Marzetti Company (MZTI) AI Stock Analysis

• Market Cap: $4.78B
• Dividend Yield: 2.35%
• Average Volume (3M): 117.27K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.18
• 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: 27,486,000
• 10 Day Avg. Volume: 137,888
• 30 Day Avg. Volume: 117,266
• 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: 0.89
• Enterprise Value/Revenue: 2.20
• Enterprise Value/Gross Profit: 9.17
• Enterprise Value/Ebitda: 14.41
• 1Y Price Target: $185.00
• Price Target Upside: 10.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $197.00 ▲(17.83% Upside)

The score is driven primarily by strong financial performance (solid margins, cash generation, and low leverage). Technicals add support with price strength above major moving averages and positive MACD, while valuation (P/E 27.85) tempers the upside despite a 2.21% yield. Earnings-call commentary is broadly positive, with acquisition-related execution risk as the key offset.

Positive Factors

Cash Generation / FCF

Sustained, above‑average free cash flow growth and strong operating cash conversion provide durable funding for reinvestment, dividends, and opportunistic buybacks. This cash engine underpins strategic moves like acquisitions and capex without eroding liquidity or core operations.

Conservative Balance Sheet

Very low leverage gives the company long-term financial flexibility to fund growth, weather commodity cycles, and support consistent dividend increases. Strong ROE indicates efficient equity use, reducing refinancing risk and preserving capacity for strategic M&A or capex.

Margin Improvement & Brand Strength

Record gross profit with margin expansion reflects durable advantages: branded portfolio, pricing power, and supply‑chain productivity. Market share gains in key SKUs show structural brand equity that supports sustainable margins and resilience versus private‑label competition.

Negative Factors

Large Acquisition & Integration Risk

A $400M cash acquisition materially deploys liquidity and may require external financing, adding execution and integration risk. Migrating co‑packed production and capturing synergies takes quarters, creating durable pressure on operating focus and near‑to‑medium term free cash flow availability.

Retail Volume & Mix Pressure

Persistent retail softness and negative mix (core volume detracted ~130 bps) indicate structural challenges in end‑market demand and SKU mix. If sustained, this can reduce top‑line momentum and require ongoing marketing, innovation, or pricing actions that compress medium‑term margin expansion plans.

Commodity Inflation & Rising SG&A

Ongoing commodity cost pressure and higher SG&A are structural risks that can erode gross and operating margins if price realization lags. Recorded impairments and restructuring point to needed capacity adjustments, implying continued incremental costs while efficiency actions are implemented.

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: healthy profitability (TTM gross margin 23.87%, net margin 8.77%), robust cash conversion (operating cash flow to net income 1.40) and strong free cash flow growth (27.21%). Balance sheet leverage is conservative (debt-to-equity 0.056) with solid ROE (17.08%), though the noted rise in total debt merits monitoring.

Income Statement

Marzetti Company shows strong financial performance with consistent revenue growth and improving profit margins. The TTM data indicates a gross profit margin of 23.87% and a net profit margin of 8.77%, both of which are healthy for the packaged foods industry. The EBIT and EBITDA margins are also robust at 11.81% and 15.06%, respectively. The revenue growth rate of 1.41% in the TTM period suggests steady expansion, although slightly slower compared to previous periods.

Balance Sheet

The company's balance sheet is solid, with a low debt-to-equity ratio of 0.056, indicating conservative leverage. The return on equity (ROE) is strong at 17.08%, reflecting efficient use of equity capital. The equity ratio stands at a healthy level, suggesting a stable financial position. However, the slight increase in total debt over recent periods warrants monitoring.

Cash Flow

Marzetti's cash flow performance is commendable, with a significant free cash flow growth rate of 27.21% in the TTM period. The operating cash flow to net income ratio is 1.40, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.95 further underscores the company's ability to convert earnings into cash. Overall, the cash flow metrics suggest a healthy liquidity position.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.94B	1.91B	1.87B	1.82B	1.68B	1.47B
Gross Profit	463.64M	455.65M	432.30M	388.57M	355.72M	386.72M
EBITDA	294.86M	287.59M	270.13M	217.69M	189.50M	225.87M
Net Income	169.83M	167.35M	158.61M	111.29M	89.59M	142.33M
Balance Sheet
Total Assets	1.28B	1.27B	1.21B	1.11B	1.09B	1.10B
Cash, Cash Equivalents and Short-Term Investments	124.56M	161.48M	163.44M	88.47M	60.28M	188.06M
Total Debt	41.82M	55.55M	57.67M	29.99M	36.23M	33.27M
Total Liabilities	280.36M	276.23M	281.16M	250.73M	245.69M	258.14M
Stockholders Equity	996.25M	998.50M	925.77M	862.27M	844.69M	843.15M
Cash Flow
Free Cash Flow	298.84M	203.50M	183.98M	135.72M	-30.16M	86.32M
Operating Cash Flow	311.11M	261.50M	251.55M	225.90M	101.81M	174.19M
Investing Cash Flow	-147.10M	-148.21M	-67.43M	-90.78M	-132.24M	-88.98M
Financing Cash Flow	-116.92M	-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 below the 20-day moving average (MA) of 168.02, above the 50-day MA of 166.69, and below the 200-day MA of 170.52, indicating a bearish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 38.56 is Neutral, neither overbought nor oversold. The STOCH value of 68.04 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	77 Outperform	$4.78B	26.61	17.25%	2.35%	3.16%	6.47%
FLO	69 Neutral	$2.38B	12.30	13.73%	9.15%	0.26%	-19.45%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CPB	60 Neutral	$8.21B	14.24	14.82%	5.64%	2.71%	4.90%
BRBR	58 Neutral	$2.89B	14.34	―	―	16.05%	-10.17%
CAG	52 Neutral	$8.79B	-92.86	-1.16%	7.87%	-5.82%	-119.70%
SJM	49 Neutral	$11.18B	-9.43	-17.44%	4.45%	-0.66%	-326.55%

Marzetti Company Corporate Events

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.

Marzetti Company Approves 2025 Incentive Plan, Declares Dividend

At the annual meeting on November 19, 2025, The Marzetti Company‘s shareholders approved the 2025 Omnibus Incentive Plan and reelected four directors. The Board of Directors also declared a quarterly cash dividend of $1.00 per share, highlighting the company’s strong financial position and marking the 250th consecutive quarterly dividend since 1963.

The most recent analyst rating on (MZTI) stock is a Hold with a $190.00 price target. To see the full list of analyst forecasts on Marzetti Company stock, see the MZTI Stock Forecast page.