Freshpet, Inc.
Freshpet, Inc. Fundamental Analysis
Freshpet, Inc. (FRPT) shows moderate financial fundamentals with a PE ratio of 27.03, profit margin of 12.63%, and ROE of 12.35%. The company generates $1.1B in annual revenue with strong year-over-year growth of 13.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FRPT's fundamental strength across five key dimensions:
Efficiency Score
WeakFRPT struggles to generate sufficient returns from assets.
Valuation Score
WeakFRPT trades at a premium to fair value.
Growth Score
ModerateFRPT shows steady but slowing expansion.
Financial Health Score
ExcellentFRPT maintains a strong and stable balance sheet.
Profitability Score
WeakFRPT struggles to sustain strong margins.
Key Financial Metrics
Is FRPT Expensive or Cheap?
P/E Ratio
FRPT trades at 27.03 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FRPT's PEG of 2.14 indicates potential overvaluation.
Price to Book
The market values Freshpet, Inc. at 3.11 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.37 times EBITDA. This signals the market has high growth expectations.
How Well Does FRPT Make Money?
Net Profit Margin
For every $100 in sales, Freshpet, Inc. keeps $12.63 as profit after all expenses.
Operating Margin
Core operations generate 7.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.35 in profit for every $100 of shareholder equity.
ROA
Freshpet, Inc. generates $7.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Freshpet, Inc. produces operating cash flow of $161.41M, showing steady but balanced cash generation.
Free Cash Flow
Freshpet, Inc. generates strong free cash flow of $161.41M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.29 in free cash annually.
FCF Yield
FRPT converts 4.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How FRPT Stacks Against Its Sector Peers
| Metric | FRPT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.03 | 22.53 | Worse (Expensive) |
| ROE | 12.35% | 1238.00% | Weak |
| Net Margin | 12.63% | -6235.00% (disorted) | Strong |
| Debt/Equity | 0.46 | 1.25 | Strong (Low Leverage) |
| Current Ratio | 5.54 | 2.41 | Strong Liquidity |
| ROA | 7.83% | -157319.00% (disorted) | Weak |
FRPT outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Freshpet, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
181.63%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
3655.70%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
517.23%
Industry Style: Defensive, Dividend, Low Volatility
High Growth