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Barfresh Food Group (BRFH)
NASDAQ:BRFH
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Barfresh Food Group
(NASDAQ:BRFH)
41Neutral
Positive Factors
Product Reception
The new Pop & Go freeze pop product received an overwhelmingly positive response during testing, indicating strong market demand.
Revenue Growth
Increased Twist & Go, smoothie carton, and bulk sales drove 3Q24 revenue up 40% year-over-year.
Negative Factors
Guidance
Management introduced guidance below expectations.
Manufacturing Disruptions
Manufacturing disruptions related to inadequate production equipment negatively impacted sales and margins.
Barfresh Food Group (BRFH) vs. S&P 500 (SPY)
Market Cap
$37.43M
Dividend YieldN/A
Average Volume (3M)12.36K
Price to Earnings (P/E)―
Beta (1Y)0.43
Revenue Growth31.88%
EPS Growth9.47%
CountryUS
Employees11
SectorConsumer Defensive
Sector Strength91
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)-0.19
Shares Outstanding15,810,080
10 Day Avg. Volume6,848
30 Day Avg. Volume12,360
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.21
Price to Cash Flow (P/CF)2565.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.25Price Target Upside90.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Barfresh Food Group Business Overview & Revenue Model
Company DescriptionBarfresh Food Group (BRFH) is a company operating in the food and beverage industry, specializing in the development, manufacturing, and distribution of ready-to-blend frozen beverages. The company offers a variety of smoothies, shakes, and frappes, catering primarily to the foodservice industry, including restaurants, convenience stores, and educational institutions. Barfresh's products are designed to provide convenience and quality through their innovative packaging and formulation.
How the Company Makes MoneyBarfresh Food Group makes money through the sale of its ready-to-blend frozen beverages to various foodservice operators. The company's revenue model is primarily based on selling these products to restaurants, convenience stores, and schools, which then serve them to their customers. Barfresh generates income through direct sales and has distribution agreements with key foodservice distributors to widen its market reach. These partnerships are crucial for expanding its customer base and facilitating product delivery. Additionally, Barfresh may also earn from strategic partnerships and collaborations that enhance its market presence and product offerings.
Barfresh Food Group Financial Statement Overview
Summary
Barfresh Food Group is facing severe financial difficulties, with no revenue reported in the latest period, negative profitability metrics, and deteriorating cash flows. The balance sheet shows declining equity, posing future liquidity risks. Immediate strategic changes are essential to address these challenges.Income Statement
Barfresh Food Group has shown a declining trend in revenue from $9.16 million in 2022 to $0 in 2024, indicating significant business challenges. The company consistently reported negative EBIT and net income, reflecting ongoing losses and operational inefficiencies. The absence of revenue in the latest period indicates severe financial distress.20
Very Negative
Balance Sheet
The company's debt-to-equity ratio is relatively low due to low total debt, but the equity base has been shrinking, from $2.52 million in 2022 to $578,000 in 2024. The equity ratio dropped significantly, indicating a potential risk in financial stability. However, the reduced liabilities provide some relief.40
Negative
Cash Flow
Operating cash flow remains negative and worsening, from -$2.65 million in 2022 to -$2.23 million in 2024. Free cash flow also remains negative, highlighting the company's struggle to generate cash. The company relies heavily on financing activities to sustain operations, which is unsustainable long-term.25
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 9.85M | 0.00 | 8.13M | 9.16M | 6.70M | 2.57M | Gross Profit |
| 3.36M | 0.00 | 2.48M | 1.44M | 2.51M | 764.07K | EBIT |
| -2.66M | 0.00 | -2.63M | -5.47M | -2.09M | -4.21M | EBITDA |
| -2.35M | 0.00 | -2.41M | -4.94M | -495.98K | -3.60M | Net Income Common Stockholders |
| -2.67M | 0.00 | -2.82M | -6.96M | -435.91K | -4.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 0.00 | 235.00K | 1.89M | 2.81M | 5.53M | 1.82M | Total Assets |
| 36.34K | 3.32M | 4.81M | 5.09M | 9.72M | 5.82M | Total Debt |
| 0.00 | 609.00K | 0.00 | 20.00K | 95.00K | 1.89M | Net Debt |
| 0.00 | 374.00K | -1.89M | -2.79M | -5.44M | 77.46K | Total Liabilities |
| 100.19K | 2.74M | 2.31M | 2.57M | 1.54M | 3.49M | Stockholders Equity |
| -63.84K | 578.00K | 2.50M | 2.52M | 8.18M | 2.32M |
| Cash Flow | Free Cash Flow | ||||
| -2.56M | -2.28M | -2.96M | -2.66M | -2.01M | -3.27M | Operating Cash Flow |
| -2.49M | -2.23M | -2.96M | -2.65M | -1.86M | -3.20M | Investing Cash Flow |
| -61.00K | -53.00K | 0.00 | -13.00K | -150.54K | -74.19K | Financing Cash Flow |
| 1.95M | 626.00K | 1.83M | 5.00K | 5.73M | 4.14M |
Barfresh Food Group Technical Analysis
Negative
2.76
Price Trends
3.32
Negative
3.14
Negative
3.13
Negative
Market Momentum
-0.27
Positive
35.98
Neutral
45.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRFH, the sentiment is Negative. The current price of 2.76 is above the 20-day moving average (MA) of 2.74, below the 50-day MA of 3.32, and below the 200-day MA of 3.13, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 35.98 is Neutral, neither overbought nor oversold. The STOCH value of 45.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRFH.
Barfresh Food Group Risk Analysis
Barfresh Food Group disclosed 32 risk factors in its most recent earnings report. Barfresh Food Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Barfresh Food Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.47B | 12.31 | 24.99% | 4.54% | 10.23% | 19.07% | |
70 Outperform | $1.75B | 32.50 | 24.26% | ― | 4.54% | 19.37% | |
64 Neutral | $9.21B | 14.61 | 4.29% | 186.43% | 3.98% | 5.57% | |
58 Neutral | $174.22M | ― | -25.77% | ― | -6.83% | 19.09% | |
46 Neutral | $278.03M | ― | -91.64% | ― | 4.71% | 52.27% | |
41 Neutral | $37.43M | ― | -183.38% | ― | 31.88% | 9.47% | |
40 Underperform | $30.12M | ― | -1457.29% | ― | -67.69% | -104.65% |
* Consumer Defensive Sector Average
Performance Comparison
BRFH
Barfresh Food Group
2.76
1.35
95.74%
AKO.A
Embotelladora Andina SA
18.60
5.81
45.43%
SHOT
Safety Shot
0.51
-1.15
-69.28%
OTLY
Oatly Group
9.30
-10.60
-53.27%
ZVIA
Zevia PBC
2.26
1.46
182.50%
COCO
Vita Coco Company
30.82
6.07
24.53%
Barfresh Food Group Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -19.06% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflects a company in transformation, with record revenue in 2024 and strong growth projections for 2025. Despite facing challenges such as decreased gross margin and increased net loss in Q4 due to manufacturing adjustments, the company is optimistic about future growth and profitability, driven by expanded product offerings and a robust sales network.Highlights
Record Full Year Revenue
Barfresh achieved record full year revenue of $10.7 million in 2024, up from $8.1 million in 2023, due to expanded bottle production capacity and improvements in smoothie carton and bulk sales.
Significant Growth Projection for 2025
Barfresh expects another year of record revenue in 2025, with growth guidance between 35% and 55%.
Expanded Product Portfolio
Launched Pop & Go, 100% Juice Freeze Pops in the education channel during Q4 2024, targeting the lunch daypart and expected to contribute significantly in 2025.
Financial Foundation Secured
Secured non-dilutive financing including non-recourse litigation financing and a $1.5 million line of credit, and raised $3 million through the sale of common stock.
Robust Sales Network
Built a robust sales network with 95% coverage across the U.S., with significant runway for growth as market penetration is currently only 5%.
Lowlights
Decreased Gross Margin
Gross margin for Q4 2024 decreased to 26% from 33% in Q4 2023, attributed to temporary production inefficiencies and higher logistics costs.
Increased Net Loss in Q4
Net loss for Q4 2024 was $852,000, compared to a net loss of $701,000 in Q4 2023, due to start-up costs of onboarding new co-manufacturers and increased logistics costs.
Challenges with Manufacturing Capacity
Faced near-term cost pressures due to onboarding new co-manufacturers and higher supply chain expenses, impacting Q4 results, with full manufacturing capacity expected by the end of Q2 2025.
Company Guidance
During the call, Barfresh Food Group provided guidance indicating that they anticipate a revenue growth of between 35% and 55% for 2025, driven by continuing orders, confirmed bids, and potential opportunities in their sales pipeline. They plan to achieve full manufacturing capacity by the end of Q2 2025, with material revenue contribution expected from their new product, Pop & Go, 100% Juice Freeze Pops, targeting the lunch daypart. The company's expanded manufacturing capabilities and robust sales network, covering 95% of the U.S., are expected to support this growth. In 2024, Barfresh achieved record revenue of $10.7 million, up from $8.1 million in 2023, despite facing temporary cost pressures that impacted their fourth-quarter results. The gross margin for the full year of 2024 was 34%, with an adjusted gross margin of 37%. The company also raised $3 million in February 2025 to enhance their financial position and support production scaling. Overall, Barfresh is confident in their growth projection for 2025, expecting significant revenue growth and margin expansion beginning in the second half of the year.Barfresh Food Group Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Barfresh Food Group Projects Record Revenue for 2025
Positive
Mar 27, 2025
In 2024, Barfresh Food Group achieved its highest fiscal year revenue of $10.7 million, driven by expanded bottle production capacity and the launch of Pop & Go™ 100% Juice Freeze Pops. Despite facing temporary production inefficiencies and increased logistics costs, the company anticipates resolving these issues by mid-2025, positioning itself for further growth. Looking ahead to 2025, Barfresh expects record revenue between $14.5 million and $16.6 million, supported by enhanced production capacity and a strong product portfolio, aiming to capture significant opportunities in its target markets and deliver long-term shareholder value.
Executive/Board Changes
Barfresh Food Group Director Arnold Tinter Resigns
Neutral
Feb 28, 2025
On February 28, 2025, Arnold Tinter resigned from his roles as a director and corporate secretary of Barfresh Food Group and its subsidiaries, citing his desire to retire from active business pursuits. His resignation was not due to any disagreement with the company, where he also served as chair of the Audit Committee and was a member of the compensation and nominating and corporate governance committees.
Private Placements and FinancingBusiness Operations and Strategy
Barfresh Food Group Announces Securities Purchase Agreement
Positive
Feb 6, 2025
On February 5, 2025, Barfresh Food Group announced a Securities Purchase Agreement to sell 1,052,635 shares of common stock in a registered direct offering, expected to close by February 7, 2025, with gross proceeds of approximately $3 million. This strategic investment, primarily supported by existing shareholders, aims to expand the company’s manufacturing capabilities to meet growing customer demand and achieve positive cash flow, particularly within the education market, following successful testing of its new Pop & Go™ 100% Juice Freeze Pops.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.