Premium Brands (PBH) AI Stock Analysis

• Market Cap: C$4.12B
• Dividend Yield: 3.76%
• Average Volume (3M): 83.65K
• Price to Earnings (P/E): 43.9
• Beta (1Y): 0.64
• Revenue Growth: 8.42%
• EPS Growth: -17.99%
• Country: CA
• Employees: 11,524
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 1.33
• Shares Outstanding: 44,902,073
• 10 Day Avg. Volume: 107,842
• 30 Day Avg. Volume: 83,651
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$109.09
• Price Target Upside: 20.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 64 Neutral
• Price Target: C$97.00 ▲(7.29% Upside)

Premium Brands' overall stock score is driven by a positive earnings call that highlighted strong sales growth and strategic initiatives. However, financial performance concerns, particularly around profitability and cash flow, along with bearish technical indicators and a high P/E ratio, weigh down the score.

Positive Factors

Revenue Growth

The company's strong revenue growth, driven by organic volume increases and strategic acquisitions, indicates a robust market position and expanding customer base, which is crucial for long-term success.

Debt Leverage Reduction

The reduction in debt leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic challenges more effectively.

Free Cash Flow Increase

An increase in free cash flow strengthens the company's ability to fund operations, reduce debt, and invest in future growth, supporting long-term financial health.

Negative Factors

Commodity Inflation Pressure

Persistent commodity inflation can erode profit margins, challenging the company's cost management and potentially impacting its competitive pricing strategy.

Profitability Challenges

Low profitability margins indicate challenges in converting sales into actual profit, which can hinder reinvestment in business growth and shareholder returns.

Negative Free Cash Flow

Negative free cash flow suggests the company may struggle to cover its operating expenses and invest in growth without relying on external financing, posing a risk to financial stability.

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 Holdings generates revenue primarily from the production and sale of its specialty food products. The company's revenue model is built on multiple key revenue streams, including direct sales to retail and foodservice businesses, as well as through its distribution networks. It leverages its extensive brand portfolio and proprietary distribution channels to reach a wide customer base. Significant partnerships with retailers and foodservice operators enhance its market presence and distribution capabilities. Additionally, Premium Brands benefits from its acquisitions strategy, continuously expanding its offerings and market reach, which in turn contributes to its earnings growth.

Premium Brands Financial Statement Overview

Summary

Premium Brands shows strong revenue growth and operational efficiency, but the high leverage and negative free cash flow present potential financial risks. While profitability is stable, further improvements in cash flow management and reduction in debt levels could strengthen the company's financial position.

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	6.90B	6.47B	6.26B	6.03B	4.93B	4.07B
Gross Profit	1.28B	1.29B	1.05B	1.10B	901.90M	780.20M
EBITDA	535.60M	545.50M	493.00M	483.50M	387.30M	295.60M
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	3.29B	3.17B	2.63B	2.56B	1.94B	1.33B
Total Liabilities	4.26B	4.03B	3.39B	3.27B	2.63B	1.94B
Stockholders Equity	1.72B	1.77B	1.77B	1.81B	1.77B	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: Neutral
• Last Price: 90.41
• 50DMA: Negative
• 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 Neutral. The current price of 90.41 is below the 20-day moving average (MA) of 93.32, below the 50-day MA of 92.01, and above the 200-day MA of 81.37, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 44.93 is Neutral, neither overbought nor oversold. The STOCH value of 25.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:PBH.

Premium Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFI	72 Outperform	4.35B	24.18	11.24%	2.70%	5.44%	1391.43%
JWEL	68 Neutral	1.54B	26.56	12.38%	2.40%	11.87%	56.93%
HLF	66 Neutral	474.11M	7.37	11.48%	4.94%	1.05%	13.40%
PBH	64 Neutral	C$4.12B	43.86	5.36%	3.76%	8.42%	-17.99%
SAP	63 Neutral	13.70B	-94.67	-2.30%	2.32%	7.58%	-155.93%
HBFG	46 Neutral	178.66M	-79.55	-91.50%	―	144.66%	-11.39%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Premium Brands Corporate Events

Premium Brands Achieves Record Q2 Sales and Strategic Growth

Premium Brands Holdings Corporation reported record second-quarter sales of $1.9 billion, a 12.5% increase from the previous year, driven by strong growth in its U.S. initiatives for protein and artisan baked goods. The company also completed a sale and leaseback of its Tennessee sandwich plant, generating $166 million, and declared a third-quarter dividend of $0.85 per share. Despite challenges such as protein cost inflation, the company achieved a 7.6% increase in adjusted EBITDA and made progress in debt reduction, indicating a positive impact on its financial stability and market positioning.

The most recent analyst rating on (TSE:PBH) stock is a Buy with a C$94.00 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 Q2 2025 Financial Results

Premium Brands Holdings Corporation announced that it will release its second quarter 2025 financial results on August 6, 2025. The release will include pre-recorded management remarks, financial statements, and an investor presentation, which will be accessible on the company’s website. A live question and answer session with the company’s President and CEO, George Paleologou, and CFO, Will Kalutycz, will also be held on the same day. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:PBH) stock is a Buy with a C$94.00 price target. To see the full list of analyst forecasts on Premium Brands stock, see the TSE:PBH Stock Forecast page.

Premium Brands Announces Strong Shareholder Support in 2025 Meeting

Premium Brands Holdings Corporation announced the results of its 2025 annual meeting, where a significant majority of shareholders voted in favor of all director nominees and the company’s executive compensation approach. The meeting saw 75.04% of issued shares voted, with directors like Sean Cheah and Dr. Marie Delorme receiving over 99% support. The strong backing for the company’s ‘say on pay’ vote and the reappointment of PricewaterhouseCoopers LLP as auditors reflect shareholder confidence in the company’s strategic direction.

The most recent analyst rating on (TSE:PBH) stock is a Buy with a C$94.00 price target. To see the full list of analyst forecasts on Premium Brands stock, see the TSE:PBH Stock Forecast page.