Premium Brands (PBH) AI Stock Analysis

• Market Cap: C$4.27B
• Dividend Yield: 3.46%
• Average Volume (3M): 128.05K
• Price to Earnings (P/E): 45.5
• Beta (1Y): 0.63
• 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$111.75
• Price Target Upside: 13.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: C$105.00 ▲(6.92% Upside)

Premium Brands' strong revenue growth and successful product launches are offset by high leverage, negative cash flow, and margin pressures. The high P/E ratio suggests overvaluation, while technical indicators show mixed signals.

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: 98.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 98.2 is above the 20-day moving average (MA) of 92.29, above the 50-day MA of 93.93, and above the 200-day MA of 84.85, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 62.36 is Neutral, neither overbought nor oversold. The STOCH value of 93.65 is Negative, 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$1.45B	24.92	13.44%	2.57%	11.25%	58.21%
MFI	67 Neutral	C$3.28B	18.22	11.72%	3.12%	-0.03%	497.79%
PBH	67 Neutral	C$4.27B	45.49	3.86%	3.46%	13.05%	-33.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SAP	61 Neutral	C$13.83B	-95.78	-1.32%	1.97%	5.37%	-135.85%
HLF	58 Neutral	C$490.34M	7.63	8.60%	5.57%	6.15%	-36.76%
HBFG	54 Neutral	$223.97M	-98.30	-95.27%	―	212.16%	-46.40%

Premium Brands Corporate Events

Premium Brands Holdings: Earnings Call Insights

The recent earnings call for Premium Brands Holdings showcased a mixed sentiment, with the company celebrating robust organic growth and successful product launches, particularly in the U.S. market. However, these positive developments were tempered by significant margin pressures stemming from high input costs and overhead from new facilities, as well as challenges in the jerky segment.

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.