Mama's Creations, Inc. (NASDAQ: MAMA)

Sector: Consumer Defensive Industry: Packaged Foods CIK: 0001520358
Market Cap 633.79 Mn
P/B 12.78
P/E 136.18
P/S 4.19
ROIC (Qtr) 8.49
Div Yield % 0.00
Rev 1y % (Qtr) 49.95
Total Debt (Qtr) 15.97 Mn
Debt/Equity (Qtr) 0.32
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About

Mama's Creations, Inc. (MAMA) operates in the food industry, specializing in the development, manufacturing, and distribution of a variety of food products. These product categories include baked goods, snacks, and beverages, with the Food Products segment serving as the company's core business. Mama's Creations' Food Products segment is responsible for the creation and distribution of their edible offerings, such as bread, pastries, cakes, snacks, and beverages. These goods are supplied to a diverse clientele, including retail chains, wholesalers,...

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Investment thesis

Bull case

  • Strong operating cash flow of 7.34M provides robust 0.46x coverage of total debt 15.97M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 18.16M provide 4.96x coverage of short-term debt 3.66M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 71.05M provides 4.45x coverage of total debt 15.97M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 7.34M provides exceptional 17.12x coverage of interest expenses 429000, showing strong debt service capability.
  • Robust free cash flow of 6.02M exceeds capital expenditure of 1.32M by 4.56x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 7.34M barely covers its investment activities of (18.82M), with a coverage ratio of -0.39, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (18.82M) provide weak support for R&D spending of 311000, which is -60.51x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 7.34M shows concerning coverage of stock compensation expenses of 1.47M, with a 4.99 ratio indicating potential earnings quality issues.
  • Operating earnings of 6.20M show weak coverage of depreciation charges of 5.34M, with a 1.16 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 5.34M relative to operating cash flow of 7.34M, which is 0.73x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2025)

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 7.55 1.47
EV to Cash from Ops. EV/CFO 86.45 29.75
EV to Debt EV to Debt 39.76 27.85
EV to EBIT EV/EBIT 102.33 86.88
EV to EBITDA EV/EBITDA 55.85 -156.20
EV to Free Cash Flow [EV/FCF] EV/FCF 105.40 -5.67
EV to Market Cap EV to Market Cap 1.00 1.15
EV to Revenue EV/Rev 4.20 7.32
Price to Book Value [P/B] P/B 12.78 8.48
Price to Earnings [P/E] P/E 136.18 14.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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) 14.46 6.64
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 74.30 -118.07
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 92.94 43.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.66
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 30.07 -48.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 53.55 -152.35
EBIT Growth (1y) % EBIT 1y % (Qtr) 20.51 -50.79
EBT Growth (1y) % EBT 1y % (Qtr) 22.53 -54.94
EPS Growth (1y) % EPS 1y % (Qtr) 22.22 -28.10
FCF Growth (1y) % FCF 1y % (Qtr) -21.16 7.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 30.38 439.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.80 1.01
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.12
Cash Ratio Cash Ratio (Qtr) 0.82 0.86
Current Ratio Curr Ratio (Qtr) 1.85 2.60
Debt to Equity Ratio Debt/Equity (Qtr) 0.32 2.21
Interest Cover Ratio Int Coverage (Qtr) 14.46 6.64
Times Interest Earned Times Interest Earned (Qtr) 14.46 6.64
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.60 -919.13
EBIT Margin % EBIT Margin % (Qtr) 4.10 -1,474.87
EBT Margin % EBT Margin % (Qtr) 3.82 -1,537.76
Gross Margin % Gross Margin % (Qtr) 25.20 26.98
Net Profit Margin % Net Margin % (Qtr) 3.10 -1,538.60