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Mama's Creations (MAMA)
NASDAQ:MAMA
US Market
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Mama's Creations (MAMA) AI Stock Analysis

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MAMA

Mama's Creations

(NASDAQ:MAMA)

Rating:80Outperform
Price Target:
$10.50
▲(12.42% Upside)
Mama's Creations receives a strong overall score driven by robust financial performance, strategic acquisitions, and positive earnings call insights. While the high P/E ratio suggests a premium valuation, the company's growth trajectory and operational efficiencies support its market position.
Positive Factors
Acquisition and Growth Strategy
The acquisition of Crown is expected to provide $56M in profitable annual revenue, enhancing MAMA's production capabilities and customer base.
Earnings and Financial Performance
Preliminary F2Q26 results showed revenue and net income above expectations, indicating ongoing strength in MAMA's existing operations.
Product Validation and Expansion
The rollout across ~2,000 Walmart locations is viewed as a validation of MAMA’s products and its ability to meet the scale and operational standards of major grocery partners.
Retail Partnerships and Distribution
Potential new distribution partnerships with major retailers like Target and Kroger are seen as important growth catalysts.
Negative Factors
Promotional and Input Costs
Price increases implemented are expected to offset promotional expenses and higher input costs, aiding gross margin recovery.
Valuation and Investment
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)

Mama's Creations Business Overview & Revenue Model

Company DescriptionMama's Creations (MAMA) is a vibrant, family-owned business specializing in handcrafted artisan products, primarily focusing on gourmet food items and unique home goods. Operating in the local artisan market sector, MAMA offers a diverse range of products including homemade sauces, jams, baked goods, and eco-friendly kitchenware. The company prides itself on using high-quality, locally sourced ingredients and sustainable materials, appealing to health-conscious and environmentally-aware consumers.
How the Company Makes MoneyMama's Creations generates revenue through multiple streams, primarily by selling its products directly to consumers at local farmers' markets, craft fairs, and through its e-commerce platform. The company also earns income by partnering with local grocery stores and specialty shops to stock its gourmet items, thereby reaching a broader audience. Additionally, MAMA hosts cooking classes and workshops, which not only promote its products but also serve as an additional revenue source. Seasonal promotions and subscription boxes featuring curated selections of their products further enhance their earnings, allowing the company to build a loyal customer base.

Mama's Creations Earnings Call Summary

Earnings Call Date:Jun 03, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Sep 08, 2025
Earnings Call Sentiment Positive
Mama's Creations demonstrated strong revenue growth and operational improvements despite facing inflationary pressures and increased operating expenses. The company successfully expanded its product offerings and improved its balance sheet, positioning itself for future growth.
Q1-2026 Updates
Positive Updates
Record Revenue Growth
Mama's Creations reported a revenue increase of 18% year-over-year, reaching a record $35.3 million, primarily driven by volume growth and new product introductions.
Gross Margin Improvement
Gross margins returned to the near-term target range of 26.1% due to strategic CapEx investments and efficiency gains in procurement and production.
Strong Cash Flow and Balance Sheet
The company reported $6 million in cash flow from operations, with cash and equivalents rising to $12 million, positioning the company well for potential strategic acquisitions.
Operational Efficiency Gains
Labor efficiency improved significantly, with overtime hours declining nearly 70%, and new tumbling procedures increased yields by roughly 10%.
Successful New Product Introductions
New distribution wins and product placements at major retailers like Albertsons, BJ's, Costco, and Publix were achieved, boosting the product lineup.
Negative Updates
Inflationary Pressures
Inflationary pressures remain elevated, particularly with a 50% increase in chicken prices compared to the prior year, impacting cost management efforts.
Increased Operating Expenses
Operating expenses rose to $7.6 million, partially offsetting efficiency gains, due to a 71% year-over-year increase in marketing spend.
Company Guidance
During the first quarter of fiscal 2026, Mama's Creations reported a substantial 18% year-over-year revenue increase, reaching a record $35.3 million, primarily driven by volume growth and strategic customer expansions. Gross margins improved to 26.1%, supported by efficiency gains and strategic CapEx investments, while trade promotion costs rose to 6% of gross revenue. The company implemented fixed price contracts for over 50% of its anticipated protein needs, providing margin stability amid commodity volatility. Operationally, labor efficiency improved significantly, with overtime hours cut by nearly 70%, and production enhancements led to a 35% improvement in trimming processes. Cash flow from operations was robust at $6 million, increasing cash and equivalents to $12 million, and total debt was reduced to $4.6 million. Mama's Creations also achieved notable distribution wins and product placements at major retailers, positioning itself for continued profitable growth and market share gains.

Mama's Creations Financial Statement Overview

Summary
Mama's Creations shows strong financial growth with significant revenue increase and improved gross profit margin. Positive net income and strengthened balance sheet highlight effective cost and leverage management, despite notable debt levels.
Income Statement
85
Very Positive
Mama's Creations demonstrates strong financial performance with a consistent increase in total revenue from $47.1M in 2022 to $128.7M in TTM (Trailing-Twelve-Months) 2025, reflecting a healthy revenue growth trajectory. The gross profit margin has improved to 25.1% in TTM, and net profit has turned positive, indicating effective cost management. EBIT and EBITDA margins also show positive trends. However, the net profit margin at 3.4% in TTM suggests room for profitability improvements.
Balance Sheet
78
Positive
The balance sheet of Mama's Creations is solid, with stockholders' equity increasing from $8.3M in 2021 to $26.4M in TTM 2025, indicating robust growth. The debt-to-equity ratio has decreased, showing enhanced financial leverage management. The equity ratio improved to 50.1% in TTM, reflecting stronger asset backing by equity. Nonetheless, total debt remains significant, requiring careful monitoring to manage potential risks.
Cash Flow
82
Very Positive
Cash flow analysis shows strong growth in operating cash flow, from $0.9M in 2022 to $7.5M in TTM 2025, indicating improved operational efficiency. Free cash flow turned positive, demonstrating effective capital expenditure control. The operating cash flow to net income ratio is favorable, suggesting good cash profitability. However, further consistency in free cash flow growth is necessary to sustain capital projects and debt obligations.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2020
Income Statement
Total Revenue123.33M103.28M93.19M47.08M33.75M
Gross Profit30.53M30.33M19.42M11.85M9.98M
EBITDA6.75M11.36M4.59M1.13M2.83M
Net Income3.71M6.56M2.30M-251.93K1.53M
Balance Sheet
Total Assets47.06M45.10M34.59M30.03M9.94M
Cash, Cash Equivalents and Short-Term Investments7.15M11.02M4.38M850.60K393.68K
Total Debt10.11M13.10M13.01M15.44M5.98M
Total Liabilities22.17M25.52M22.07M21.92M9.54M
Stockholders Equity24.90M19.58M12.52M8.11M402.06K
Cash Flow
Free Cash Flow82.00K10.84M4.92M47.43K1.55M
Operating Cash Flow5.18M11.62M5.51M909.84K1.81M
Investing Cash Flow-5.09M-1.43M-1.09M-11.27M-268.11K
Financing Cash Flow-3.95M-3.54M-888.04K8.02M-1.76M

Mama's Creations Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.34
Price Trends
50DMA
8.59
Positive
100DMA
7.90
Positive
200DMA
7.68
Positive
Market Momentum
MACD
0.14
Negative
RSI
65.28
Neutral
STOCH
89.13
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 9.34 is above the 20-day moving average (MA) of 8.40, above the 50-day MA of 8.59, and above the 200-day MA of 7.68, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 65.28 is Neutral, neither overbought nor oversold. The STOCH value of 89.13 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$343.39M83.9918.79%17.04%-23.81%
80
Outperform
$296.28M23.099.15%4.33%-6.33%
77
Outperform
$453.29M44.6114.46%9.19%-23.91%
74
Outperform
$170.57M19.4130.11%1.22%8.22%159.71%
63
Neutral
$20.49B14.78-2.88%3.11%1.86%-5.76%
46
Neutral
$163.36M-31.83%-8.50%-186.18%
39
Underperform
$181.65M44.21%-5.17%56.19%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MAMA
Mama's Creations
9.40
1.75
22.88%
LWAY
Lifeway Foods
30.90
10.36
50.44%
NATR
Nature's Sunshine Products
17.34
4.29
32.87%
HAIN
Hain Celestial
1.86
-6.61
-78.04%
LFVN
LifeVantage
13.46
3.81
39.48%
BYND
Beyond Meat
2.35
-3.57
-60.30%

Mama's Creations Corporate Events

M&A TransactionsBusiness Operations and Strategy
Mama’s Creations Acquires Crown I Enterprises for Expansion
Positive
Sep 2, 2025

On September 2, 2025, Mama’s Creations, Inc. announced the acquisition of Crown I Enterprises Inc. from Sysco Corporation for $17.5 million, significantly expanding its production capabilities and customer base. This strategic acquisition is expected to increase Mama’s Creations’ sales by nearly 40%, enhance operational efficiencies, and create new revenue opportunities through cross-selling, aligning with the company’s goal to reach $1 billion in annual revenue by 2030.

Executive/Board ChangesShareholder Meetings
Mama’s Creations Holds Annual Stockholders Meeting
Neutral
Jul 8, 2025

Mama’s Creations Inc. held its Annual Meeting of Stockholders on July 3, 2025, where several key proposals were voted on. The stockholders elected five individuals to the Board of Directors for a one-year term, ratified the appointment of UHY LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2026, and approved the company’s executive compensation on a non-binding and advisory basis.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 03, 2025