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Mama's Creations (MAMA)
NASDAQ:MAMA
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Mama's Creations
(NASDAQ:MAMA)
Rating:69Neutral
Price Target:
$7.50
▲( 7.60% Upside)
Positive Factors
Financial Performance
MAMA reported F4Q25 results with revenue, gross margin and GAAP EPS above both consensus and analyst estimates.
Sales Performance
MAMA's rollout into 2,000 Walmart locations is progressing well with its 4-count grilled chicken SKU doubling initial sales expectations.
Strategic Partnerships
The company announced an upcoming national campaign with Costco that includes collaboration with Instacart.
Negative Factors
Market Expansion Risks
Management is actively cultivating relationships with major retailers such as Target and Kroger, with potential market entries anticipated.
Operational Challenges
Gross margin was adversely affected by 400bps, primarily due to one-time construction-related challenges at the company’s Farmingdale facility.
Valuation Concerns
The current valuation is attractive, with shares trading below 2x FY26 revenue, presenting a compelling buying opportunity.
Mama's Creations (MAMA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$262.07M
Dividend YieldN/A
Average Volume (3M)250.34K
Price to Earnings (P/E)74.2
Beta (1Y)0.75
Revenue Growth19.41%
EPS Growth-43.88%
CountryUS
Employees305
SectorConsumer Defensive
Sector Strength72
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.04
Shares Outstanding37,599,014
10 Day Avg. Volume183,052
30 Day Avg. Volume250,338
Financial Highlights & Ratios
PEG Ratio30.90
Price to Book (P/B)9.76
Price to Sales (P/S)0.00
P/FCF Ratio2.96K
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.33Price Target Upside62.55% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Mama's Creations Business Overview & Revenue Model
Company DescriptionMama's Creations, Inc. manufactures and markets prepared refrigerated foods primarily in the United States. The company offers beef and turkey meatballs, meat loaf, chicken, sausage-related products, and pasta entrees; and hot bars, salad bars, prepared foods, sandwich, and cold deli and foods-to-go sections. It sells its products directly to supermarkets, club chains, and mass-market retailers; and food retailers and distributors, as well as through website. The company was formerly known as MamaMancini's Holdings, Inc. and changed its name to Mama's Creations, Inc. in August 2023. Mama's Creations, Inc. was founded in 2010 and is headquartered in East Rutherford, New Jersey.
How the Company Makes MoneyMama's Creations generates revenue primarily through the sale of its ready-to-eat meal products. The company's revenue model is centered around distributing its products to a wide network of retail partners, including supermarkets, grocery stores, and online platforms, which allows them to reach a broad consumer base. Additionally, Mama's Creations may engage in partnerships with food service providers and restaurants to further expand its market presence. The company benefits from leveraging efficient production processes and maintaining strong relationships with suppliers to optimize cost management and ensure consistent product quality. Seasonal promotions, innovative product launches, and strategic marketing initiatives also play a significant role in driving sales and increasing market share.
Mama's Creations Financial Statement Overview
Summary
Mama's Creations shows strong revenue growth and improved equity position, with reduced leverage. However, concerns remain over fluctuating net profit margins and inconsistent cash flow conversion.Income Statement
Mama's Creations has demonstrated strong revenue growth, with a significant increase from $33.75 million in 2020 to $123.33 million in 2025. The gross profit margin has remained stable, around 25% in recent years, indicating consistent cost management. However, the net profit margin has fluctuated, showing a decrease from 6.25% in 2021 to 3% in 2025, which could be a concern for profitability. The EBIT and EBITDA margins have also shown volatility, suggesting variability in operational efficiency.75
Positive
Balance Sheet
The balance sheet shows a strengthening equity position, with stockholders' equity rising from $0.40 million in 2020 to $24.90 million in 2025. The debt-to-equity ratio has improved significantly, indicating reduced leverage and a stronger financial position. However, the equity ratio, although improving, indicates that liabilities still form a considerable portion of total assets. Return on Equity (ROE) has been inconsistent, reflecting fluctuating profitability.68
Positive
Cash Flow
Operating cash flow has remained positive and relatively stable, reflecting good cash generation from core operations. Free cash flow, while positive in recent years, has shown variability, particularly due to fluctuating capital expenditures. The free cash flow to net income ratio has been inconsistent, suggesting some volatility in cash conversion efficiency.72
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 123.33M | 103.28M | 93.19M | 47.08M | 40.76M | Gross Profit |
| 30.53M | 30.33M | 19.42M | 11.85M | 12.74M | EBIT |
| 4.88M | 8.89M | 2.82M | 82.77K | 3.48M | EBITDA |
| 6.75M | 11.36M | 4.59M | 1.13M | 4.28M | Net Income Common Stockholders |
| 3.71M | 6.56M | 2.30M | -251.93K | 4.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 7.15M | 11.02M | 4.38M | 850.60K | 3.19M | Total Assets |
| 47.06M | 45.10M | 34.59M | 30.03M | 14.05M | Total Debt |
| 10.11M | 13.10M | 13.01M | 15.44M | 2.03M | Net Debt |
| 2.96M | 2.07M | 8.63M | 14.59M | -1.16M | Total Liabilities |
| 23.46M | 25.52M | 22.07M | 21.92M | 5.74M | Stockholders Equity |
| 24.90M | 19.58M | 12.52M | 8.11M | 8.31M |
| Cash Flow | Free Cash Flow | |||
| 82.00K | 10.84M | 4.92M | 47.43K | 3.25M | Operating Cash Flow |
| 5.18M | 11.62M | 5.51M | 909.84K | 3.70M | Investing Cash Flow |
| -5.09M | -1.43M | -1.09M | -11.27M | -451.94K | Financing Cash Flow |
| -3.95M | -3.54M | -888.04K | 8.02M | -449.72K |
Mama's Creations Technical Analysis
Positive
6.97
Price Trends
6.55
Positive
6.81
Positive
7.46
Negative
Market Momentum
0.12
Negative
58.80
Neutral
81.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAMA, the sentiment is Positive. The current price of 6.97 is above the 20-day moving average (MA) of 6.67, above the 50-day MA of 6.55, and below the 200-day MA of 7.46, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 58.80 is Neutral, neither overbought nor oversold. The STOCH value of 81.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MAMA.
Mama's Creations Risk Analysis
Mama's Creations disclosed 33 risk factors in its most recent earnings report. Mama's Creations reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mama's Creations Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $264.62M | 26.94 | 6.42% | ― | 2.00% | -37.09% | |
70 Outperform | $166.16M | 18.91 | 30.11% | 1.21% | 8.22% | 159.71% | |
69 Neutral | $262.07M | 74.23 | 16.69% | ― | 19.41% | -43.88% | |
68 Neutral | $339.03M | 33.58 | 14.73% | ― | 12.84% | -22.88% | |
64 Neutral | $8.78B | 14.55 | 4.78% | 173.91% | 3.39% | 2.17% | |
45 Neutral | $224.06M | ― | 44.21% | ― | -2.19% | 55.86% | |
43 Neutral | $173.29M | ― | -31.83% | ― | -8.50% | -186.18% |
* Consumer Defensive Sector Average
Performance Comparison
MAMA
Mama's Creations
7.12
0.24
3.49%
LWAY
Lifeway Foods
22.40
6.92
44.70%
NATR
Nature's Sunshine Products
14.27
-1.16
-7.52%
HAIN
Hain Celestial
1.87
-5.05
-72.98%
LFVN
LifeVantage
12.66
5.24
70.62%
BYND
Beyond Meat
2.85
-4.32
-60.25%
Mama's Creations Earnings Call Summary
Earnings Call Date:Apr 08, 2025
(Q4-2025)
| % Change Since: 1.01%|
Next Earnings Date:Jun 03, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth, operational improvements, and successful product expansions, which were somewhat offset by challenges in profitability, cash flow, and commodity price volatility. The company has made strategic investments and strengthened its leadership team, positioning itself for future growth despite current financial pressures.Q4-2025 Updates
Positive Updates
Record Quarterly Gross Margin
Achieved a fiscal year record quarterly gross margin of 27%, an improvement of 440 basis points sequentially due to strategic CapEx investments and operational efficiencies.
Revenue Growth
Fourth quarter revenue increased by 25.7% to $33.6 million, and fiscal year 2025 revenue grew by 19.4% to $123.3 million, driven by volume gains and new customer expansions.
Operational Improvements
Significant improvements in cost management, controls, and culture, with strategic investments leading to a 34% increase in chicken throughput compared to Q3 and a 90% increase year-over-year.
Product Expansion
Expanded into major retailers like Walmart, Costco, and Albertsons, with new product launches planned at Lidl, Kroger, Sheetz, Amazon Fresh, and BJ's.
Leadership Team Strengthening
Completed the build-out of a world-class senior leadership team, including a new chief commercial officer and chief operating officer, enhancing operational and commercial capabilities.
Successful Marketing Initiatives
High return on advertising spend (ROAS) with Instacart and Walmart, contributing to increased brand visibility and consumer engagement.
Debt Reduction
Total debt reduced from $8.7 million to $5.1 million, improving the balance sheet and financial stability.
Negative Updates
Gross Margin Pressure
Gross margin decreased compared to the previous year due to significant commodity cost increases and construction impacts at the Farmingdale facility.
Profitability Challenges
Net income for fiscal year 2025 decreased to $3.7 million from $6.5 million in the prior year, and adjusted EBITDA declined from $11.7 million to $9.2 million.
Cash Flow Concerns
Cash and cash equivalents decreased from $11 million to $7.2 million, affected by strategic capital investments and debt paydown.
Commodity Price Volatility
Challenges with rising chicken breast prices impacting cost structures, despite having contracts for over half of the protein needs.
Company Guidance
During Mama's Creations, Inc.'s fourth-quarter fiscal 2025 earnings call, the company reported significant growth and improvements backed by strategic initiatives. The company saw a 25.7% increase in revenue to $33.6 million and a 19.4% increase for the fiscal year, reaching $123.3 million. Gross margins improved to a quarterly record of 27%, attributed to strategic CapEx investments at their Farmingdale facility, which doubled chicken capacity. Net income for the fourth quarter rose to $1.6 million, with adjusted EBITDA increasing by 8.8% to $3.1 million. The company highlighted its focus on cost, controls, culture, and catapults, leading to enhanced operational efficiencies and an expanded product portfolio. It has also locked in attractive pricing for over half of its protein needs to mitigate commodity fluctuations. Looking forward, Mama's Creations aims for continued double-digit revenue growth, leveraging its strong customer relationships and strategic pricing actions. The company also plans to further enhance its gross margin profile through ongoing operational improvements and new product introductions.Mama's Creations Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Mama’s Creations Announces Executive Retirement
Positive
Apr 8, 2025
On April 8, 2025, Mama’s Creations announced the retirement of Steven R. Burns, Executive Vice President and Chief Administrative Officer, effective April 30, 2025. The company reported a 25.7% increase in fourth-quarter revenues to $33.6 million, driven by strategic CapEx projects and new senior hires. The company secured new customers, launched new products, and implemented fixed-price protein contracts to hedge commodity cost risks. Mama’s Creations aims to optimize operations and emerge as a dominant player in the prepared foods space, despite macroeconomic pressures.
Business Operations and StrategyFinancial Disclosures
Mama’s Creations Highlights Strong Position at Conferences
Positive
Mar 11, 2025
On March 11, 2025, Mama’s Creations announced its participation in upcoming investor conferences, highlighting its strong operating position amid rising consumer demand for affordable deli-prepared foods. The company benefits from fixed price protein agreements and domestic sourcing, which help mitigate tariff pressures and provide supply chain certainty. CEO Adam L. Michaels expects improved gross margins for the fiscal year ended January 31, 2025, and plans to discuss these developments at the conferences.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.