Marzetti Company (MZTI)
NASDAQ:MZTI
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Marzetti Company
(NASDAQ:MZTI)
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Rating:67Neutral
Price Target:
$135.00
▼(-19.25% Downside)
Action:Reiterated
Date:05/04/26
The score is supported primarily by strong financial quality (low leverage and strong cash generation) and a reasonable valuation with a solid dividend. These positives are tempered by clearly bearish technicals and top-line pressure highlighted in recent results and guidance.
Positive Factors
Low leverage and conservative balance sheet
Very low debt-to-equity and a sizable equity base provide financial flexibility to fund growth, sustain dividends, and absorb shocks. This durable capital structure supports M&A and cyclical headwinds while preserving optionality for capex and working-capital needs over the next several quarters.
Negative Factors
Sharp TTM revenue decline
A ~31% TTM revenue decline materially weakens scale economics and raises questions about demand, pricing, or portfolio divestitures. Sustained top-line contraction can erode fixed-cost absorption, limit growth investments, and test margin gains if not reversed within a few quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and conservative balance sheet
Very low debt-to-equity and a sizable equity base provide financial flexibility to fund growth, sustain dividends, and absorb shocks. This durable capital structure supports M&A and cyclical headwinds while preserving optionality for capex and working-capital needs over the next several quarters.
Read all positive factors
Marzetti Company (MZTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.15B
Dividend Yield2.35%
Average Volume (3M)319.12K
Price to Earnings (P/E)25.5
Beta (1Y)0.11
Revenue Growth2.85%
EPS Growth3.89%
CountryUS
Employees3,400
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)6.39
Shares Outstanding27,422,000
10 Day Avg. Volume326,772
30 Day Avg. Volume319,118
Financial Highlights & Ratios
PEG Ratio5.28
Price to Book (P/B)4.75
Price to Sales (P/S)2.49
P/FCF Ratio23.32
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue1.53
Enterprise Value/Gross Profit6.33
Enterprise Value/Ebitda10.03
Forecast
1Y Price Target
$144.33Price Target Upside-13.67% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)6.81
Revenue Forecast (FY)$1.93B
Marzetti Company Business Overview & Revenue Model
Company Description
Manufactures and markets specialty food products (garlic breads, rolls, dressings, dips, pasta, croutons), serving retail and foodservice channels in the U.S....
How the Company Makes Money
null...
Marzetti Company Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call balanced positive strategic execution and margin progress against modest top-line pressure and near-term cost/investment headwinds. Highlights include the successful $400M acquisition of fast-growing Bachan's (with >25% recent sales growth), record quarterly gross profit of $107.2M and continued gross margin expansion (11th consecutive quarter), strong brand share gains across several categories, healthy operating cash flow and a conservative capital/debt profile pre-acquisition. Lowlights were a 1% decline in consolidated net sales (Retail down 3.2% and volume down 5.6%), higher SG&A (+9.5%) driven by investments and acquisition costs, a 9.4% decline in EPS to $1.35, and channel/distribution issues (club rotation and merchandising adjustments) that pressured retail velocities. Overall, management emphasized cost savings, supply-chain productivity, targeted investment for growth, and confidence in Bachan's long-term potential while acknowledging near-term revenue and expense challenges.Positive Updates
Acquisition of Bachan's Closed and Off to Strong Start
Closed $400M acquisition of Bachan's on May 1 financed with $200M term loan (interest <5%) and cash. Circana data for the quarter ending Mar 31 showed Bachan's sales growth >25% and TDPs up >50%. Management expects a Q4 net sales run-rate moderately above the $87M reported for calendar 2025 for the portion of the quarter the business is included and notes Bachan's gross margin is accretive to the company.
Negative Updates
Modest Revenue Decline
Consolidated net sales decreased 1.0% to $453.4M (management cited $453M / adjusted $452M), with adjusted net sales down 0.9% after excluding non-core TSA sales. Year-to-date reported and adjusted net sales were +2.2% and +0.9%, respectively, but the quarter showed a decline.
Read all updates
Q3-2026 Updates
Positive
Negative
Acquisition of Bachan's Closed and Off to Strong Start
Closed $400M acquisition of Bachan's on May 1 financed with $200M term loan (interest <5%) and cash. Circana data for the quarter ending Mar 31 showed Bachan's sales growth >25% and TDPs up >50%. Management expects a Q4 net sales run-rate moderately above the $87M reported for calendar 2025 for the portion of the quarter the business is included and notes Bachan's gross margin is accretive to the company.
Read all positive updates
Company Guidance
Management guided that for fiscal Q4 Marzetti expects incremental sales from the recently closed Bachan’s acquisition — for two‑thirds of the quarter they model a net‑sales run‑rate moderately above the $87 million Bachan’s reported in calendar 2025, with an operating margin similar to Marzetti’s current level and a gross‑margin profile that is margin‑accretive; Retail should benefit from new product introductions (Marzetti Protein Ranch and veggie dips, Olive Garden Zesty Italian flavor, larger Chick‑fil‑A Avocado Lime Ranch) and Foodservice should see continued growth from select national chain customers. They anticipate inflation to tick up in the months ahead but have soybean oil coverage through the end of summer and will implement pricing as needed; fiscal‑2026 tax rate is estimated at ~23% and full‑year capex is forecast at $80 million. Recent quarterly and year‑to‑date metrics cited to support the outlook include Q3 consolidated net sales of $453.4 million (adjusted $452 million, down ~1% and 0.9%, respectively), record Q3 gross profit of $107.2 million (+1.2%) with gross margin expansion of 50 basis points, Retail net sales down 3.2% and volume down 5.6%, Foodservice (ex‑TSA) net sales +1.8% and volume +0.8%, Q3 diluted EPS $1.35 (down $0.14, −9.4%), year‑to‑date operating cash flow up over $55 million (operating cash flow +32% YTD), a debt‑free quarter close with >$218 million cash prior to closing the $400 million Bachan’s deal (funded with a $200 million term loan at <5%), and a $1.00 quarterly dividend (paid March 31, +5%) continuing a 63‑year streak of annual increases.Marzetti Company Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.94B | 1.91B | 1.87B | 1.82B | 1.68B | 1.47B |
| Gross Profit | 469.39M | 455.65M | 432.30M | 388.57M | 355.72M | 386.72M |
| EBITDA | 296.24M | 287.59M | 270.13M | 217.69M | 189.50M | 225.87M |
| Net Income | 175.84M | 167.35M | 158.61M | 111.29M | 89.59M | 142.33M |
Balance Sheet | ||||||
| Total Assets | 1.36B | 1.27B | 1.21B | 1.11B | 1.09B | 1.10B |
| Cash, Cash Equivalents and Short-Term Investments | 218.45M | 161.48M | 163.44M | 88.47M | 60.28M | 188.06M |
| Total Debt | 37.21M | 55.55M | 57.67M | 29.99M | 36.23M | 33.27M |
| Total Liabilities | 311.26M | 276.23M | 281.16M | 250.73M | 245.69M | 258.14M |
| Stockholders Equity | 1.04B | 998.50M | 925.77M | 862.27M | 844.69M | 843.15M |
Cash Flow | ||||||
| Free Cash Flow | 247.98M | 203.50M | 183.98M | 135.72M | -30.16M | 86.32M |
| Operating Cash Flow | 316.84M | 261.50M | 251.55M | 225.90M | 101.81M | 174.19M |
| Investing Cash Flow | -82.47M | -148.21M | -67.43M | -90.78M | -132.24M | -88.98M |
| Financing Cash Flow | -140.48M | -115.26M | -109.15M | -106.93M | -97.34M | -95.43M |
Marzetti Company Technical Analysis
Negative
167.19
Price Trends
130.83
Negative
146.88
Negative
158.35
Negative
Market Momentum
-5.62
Negative
36.74
Neutral
40.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MZTI, the sentiment is Negative. The current price of 167.19 is above the 20-day moving average (MA) of 117.85, above the 50-day MA of 130.83, and above the 200-day MA of 158.35, indicating a bearish trend. The MACD of -5.62 indicates Negative momentum. The RSI at 36.74 is Neutral, neither overbought nor oversold. The STOCH value of 40.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MZTI.
Marzetti Company Risk Analysis
Marzetti Company disclosed 27 risk factors in its most recent earnings report. Marzetti Company reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Marzetti Company Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $3.15B | 25.54 | 17.35% | 2.35% | 2.85% | 3.89% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $11.02B | -3.86 | -21.55% | 4.45% | 1.58% | -389.82% | |
56 Neutral | $6.49B | 11.30 | -0.51% | 7.87% | -4.73% | -112.96% | |
56 Neutral | $1.68B | 11.08 | 10.26% | 9.15% | 3.80% | -68.17% | |
54 Neutral | $6.14B | 14.14 | 13.98% | 5.64% | -0.81% | 5.57% | |
47 Neutral | $1.04B | 14.04 | -35.70% | ― | 6.37% | -40.20% |
* Consumer Defensive Sector Average
MZTI
Marzetti Company
115.00
-45.26
-28.24%
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SJM
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103.36
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BRBR
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Marzetti Company Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Marzetti Completes Acquisition of Bachan’s Sauce Brand
Positive
May 1, 2026
On April 29, 2026, The Marzetti Company closed funding of a $200 million term loan under an amended credit agreement, increasing its revolving facility to $200 million and securing long-term financing to support its growth strategy. The term loan,...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Marzetti Expands Credit Facilities to Fund Bachan’s Acquisition
Positive
Mar 9, 2026
On March 4, 2026, The Marzetti Company amended its March 6, 2024 Credit Agreement with a syndicate of banks, increasing its revolving loan facility from $150 million to $200 million and adding a new $200 million term loan to finance its acquisitio...
Business Operations and StrategyExecutive/Board ChangesDividends
Marzetti Company Adds New Director and Announces Dividend
Positive
Feb 11, 2026
On February 11, 2026, The Marzetti Company appointed Greg Hughes, president and CEO of Suntory Global Spirits, to its board as a Class I director, with his term running until the 2026 annual shareholder meeting. The board highlighted his extensive...
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.