SharkNinja, Inc. (SN) AI Stock Analysis

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SharkNinja, Inc.

(NYSE:SN)

70Outperform

SharkNinja's strong financial performance and positive earnings call guidance are key strengths. However, technical indicators suggest caution with potential downward trends. The company's valuation is moderate, and supply chain and tariff challenges present risks. Overall, the stock is positioned for growth but needs to address operational challenges to maximize potential.

Positive Factors

Brand Awareness

TikTok interactions and web traffic show strong brand awareness for SharkNinja products, with significant year-over-year increases.

Financial Performance

SharkNinja reported another impressive quarter, with adjusted sales beating consensus by approximately 10%.

International Expansion

International expansion is the next leg up for SharkNinja, with adjusted sales up 50% year over year.

Negative Factors

Earnings Risk

Analyst lowers price objective to $120 from $140 due to increased earnings risk from tariffs.

Tariffs Risk

Recently announced reciprocal tariffs on new sourcing regions, especially Vietnam, Thailand, Cambodia, and Indonesia, remain the most significant risk.

SharkNinja, Inc. (SN) vs. S&P 500 (SPY)

Market Cap

$10.32B

Dividend YieldN/A

Average Volume (3M)2.37M

Price to Earnings (P/E)23.7

Beta (1Y)1.35

Revenue Growth29.97%

EPS Growth160.79%

CountryUS

Employees3,688

SectorConsumer Cyclical

Sector Strength63

IndustryFurnishings, Fixtures & Appliances

Share Statistics

EPS (TTM)3.11

Shares Outstanding140,347,440

10 Day Avg. Volume3,881,278

30 Day Avg. Volume2,372,928

Financial Highlights & Ratios

PEG Ratio0.15

Price to Book (P/B)N/A

Price to Sales (P/S)8.88

Price to Cash Flow (P/CF)16.60

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$125.86

Price Target Upside68.96% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering7

SharkNinja, Inc. Business Overview & Revenue Model

Company DescriptionSharkNinja, Inc., a product design and technology company, engages in the provision of various solutions for consumers worldwide. It offers cleaning appliances, including corded and cordless vacuums, as well as other floorcare products; cooking and beverage appliances, such as air fryers, multi-cookers, outdoor and countertop grills and ovens, coffee systems, cookware, cutlery, kettles, toasters, and bakeware products; food preparation appliances comprising blenders, food processors, ice cream makers, and juicers; and beauty appliances, home environment products, and garment care products. The company sells its products through retailers, online and offline, and distributors. SharkNinja, Inc. was incorporated in 2017 and is headquartered in Needham, Massachusetts.

How the Company Makes MoneySharkNinja makes money through the sale of its consumer products, primarily marketed under the Shark and Ninja brands. The company generates revenue by designing, manufacturing, and selling a variety of household appliances such as vacuum cleaners, blenders, coffee makers, and air fryers. These products are sold through multiple channels, including direct-to-consumer sales via its website, as well as through major retail partners both online and in brick-and-mortar stores globally. Key revenue streams include domestic and international retail sales, supplemented by strategic partnerships and collaborations with retailers that expand the company's market reach and brand visibility. Additionally, SharkNinja invests in marketing and product development to maintain its competitive edge and meet consumer demand, contributing to sustained earnings growth.

SharkNinja, Inc. Financial Statement Overview

Summary

SharkNinja exhibits robust revenue growth and profitability, supported by strong margins and efficient capital use. The balance sheet reflects moderate leverage and a stable equity base, though cash flow reporting needs enhancement to fully evaluate financial health. Overall, the company is on a positive trajectory with some areas for improvement.

Income Statement

Very Positive

SharkNinja has demonstrated strong revenue growth, with a 29.9% increase from 2023 to 2024. The gross profit margin improved to 48.1%, indicating efficient production and sales processes. The net profit margin also strengthened to 7.9%, reflecting effective cost management. EBIT and EBITDA margins stand at 11.6% and 13.7%, respectively, showcasing solid operating performance.

Balance Sheet

Positive

The company's debt-to-equity ratio is 0.48, indicating moderate leverage and a stable financial position. Return on Equity (ROE) is healthy at 22.7%, reflecting efficient use of shareholder funds. The equity ratio of 44.0% suggests a balanced capital structure, though there is room for improvement in asset utilization.

Cash Flow

Neutral

The absence of reported operating and free cash flows for 2024 limits a comprehensive assessment. However, historical data shows fluctuations, with a notably strong free cash flow in 2020. The company needs to improve cash flow transparency to better assess operational efficiency.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
5.53B	4.25B	3.72B	3.73B	2.75B
	Gross Profit
2.66B	1.91B	1.41B	1.44B	1.25B
	EBIT
644.16M	373.56M	321.37M	438.26M	465.44M
	EBITDA
759.99M	441.96M	415.71M	508.80M	537.83M
	Net Income Common Stockholders
438.70M	167.08M	177.56M	331.11M	327.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
363.67M	154.06M	192.89M	225.36M	0.00
	Total Assets
4.39B	3.49B	3.29B	3.36B	0.00
	Total Debt
920.86M	871.07M	510.96M	563.75M	0.00
	Net Debt
557.19M	717.01M	318.07M	338.39M	0.00
	Total Liabilities
2.46B	2.01B	1.47B	1.59B	0.00
	Stockholders Equity
1.94B	1.48B	1.83B	1.76B	0.00
Cash Flow		Free Cash Flow
0.00	148.80M	110.53M	169.07M	232.36M
	Operating Cash Flow
0.00	280.60M	204.96M	229.15M	293.44M
	Investing Cash Flow
0.00	-118.08M	-52.38M	-66.37M	-81.43M
	Financing Cash Flow
0.00	-234.87M	-160.17M	-54.50M	-120.67M

SharkNinja, Inc. Technical Analysis

Technical Analysis Sentiment

Negative

Last Price74.49

Price Trends

50DMA

93.41

Negative

100DMA

98.02

Negative

200DMA

95.52

Negative

Market Momentum

MACD

-5.80

Negative

RSI

41.09

Neutral

STOCH

53.20

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SN, the sentiment is Negative. The current price of 74.49 is below the 20-day moving average (MA) of 80.81, below the 50-day MA of 93.41, and below the 200-day MA of 95.52, indicating a bearish trend. The MACD of -5.80 indicates Negative momentum. The RSI at 41.09 is Neutral, neither overbought nor oversold. The STOCH value of 53.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SN.

SharkNinja, Inc. Risk Analysis

SharkNinja, Inc. disclosed 84 risk factors in its most recent earnings report. SharkNinja, Inc. 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

SharkNinja, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	73 Outperform	$1.59B	13.18	12.40%	2.18%	1.81%	8.09%
SN	70 Outperform	$10.32B	23.66	25.69%	―	29.97%	160.79%
MHK	66 Neutral	$6.52B	12.81	6.82%	―	-2.68%	―
LEG	60 Neutral	$920.38M	―	-50.58%	2.92%	-7.27%	-272.76%
Sector *	59 Neutral	$11.53B	10.43	-0.22%	4.02%	1.19%	-15.83%
MLKN	58 Neutral	$1.10B	38.33	2.28%	4.56%	-2.68%	-56.16%
WHR	47 Neutral	$4.50B	13.03	-12.77%	8.73%	-14.64%	-167.22%

* Consumer Cyclical Sector Average

Performance Comparison

SharkNinja, Inc.

74.68

12.09

19.32%

MLKN

MillerKnoll, Inc.

16.17

-7.67

-32.17%

LZB

La-Z-Boy Incorporated

38.45

6.25

19.41%

LEG

Leggett & Platt

6.67

-10.30

-60.70%

MHK

Mohawk

104.23

-5.26

-4.80%

WHR

Whirlpool

80.22

-18.34

-18.61%

SharkNinja, Inc. Earnings Call Summary

Earnings Call Date: Feb 13, 2025 | % Change Since: -32.68% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Positive

The earnings call highlights SharkNinja's strong financial performance, successful international expansion, and effective product innovation, which are offset by challenges related to supply chain adjustments and tariff impacts. Despite these challenges, the company's robust growth metrics and strategic initiatives suggest a positive outlook.

Highlights

Exceptional Q4 and Full Year Financial Performance

Net sales grew 30% in Q4, and adjusted EBITDA increased 32%. For the full year 2024, adjusted net sales and adjusted EBITDA both increased by 32%, with a compounded annual growth rate of 24% in adjusted net sales over the past 2 years.

Strong International Growth

International net sales grew 49% in Q4, driven by triple-digit growth in Germany and France. Overall, the international business achieved significant scale, generating $1.7 billion in net sales outside of North America in 2024.

Successful New Product Launches

Introduced 25 new products in 2024, expanding into new subcategories like coolers, fans, frozen drink appliances, and skin care. The Ninja SLUSHi and Shark CryoGlow were particularly successful, with SLUSHi generating over 0.5 billion social media impressions.

Continued Margin Improvement

Expanded adjusted EBITDA margins by nearly 300 basis points over the past 2 years, with a 220 basis point improvement in adjusted gross margin this year.

Lowlights

Supply Chain Challenges

Elevated supply chain costs expected through the first half of 2025 due to strategic shifts in production outside of China to mitigate tariff impacts.

Impact of Tariffs

Recent 10% China tariffs have been proactively included in 2025 guidance, adding complexity and potential cost pressures to the business.

Mexico Market Transition

Transitioning Mexico from a distributor to a direct market model in Q1 2025 will result in a one-time revenue reversal and short-term sales impact.

Company Guidance

During SharkNinja's Fourth Quarter 2024 Earnings Call, guidance was provided for 2025, highlighting an anticipated net sales growth of 10% to 12%. Adjusted net income per diluted share is expected to rise by 12% to 15%, ranging from $4.80 to $4.90. The company forecasts adjusted EBITDA growth of 13% to 15%, reaching between $1.07 billion and $1.09 billion. Net interest expense is projected to remain flat compared to 2024, while the GAAP effective tax rate is estimated to be between 24% and 25%. Additionally, the company plans capital expenditures of $180 million to $200 million for the year. The guidance takes into account the dynamics of the current tariff landscape, including the recently announced 10% China tariffs.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.