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Premium Brands (TSE:PBH)
TSX:PBH
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Premium Brands (PBH) AI Stock Analysis

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TSE:PBH

Premium Brands

(TSX:PBH)

Rating:73Outperform
Price Target:
C$107.00
▲(13.28% Upside)
Premium Brands' overall stock score is driven by strong earnings call results and positive technical indicators, despite financial performance challenges and high valuation concerns. The company's strategic initiatives and resilience in the face of inflationary pressures contribute positively, while the high P/E ratio and overbought technical signals warrant caution.
Positive Factors
Financial Flexibility
Premium Brands completed a $150 million convertible debenture offering, which increases financial flexibility.
Financial Health
The company's goal to reduce leverage through EBITDA growth and other financial strategies positions it well for future financial health.
Growth Initiatives
Growth momentum in core U.S. sales growth initiatives continued and is expected to accelerate with major U.S. product launches by the end of the year.
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.
Tariffs
Tariff noise introduces some near-term risk with significant topline sales exposure.

Premium Brands (PBH) vs. iShares MSCI Canada ETF (EWC)

Premium Brands Business Overview & Revenue Model

Company DescriptionPremium 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 MoneyPremium 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 Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with record sales growth and strong organic volume increases in key segments. Despite challenges like commodity inflation and specific segment contractions, the company's strategic initiatives and financial health showed resilience and potential for future growth.
Q2-2025 Updates
Positive Updates
Record-Breaking Sales Growth
Sales for the quarter reached a record $1.9 billion, up $212 million or 12.5% compared to the second quarter of 2024, driven by organic volume growth, acquisitions, and selling price increases.
Strong Organic Volume Growth
The company's U.S. market-focused initiatives in premium protein and artisan bakery products generated $58 million in organic volume growth, with growth rates of 15% and 98%, respectively.
Adjusted EBITDA Increase
Adjusted EBITDA for the quarter was $177.1 million, representing an increase of $12.5 million or 7.6% compared to the second quarter of 2024.
Debt Leverage Reduction
Total debt-to-EBITDA ratio decreased to 4.2:1, showing a 0.4 turns improvement from the first quarter of 2025.
Free Cash Flow Increase
Free cash flow for the quarter increased by 6.6% to $80.2 million compared to the second quarter of 2024.
Negative Updates
Pressure from Commodity Inflation
Higher-than-expected inflation in key commodities like beef and chicken pressured margins and overall profitability.
U.S. Sandwich Initiatives Contraction
A 2.3% contraction in the U.S. market-focused sandwich initiatives due to tough year-over-year comparisons.
Adjusted EBITDA Margin Decline
Adjusted EBITDA margin for the quarter fell by 50 basis points to 9.2% compared to the second quarter of 2024.
Company Guidance
During the 2025 second quarter conference call, the company reported strong performance metrics, driven largely by robust strategies in premium protein and artisan baked goods in the U.S., and increased demand for protein products in Canada. Sales reached a record $1.9 billion, a 12.5% increase from the previous year, fueled by $82 million in organic volume growth and $74 million from acquisitions. Despite facing challenges like higher inflation in key commodities, the company maintained a positive trajectory with an adjusted EBITDA of $177.1 million, up by 7.6%. The company also reported an adjusted earnings per share of $1.33, reflecting a 4.0% increase, and noted a significant decrease in its debt-to-EBITDA ratio to 4.2:1. Capital expenditures for the quarter totaled $52.4 million, primarily enhancing production capacities, with free cash flow rising by 6.6% to $80.2 million. As part of its strategic outlook, the company aims to reach $10 billion in revenue with a 10-12% EBITDA margin by 2027.

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
75
Positive
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
65
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.90B6.47B6.26B6.03B4.93B4.07B
Gross Profit1.28B1.29B1.05B1.10B901.90M780.20M
EBITDA535.60M545.50M493.00M483.50M387.30M295.60M
Net Income93.20M121.50M94.20M160.10M132.70M83.70M
Balance Sheet
Total Assets5.97B5.80B5.16B5.08B4.41B3.54B
Cash, Cash Equivalents and Short-Term Investments12.90M49.20M27.60M11.40M16.50M363.00M
Total Debt3.29B3.17B2.63B2.56B1.94B1.33B
Total Liabilities4.26B4.03B3.39B3.27B2.63B1.94B
Stockholders Equity1.72B1.77B1.77B1.81B1.77B1.60B
Cash Flow
Free Cash Flow-137.30M-111.70M34.20M-131.90M-76.90M134.70M
Operating Cash Flow143.70M253.10M433.90M96.50M66.30M227.30M
Investing Cash Flow-46.10M-315.30M-299.20M-343.60M-808.90M-242.90M
Financing Cash Flow-96.80M83.80M-118.50M242.00M396.10M360.20M

Premium Brands Technical Analysis

Technical Analysis Sentiment
Positive
Last Price94.46
Price Trends
50DMA
88.03
Positive
100DMA
83.29
Positive
200DMA
80.05
Positive
Market Momentum
MACD
1.94
Positive
RSI
60.86
Neutral
STOCH
26.09
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 94.46 is above the 20-day moving average (MA) of 93.50, above the 50-day MA of 88.03, and above the 200-day MA of 80.05, indicating a bullish trend. The MACD of 1.94 indicates Positive momentum. The RSI at 60.86 is Neutral, neither overbought nor oversold. The STOCH value of 26.09 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
C$1.55B26.8412.75%2.31%11.87%56.93%
73
Outperform
C$4.24B45.185.36%3.60%8.42%-17.99%
72
Outperform
C$4.48B25.0211.29%2.55%5.44%1391.43%
63
Neutral
C$14.17B42.30-2.20%2.24%7.58%-155.93%
63
Neutral
$20.44B14.73-2.94%3.07%2.04%-6.12%
61
Neutral
C$469.20M7.2812.01%4.98%1.05%13.40%
$112.04M-97.83%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PBH
Premium Brands
94.46
12.07
14.65%
TSE:HLF
High Liner Foods
15.91
3.07
23.91%
TSE:MFI
Maple Leaf Foods
36.12
14.82
69.58%
TSE:SAP
Saputo Inc.
34.38
5.61
19.50%
TSE:JWEL
Jamieson Wellness Inc
37.30
6.78
22.21%
HBFGF
Happy Belly Food Group
0.85
0.49
136.11%

Premium Brands Corporate Events

DividendsBusiness Operations and StrategyFinancial Disclosures
Premium Brands Achieves Record Q2 Sales and Strategic Growth
Positive
Aug 6, 2025

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.

Financial Disclosures
Premium Brands to Announce Q2 2025 Financial Results
Neutral
Jul 21, 2025

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.

Shareholder MeetingsBusiness Operations and Strategy
Premium Brands Announces Strong Shareholder Support in 2025 Meeting
Positive
Jul 8, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025