Utz Brands Inc (UTZ, Financial) has recently caught the attention of investors with its notable stock performance. Over the past week, the company's stock price has seen a 6.30% gain, and looking at the past three months, the gain is even more impressive at 30.27%. With a current market capitalization of $1.38 billion and a stock price of $17.05, Utz Brands Inc is making waves in the consumer packaged goods industry. According to GuruFocus's valuation metrics, the stock is currently fairly valued, with a GF Value of $17.56, slightly above its current price. This is a shift from three months ago when the stock was considered modestly undervalued with a past GF Value of $18.
Introduction to Utz Brands Inc
Utz Brands Inc, operating in the consumer packaged goods sector, is a well-established manufacturer and distributor of a wide range of salty snacks. The company's product lineup includes popular items such as potato chips, pretzels, cheese snacks, and pork skins, among others. These products are sold under various well-known brands like Utz, Zapp's, and Golden Flake. Utz Brands has a strong distribution network that spans across grocery stores, mass merchants, clubs, convenience stores, and drug stores, both nationally and internationally. The company's focus on a diverse product range and extensive distribution channels has positioned it as a significant player in the snack food market.
Assessing Utz Brands' Profitability
Despite its market presence, Utz Brands Inc's profitability metrics suggest there is room for improvement. The company's Profitability Rank stands at 3 out of 10, indicating challenges in maintaining consistent profits. The Operating Margin is currently at 1.59%, which is better than 33.12% of the companies in the industry. When it comes to ROE, Utz Brands has a rate of 2.52%, surpassing 36.06% of its peers. The ROA at 0.62% and ROIC at -0.21% also reflect a need for strategic improvements. Notably, the company has only achieved profitability in one of the past ten years, which is a concern for potential investors.
Growth Trajectory of Utz Brands
On a brighter note, Utz Brands Inc's growth metrics paint a more optimistic picture. The company's 3-Year Revenue Growth Rate per Share is at 8.50%, which is commendable and better than 55.95% of the companies in the industry. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is estimated at 3.67%. Furthermore, the 3-Year EPS without NRI Growth Rate stands at an impressive 62.80%, outperforming 88.36% of its competitors. These growth indicators suggest that Utz Brands has the potential to expand its profitability in the coming years.
Influential Shareholders in Utz Brands
Utz Brands Inc's shareholder composition includes notable investors who may influence the company's strategic direction. Ron Baron (Trades, Portfolio) is the leading shareholder with 3,250,000 shares, representing a 4.01% share percentage. Following him is Jim Simons (Trades, Portfolio), holding 473,400 shares, which equates to a 0.58% share percentage. First Eagle Investment (Trades, Portfolio) also has a significant stake with 409,027 shares, accounting for 0.5% of the shares. The involvement of these prominent investors could be a sign of confidence in the company's future prospects.
Competitive Landscape
When compared to its competitors, Utz Brands Inc holds its ground with a market cap of $1.38 billion. The Hain Celestial Group Inc (HAIN, Financial) has a market cap of $960.784 million, Usana Health Sciences Inc (USNA, Financial) is valued at $995.898 million, and WK Kellogg Co (KLG, Financial) stands at $1.16 billion. These companies operate within the same industry and have similar market capitalizations, making them direct competitors to Utz Brands. The company's recent stock performance and growth prospects could give it an edge in this competitive landscape.
Conclusion
In conclusion, Utz Brands Inc's recent stock price surge can be attributed to its solid growth metrics and the confidence shown by its significant shareholders. While the company's profitability ranks lower compared to industry peers, its growth rates in revenue and EPS suggest potential for future improvement. As the company continues to navigate the competitive consumer packaged goods industry, investors will be watching closely to see if Utz Brands can leverage its strengths to enhance profitability and sustain its upward trajectory in the stock market.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
