Freshpet (FRPT) AI Stock Analysis

• Market Cap: $3.12B
• Dividend Yield: N/A
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 28.4
• Beta (1Y): 1.11
• 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: 1,421,594
• 30 Day Avg. Volume: 1,134,331
• 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: 1.06
• Enterprise Value/Revenue: 3.06
• Enterprise Value/Gross Profit: 7.64
• Enterprise Value/Ebitda: 22.34
• 1Y Price Target: $65.58
• Price Target Upside: 1.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 2.49
• Revenue Forecast (FY): $1.10B

• Rating: 66 Neutral
• Price Target: $68.00 ▲(4.81% Upside)

Freshpet's overall stock score reflects solid financial performance and positive technical indicators, tempered by valuation concerns and mixed earnings call sentiment. The company's growth prospects are promising, but potential overvaluation and competitive pressures warrant caution.

Positive Factors

Revenue Growth

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 strengthens brand recognition and provides a competitive edge in the industry.

Cash Flow Improvement

Positive cash flow enhances financial flexibility and supports reinvestment in growth initiatives, ensuring long-term sustainability.

Negative Factors

Deceleration in Sales Growth

Slowing sales growth may indicate market saturation or increased competition, potentially impacting future revenue projections.

Competitive Market Challenges

Rising competition could pressure market share and pricing power, affecting long-term profitability and growth.

Leadership Transition

Leadership changes may disrupt strategic continuity and financial oversight, posing risks to execution of long-term plans.

Freshpet Business Overview & Revenue Model

Company Description

Freshpet, Inc. manufactures and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. The company sells its products under the Freshpet brand; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online. Freshpet, Inc. was incorporated in 2004 and is headquartered in Secaucus, New Jersey.

How the Company Makes Money

Freshpet generates revenue primarily through the sale of its fresh pet food products. The company has established a strong presence in the pet food market, capitalizing on the growing trend of pet owners seeking healthier and more nutritious food options for their pets. Key revenue streams include direct sales through retail partners, online sales, and subscription services. Freshpet has formed significant partnerships with major grocery chains and pet retailers, which helps to expand its distribution footprint and brand visibility. Additionally, the company invests in marketing and promotional campaigns to drive consumer awareness and demand for its products, further contributing to its earnings.

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: 64.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• 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 64.88 is above the 20-day moving average (MA) of 59.75, above the 50-day MA of 55.88, and below the 200-day MA of 67.65, indicating a neutral trend. The MACD of 2.62 indicates Negative momentum. The RSI at 71.59 is Negative, neither overbought nor oversold. The STOCH value of 71.23 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
CENT	73 Outperform	$1.94B	13.22	10.38%	―	-2.23%	57.16%
JJSF	69 Neutral	$1.82B	28.09	6.82%	3.36%	0.54%	-24.42%
NOMD	67 Neutral	$1.93B	8.66	7.39%	5.42%	1.44%	8.29%
FRPT	66 Neutral	$3.12B	28.41	11.22%	―	16.34%	177.51%
SMPL	63 Neutral	$1.91B	19.31	5.86%	―	8.98%	-26.29%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SJM	49 Neutral	$10.64B	-8.94	-17.44%	4.37%	-0.66%	-326.55%

Freshpet Corporate Events

Freshpet Approves Retention Grant for COO Nicola Baty

On December 8, 2025, Freshpet, Inc.’s Board of Directors approved a 2025 Retention Grant for COO Nicola Baty, consisting of Restricted Stock Units (RSUs) to address decreased valuation of her initial equity package. The grant aims to reinforce retention, focus on long-term performance, and align leadership with shareholder interests, with vesting conditions tied to continued employment and company performance goals.

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.

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.