Fitlife Brands, Inc. (NASDAQ: FTLF)

Sector: Consumer Defensive Industry: Packaged Foods CIK: 0001374328
Market Cap 137.04 Mn
P/B 3.27
P/E 20.28
P/S 1.94
ROIC (Qtr) 7.98
Div Yield % 0.00
Rev 1y % (Qtr) 46.99
Total Debt (Qtr) 46.84 Mn
Debt/Equity (Qtr) 1.12
Add ratio to table...

About

FitLife Brands, Inc., a company that trades on the Nasdaq Capital Market under the ticker symbol FTLF, operates in the highly competitive nutrition industry. The company's main business activities involve the provision of innovative and proprietary nutritional supplements and wellness products. FitLife Brands operates in various countries and regions, with a significant presence in the United States. The company generates revenue primarily through the sale of its nutritional supplements and wellness products. Its primary products include sports...

Read more

Investment thesis

Bull case

  • Operating cash flow of 8.15M provides strong 18.24x coverage of stock compensation 447000, indicating sustainable incentive practices.
  • Robust free cash flow of 8.12M exceeds capital expenditure of 37000 by 219.32x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 38.97M provides 8.91x coverage of working capital 4.38M, indicating strong operational backing.
  • Operating cash flow of 8.15M fully covers other non-current liabilities 2.32M by 3.52x, showing strong long-term stability.
  • Cash reserves of 3.51M provide solid 1.51x coverage of other non-current liabilities 2.32M, indicating strong liquidity.

Bear case

  • Operating cash flow of 8.15M barely covers its investment activities of (42.54M), with a coverage ratio of -0.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 3.51M against inventory of 22.23M, the 0.16 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Cash reserves of 3.51M provide limited coverage of acquisition spending of (42.50M), which is -0.08x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Retained earnings of 10.25M provide limited buffer against comprehensive income items of (596000), which is -17.20x, indicating elevated exposure to market risks.
  • Free cash flow of 8.12M represents just 0.25x of debt issuance 32.20M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Geographical Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Packaged Foods
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KHC Kraft Heinz Co 28.20 Bn -4.82 1.13 21.22 Bn
2 GIS General Mills Inc 26.99 Bn 20.72 1.54 13.73 Bn
3 JBS Jbs N.V. 17.81 Bn 10.08 0.23 23.92 Bn
4 MKC Mccormick & Co Inc 16.10 Bn 44.21 3.77 4.00 Bn
5 HRL Hormel Foods Corp /De/ 12.37 Bn 18.03 1.34 2.86 Bn
6 SJM J M SMUCKER Co 11.08 Bn 19.60 1.97 7.91 Bn
7 PPC Pilgrims Pride Corp 10.32 Bn 9.54 0.56 3.29 Bn
8 MICC Magnum Ice Cream Co N.V. 9.71 Bn 28.17 1.04 4.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.33 1.47
EV to Cash from Ops. EV/CFO 17.98 29.75
EV to Debt EV to Debt 3.13 27.85
EV to EBIT EV/EBIT 13.54 86.88
EV to EBITDA EV/EBITDA 13.49 -156.20
EV to Free Cash Flow [EV/FCF] EV/FCF 18.06 -5.67
EV to Market Cap EV to Market Cap 1.07 1.15
EV to Revenue EV/Rev 2.08 7.32
Price to Book Value [P/B] P/B 3.27 8.48
Price to Earnings [P/E] P/E 20.28 14.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 4.58
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.76
Dividend per Basic Share Div per Share (Qtr) 0.00 0.65
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 22.76
Interest Coverage Int. cover (Qtr) 8.14 6.64
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 33.93 -118.07
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -25.59 43.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.66
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -19.40 -48.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -10.74 -152.35
EBIT Growth (1y) % EBIT 1y % (Qtr) -12.87 -50.79
EBT Growth (1y) % EBT 1y % (Qtr) -13.00 -54.94
EPS Growth (1y) % EPS 1y % (Qtr) -18.68 -28.10
FCF Growth (1y) % FCF 1y % (Qtr) -19.21 7.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.49 439.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.64 1.01
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.12
Cash Ratio Cash Ratio (Qtr) 0.11 0.86
Current Ratio Curr Ratio (Qtr) 1.13 2.60
Debt to Equity Ratio Debt/Equity (Qtr) 1.12 2.21
Interest Cover Ratio Int Coverage (Qtr) 8.14 6.64
Times Interest Earned Times Interest Earned (Qtr) 8.14 6.64
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 15.60 -919.13
EBIT Margin % EBIT Margin % (Qtr) 15.35 -1,474.87
EBT Margin % EBT Margin % (Qtr) 13.46 -1,537.76
Gross Margin % Gross Margin % (Qtr) 40.70 26.98
Net Profit Margin % Net Margin % (Qtr) 9.60 -1,538.60