Premium Brands (PBH) AI Stock Analysis

• Market Cap: C$4.51B
• Dividend Yield: 3.34%
• Average Volume (3M): 128.05K
• Price to Earnings (P/E): 67.8
• Beta (1Y): 0.72
• Revenue Growth: 13.05%
• EPS Growth: -33.72%
• 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$119.50
• Price Target Upside: 19.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: C$108.00 ▲(7.60% Upside)

Premium Brands demonstrates strong revenue growth and positive technical indicators, but faces challenges with high leverage and cash flow constraints. The high P/E ratio suggests potential overvaluation, though the dividend yield provides some support. Recent corporate events and earnings call insights reflect optimism for future growth despite current margin pressures.

Positive Factors

Strong Revenue Growth

Consistent revenue growth indicates a robust demand for PBH's specialty food products, enhancing its market position and supporting long-term expansion.

Successful Product Launches

Successful product launches demonstrate PBH's ability to innovate and meet consumer demands, driving future revenue and market share growth.

Positive Long-term Revenue Goals

Ambitious long-term revenue targets reflect confidence in strategic planning and growth potential, supporting investor confidence and business sustainability.

Negative Factors

High Leverage

High leverage can increase financial risk, especially in a rising interest rate environment, potentially impacting cash flow and financial flexibility.

Margin Pressure

Increased overhead costs can erode profitability, challenging PBH's ability to maintain margins and necessitating efficient cost management.

Negative Cash Flow

Negative cash flow constrains PBH's ability to invest in growth opportunities and manage debt, potentially hindering long-term financial health.

Premium Brands Business Overview & Revenue Model

Company Description

Premium Brands Holdings Corporation, through its subsidiaries, manufactures and distributes food products primarily in Canada and the United States. It operates in two segments, Specialty Foods and Premium Food Distribution. The company provides meat products and snacks, deli products, beef jerky and halal, sandwiches, pastries, specialty and gourmet products, salads and kettle products, entrees, panini, wraps, subs, hamburgers, burgers, muffins, breads, pastas, and baking and sushi products, as well as processed meat products and ready-to-eat meals. It is also involved in the distribution of food products, including meat, seafood, and halal food products; operation of retail/convenience store and concessionary; and provision of food and seafood processing, and cold storage services. The company operates under the brand names of Grimm's, Freybe, Piller's, Black Kassel, MarcAngelo, Oberto, Bavarian Meats, McSweeney's, Cattleman's Cut, Harvest Meats, Hempler's, Pacific Gold Country, Prime Meats, Isernio's, Fletcher's (U.S.), Leadbetters, Mclean Meats, Shahir, Expresco, Fresh Additions, Lou's Kitchen, WestEnd, Cobblestone, Yorkshire Valley Farms, Premier Meats, Black River Angus, La Maison Du Gibier, Belmont Meats, Purely Crafted, Cowboy, Connie's Kitchen, Skoulakis, Premier Healthy Living, Raybern's, Hygaard, Quality Fast Foods, Buddy's, Bread Garden Go, Stovers Kitchen, Deli Chef, Leonetti's, Island City, Stuyver's, La Boulangerie, Vero Vero, Alive & Rise, Partners, Audrey's, Duso's, Gourmet Chef, Smart Soup, Clearwater, Hancock Gourmet, Diana's Seafood, Marco Polo, Seafood Lover, Ready Brothers, Cold Cracked Lobster, Maximum Seafood, Rocky Point. It serves chains and large format retailers, independent and specialty retailers, foodservice operators, foodservice distributors, and other food manufacturers and food brokers. The company was founded in 1917 and is headquartered in Richmond, Canada.

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 strong revenue growth and stable gross margins but struggles with profitability and cash flow management. High leverage and negative free cash flow are significant concerns.

Income Statement

Premium Brands has shown consistent revenue growth with a 4.63% increase in the TTM period. However, margins have slightly declined, with the net profit margin at 1.35% and EBIT margin at 4.82%. The gross profit margin remains stable at 19.26%, indicating effective cost management. Overall, the company demonstrates solid revenue growth but faces pressure on profitability margins.

Balance Sheet

The company has a high debt-to-equity ratio of 1.92, indicating significant leverage, which could pose risks in a rising interest rate environment. Return on equity is modest at 5.34%, reflecting moderate profitability. The equity ratio stands at 27.88%, suggesting a balanced asset structure but with potential vulnerability due to high debt levels.

Cash Flow

Operating cash flow has decreased significantly, with a low operating cash flow to net income ratio of 0.11. Free cash flow is negative, indicating challenges in generating cash after capital expenditures. The free cash flow to net income ratio is -0.96, highlighting cash flow constraints despite revenue growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.22B	6.47B	6.26B	6.03B	4.93B	4.07B
Gross Profit	1.37B	1.29B	1.21B	1.10B	901.90M	780.20M
EBITDA	456.80M	430.90M	392.70M	363.20M	337.40M	270.50M
Net Income	66.10M	121.50M	94.20M	160.10M	132.70M	83.70M
Balance Sheet
Total Assets	6.03B	5.80B	5.16B	5.08B	4.41B	3.54B
Cash, Cash Equivalents and Short-Term Investments	28.60M	49.20M	27.60M	11.40M	16.50M	363.00M
Total Debt	3.39B	3.20B	2.65B	2.58B	1.95B	1.35B
Total Liabilities	4.35B	4.03B	3.39B	3.27B	2.63B	1.94B
Stockholders Equity	1.68B	1.77B	1.77B	1.82B	1.78B	1.60B
Cash Flow
Free Cash Flow	-174.70M	-111.70M	34.20M	-131.90M	-76.90M	134.70M
Operating Cash Flow	70.20M	253.10M	433.90M	96.50M	66.30M	227.30M
Investing Cash Flow	29.70M	-315.30M	-299.20M	-343.60M	-808.90M	-242.90M
Financing Cash Flow	-80.50M	83.80M	-118.50M	242.00M	396.10M	360.20M

Premium Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.37
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 100.37 is below the 20-day moving average (MA) of 100.52, above the 50-day MA of 96.64, and above the 200-day MA of 87.95, indicating a neutral trend. The MACD of 1.24 indicates Positive momentum. The RSI at 53.03 is Neutral, neither overbought nor oversold. The STOCH value of 18.90 is Positive, 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
PBH	69 Neutral	C$4.51B	67.82	3.86%	3.34%	13.05%	-33.72%
JWEL	68 Neutral	C$1.44B	22.91	13.44%	2.67%	11.25%	58.21%
MFI	64 Neutral	C$3.07B	14.94	11.72%	4.95%	-0.03%	497.79%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HLF	58 Neutral	C$430.25M	9.21	8.60%	4.83%	6.15%	-36.76%
HBFG	45 Neutral	C$277.22M	-115.85	-95.27%	―	212.16%	-46.40%
ISTK	25 Underperform	C$163.86M	-51.38	―	―	30.02%	35.29%

Premium Brands Corporate Events

Premium Brands Closes US$688 Million Acquisition of Stampede Culinary Partners

Premium Brands Holdings Corporation has completed its acquisition of Stampede Culinary Partners, Inc. for approximately US$688 million, funded through a mix of cash, the issuance of about 2.2 million common shares to the seller, and customary adjustments including reimbursement for cash on hand. To finance the deal, the company raised roughly $665 million via a combination of public subscription receipts, convertible unsecured subordinated debentures and a concurrent private placement, supplemented by a $102 million draw on its revolving credit facility; the subscription receipts have now been exchanged for 5,046,860 common shares, which will begin trading on the TSX as the receipts are halted and delisted, marking a significant expansion of Premium Brands’ specialty food platform and capital structure in North America.

The most recent analyst rating on (TSE:PBH) stock is a Buy with a C$120.00 price target. To see the full list of analyst forecasts on Premium Brands stock, see the TSE:PBH Stock Forecast page.

Premium Brands Lifts Equity and Debenture Offering to $665 Million to Support Stampede Acquisition

Premium Brands Holdings Corporation has closed the over-allotment options related to its recent $600 million equity and convertible debenture offerings, issuing an additional 430,860 subscription receipts and $22.5 million in 5.50% convertible unsecured subordinated debentures, bringing total gross proceeds from the financing to approximately $665 million. The company plans to use the additional capital, together with its senior revolving credit facility, to help fund the acquisition of Stampede Culinary Partners, Inc. and to cover related transaction and offering expenses, while initially applying the debenture proceeds to reduce existing indebtedness and increase available liquidity for the deal.

The most recent analyst rating on (TSE:PBH) stock is a Buy with a C$120.00 price target. To see the full list of analyst forecasts on Premium Brands stock, see the TSE:PBH Stock Forecast page.

Premium Brands Bolsters Market Position with Additional $665 Million Fundraising for Strategic Acquisition

Premium Brands Holdings Corporation has announced the exercise of over-allotment options tied to its recently completed $600 million equity and convertible debenture offerings, generating total proceeds of approximately $665 million. The funds will be utilized to support the acquisition of Stampede Culinary Partners, Inc., reduce existing debt, and fund related expenses, strengthening the company’s financial position and expanding its market presence.

The most recent analyst rating on (TSE:PBH) stock is a Hold 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 Successfully Raises $600 Million for Strategic Growth

Premium Brands Holdings Corporation announced the completion of equity and convertible debenture offerings, raising approximately $600 million in gross proceeds. This funding will support the company’s acquisition of Stampede Culinary Partners, Inc., signaling strategic growth and strengthening its position in the specialty foods market.

The most recent analyst rating on (TSE:PBH) stock is a Hold 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 Expands U.S. Presence with Stampede Acquisition

Premium Brands Holdings Corporation announced the acquisition of Stampede Culinary Partners for approximately US$662.5 million. This strategic move aims to enhance Premium Brands’ presence in the U.S. foodservice channel, expand its production capabilities, and leverage synergies to drive growth. The acquisition is expected to be immediately accretive to earnings and aligns with trends in the North American food industry, such as the demand for premium ready-to-eat protein products.

The most recent analyst rating on (TSE:PBH) stock is a Hold 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 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.