Barfresh Food Group Inc. (NASDAQ: BRFH)

Sector: Consumer Defensive Industry: Beverages - Non-Alcoholic CIK: 0001487197
Market Cap 41.16 Mn
P/B 21.43
P/E -14.79
P/S 3.56
ROIC (Qtr) -83.08
Div Yield % 0.00
Rev 1y % (Qtr) 16.33
Total Debt (Qtr) 2.33 Mn
Debt/Equity (Qtr) 1.21
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About

Barfresh Food Group Inc., a company with the stock symbol BRFH, operates in the dynamic and competitive food and beverage industry. The company specializes in the creation, manufacturing, and distribution of ready-to-drink and ready-to-blend frozen beverages. With a diverse product range including smoothies, shakes, and frappes, Barfresh offers its products in various formats such as single-serve, bulk, and cartons. The company's operations span across multiple fronts, from manufacturing to distribution, and it competes with other food and beverage...

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Investment thesis

Bull case

  • Strong tangible asset base of 6.67M provides 2.86x coverage of total debt 2.33M, indicating robust asset backing and low credit risk.
  • Tangible assets of 6.67M provide robust 21.24x coverage of other current liabilities 314000, indicating strong asset backing.
  • Robust tangible asset base of 6.67M provides 5.92x coverage of working capital 1.13M, indicating strong operational backing.
  • Strong cash position of 1.89M provides 6.02x coverage of other current liabilities 314000, indicating excellent liquidity.
  • Cash reserves of 1.89M exceed inventory value of 1.07M by 1.76x, indicating strong liquidity and inventory management.

Bear case

  • The company's operating cash flow of (2.86M) shows concerning coverage of stock compensation expenses of 488000, with a -5.86 ratio indicating potential earnings quality issues.
  • High receivables of 2.55M relative to inventory of 1.07M (2.38 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (2.89M) provides weak coverage of capital expenditures of 34000, with a -85.06 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (2.69M) show weak coverage of depreciation charges of 251000, with a -10.72 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (2.86M) barely covers operating expenses of 223000 with a -12.82 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Beverages - Non-Alcoholic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KO Coca Cola Co 359.59 Bn 41.22 7.57 47.42 Bn
2 PEP Pepsico Inc 221.63 Bn 26.90 2.36 49.18 Bn
3 MNST Monster Beverage Corp 80.88 Bn 46.84 10.14 0.11 Bn
4 CCEP COCA-COLA EUROPACIFIC PARTNERS plc 48.53 Bn 20.84 1.97 12.58 Bn
5 COKE Coca-Cola Consolidated, Inc. 15.28 Bn 534.08 9.79 1.92 Bn
6 CELH Celsius Holdings, Inc. 10.33 Bn 399.18 4.86 0.86 Bn
7 KDP Keurig Dr Pepper Inc. 5.72 Bn 8.07 0.94 15.85 Bn
8 FIZZ National Beverage Corp 3.42 Bn 18.34 2.85 0.07 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 5.98 3.00
EV to Cash from Ops. EV/CFO -14.21 25.34
EV to Debt EV to Debt 17.42 82.79
EV to EBIT EV/EBIT -15.10 35.67
EV to EBITDA EV/EBITDA -16.66 24.62
EV to Free Cash Flow [EV/FCF] EV/FCF -14.05 40.15
EV to Market Cap EV to Market Cap 0.99 2.70
EV to Revenue EV/Rev 3.51 3.95
Price to Book Value [P/B] P/B 21.43 15.38
Price to Earnings [P/E] P/E -14.79 112.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -230.19
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -1.98
Dividend per Basic Share Div per Share (Qtr) 0.00 0.88
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 30.31
Interest Coverage Int. cover (Qtr) -28.92 3.00
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 44.26 -59.79
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 371.57 125.83
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -6.02
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1.62 -5.50
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -3.70 4.45
EBIT Growth (1y) % EBIT 1y % (Qtr) -1.62 70.95
EBT Growth (1y) % EBT 1y % (Qtr) -4.08 3.85
EPS Growth (1y) % EPS 1y % (Qtr) -5.56 5.85
FCF Growth (1y) % FCF 1y % (Qtr) -13.19 19.77
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.99 12.14
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.70 1.15
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.16
Cash Ratio Cash Ratio (Qtr) 0.42 0.76
Current Ratio Curr Ratio (Qtr) 1.25 1.78
Debt to Equity Ratio Debt/Equity (Qtr) 1.21 1.22
Interest Cover Ratio Int Coverage (Qtr) -28.92 3.00
Times Interest Earned Times Interest Earned (Qtr) -28.92 3.00
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -21.10 9.71
EBIT Margin % EBIT Margin % (Qtr) -23.24 6.85
EBT Margin % EBT Margin % (Qtr) -24.05 5.02
Gross Margin % Gross Margin % (Qtr) 31.90 40.60
Net Profit Margin % Net Margin % (Qtr) -24.00 2.49