand and driving revenue.

Freshpet Financial Statement Overview

Summary

Freshpet exhibits strong revenue growth and stable gross margins, although profitability metrics have seen some decline. The balance sheet remains solid with moderate leverage and a strong equity base. Cash flow performance is a highlight, with significant improvements in free cash flow generation. Overall, Freshpet is on a positive trajectory, but attention to profitability and operational efficiency is needed to sustain growth.

Income Statement

Freshpet has demonstrated consistent revenue growth, with a TTM (Trailing-Twelve-Months) revenue increase of 3.4%. The gross profit margin remains stable at around 40.8%, indicating efficient cost management. However, the net profit margin has decreased to 3.2% from 4.8% in the previous year, suggesting increased expenses or lower pricing power. EBIT and EBITDA margins have also declined, reflecting potential operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.46, indicating a balanced approach to leveraging. Return on equity has decreased to 3.2% from 4.4%, suggesting a decline in profitability relative to shareholder equity. The equity ratio is strong, showing that a significant portion of assets is financed by equity, which is a positive sign of financial stability.

Cash Flow

Freshpet's cash flow performance has improved significantly, with a 74.4% growth in free cash flow. The operating cash flow to net income ratio is healthy at 1.71, indicating strong cash generation relative to reported earnings. The free cash flow to net income ratio has improved to 0.41, showing better cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.08B	975.18M	766.89M	595.34M	425.49M	318.79M
Gross Profit	431.97M	395.96M	250.87M	186.03M	162.15M	132.91M
EBITDA	147.68M	133.40M	41.10M	-15.72M	5.82M	19.21M
Net Income	123.44M	46.92M	-33.61M	-59.49M	-29.70M	-3.19M
Balance Sheet
Total Assets	1.75B	1.57B	1.46B	1.13B	784.41M	434.39M
Cash, Cash Equivalents and Short-Term Investments	274.59M	268.63M	296.87M	132.74M	72.79M	67.25M
Total Debt	494.81M	424.09M	425.06M	5.71M	7.09M	8.40M
Total Liabilities	567.14M	519.52M	510.97M	93.81M	64.66M	40.22M
Stockholders Equity	1.18B	1.06B	953.45M	1.03B	719.75M	394.17M
Cash Flow
Free Cash Flow	43.10M	-32.80M	-163.15M	-273.30M	-321.45M	-113.38M
Operating Cash Flow	155.82M	154.29M	75.94M	-43.23M	647.00K	21.19M
Investing Cash Flow	-153.40M	-187.09M	-239.09M	-233.36M	-322.10M	-162.46M
Financing Cash Flow	-2.43M	4.57M	327.29M	336.54M	326.99M	199.04M

Freshpet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.79
• 50DMA: Positive
• 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 FRPT, the sentiment is Positive. The current price of 55.79 is above the 20-day moving average (MA) of 54.29, above the 50-day MA of 53.02, and below the 200-day MA of 71.24, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 57.40 is Neutral, neither overbought nor oversold. The STOCH value of 62.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRPT.

Freshpet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JJSF	69 Neutral	$1.77B	27.12	6.82%	3.46%	0.54%	-24.42%
NOMD	67 Neutral	$1.85B	8.34	7.39%	5.59%	1.44%	8.29%
CENT	67 Neutral	$1.83B	14.32	10.38%	―	-4.90%	0.29%
FRPT	66 Neutral	$2.75B	24.64	11.22%	―	16.34%	177.51%
SMPL	63 Neutral	$1.97B	19.37	5.86%	―	8.98%	-26.29%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SJM	46 Neutral	$11.01B	―	-17.44%	4.23%	-0.66%	-326.55%

Freshpet Corporate Events

Freshpet Inc. Reports Strong Q3 2025 Results

Freshpet Inc. is a company specializing in the production of fresh, refrigerated pet food, operating primarily in the pet food industry with a focus on natural ingredients and sustainability.

Freshpet Reports Strong Q3 2025 Financial Results

On November 3, 2025, Freshpet reported its third-quarter financial results, showcasing a 14% increase in net sales to $288.8 million compared to the previous year. The company achieved positive free cash flow and expects to maintain this trend throughout 2025, a year ahead of its initial projections. Despite a slight decrease in gross margin, Freshpet’s net income significantly rose due to a $77.9 million tax benefit and sustained profitability. The company has adjusted its 2025 guidance, lowering capital expenditure plans and revising sales growth expectations to reflect current market conditions. Freshpet remains optimistic about capturing future growth and increasing market share in the pet food industry.

The most recent analyst rating on (FRPT) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Freshpet stock, see the FRPT Stock Forecast page.

Freshpet CFO Todd Cunfer Resigns, Garcia Steps In

On October 3, 2025, Freshpet, Inc. announced that its Chief Financial Officer, Todd Cunfer, will resign effective October 17, 2025, to pursue another opportunity. Ivan Garcia, currently the Vice President of Finance, will step in as interim CFO, bringing extensive experience within the company. The board has approved a salary increase and additional incentives for Garcia as he assumes his new role, highlighting the company’s confidence in his capabilities to maintain financial stability during this transition.

The most recent analyst rating on (FRPT) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Freshpet stock, see the FRPT Stock Forecast page.

Freshpet Inc. Faces Unforeseen Risks: Stakeholders Urged to Stay Alert

Freshpet Inc. faces potential risks and uncertainties that could significantly impact its business operations, financial health, and overall performance. Although the company has not identified any new material changes to previously reported risk factors, unforeseen challenges or currently underestimated issues might arise. These could lead to adverse effects on their market position and financial outcomes. Stakeholders should remain vigilant as these unknown risks could alter the company’s future prospects.

Freshpet Inc. Earnings Call: Operational Success Amid Sales Challenges

Freshpet Inc. recently held its earnings call, revealing a mixed sentiment among its leadership. While the company reported strong operational improvements and cost efficiencies that bolstered positive EBITDA growth, it faced challenges in sales growth, particularly in the dog food category. This led to a cautious outlook, with the company lowering its sales guidance and removing long-term sales targets.

Freshpet Inc. Reports Strong Q2 2025 Performance

Freshpet Inc., a company specializing in fresh, refrigerated pet food, operates in the pet food industry and is known for its commitment to using natural ingredients and maintaining high standards of quality in its products.

Freshpet Reports Strong Q2 2025 Financial Results

On August 4, 2025, Freshpet reported its financial results for the second quarter of 2025, showing a significant increase in net sales and net income compared to the previous year. Despite economic challenges, the company achieved a 12.5% increase in net sales and a net income of $16.4 million, driven by volume gains and improved operational efficiencies. Freshpet has updated its 2025 outlook, reducing its net sales target to reflect current economic conditions but maintaining its commitment to growth and shareholder value.

The most recent analyst rating on (FRPT) stock is a Buy with a $157.00 price target. To see the full list of analyst forecasts on Freshpet stock, see the FRPT Stock Forecast page.