Latest news with #BRBR
Yahoo
2 days ago
- Business
- Yahoo
BellRing Brands, Inc.'s (NYSE:BRBR) Intrinsic Value Is Potentially 42% Above Its Share Price
Key Insights The projected fair value for BellRing Brands is US$82.59 based on 2 Stage Free Cash Flow to Equity BellRing Brands is estimated to be 30% undervalued based on current share price of US$58.20 The US$77.87 analyst price target for BRBR is 5.7% less than our estimate of fair value Today we will run through one way of estimating the intrinsic value of BellRing Brands, Inc. (NYSE:BRBR) by estimating the company's future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Don't get put off by the jargon, the math behind it is actually quite straightforward. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The Calculation We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF ($, Millions) US$343.9m US$390.5m US$421.0m US$456.0m US$483.5m US$508.1m US$530.8m US$552.0m US$572.3m US$592.1m Growth Rate Estimate Source Analyst x4 Analyst x3 Analyst x1 Analyst x1 Est @ 6.03% Est @ 5.10% Est @ 4.45% Est @ 4.00% Est @ 3.68% Est @ 3.46% Present Value ($, Millions) Discounted @ 7.2% US$321 US$340 US$342 US$346 US$342 US$335 US$327 US$317 US$307 US$296 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$3.3b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.9%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.2%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = US$592m× (1 + 2.9%) ÷ (7.2%– 2.9%) = US$14b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$14b÷ ( 1 + 7.2%)10= US$7.2b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$10b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of US$58.2, the company appears a touch undervalued at a 30% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Important Assumptions The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at BellRing Brands as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.2%, which is based on a levered beta of 0.976. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for BellRing Brands SWOT Analysis for BellRing Brands Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings. Weakness Earnings growth over the past year is below its 5-year average. Opportunity Annual earnings are forecast to grow for the next 3 years. Trading below our estimate of fair value by more than 20%. Threat Debt is not well covered by operating cash flow. Total liabilities exceed total assets, which raises the risk of financial distress. Annual earnings are forecast to grow slower than the American market. Next Steps: Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Can we work out why the company is trading at a discount to intrinsic value? For BellRing Brands, there are three essential elements you should look at: Risks: Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with BellRing Brands , and understanding these should be part of your investment process. Future Earnings: How does BRBR's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Associated Press
03-07-2025
- Business
- Associated Press
BellRing Brands (BRBR) Shares Declined 19% Amid Upcoming Retailer Destocking
SAN FRANCISCO, July 03, 2025 (GLOBE NEWSWIRE) -- On May 6, 2025, investors in BellRing Brands, Inc. (NYSE: BRBR) saw the price of their shares decline about 19% after BellRing announced during its Q2 2025 earnings call that it anticipated Q3 2025 reduction in retailer inventory levels. This announcement has prompted national shareholders rights firm Hagens Berman to open an investigation into whether BellRing Brands may have violated the securities laws concerning the company's sales practices. The firm urges BellRing investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys. Visit: Contact the Firm Now: [email protected] 844-916-0895 BellRing Brands, Inc. (BRBR) Investigation: BellRing Brands, a consumer products holding company that provides ready-to-drink ('RTD') protein shakes and powders whose primary brands are Premier Protein and Dymatize, repeatedly assured investors early this year that it was confident in strong consumer demand for its RTDs. The company's assurances may have come into question on May 6, 2025, when BellRing revealed during its Q2 2025 earnings call that it expected 'third quarter reductions in retailer trade inventory levels' and '[s]tarting late in Q2 and continuing into the third quarter, several key retailers lowered their weeks of supply on hand, which is expected to be a mid-single-digit headwind to our third quarter growth.' BellRing also said that, as a result of trade inventory changes, it 'now expect[s] Q3 net sales growth of low-single-digits with Premier Protein the main driver and all other flat to down.' This news sent the price of BellRing shares crashing $14.88 lower (-19%) on May 6, 2025. 'We're investigating whether BellRing may have misled investors about the strength in consumer demand for RTDs and retail inventory levels,' said Reed Kathrein, the Hagens Berman partner leading the investigation. If you invested in BellRing and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now » If you'd like more information and answers to frequently asked questions about the BellRing investigation, read more» Whistleblowers: Persons with non-public information regarding BellRing should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected]. About Hagens Berman Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at Follow the firm for updates and news at @ClassActionLaw. Contact: Reed Kathrein, 844-916-0895
Yahoo
30-06-2025
- Business
- Yahoo
Mizuho Trims BellRing (BRBR) Price Target, Maintains Outperform Rating
BellRing Brands, Inc. (NYSE:BRBR) is one of . Mizuho analyst has adjusted the price target on BellRing Brands, Inc. (NYSE:BRBR) to $75 from $85, while maintaining an Outperform rating. The revision comes amid an industry-wide valuation reset in the food producer sector, prompting the firm to recalibrate its expectations for BellRing alongside peers. A wide shot of an aisle in a food store lined with different nutrition products. Despite the lower target, Mizuho remains positive about BellRing's prospects. The company's recent expansion efforts, particularly increased distribution across retail channels, continue to support near-term growth. Analysts also noted the buoyancy of the nutrition category, where BellRing Brands, Inc. (NYSE:BRBR) holds a strong position with its core brands. Additionally, the company has limited exposure to private-label competition, bolstering its pricing power and margin resilience. Mizuho's industry review prompted valuation adjustments across several food stocks, but the analyst emphasized that BellRing retains structural advantages. The diversified flavor-infusion portfolio and robust growth in categories like shake-based nutrition offerings provide a foundation for sustained performance. BellRing's ability to expand shelf presence and execute within fast-growing segments aligns well with Mizuho's top-pick criteria, even as general sector sentiment softens. Analysts expect BellRing to outperform the broader sector in volume and revenue growth, with the valuation adjustment offering a more compelling entry point. Mizuho's maintained Outperform rating indicates sustained confidence in BellRing's business model amidst evolving market valuations. While we acknowledge the potential of BRBR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BRBR and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and 10 Best Wide Moat Dividend Stocks to Invest in. Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds' investor letters by entering your email address below. Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Yahoo
29-06-2025
- Business
- Yahoo
Mizuho Trims BellRing (BRBR) Price Target, Maintains Outperform Rating
BellRing Brands, Inc. (NYSE:BRBR) is one of . Mizuho analyst has adjusted the price target on BellRing Brands, Inc. (NYSE:BRBR) to $75 from $85, while maintaining an Outperform rating. The revision comes amid an industry-wide valuation reset in the food producer sector, prompting the firm to recalibrate its expectations for BellRing alongside peers. A wide shot of an aisle in a food store lined with different nutrition products. Despite the lower target, Mizuho remains positive about BellRing's prospects. The company's recent expansion efforts, particularly increased distribution across retail channels, continue to support near-term growth. Analysts also noted the buoyancy of the nutrition category, where BellRing Brands, Inc. (NYSE:BRBR) holds a strong position with its core brands. Additionally, the company has limited exposure to private-label competition, bolstering its pricing power and margin resilience. Mizuho's industry review prompted valuation adjustments across several food stocks, but the analyst emphasized that BellRing retains structural advantages. The diversified flavor-infusion portfolio and robust growth in categories like shake-based nutrition offerings provide a foundation for sustained performance. BellRing's ability to expand shelf presence and execute within fast-growing segments aligns well with Mizuho's top-pick criteria, even as general sector sentiment softens. Analysts expect BellRing to outperform the broader sector in volume and revenue growth, with the valuation adjustment offering a more compelling entry point. Mizuho's maintained Outperform rating indicates sustained confidence in BellRing's business model amidst evolving market valuations. While we acknowledge the potential of BRBR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BRBR and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and 10 Best Wide Moat Dividend Stocks to Invest in. Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds' investor letters by entering your email address below.
Yahoo
22-05-2025
- Business
- Yahoo
3 Reasons Investors Love BellRing Brands (BRBR)
Shareholders of BellRing Brands would probably like to forget the past six months even happened. The stock dropped 20.9% and now trades at $62.14. This might have investors contemplating their next move. Following the drawdown, is this a buying opportunity for BRBR? Find out in our full research report, it's free. Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands. Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there's a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive. BellRing Brands's average quarterly volume growth of 20.8% over the last two years has beaten the competition by a long shot. This is great because companies with significant volume growth are needles in a haystack in the stable consumer staples sector. Analyzing the change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. BellRing Brands's EPS grew at an astounding 28% compounded annual growth rate over the last three years, higher than its 18.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Growth gives us insight into a company's long-term potential, but how capital-efficient was that growth? A company's ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity). BellRing Brands's five-year average ROIC was 48.9%, placing it among the best consumer staples companies. This illustrates its management team's ability to invest in highly profitable ventures and produce tangible results for shareholders. These are just a few reasons why we think BellRing Brands is a high-quality business. After the recent drawdown, the stock trades at 26.1× forward P/E (or $62.14 per share). Is now a good time to initiate a position? See for yourself in our comprehensive research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
