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SharkNinja, Inc. (SN)
:SN
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SharkNinja, Inc.
(NYSE:SN)
Rating:71Outperform
Price Target:
$91.00
▲(10.80%Upside)
Positive Factors
Market Share
SN continues to gain market share in its respective categories, outperforming by over 5pts in 2Q QTD.
Production and Supply Chain
SN remains on track for 90% of US volume to be produced outside of China, given new production capacity in SE Asia, led by Vietnam, but also Cambodia and Indonesia.
Negative Factors
Inventory and Supply Issues
Domestic sell-through is expected to remain softer due to paused China shipments.
Sales Performance
The correlation between US scanner data and SN's reported sales growth in North America has broken down in recent quarters with reported y/y growth trailing Nielsen quarterly data by an average of ~14 percentage points in the last three quarters.
Tariffs
SN's stock is down -14% since mid-May when China tariffs were reduced to the 30% rate for 90 days which compares to the S&P +2% during the same period.
SharkNinja, Inc. (SN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.53B
Dividend YieldN/A
Average Volume (3M)1.80M
Price to Earnings (P/E)26.0
Beta (1Y)1.36
Revenue Growth27.33%
EPS Growth134.09%
CountryUS
Employees3,600
SectorConsumer Cyclical
Sector Strength58
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.87
Shares Outstanding140,347,440
10 Day Avg. Volume2,024,501
30 Day Avg. Volume1,796,245
Financial Highlights & Ratios
PEG Ratio-6.81
Price to Book (P/B)4.81
Price to Sales (P/S)0.00
P/FCF Ratio47.81
Enterprise Value/Market Cap0.68
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit2.87
Enterprise Value/Ebitda2.83
Forecast
1Y Price Target
$121.86Price Target Upside48.37% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
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. Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 1.16%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Neutral
SharkNinja demonstrated strong revenue growth and innovation with a comprehensive tariff mitigation strategy, but faces significant challenges from tariffs and pressure on gross margins. The company's proactive approach and expanding international presence reflect a balanced outlook.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
SharkNinja achieved its eighth consecutive quarter of double-digit revenue growth, with net sales increasing nearly 15% year-over-year globally.
Expansion and Innovation
The company launched into four new subcategories in 2024 and plans to launch at least 25 new products in 2025, including innovations like the Swirl by CREAMi and the TurboBlade fan.
Tariff Mitigation Strategy
SharkNinja has implemented a comprehensive tariff mitigation strategy involving supply chain diversification, price adjustments, and operational efficiencies.
International Growth
The international business grew 14% year-over-year, with significant growth in markets like Central Europe, Chile, Colombia, and Central America.
Product Demand and Market Share
New products like SLUSHi and CryoGlow have seen strong demand and market share gains, with CryoGlow becoming a viral sensation with over 1 billion impressions globally.
Negative Updates
Impact of Tariffs
SharkNinja faces considerable challenges due to tariffs, with an impact of hundreds of millions of dollars not fully mitigated.
Pressure on Gross Margin
Adjusted gross margin declined by 60 basis points year-over-year, affected by tariffs and the lapping of full-price sell-in within EMEA.
Decline in Adjusted EBITDA
Adjusted EBITDA decreased by 13% to $200 million, largely due to increased investments in new product development and supply chain diversification.
Operational Shifts and Uncertainty
The company is navigating complex operational shifts and policy uncertainty, affecting manufacturing centers and creating potential revenue disruptions in North America.
Company Guidance
During SharkNinja's Q1 2025 earnings call, the company provided detailed guidance for the year, reflecting a strong start with net sales increasing by 14.7% year-over-year to over $1.2 billion. Adjusted gross margin was reported at 50%, with adjusted EBITDA at $200 million. Despite the challenges posed by tariffs, SharkNinja raised its full-year 2025 guidance, expecting net sales to increase between 11% and 13%, adjusted net income per diluted share to be in the range of $4.90 to $5, and adjusted EBITDA to grow between 15% and 17% year-over-year. The company outlined a comprehensive strategy to mitigate tariff impacts through supply chain diversification, pricing strategies, and operational efficiency, with significant investments in R&D and global expansion. SharkNinja emphasized its continued commitment to innovation, planning to launch at least 25 new products in 2025, and highlighted its strong liquidity position with $225 million in cash and cash equivalents and a net leverage ratio of 0.6x.SharkNinja, Inc. Financial Statement Overview
Summary
SharkNinja, Inc. shows strong financial performance with robust revenue growth, profitability, and effective equity use. However, rising liabilities and declining free cash flow ratios present potential risks.Income Statement
SharkNinja, Inc. demonstrates strong profitability with a consistent increase in gross profit margins over recent periods, reaching 48.07% TTM. The net profit margin also shows positive growth, currently at 7.86% TTM. Revenue growth is robust at 6.43% TTM, indicating strong demand. The EBIT and EBITDA margins remain stable at 11.16% and 13.42% respectively, showcasing efficient operational management. However, a slight dip in EBIT margin from the previous annual period suggests room for improvement in cost control.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio is moderate at 0.46, indicating a balanced approach to leveraging. The equity ratio is healthy at 48.81% TTM, reflecting strong equity backing. ROE is commendable at 21.92% TTM, highlighting effective use of equity to generate profits. However, increasing total liabilities pose a potential risk if not managed efficiently.78
Positive
Cash Flow
The operating cash flow to net income ratio is solid at 0.78 TTM, indicating good cash conversion. Free cash flow has grown consistently, although the free cash flow to net income ratio has decreased to 0.42 TTM, suggesting challenges in maintaining cash flow growth relative to net income. The company's ability to generate cash is strong, yet declining free cash flow ratios could impact future liquidity if trends continue.76
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.69B | 5.53B | 4.25B | 3.72B | 3.73B | 2.75B | Gross Profit |
| 2.73B | 2.66B | 1.91B | 1.41B | 1.44B | 1.25B | EBIT |
| 634.17M | 644.16M | 373.56M | 321.37M | 438.26M | 465.44M | EBITDA |
| 763.39M | 759.29M | 441.96M | 415.71M | 508.80M | 537.83M | Net Income Common Stockholders |
| 446.93M | 438.70M | 167.08M | 177.56M | 331.11M | 327.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 154.06M | 363.67M | 154.06M | 192.89M | 225.36M | 0.00 | Total Assets |
| 3.49B | 4.39B | 3.49B | 3.29B | 3.36B | 0.00 | Total Debt |
| 871.07M | 938.99M | 871.07M | 510.96M | 563.75M | 0.00 | Net Debt |
| 717.01M | 575.32M | 717.01M | 318.07M | 338.39M | 0.00 | Total Liabilities |
| 2.01B | 2.46B | 2.01B | 1.47B | 1.59B | 0.00 | Stockholders Equity |
| 1.48B | 1.94B | 1.48B | 1.83B | 1.76B | 0.00 |
| Cash Flow | Free Cash Flow | ||||
| 188.59M | 295.44M | 148.80M | 110.53M | 169.07M | 232.36M | Operating Cash Flow |
| 347.88M | 446.62M | 280.60M | 204.96M | 229.15M | 293.44M | Investing Cash Flow |
| -161.10M | -151.18M | -118.08M | -52.38M | -66.37M | -81.43M | Financing Cash Flow |
| -94.45M | -81.22M | -234.87M | -160.17M | -54.50M | -120.67M |
SharkNinja, Inc. Technical Analysis
Negative
82.13
Price Trends
85.31
Negative
92.90
Negative
97.45
Negative
Market Momentum
-0.89
Positive
34.66
Neutral
32.26
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 82.13 is below the 20-day moving average (MA) of 92.43, below the 50-day MA of 85.31, and below the 200-day MA of 97.45, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 34.66 is Neutral, neither overbought nor oversold. The STOCH value of 32.26 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.58B | 13.12 | 12.40% | 2.30% | 1.81% | 8.09% | |
71 Outperform | $11.53B | 26.01 | 24.75% | ― | 27.33% | 134.09% | |
66 Neutral | $6.34B | 13.26 | 6.26% | ― | -2.95% | ― | |
62 Neutral | $6.82B | 11.05 | 2.80% | 4.32% | 2.67% | -24.92% | |
60 Neutral | $5.02B | 668.44 | 0.37% | 7.76% | -18.43% | -97.97% | |
58 Neutral | $1.17B | 39.82 | 2.28% | 4.43% | -2.68% | -56.16% | |
52 Neutral | $1.25B | ― | -50.35% | 2.16% | -6.50% | -221.33% |
* Consumer Cyclical Sector Average
Performance Comparison
SN
SharkNinja, Inc.
82.13
2.23
2.79%
MLKN
MillerKnoll
16.91
-7.35
-30.30%
LZB
La-Z-Boy Incorporated
38.28
4.87
14.58%
LEG
Leggett & Platt
9.24
-2.17
-19.02%
MHK
Mohawk
101.43
-11.02
-9.80%
WHR
Whirlpool
90.24
4.78
5.59%
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.