BellRing Brands, Inc. Fundamental Analysis (NYSE: BRBR)
BellRing Brands, Inc. (NYSE: BRBR) shows moderate financial fundamentals with a PE ratio of 6.30, profit margin of 7.28%, and ROE of -35.53%. The company generates $2.4B in annual revenue with strong year-over-year growth of 16.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BRBR's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBRBR demonstrates superior asset utilization.
Valuation Score
ExcellentBRBR trades at attractive valuation levels.
Growth Score
ModerateBRBR shows steady but slowing expansion.
Financial Health Score
ExcellentBRBR maintains a strong and stable balance sheet.
Profitability Score
WeakBRBR struggles to sustain strong margins.
Key Financial Metrics
Is BRBR Expensive or Cheap?
P/E Ratio
BRBR trades at 6.30 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BRBR's PEG of -0.32 indicates potential undervaluation.
Price to Book
The market values BellRing Brands, Inc. at -2.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.11 times EBITDA. This is generally considered low.
How Well Does BRBR Make Money?
Net Profit Margin
For every $100 in sales, BellRing Brands, Inc. keeps $7.28 as profit after all expenses.
Operating Margin
Core operations generate 13.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-35.53 in profit for every $100 of shareholder equity.
ROA
BellRing Brands, Inc. generates $16.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BellRing Brands, Inc. generates limited operating cash flow of $233.85M, signaling weaker underlying cash strength.
Free Cash Flow
BellRing Brands, Inc. produces free cash flow of $224.76M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.93 in free cash annually.
FCF Yield
BRBR converts 21.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
-2.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.36
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.44
vs 25 benchmark
How BRBR Stacks Against Its Sector Peers
| Metric | BRBR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.30 | 20.69 | Better (Cheaper) |
| ROE | -35.53% | 666.00% | Weak |
| Net Margin | 7.28% | -2392.00% (disorted) | Weak |
| Debt/Equity | -2.43 | 0.83 | Strong (Low Leverage) |
| Current Ratio | 2.25 | 2.26 | Strong Liquidity |
| ROA | 16.29% | 314.00% | Weak |
BRBR outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BellRing Brands, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-27.22%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
185.64%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-16.76%
Industry Style: Defensive, Dividend, Low Volatility
Declining