Fundamental analysis
BellRing brands are owned by Post Holding Group, which is an American food wholesaler and retailer. However, BellRing brands is an offspin producing a specific segment of food. They focus on fitness food, nutritional and protein supplements. The IPO took place in 2019. Since the IPO began, the share price has increased 216%. BRBR is traded on the NYSE with a current market capitalization of $7.5 billion. It operates in America and Europe under various brands (Premier Protein, Dymatize, PowerBar). The company sells its products both online and offline (drug stores, pharmacies, fitness centers, supermarkets). Over the past 12 months, the company’s stock has risen 54%. PE is 34.
Results
In 2023, the company had sales of $1.7 billion. Net income was $165 million. EBITDA was $331 million.
The company reduced its debt by USD 87 million. BRBR is repurchasing its shares. In 2023, it repurchased $125 million worth of stock (4.2 million shares). In 2024, the company focuses on growth through penetration of new markets and customers (primarily Premier Protein and Dymatize brands). There is also an investment in a shake factory, which is expected to expand to meet future demand.
Technical analysis
BRBR has been in growth since early 2023. The moving averages crossed in January 2023.
RSI is in the neutral zone. And it has been for quite a long time. This points to a longer-term trend stop without significant price fluctuations. It’s as if the stock is sitting still, waiting to see what happens next.
Currently, the price is hovering around resistance at $56, which has now turned into support. Thus, thanks to its growth, the price is hovering around its highs.
Conclusion
BellRing brands are targeting the promising growing specialty health food sector. Clearly, this is a very specific market as it has paid off for Post Holding to keep BellRings as an offspin company that does not interfere with Post Holding’s core business.
Revenue growth is significant even after the covide period. The growth in the stock is consistent with this. It is also supported by share buybacks.
According to the technical analysis, the stock is in a long-term growth, but in recent weeks the price is waiting to see which direction to go next. Neither further growth nor a correction can be ruled out. The price growth has been significant in recent months.