BellRing Brands, Inc. Fundamental Analysis (NYSE: BRBR)
BellRing Brands, Inc. (NYSE: BRBR) shows moderate financial fundamentals with a PE ratio of 8.74, 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 8.74 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BRBR's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values BellRing Brands, Inc. at -3.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.13 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 12.33 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 15.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.007
vs 25 benchmark
P/B Ratio
Price to book value ratio
-3.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.62
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
0.41
vs 25 benchmark
How BRBR Stacks Against Its Sector Peers
| Metric | BRBR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.74 | 20.19 | Better (Cheaper) |
| ROE | -35.53% | 735.00% | Weak |
| Net Margin | 7.28% | -2871.00% (disorted) | Weak |
| Debt/Equity | -2.43 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.25 | 2.31 | Strong Liquidity |
| ROA | 16.29% | 359.00% | 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