Premium Brands (PBH) AI Stock Analysis

• Market Cap: C$3.68B
• Dividend Yield: 4.15%
• Average Volume (3M): 122.52K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.67
• Revenue Growth: 6.29%
• EPS Growth: 24.34%
• Country: CA
• Employees: 11,524
• Sector: Consumer Defensive
• Sector Strength: 72
• Industry: Packaged Foods
• EPS (TTM): 0.68
• Shares Outstanding: 44,902,073
• 10 Day Avg. Volume: 180,732
• 30 Day Avg. Volume: 122,516
• PEG Ratio: -10.65
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -64.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$105.90
• Price Target Upside: 29.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 68 Neutral
• Price Target: C$89.00 ▲(8.64%Upside)

The strong revenue growth and positive technical indicators are significant factors in the score. The company's strategic initiatives and optimistic earnings call outlook contribute positively, despite high leverage and valuation concerns.

Positive Factors

Consumer Trends

Premium Brands is well-positioned to benefit from long-term and emerging consumer trends, supporting organic growth across its businesses.

Financial Flexibility

Premium Brands completed a $150 million convertible debenture offering, which increases financial flexibility.

Growth Initiatives

Growth momentum in core U.S. sales growth initiatives continued and is expected to accelerate with major U.S. product launches.

Negative Factors

Customer Onboarding

Customer onboarding delays have pushed some growth into the following year, suggesting potential short-term challenges.

Raw Material Costs

Raw material inflation weighed on Q1 margins, but price increases are expected to offset this in the future.

Tariff Risks

Tariff noise introduces some near-term risk with significant topline sales exposure.

Premium Brands Business Overview & Revenue Model

Company Description

Premium Brands Holdings Corporation (PBH) is a leading Canadian company that specializes in the manufacturing and distribution of a wide array of food products. Operating in the food industry, PBH owns a diverse portfolio of specialty food businesses and brands, including premium protein, seafood, and gourmet food products. The company serves various sectors, including retail, food service, and wholesale, with a commitment to providing high-quality, innovative, and sustainable food solutions.

How the Company Makes Money

Premium Brands Holdings Corporation generates revenue primarily through the sale of its specialty food products across multiple channels, including retail, food service, and wholesale. The company's revenue model is driven by its diverse portfolio of brands and products, which allows it to cater to a wide range of consumer preferences and market segments. Key revenue streams include premium protein products, seafood, and gourmet foods, which are distributed through a well-established network of retailers, restaurants, and food service operators. In addition to organic growth through its existing brands, PBH frequently expands its business through strategic acquisitions of complementary companies and brands, enhancing its market presence and broadening its product offerings. Significant partnerships with retailers and food service providers further contribute to its earnings by increasing distribution reach and brand visibility.

Premium Brands Financial Statement Overview

Summary

Premium Brands shows strong revenue growth and operational efficiency. However, high leverage and negative free cash flow present potential financial risks. Profitability is stable, but improvements in cash flow management and debt reduction are needed.

Income Statement

Premium Brands has demonstrated consistent revenue growth, with a TTM (Trailing-Twelve-Months) revenue increase of 3.36% compared to the previous year. Although gross profit slightly declined, the company maintains a healthy gross profit margin of 18.29%. The net profit margin stands at 1.76%, reflecting stable but modest profitability. The EBIT margin is 5.57%, and the EBITDA margin is 8.35%, indicating efficient operational management despite moderate net income levels.

Balance Sheet

The company's balance sheet shows a debt-to-equity ratio of 1.87, highlighting significant leverage that may pose risks during economic downturns. Return on equity (ROE) is 6.75%, suggesting moderate returns on shareholder investments. The equity ratio is 29.55%, indicating that a substantial portion of the company’s assets is financed by equity, which is relatively healthy but leaves room for improvement.

Cash Flow

Operating cash flow has improved, yet free cash flow remains negative due to high capital expenditures, which could affect long-term liquidity. The operating cash flow to net income ratio is 2.34, showing robust cash generation relative to net income. However, the free cash flow to net income ratio is negative, reflecting the impact of significant capital investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.69B	6.47B	6.26B	6.03B	4.93B	4.07B
	Gross Profit
1.22B	1.29B	1.05B	1.10B	901.90M	780.20M
	EBIT
372.20M	380.30M	338.20M	322.00M	285.90M	189.40M
	EBITDA
558.40M	545.50M	493.00M	483.50M	387.30M	295.60M
	Net Income Common Stockholders
117.80M	121.50M	94.20M	160.10M	132.70M	83.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.90M	49.20M	27.60M	11.40M	16.50M	363.00M
	Total Assets
5.91B	5.80B	5.16B	5.08B	4.41B	3.54B
	Total Debt
3.26B	3.17B	2.63B	2.56B	1.94B	1.33B
	Net Debt
3.24B	3.12B	2.61B	2.55B	1.92B	966.70M
	Total Liabilities
4.16B	4.03B	3.39B	3.27B	2.63B	1.94B
	Stockholders Equity
1.75B	1.77B	1.77B	1.81B	1.77B	1.60B
Cash Flow		Free Cash Flow
-57.30M	-111.70M	34.20M	-131.90M	-76.90M	134.70M
	Operating Cash Flow
275.70M	253.10M	433.90M	96.50M	66.30M	227.30M
	Investing Cash Flow
-339.90M	-315.30M	-299.20M	-343.60M	-808.90M	-242.90M
	Financing Cash Flow
68.90M	83.80M	-118.50M	242.00M	396.10M	360.20M

Premium Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PBH, the sentiment is Positive. The current price of 81.92 is above the 20-day moving average (MA) of 81.89, above the 50-day MA of 78.95, and above the 200-day MA of 80.98, indicating a neutral trend. The MACD of 0.71 indicates Positive momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 59.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PBH.

Premium Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JWEL	76 Outperform	C$1.49B	27.89	11.64%	2.34%	12.62%	47.37%
MFI	73 Outperform	C$3.39B	35.77	6.05%	3.24%	3.16%	―
HLF	72 Outperform	C$517.75M	6.74	14.49%	3.72%	-4.45%	90.27%
PBH	68 Neutral	C$3.68B	30.92	6.75%	4.15%	6.29%	24.34%
Sector *	65 Neutral	$8.94B	14.99	4.76%	203.76%	3.54%	-2.49%
SAP	60 Neutral	C$11.10B	42.30	-2.28%	2.83%	9.20%	-147.37%
HBFG	58 Neutral	$141.12M	―	-183.38%	―	100.08%	-22.44%

Premium Brands Corporate Events

Premium Brands Reports Record Q1 Sales and Reaffirms 2025 Guidance

Premium Brands Holdings Corporation reported record first-quarter sales of $1.68 billion, a 14.9% increase from the previous year, and an adjusted EBITDA of $136.5 million. The company has reaffirmed its 2025 sales and adjusted EBITDA guidance, and declared a second-quarter dividend of $0.85 per share. Recent acquisitions, including Denmark Sausage, LLC, contributed to sales growth but initially impacted profitability. The company is focused on leveraging capital allocations for long-term value despite challenges such as cost inflation and tariff-related uncertainties.

Premium Brands Holdings to Announce Q1 2025 Financial Results

Premium Brands Holdings Corporation announced it will release its first quarter 2025 financial results on May 7, 2025. The release will include pre-recorded management remarks, a press release with financial statements, and an investor presentation. A live question and answer session with the company’s President and CEO, George Paleologou, and CFO, Will Kalutycz, will also be held. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction for the upcoming quarters.

Premium Brands Clarifies Voting Process for Upcoming Annual Meeting

Premium Brands Holdings Corporation has distributed materials to its shareholders ahead of its Annual Meeting scheduled for May 6, 2025. The meeting will address two key shareholder proposals: the adoption of an ‘overboarding’ policy for directors and the disclosure of the percentage of pork produced using group sow housing. The Board recommends voting against both proposals, and the proxy form allows a single vote for or against both proposals collectively.

Premium Brands Closes Additional $22.5 Million Debenture Offering

Premium Brands Holdings Corporation announced the successful closing of an additional $22.5 million in convertible unsecured subordinated debentures, following the exercise of an over-allotment option by a syndicate of underwriters. This brings the total issuance to $172.5 million, which will be used to temporarily reduce existing indebtedness and increase available credit for further financial obligations, potentially impacting the company’s financial flexibility and market positioning.

Premium Brands Reports Record Q4 Sales and Strategic Acquisition

Premium Brands Holdings Corporation reported record fourth quarter sales and adjusted EBITDA for 2024, with revenue reaching $1.64 billion, a 5.4% increase from the previous year. The company also announced the acquisition of Denmark Sausage, LLC, and declared a first quarter dividend of $0.85 per share for 2025. The strong performance was driven by significant growth in the U.S. market, particularly in protein and baked goods, although challenges persisted in the foodservice channel. The company remains optimistic about overcoming these challenges and continuing its growth trajectory.

Premium Brands Expands Financial Flexibility with Over-Allotment Option

Premium Brands Holdings Corporation announced the exercise of the over-allotment option related to its recent $150 million public offering of 5.50% convertible unsecured subordinated debentures. The additional $22.5 million raised will be used to temporarily reduce existing indebtedness under its revolving credit facility, thereby increasing available funds to partially pay off 4.65% convertible unsecured debentures due in April 2025. This move is expected to enhance the company’s financial flexibility and support its strategic financial management.

Premium Brands Completes $150 Million Debenture Offering to Enhance Liquidity

Premium Brands Holdings Corporation has successfully completed a $150 million public offering of 5.50% convertible unsecured subordinated debentures. The proceeds from this offering will be used to reduce existing indebtedness, thereby increasing available credit to fund the payout of its 4.65% debentures due in April 2025. This financial maneuver is expected to enhance the company’s liquidity and operational flexibility, potentially impacting its market positioning positively.

Premium Brands Files Prospectus for $150 Million Debenture Offering

Premium Brands Holdings Corporation has announced the filing of a final short form prospectus for a $150 million financing of convertible unsecured subordinated debentures. This financing, co-led by major financial institutions, includes an over-allotment option that could increase total proceeds to $172.5 million, potentially impacting the company’s financial flexibility and market positioning.

Premium Brands to Announce Q4 2024 Financial Results

Premium Brands Holdings Corporation is set to release its fourth quarter 2024 financial results on March 21, 2025. The release will include management’s pre-recorded remarks, financial statements, and an investor presentation, all available on the company’s website. Additionally, a live question and answer session will be hosted by the company’s President and CEO, George Paleologou, and CFO, Will Kalutycz, providing stakeholders with an opportunity to engage directly with the company’s leadership.

Premium Brands Secures $150 Million in Convertible Debenture Financing

Premium Brands Holdings Corporation has announced a $150 million financing deal through the issuance of convertible unsecured subordinated debentures. The proceeds will be used to repay existing debt, fund future acquisitions, and support capital projects, enhancing the company’s financial flexibility and strategic growth opportunities.