Premium Brands (PBH) AI Stock Analysis

• Market Cap: C$4.27B
• Dividend Yield: 3.65%
• Average Volume (3M): 128.05K
• Price to Earnings (P/E): 45.5
• Beta (1Y): 0.63
• Revenue Growth: 8.42%
• EPS Growth: -17.99%
• Country: CA
• Employees: 11,524
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 1.27
• Shares Outstanding: 44,902,073
• 10 Day Avg. Volume: 178,951
• 30 Day Avg. Volume: 128,049
• PEG Ratio: 0.99
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -31.43
• 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$114.00
• Price Target Upside: 28.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: C$100.00 ▲(12.50% Upside)

Premium Brands' overall stock score reflects a mix of steady revenue growth and operational efficiency, offset by profitability and cash flow challenges. The technical indicators suggest a bearish trend, while the high P/E ratio indicates overvaluation. The earnings call provided positive long-term growth prospects but highlighted ongoing margin pressures. The dividend yield offers some compensation for the high valuation.

Positive Factors

Revenue Growth

Strong organic growth indicates robust demand and effective market penetration, supporting long-term revenue expansion and market position.

Product Innovation

Successful product launches demonstrate the company's ability to innovate and meet consumer demand, driving future sales and brand strength.

Long-term Revenue Goals

Ambitious revenue targets reflect strategic planning and confidence in growth initiatives, enhancing investor confidence and long-term outlook.

Negative Factors

Margin Pressure

Sustained margin pressure from input costs can erode profitability, challenging the company's ability to maintain competitive pricing and margins.

Overhead Costs

Increased overhead costs from new facilities can strain margins, requiring efficient management to avoid long-term profitability issues.

Debt Levels

Higher leverage increases financial risk, potentially limiting strategic flexibility and increasing vulnerability to interest rate changes.

Premium Brands Business Overview & Revenue Model

Company Description

Premium Brands Holdings Corporation (PBH) is a leading Canadian specialty food company that operates in the food production sector. The company focuses on high-quality, value-added food products, primarily in the meat and seafood categories. PBH's portfolio includes a diverse range of brands and products, such as prepared meats, fresh and frozen seafood, and premium deli meats, catering to both retail and foodservice customers across North America.

How the Company Makes Money

Premium Brands generates revenue through the production and sale of its extensive line of specialty food products. The company's primary revenue streams include retail sales, where it supplies its branded products to grocery stores and supermarkets, and foodservice sales, providing products to restaurants, hotels, and catering services. Additionally, PBH benefits from strategic partnerships and acquisitions, which expand its product offerings and market reach. The company also focuses on innovation and product development, allowing it to meet consumer demand for high-quality, convenient food options, thus driving sales and profitability.

Premium Brands Financial Statement Overview

Summary

Premium Brands shows steady revenue growth and operational efficiency, but faces challenges with profitability and cash flow. The increasing leverage poses a risk, and the negative free cash flow indicates potential liquidity concerns. The company needs to focus on improving profitability and managing its debt levels to enhance financial stability.

Income Statement

Premium Brands has demonstrated consistent revenue growth over the years, with a TTM revenue growth rate of 3.17%. The gross profit margin has slightly decreased to 18.30% in the TTM period, indicating some pressure on cost management. The net profit margin is relatively low at 1.76%, which suggests limited profitability. However, the EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.87 in the TTM period, indicating higher leverage and potential risk. The return on equity is modest at 6.72%, showing average profitability for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.

Cash Flow

Operating cash flow has decreased significantly, and free cash flow remains negative, indicating cash flow challenges. The free cash flow to net income ratio is negative, suggesting that the company is not generating sufficient free cash flow relative to its net income. The operating cash flow to net income ratio is low, reflecting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.90B	6.47B	6.26B	6.03B	4.93B	4.07B
Gross Profit	1.33B	1.29B	1.21B	1.10B	901.90M	780.20M
EBITDA	451.60M	430.90M	392.70M	363.20M	337.40M	270.50M
Net Income	93.20M	121.50M	94.20M	160.10M	132.70M	83.70M
Balance Sheet
Total Assets	5.97B	5.80B	5.16B	5.08B	4.41B	3.54B
Cash, Cash Equivalents and Short-Term Investments	12.90M	49.20M	27.60M	11.40M	16.50M	363.00M
Total Debt	3.30B	3.20B	2.65B	2.58B	1.95B	1.35B
Total Liabilities	4.26B	4.03B	3.39B	3.27B	2.63B	1.94B
Stockholders Equity	1.72B	1.77B	1.77B	1.82B	1.78B	1.60B
Cash Flow
Free Cash Flow	-137.30M	-111.70M	34.20M	-131.90M	-76.90M	134.70M
Operating Cash Flow	143.70M	253.10M	433.90M	96.50M	66.30M	227.30M
Investing Cash Flow	-46.10M	-315.30M	-299.20M	-343.60M	-808.90M	-242.90M
Financing Cash Flow	-96.80M	83.80M	-118.50M	242.00M	396.10M	360.20M

Premium Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 88.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PBH, the sentiment is Negative. The current price of 88.89 is below the 20-day moving average (MA) of 95.89, below the 50-day MA of 94.13, and above the 200-day MA of 83.56, indicating a neutral trend. The MACD of -0.52 indicates Positive momentum. The RSI at 32.59 is Neutral, neither overbought nor oversold. The STOCH value of 10.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$1.45B	24.92	13.44%	2.45%	11.25%	58.21%
MFI	67 Neutral	C$3.28B	18.22	11.72%	3.12%	-0.03%	497.79%
PBH	64 Neutral	C$4.27B	45.49	3.86%	3.65%	8.42%	-17.99%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HLF	61 Neutral	C$490.34M	7.63	8.60%	5.85%	6.15%	-36.76%
SAP	61 Neutral	C$13.83B	-95.78	-1.32%	2.18%	5.37%	-135.85%
HBFG	54 Neutral	$223.97M	-98.30	-97.83%	―	144.66%	-11.39%

Premium Brands Corporate Events

Premium Brands Achieves Record Q3 Sales and Declares Dividend Amidst Industry Shifts

Premium Brands Holdings Corporation reported record third-quarter sales of $2.0 billion, marking a 19.1% increase from the previous year, driven by strong organic volume growth and strategic U.S. market initiatives. Despite challenges such as protein cost inflation, the company achieved a record adjusted EBITDA of $179.1 million and declared a fourth-quarter dividend, indicating robust financial health and continued expansion in the specialty foods sector.

The most recent analyst rating on (TSE:PBH) stock is a Buy with a C$103.00 price target. To see the full list of analyst forecasts on Premium Brands stock, see the TSE:PBH Stock Forecast page.

Premium Brands to Announce Q3 2025 Financial Results

Premium Brands Holdings Corporation is set to release its third quarter 2025 financial results on November 10, 2025. The announcement will include pre-recorded management remarks, a press release with financial statements, and an investor presentation, all accessible 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 an opportunity to engage directly with the company’s leadership.

The most recent analyst rating on (TSE:PBH) stock is a Buy with a C$108.00 price target. To see the full list of analyst forecasts on Premium Brands stock, see the TSE:PBH Stock Forecast page.

Premium Brands Holdings Reports Record Sales and Growth

Premium Brands Holdings’ recent earnings call painted a generally positive outlook, underscored by strong sales and organic growth, particularly in the U.S. market. Despite facing challenges such as margin pressure from commodity inflation and a contraction in U.S. sandwich initiatives, the company highlighted record sales and strategic investments as key positive aspects.