Marzetti Company (MZTI) AI Stock Analysis

• Market Cap: $4.20B
• Dividend Yield: 2.35%
• Average Volume (3M): 211.73K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.16
• Revenue Growth: 3.16%
• EPS Growth: 6.47%
• Country: US
• Employees: 3,400
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 2.20
• Shares Outstanding: 27,423,000
• 10 Day Avg. Volume: 186,513
• 30 Day Avg. Volume: 211,731
• PEG Ratio: 5.28
• Price to Book (P/B): 4.75
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 23.32
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 8.72
• Enterprise Value/Ebitda: 13.70
• 1Y Price Target: $180.00
• Price Target Upside: 7.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 7.02
• Revenue Forecast (FY): $1.93B

• Rating: 80 Outperform
• Price Target: $187.00 ▲(11.85% Upside)
• Action: Reiterated Date: 03/09/26
• Date: Action: Reiterated 03/09/26

Score driven primarily by strong financial quality (rapid revenue growth, solid margins, and very low leverage) and a positive earnings-call outlook (margin expansion, EPS growth, and shareholder returns), partially offset by a weaker longer-term technical trend and acquisition/integration execution risk. Valuation is supportive but not especially cheap.

Positive Factors

Conservative balance sheet

Extremely low leverage and substantial equity provide durable financial flexibility to fund capex, dividends, opportunistic buybacks, and M&A without stressing liquidity. This conservatism reduces refinancing risk and supports resilience through commodity cycles and operational disruptions.

Robust revenue and margin profile

Sharp top-line growth combined with healthy gross and net margins indicates durable demand, pricing power, and productive scale in packaged foods. Sustained margin levels enable reinvestment in brands, manufacturing, and innovation while supporting consistent profitability and shareholder returns.

Strategic, accretive acquisition (Bachan's)

Acquiring a fast-growing, premium sauce brand expands Marzetti's category exposure and channel reach, with expected immediate margin accretion and supply-chain synergies. If integration succeeds, this materially strengthens long-term revenue diversification and margin expansion potential.

Negative Factors

Integration and execution risk

Large-scale integration requires migrating co-packed manufacturing, realizing supply-chain synergies, and aligning commercial channels. Execution missteps can erode expected margins, inflate costs, and distract management, producing multi-quarter earnings and cashflow variability during integration.

Operating margin below prior peak

Material gap to historical operating margins suggests persistent cost pressure, mix shifts, or higher SG&A. If structural inputs or promotional intensity persist, the company may face limited operating leverage, constraining long-term earnings expansion despite top-line growth.

Increased leverage to fund acquisition

Moving from a largely debt-free position to sizable term debt raises interest, covenant, and refinancing considerations. Higher leverage reduces financial flexibility for future investments and increases exposure to rising rates, making cash generation and integration outcomes more critical to credit stability.

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

Marzetti Company generates revenue through the sale of its diverse food products across multiple channels, including grocery stores, restaurants, and foodservice distributors. The company's primary revenue streams include retail sales of dressings, sauces, and dips, as well as foodservice sales to restaurants and other commercial kitchens. Marzetti also benefits from strategic partnerships with well-known brands and franchises, enabling access to a broader customer base and enhancing brand visibility. Additionally, the company invests in marketing and product innovation, which helps drive sales growth and maintain competitive advantage in the food industry.

Marzetti Company Financial Statement Overview

Summary

Strong overall fundamentals: sharp TTM revenue growth (+44.7%), solid profitability (gross margin ~24.1%, net margin ~9.3%), excellent balance sheet with very low leverage (debt-to-equity ~0.04) and healthy ROE (~18%). Main offsets are operating margin below prior peaks (TTM ~8.0% vs ~12.7% in 2021) and historically uneven free cash flow.

Income Statement

Results are strong and improving. Revenue in TTM (Trailing-Twelve-Months) is up sharply (+44.7%), and profitability remains solid with ~24.1% gross margin and ~9.3% net margin. Earnings have also scaled well (TTM net income ~$180M). The main watch-out is that operating profitability is not at prior peak levels (TTM operating margin ~8.0% vs ~12.7% in 2021), suggesting some margin pressure even as the top line accelerates.

Balance Sheet

Balance sheet quality looks excellent and conservative. Leverage is very low (TTM debt-to-equity ~0.04) with meaningful equity backing (~$1.03B equity vs ~$38.8M debt), giving the company flexibility through cycles. Returns on shareholders’ capital are healthy (TTM return on equity ~18%), indicating strong profitability without heavy reliance on debt. A minor caution is the jump in total assets in TTM vs the latest annual period, but leverage remains modest.

Cash Flow

Cash generation is strong and currently high-quality. TTM operating cash flow (~$292M) comfortably exceeds net income (about 1.62x), and free cash flow is nearly equal to net income (~1.0x), signaling good earnings conversion. Weaknesses include volatility in free cash flow growth (TTM down, and historically uneven including a negative free cash flow year in 2022), which suggests cash flow can swing based on working capital or investment timing.

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	468.13M	455.65M	432.30M	388.57M	355.72M	386.72M
EBITDA	298.03M	287.59M	270.13M	217.69M	189.50M	225.87M
Net Income	179.91M	167.35M	158.61M	111.29M	89.59M	142.33M
Balance Sheet
Total Assets	1.33B	1.27B	1.21B	1.11B	1.09B	1.10B
Cash, Cash Equivalents and Short-Term Investments	201.58M	161.48M	163.44M	88.47M	60.28M	188.06M
Total Debt	77.53M	55.55M	57.67M	29.99M	36.23M	33.27M
Total Liabilities	296.03M	276.23M	281.16M	250.73M	245.69M	258.14M
Stockholders Equity	1.03B	998.50M	925.77M	862.27M	844.69M	843.15M
Cash Flow
Free Cash Flow	273.19M	203.50M	183.98M	135.72M	-30.16M	86.32M
Operating Cash Flow	292.11M	261.50M	251.55M	225.90M	101.81M	174.19M
Investing Cash Flow	-155.31M	-148.21M	-67.43M	-90.78M	-132.24M	-88.98M
Financing Cash Flow	-138.29M	-115.26M	-109.15M	-106.93M	-97.34M	-95.43M

Marzetti Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 167.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 161.73, above the 50-day MA of 163.43, and below the 200-day MA of 168.39, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 40.85 is Neutral, neither overbought nor oversold. The STOCH value of 23.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MZTI.

Marzetti Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MZTI	80 Outperform	$4.20B	19.06	17.97%	2.35%	3.16%	6.47%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SJM	61 Neutral	$11.48B	-3.86	-21.55%	4.45%	-0.66%	-326.55%
CAG	58 Neutral	$8.12B	-3.16	-1.13%	7.87%	-5.82%	-119.70%
BRBR	57 Neutral	$2.07B	18.24	-47.89%	―	16.05%	-10.17%
FLO	54 Neutral	$1.82B	27.30	6.02%	9.15%	0.26%	-19.45%
CPB	53 Neutral	$6.84B	14.14	14.78%	5.64%	2.71%	4.90%

Marzetti Company Corporate Events

Marzetti Expands Credit Facilities to Fund Bachan’s Acquisition

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 acquisition of Japanese Barbecue Sauce brand Bachan’s, Inc. The amendment also allows the company to seek up to an additional $200 million in credit, and sets a five-year term for the acquisition financing, with a springing maturity of March 6, 2029 if certain extension and commitment conditions are not met by December 6, 2028, signaling a more leveraged but flexible capital structure to support its growth plans.

The most recent analyst rating on (MZTI) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on Marzetti Company stock, see the MZTI Stock Forecast page.

Marzetti Company Adds New Director and Announces Dividend

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 leadership in food and beverage, particularly in marketing, brand development, and operations, as a strategic asset as Marzetti continues to execute its growth agenda.

Hughes, who previously held senior roles at Kraft and Bel Brands and holds degrees from the University of Kansas and Northwestern’s Kellogg School of Management, joins as a non-employee director with standard board compensation. Also on February 11, 2026, Marzetti announced its fiscal 2026 third-quarter dividend, signaling continued capital returns to shareholders alongside efforts to strengthen governance and industry expertise on its board.

The most recent analyst rating on (MZTI) stock is a Hold with a $173.00 price target. To see the full list of analyst forecasts on Marzetti Company stock, see the MZTI Stock Forecast page.

Marzetti to Acquire Bachan’s in $400 Million Deal

On February 2, 2026, The Marzetti Company entered into a definitive agreement to acquire Bachan’s, Inc., a fast-growing Japanese Barbecue Sauce brand, for $400 million in a cash- and debt-financed deal expected to close by June 30, 2026, pending regulatory approvals. Reporting results for the fiscal second quarter ended December 31, 2025, the company posted a 1.7% rise in consolidated net sales to $518 million, with adjusted sales essentially flat, a record gross profit of $137.3 million and higher gross margins driven by cost savings initiatives, while retail sales slipped 1.1% and foodservice sales grew on price and mix. Despite slightly lower operating income due to higher marketing and impairment charges, income before taxes and net income per share rose sharply, helped by the absence of prior-year pension settlement costs, and Marzetti continued to return capital through its 63rd consecutive annual dividend increase and ongoing share repurchases, positioning the company for continued growth in branded retail and foodservice offerings as it integrates new assets such as the Atlanta sauce facility and prepares to add Bachan’s to its portfolio.

The most recent analyst rating on (MZTI) stock is a Buy with a $193.00 price target. To see the full list of analyst forecasts on Marzetti Company stock, see the MZTI Stock Forecast page.