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Utz Brands Inc (UTZ)
:UTZ
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UTZ Brands
(NYSE:UTZ)
67Neutral
Positive Factors
Financial Performance
EBITDA grew 8% and margin expanded 160 bps to 15.6%, reflecting productivity initiatives.
Market Share
UTZ expects to gain market share, driven by continued distribution gains and increased marketing support.
Negative Factors
Revenue
Q4's headline revenue miss was disappointing due to expected contribution from new distribution being obscured by increased pressure from non-branded/non-salty business.
Sales Performance
Utz Brands' 4Q flat organic sales growth missed consensus of +2.3% and internal expectations due to subdued salty snacks category trends.
UTZ Brands (UTZ) vs. S&P 500 (SPY)
Market Cap
$2.00B
Dividend Yield1.73%
Average Volume (3M)1.20M
Price to Earnings (P/E)73.7
Beta (1Y)0.35
Revenue Growth-2.01%
EPS GrowthN/A
CountryUS
Employees3,000
SectorConsumer Defensive
Sector Strength67
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.18
Shares Outstanding86,061,750
10 Day Avg. Volume1,067,319
30 Day Avg. Volume1,196,024
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.38
Price to Cash Flow (P/CF)9.00
P/FCF Ratio27.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.29Price Target Upside29.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
UTZ Brands Business Overview & Revenue Model
Company DescriptionUtz Brands, Inc. operates as a snack food manufacturing company. It offers a range of salty snacks, including potato chips, kettle chips, tortilla chips, pretzels, cheese snacks, veggie snacks, pork skins, pub/party mixes, salsa and queso, ready-to-eat popcorn, and other snacks under the Utz, Zapp's, ON THE BORDER, Golden Flake, Good Health, Boulder Canyon, Hawaiian, TGIF, TORTIYAHS!, and other brand names. The company distributes its products to grocery, mass, club, convenience, drug, and other retailers though direct shipments, distributors, and direct store delivery routes. Utz Brands, Inc. was founded in 1921 and is headquartered in Hanover, Pennsylvania.
How the Company Makes MoneyUTZ Brands generates revenue through the manufacturing and sale of its snack food products. The company's primary revenue stream comes from distributing its products to a variety of retail partners, including supermarkets, convenience stores, and mass merchandisers. Additionally, UTZ benefits from partnerships with private label brands and produces snacks under various brand names, enhancing its market reach. The company's earnings are influenced by factors such as consumer preferences, pricing strategies, and distribution efficiency. UTZ also invests in marketing and product innovation to maintain its competitive edge and drive sales growth.
UTZ Brands Financial Statement Overview
Summary
UTZ Brands shows strong revenue growth and operational efficiency, though challenges in net income volatility and free cash flow variability remain. The company's balanced capital structure supports financial stability.Income Statement
UTZ Brands shows solid revenue growth from 2021 to 2024, with a significant increase in total revenue over the years. The gross profit margin has remained stable, reflecting efficient cost management. However, net profit margins have been inconsistent, with occasional losses, indicating potential challenges in controlling operating expenses or fluctuating input costs. The EBIT margin has improved, suggesting better core operational efficiency.75
Positive
Balance Sheet
The company maintains a reasonable debt-to-equity ratio, showing a balance between debt and equity financing. Return on equity has been volatile due to fluctuating net income, affecting the overall profitability from an equity holder's perspective. The equity ratio is healthy, indicating a strong capital structure with a significant portion of assets financed by equity.70
Positive
Cash Flow
Operating cash flow has consistently supported the company's operations, although free cash flow growth has been inconsistent. The company shows a strong operating cash flow to net income ratio, highlighting effective cash generation from operations. The inconsistency in free cash flow suggests potential variability in capital expenditures or operational cash generation.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.41B | 1.44B | 1.41B | 1.18B | 768.23M | Gross Profit |
| 494.78M | 456.49M | 449.06M | 383.91M | 253.80M | EBIT |
| 58.91M | 16.02M | 5.34M | 10.57M | 38.75M | EBITDA |
| 182.12M | 100.80M | 93.27M | 131.52M | -16.07M | Net Income Common Stockholders |
| 15.97M | -24.94M | -14.04M | 8.00M | -16.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 56.14M | 52.02M | 72.93M | 41.90M | 46.83M | Total Assets |
| 2.73B | 2.75B | 2.84B | 2.72B | 2.58B | Total Debt |
| 38.00M | 985.34M | 944.74M | 876.63M | 812.05M | Net Debt |
| -18.14M | 933.32M | 871.80M | 834.73M | 765.22M | Total Liabilities |
| 1.34B | 1.36B | 1.39B | 1.28B | 1.06B | Stockholders Equity |
| 702.45M | 669.50M | 703.15M | 679.71M | 602.26M |
| Cash Flow | Free Cash Flow | |||
| 7.53M | 20.92M | -39.77M | 14.89M | 8.00M | Operating Cash Flow |
| 106.17M | 76.64M | 48.19M | 48.39M | 27.99M | Investing Cash Flow |
| 74.96M | -48.49M | -76.07M | -136.10M | -115.88M | Financing Cash Flow |
| -177.01M | -49.05M | 58.91M | 82.78M | 96.03M |
UTZ Brands Technical Analysis
Positive
14.12
Price Trends
13.66
Positive
15.02
Negative
15.87
Negative
Market Momentum
>-0.01
Negative
59.20
Neutral
93.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTZ, the sentiment is Positive. The current price of 14.12 is above the 20-day moving average (MA) of 13.69, above the 50-day MA of 13.66, and below the 200-day MA of 15.87, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 59.20 is Neutral, neither overbought nor oversold. The STOCH value of 93.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UTZ.
UTZ Brands Risk Analysis
UTZ Brands disclosed 39 risk factors in its most recent earnings report. UTZ Brands reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
UTZ Brands Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $34.56B | 15.44 | 50.40% | 3.25% | 0.33% | 20.17% | |
76 Outperform | $87.31B | 19.38 | 16.69% | 2.70% | 1.18% | -5.47% | |
74 Outperform | $203.86B | 20.94 | 52.42% | 3.58% | 0.42% | 5.77% | |
73 Outperform | $28.46B | 21.23 | 38.65% | 2.74% | -16.16% | 41.01% | |
67 Neutral | $2.00B | 73.74 | 2.33% | 1.73% | -2.01% | ― | |
66 Neutral | $12.37B | 24.77 | 5.53% | 5.40% | -2.00% | -50.02% | |
62 Neutral | $20.55B | 13.83 | -10.11% | 7.30% | 1.62% | 5.62% |
* Consumer Defensive Sector Average
Performance Comparison
UTZ
UTZ Brands
14.12
-4.04
-22.25%
CAG
Conagra Brands
26.46
-1.77
-6.27%
HSY
The Hershey Company
170.62
-18.08
-9.58%
K
Kellanova
82.45
26.87
48.34%
PEP
PepsiCo
149.67
-19.71
-11.64%
MDLZ
Mondelez International
67.50
-1.07
-1.56%
UTZ Brands Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 4.83% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook for Utz Brands, with strong household penetration, successful brand growth, and effective productivity measures. However, there are challenges in specific channels and segments, such as the C-store channel and non-branded sales, as well as anticipated pricing pressures.Highlights
Strong Household Penetration and Repeat Rates
Utz Brands achieved an all-time high in household penetration, with both household penetration and repeat rates increasing in 2024. This demonstrates the quality of the products and the effectiveness of their market strategies.
Productivity and Supply Chain Optimization
Utz delivered $60 million in productivity savings in 2024 and has a line of sight to $150 million over 2024-2026. Investments in supply chain and automation are driving efficiency and margin expansion.
Boulder Canyon Brand Success
The Boulder Canyon brand experienced significant growth, surpassing $100 million in sales. It was the #1 chip in the natural channel for January, driven by consumer interest in non-seed oils and better-for-you products.
Distribution Expansion and Marketing Investment
Utz is expanding distribution in western markets and increasing consumer awareness with a 70% increase in advertising spend in fiscal 2024.
Lowlights
Challenges in C-store Channel
Utz faced challenges in the convenience store channel, which has been a persistent issue due to past decisions. The company expects modest growth in this channel moving forward.
Non-Branded Sales Decline
Non-branded side of the business, including dips, experienced an 18% decline in Q4. The company expects this decline to stabilize and not continue into 2025.
Price and Promotional Environment
Utz anticipates a modest headwind from pricing in fiscal 2025 due to increased competitiveness and a sluggish category, requiring adjustments in price pack architecture and promotional strategies.
Company Guidance
During the Utz Brands Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided guidance for fiscal year 2025, anticipating category growth of approximately 0% to 1%. Utz plans to maintain its core relative market share while expanding in new markets through increased distribution and marketing efforts. The company expects modest headwinds from pricing but aims to deliver value beyond price through initiatives like bonus bags and a strategic price pack architecture. Utz projects an evenly distributed top-line growth between the first and second halves of the year, with a notable decline in Q1 due to a strong January 2024 performance. On the non-branded side, the company does not foresee continuing double-digit declines. Utz also aims for 80 basis points of EBITDA margin expansion, driven by $150 million in productivity gains over three years, including $60 million achieved in 2024. Investments in supply chain and automation are expected to enhance operational efficiency. The company continues to expand distribution in key regions such as Texas, Michigan, and Colorado, with plans to augment consumer awareness through increased advertising. Utz's Boulder Canyon brand is experiencing strong double-digit growth, particularly in the MULO+ channel, driven by both distribution gains and velocity improvements, with a focus on non-seed oils and better-for-you options.UTZ Brands Corporate Events
Business Operations and StrategyFinancial Disclosures
Utz Brands Reports Strong 2024 Financial Results
Positive
Feb 20, 2025
Utz Brands reported financial results for the fourth quarter and full year 2024, with net sales of $341.0 million for the quarter and $1,409.3 million for the year, showing a slight increase in organic net sales and significant growth in adjusted earnings metrics. Despite a net sales decrease in the fourth quarter due to brand divestitures, the company achieved notable profit margin expansions and a turnaround to net income from a previous loss, driven by productivity initiatives and favorable sales volume/mix. Looking ahead to 2025, Utz anticipates continued growth in organic net sales and adjusted earnings, supported by strategic investments and cost-saving measures, while positioning itself to meet or exceed its fiscal 2026 financial goals.
Executive/Board ChangesM&A TransactionsBusiness Operations and Strategy
UTZ Brands Revamps Executive Leadership for Growth
Positive
Jan 7, 2025
Utz Brands, Inc. announced changes to its Executive Leadership Team, effective January 6, 2025, to enhance its operational efficiency and market position. Cary Devore will transition to Head of Capital Markets and M&A, while Mitch Arends will oversee the consolidated Transformation Office and Integrated Business Planning as Principal Operating Officer, aiming to drive revenue growth and operational excellence.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.