UTZ Brands (UTZ) AI Stock Analysis

• Market Cap: $1.88B
• Dividend Yield: 1.78%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 71.1
• Beta (1Y): 0.15
• Revenue Growth: -2.01%
• EPS Growth: N/A
• Country: US
• Employees: 3,000
• Sector: Consumer Defensive
• Sector Strength: 89
• Industry: Packaged Foods
• EPS (TTM): 0.18
• Shares Outstanding: 86,061,750
• 10 Day Avg. Volume: 1,226,956
• 30 Day Avg. Volume: 1,215,617
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.90
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.33
• Price Target Upside: 30.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

UTZ Brands scores a 68, reflecting solid financial performance and positive earnings call sentiment. The company's strategic initiatives, strong household penetration, and recent operational improvements are significant strengths. However, technical indicators signal caution, and high valuation poses a risk. The recent corporate events provide additional optimism, but the overall score is moderated by potential market challenges and valuation concerns.

Positive Factors

Financial Performance

Utz Brands Inc reported better than expected preliminary 1Q25 results with organic sales and net sales exceeding expectations, along with slightly better adjusted EBITDA.

Leadership

The appointment of William J. Kelley Jr. as the new CFO and Principal Accounting Officer is seen as a strategic move, bringing experience from leading companies like Tropicana Brands Group and The Kraft Heinz Company.

Supply Chain Transformation

UTZ has over delivered on supply chain transformation, which could yield upside revisions if the company sustains recent share momentum.

Negative Factors

Category Weakness

Concerns for persistent salty snack category weakness and a lower probability of a takeout in the near term influence the stock rating downgrade.

Demand Concerns

The salty snacks category has overextended its price increases since the pandemic, which could impact demand negatively.

Organic Growth

Despite UTZ's efforts in cost reduction and efficiency, the stock is predicted to trade at a lower valuation due to subdued organic growth and high debt leverage.

UTZ Brands Business Overview & Revenue Model

Company Description

Utz 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 Money

UTZ 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 13.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTZ, the sentiment is Negative. The current price of 13.29 is below the 20-day moving average (MA) of 13.49, below the 50-day MA of 13.61, and below the 200-day MA of 15.44, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 46.14 is Neutral, neither overbought nor oversold. The STOCH value of 29.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UTZ.

UTZ Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOMD	78 Outperform	$3.07B	13.14	8.75%	3.17%	1.88%	24.81%
JBSS	72 Outperform	$771.25M	15.92	15.40%	1.28%	12.09%	-27.64%
JJSF	70 Outperform	$2.53B	29.91	9.08%	2.37%	2.14%	5.38%
UTZ	68 Neutral	$1.88B	71.07	2.33%	1.78%	-2.01%	―
Sector *	64 Neutral	$9.01B	14.73	3.76%	178.62%	3.83%	6.05%
THS	55 Neutral	$1.17B	42.80	1.67%	―	-4.59%	-42.81%
BGS	51 Neutral	$545.26M	―	-36.94%	11.06%	-6.30%	-258.92%

UTZ Brands Corporate Events

Utz Brands Reports Strong Q1 2025 Financial Results

On May 1, 2025, Utz Brands reported its first quarter 2025 financial results, showing a 1.6% increase in net sales to $352.1 million and a significant 137.5% rise in net income to $5.7 million compared to the previous year. The company achieved a 2.9% growth in organic net sales, with branded salty snacks seeing a 4.9% increase. Despite a decline in gross profit margin, adjusted gross profit margin expanded by 100bps, driven by productivity savings. Utz reaffirmed its full-year 2025 outlook, expecting continued growth in branded salty snacks and adjusted EBITDA, while anticipating modest impact from tariff volatility due to domestic sourcing of input costs.

Spark’s Take on UTZ Stock

According to Spark, TipRanks’ AI Analyst, UTZ is a Neutral.

UTZ Brands receives a balanced score driven by solid financial performance and strategic initiatives, countered by high valuation concerns and technical indicators suggesting caution. While growth prospects and positive corporate events are encouraging, market valuation and lack of momentum limit the overall attractiveness.

To see Spark’s full report on UTZ stock, click here.

Utz Brands Appoints New CFO Ahead of May 2025

Utz Brands announced the appointment of William J. Kelley Jr. as the new Chief Financial Officer, effective May 1, 2025, succeeding Ajay Kataria. Additionally, Mark Schreiber, the Chief Customer Officer, will retire, and Jeremy Stuart will take over the role. The company reaffirmed its fiscal year 2025 outlook and announced preliminary first-quarter results, expecting a slight increase in net sales and net income. Utz continues to focus on growth through its branded salty snacks and aims for improved financial performance, including adjusted EBITDA growth and expanded profit margins.

Spark’s Take on UTZ Stock

According to Spark, TipRanks’ AI Analyst, UTZ is a Neutral.

UTZ Brands demonstrates solid financial performance and positive future guidance, supported by strategic initiatives and leadership changes. However, high valuation and technical indicators suggest caution, with potential risks in market trends and channel challenges. The stock’s overall score reflects a balanced view of these factors.

To see Spark’s full report on UTZ stock, click here.

Utz Brands Reports Strong 2024 Financial Results

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.