The Marzetti Company
The Marzetti Company Fundamental Analysis
The Marzetti Company (MZTI) shows weak financial fundamentals with a PE ratio of 17.74, profit margin of 9.06%, and ROE of 17.35%. The company generates $1.9B in annual revenue with weak year-over-year growth of 2.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.4/100 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 MZTI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMZTI demonstrates superior asset utilization.
Valuation Score
ModerateMZTI shows balanced valuation metrics.
Growth Score
WeakMZTI faces weak or negative growth trends.
Financial Health Score
ExcellentMZTI maintains a strong and stable balance sheet.
Profitability Score
ModerateMZTI maintains healthy but balanced margins.
Key Financial Metrics
Is MZTI Expensive or Cheap?
P/E Ratio
MZTI trades at 17.74 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MZTI's PEG of 4.75 indicates potential overvaluation.
Price to Book
The market values The Marzetti Company at 2.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.17 times EBITDA. This signals the market has high growth expectations.
How Well Does MZTI Make Money?
Net Profit Margin
For every $100 in sales, The Marzetti Company keeps $9.06 as profit after all expenses.
Operating Margin
Core operations generate 11.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.35 in profit for every $100 of shareholder equity.
ROA
The Marzetti Company generates $12.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Marzetti Company produces operating cash flow of $317.52M, showing steady but balanced cash generation.
Free Cash Flow
The Marzetti Company generates strong free cash flow of $248.52M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.06 in free cash annually.
FCF Yield
MZTI converts 7.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How MZTI Stacks Against Its Sector Peers
| Metric | MZTI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.74 | 21.18 | Better (Cheaper) |
| ROE | 17.35% | 1130.00% | Weak |
| Net Margin | 9.06% | -2195.00% (disorted) | Weak |
| Debt/Equity | 0.04 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 2.58 | 2.53 | Strong Liquidity |
| ROA | 12.97% | -611087.00% (disorted) | Strong |
MZTI outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Marzetti Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.96%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
22.07%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
53.01%
Industry Style: Defensive, Dividend, Low Volatility
High Growth