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Freshpet Inc FRPT

Morningstar Rating
$127.47 +0.08 (0.06%)
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Company Report

Freshpet Is Well Positioned for More Growth and Margin Expansion, but Market Expectations Are Lofty

With its fresh products, Freshpet is well positioned to capitalize on continued growing pet ownership along with humanization trends by expanding its store footprint and growing its sales-per-store. It primarily focuses on the $37 billion US dog food market (2023 estimate according to Euromonitor) through company-owned and -maintained refrigerators in 27,100 grocery, mass and club, pet specialty, and natural stores. The company estimates a market opportunity of at least 30,000 stores, though we forecast at least 35,000 by the end of our 10-year forecast period given the 46,000 supermarkets in the US alone, not including pet specialty stores.

Price vs Fair Value

FRPT is trading at a 856% premium.
Price
$127.47
Fair Value
$91.00
Uncertainty
High
1-Star Price
$833.20
5-Star Price
$72.20
Economic Moat
Rlgmw
Capital Allocation
Sjbzlmyx

Bulls Say, Bears Say

Bulls

Freshpet’s focus on premium fresh food exposes it to the fastest growing segment in pet food, which should help drive robust growth for years to come.

Bears

Larger, more diversified competitors can distribute pet food along with a plethora of other products. Freshpet’s narrow offering limits its ability to scale its distribution costs.

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News

Trading Information

Previous Close Price
$127.39
Day Range
$126.20130.11
52-Week Range
$54.60136.35
Bid/Ask
$126.71 / $128.14
Market Cap
$6.17 Bil
Volume/Avg
325,468 / 579,484

Key Statistics

Price/Earnings (Normalized)
670.20
Price/Sales
7.54
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Freshpet produces and sells premium fresh pet food through its company-owned refrigerators placed in grocery, mass and club, pet specialty, and natural stores. The former two store types accounted for 89% of 2023 sales, with grocery stores representing the primary driver of footprint growth. Freshpet primarily targets dogs (92% of sales), with cats and treats comprising the rest of its sales. Geographically, the company’s home US market, where all its food is produced, accounts for about 96% of sales, with exports to Canada, the United Kingdom, and other European countries accounting for the remaining balance.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Small Growth
Total Number of Employees
1,094

Competitors

Valuation

Metric
FRPT
GIS
CHWY
Price/Earnings (Normalized)
670.2013.9533.80
Price/Book Value
6.313.7517.97
Price/Sales
7.541.841.02
Price/Cash Flow
67.4011.1024.84
Price/Earnings
FRPT
GIS
CHWY

Financial Strength

Metric
FRPT
GIS
CHWY
Quick Ratio
3.980.340.66
Current Ratio
4.970.651.07
Interest Coverage
0.687.049.47
Quick Ratio
FRPT
GIS
CHWY

Profitability

Metric
FRPT
GIS
CHWY
Return on Assets (Normalized)
2.52%8.45%11.56%
Return on Equity (Normalized)
3.81%27.01%78.89%
Return on Invested Capital (Normalized)
2.55%13.40%30.80%
Return on Assets
FRPT
GIS
CHWY
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