Marzetti Company (MZTI)
NASDAQ:MZTI
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Marzetti Company
(NASDAQ:MZTI)
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Rating:80Outperform
Price Target:
$164.00
▼(-1.91% Downside)
Action:ReiteratedDate: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
Balance Sheet Strength
Very low leverage and sizable equity provide durable financial flexibility: the company can fund acquisitions, capex, dividends and opportunistic buybacks without stressing liquidity. This reduces refinancing and interest-rate risk and supports stability through industry cycles.
Negative Factors
Operating Margin Compression
Operating profitability remains materially below prior peaks, suggesting structural cost pressures, mix shifts, or investment-driven dilution. Until operating margin recovers, revenue growth will translate less efficiently into operating cash flow and returns on capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low leverage and sizable equity provide durable financial flexibility: the company can fund acquisitions, capex, dividends and opportunistic buybacks without stressing liquidity. This reduces refinancing and interest-rate risk and supports stability through industry cycles.
Read all positive factors
Marzetti Company (MZTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.92B
Dividend Yield2.35%
Average Volume (3M)277.12K
Price to Earnings (P/E)19.1
Beta (1Y)0.23
Revenue Growth3.16%
EPS Growth6.47%
CountryUS
Employees3,400
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.20
Shares Outstanding27,423,000
10 Day Avg. Volume360,536
30 Day Avg. Volume277,115
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 Cap0.98
Enterprise Value/Revenue1.98
Enterprise Value/Gross Profit8.23
Enterprise Value/Ebitda12.93
Forecast
1Y Price Target
$176.00Price Target Upside5.27% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)7.02
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:Feb 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call highlights solid execution: record gross profit, margin expansion (40–80 bps), EPS growth of 20.8%, strong brand performance and market share gains, healthy cash generation, an increased dividend, opportunistic buybacks, and a strategic $400M acquisition (Bachan's) expected to be accretive. Offsetting items include modest revenue/volume pressures in retail and foodservice versus tough comps, temporary non-core TSA sales that will roll off, modest SG&A increases, restructuring/impairment charges, and integration/capital deployment risks tied to the acquisition. On balance, the company portrayed a constructive growth and margin-improvement story with manageable near-term headwinds and clear strategies to offset costs and leverage scale.Positive Updates
Consolidated Net Sales and Adjusted Net Sales
Consolidated net sales increased 1.7% to $518.0 million for Q2 FY2026. Excluding temporary supply agreement (TSA) non-core sales, adjusted net sales rose 0.1% to $510.0 million.
Negative Updates
Retail Net Sales Decline vs. Strong Prior Year
Retail segment net sales declined 1.1% versus a strong prior-year quarter (which had +6.3%), with management citing softer demand during the US government shutdown period; adjusted retail sales still projected to be low single-digit growth in the back half.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Net Sales and Adjusted Net Sales
Consolidated net sales increased 1.7% to $518.0 million for Q2 FY2026. Excluding temporary supply agreement (TSA) non-core sales, adjusted net sales rose 0.1% to $510.0 million.
Read all positive updates
Company Guidance
Management's guidance and forward-looking commentary: fiscal‑2026 capital expenditures are forecast at $75–$85 million, the estimated effective tax rate for the remainder of FY26 is about 23% (Q2 was 22.6%), and Retail is expected to deliver low‑single‑digit volume/revenue growth in the second half (fairly even by quarter) with Foodservice seeing continued growth with select national accounts; management expects only modest input‑cost inflation that will be offset through contractual pricing and supply‑chain productivity/value‑engineering programs. They announced a definitive ~$400 million cash acquisition of Bachan's, which management expects to be accretive to top‑line growth and gross margins in year one and to yield supply‑chain synergies over time. Capital allocation priorities include a quarterly dividend of $1.00 (a 5% increase, the 63rd consecutive year of increases), opportunistic repurchases ($20.1M repurchased in Q2) but an attritional buyback posture post‑acquisition, and using a debt‑free balance sheet with >$201M cash to fund growth.Marzetti Company Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
80
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 | 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
Negative
167.19
Price Trends
155.20
Negative
160.63
Negative
166.51
Negative
Market Momentum
-4.90
Negative
42.22
Neutral
52.46
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 144.78, above the 50-day MA of 155.20, and above the 200-day MA of 166.51, indicating a bearish trend. The MACD of -4.90 indicates Negative momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 52.46 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.92B | 19.06 | 17.97% | 2.35% | 3.16% | 6.47% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $10.16B | -3.86 | -21.55% | 4.45% | -0.66% | -326.55% | |
57 Neutral | $1.84B | 18.24 | -47.89% | ― | 16.05% | -10.17% | |
54 Neutral | $6.57B | 14.14 | 13.98% | 5.64% | 2.71% | 4.90% | |
54 Neutral | $7.55B | 11.30 | -0.51% | 7.87% | -5.82% | -119.70% | |
52 Neutral | $1.75B | 27.30 | 6.02% | 9.15% | 0.26% | -19.45% |
* Consumer Defensive Sector Average
MZTI
Marzetti Company
142.97
-26.91
-15.84%
CPB
Campbell Soup
22.02
-12.76
-36.68%
CAG
Conagra Brands
15.78
-7.46
-32.10%
FLO
Flowers Foods
8.25
-8.00
-49.25%
SJM
JM Smucker
95.22
-10.69
-10.09%
BRBR
BellRing Brands
15.73
-53.94
-77.42%
Marzetti Company Corporate Events
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...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Marzetti to Acquire Bachan’s in $400 Million Deal
Positive
Feb 3, 2026
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, pen...
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.