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Barfresh Food Group (BRFH)
NASDAQ:BRFH
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Barfresh Food Group
(NASDAQ:BRFH)
44Neutral
Positive Factors
Market expansion
Barfresh has expanded its educational channel across the US, adding more than 2,100 schools, which supports its national expansion strategy.
Product reception
Early feedback on the new Pop & Go product has been positive, and there is an expectation of meaningful revenue contribution in the second half of 2025.
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 issues
Manufacturing disruptions related to inadequate production equipment negatively impacted sales and margins.
Barfresh Food Group (BRFH) vs. S&P 500 (SPY)
Market Cap
$48.38M
Dividend YieldN/A
Average Volume (3M)17.55K
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth31.88%
EPS Growth9.47%
CountryUS
Employees10
SectorConsumer Defensive
Sector Strength73
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)-0.19
Shares Outstanding15,809,922
10 Day Avg. Volume23,269
30 Day Avg. Volume17,551
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 Upside71.57% 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 faces a challenging financial landscape with declining revenues, persistent losses, and negative cash flow generation. Despite low leverage, the declining asset and equity values highlight potential financial instability. The company needs to address profitability and cash flow issues to enhance financial health.Income Statement
Barfresh Food Group shows a decreasing revenue trend from 2022 to TTM (Trailing-Twelve-Months). Despite improvements in gross profit margin to 34.1% in TTM, the company continues to incur significant losses with a negative net profit margin of -27.1%. This consistent negative profitability impacts the overall income statement performance negatively.45
Neutral
Balance Sheet
The company exhibits a healthy equity position with a debt-to-equity ratio of 0.24 in TTM, demonstrating low leverage. However, the declining total assets and stockholders' equity from 2021 to TTM indicate a weakening financial position. The return on equity remains negative due to persistent net losses, indicating inefficiency in generating returns on shareholders' equity.55
Neutral
Cash Flow
Cash flow analysis reveals consistent negative operating and free cash flows, with TTM free cash flow at -$2.56M. The operating cash flow to net income ratio is unfavorable, reflecting cash inefficiencies. Despite positive financing cash flows, the company's cash generation remains a challenge.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 9.85M | 8.13M | 9.16M | 6.70M | 2.57M | 4.31M | Gross Profit |
| 3.36M | 2.48M | 1.44M | 2.51M | 764.07K | 2.31M | EBIT |
| -2.66M | -2.92M | -5.47M | -2.09M | -4.21M | -5.19M | EBITDA |
| -2.35M | -2.41M | -4.94M | -495.98K | -3.60M | -4.47M | Net Income Common Stockholders |
| -2.67M | -2.82M | -6.96M | -435.91K | -4.10M | -6.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.04M | 1.89M | 2.81M | 5.53M | 1.82M | 999.99K | Total Assets |
| 5.76M | 4.81M | 5.09M | 9.72M | 5.82M | 5.13M | Total Debt |
| 2.21M | 0.00 | 20.00K | 95.00K | 1.89M | 2.96M | Net Debt |
| 1.17M | -1.89M | -2.79M | -5.44M | 77.46K | 1.96M | Total Liabilities |
| 5.80M | 2.31M | 2.57M | 1.54M | 3.49M | 4.84M | Stockholders Equity |
| -35.05K | 2.50M | 2.52M | 8.18M | 2.32M | 283.72K |
| Cash Flow | Free Cash Flow | ||||
| -2.56M | -2.96M | -2.66M | -2.01M | -3.27M | -3.82M | Operating Cash Flow |
| -2.49M | -2.96M | -2.65M | -1.86M | -3.20M | -3.35M | Investing Cash Flow |
| -61.00K | 0.00 | -13.00K | -150.54K | -74.19K | -471.54K | Financing Cash Flow |
| 1.95M | 1.83M | 5.00K | 5.73M | 4.14M | 3.87M |
Barfresh Food Group Technical Analysis
Negative
3.06
Price Trends
3.58
Negative
3.15
Negative
3.17
Negative
Market Momentum
-0.08
Positive
38.89
Neutral
29.50
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 3.06 is below the 20-day moving average (MA) of 3.48, below the 50-day MA of 3.58, and below the 200-day MA of 3.17, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 38.89 is Neutral, neither overbought nor oversold. The STOCH value of 29.50 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $56.31B | 38.99 | 21.27% | ― | 4.94% | -4.13% | |
74 Outperform | $7.91B | 76.06 | 12.54% | ― | 2.85% | -43.53% | |
73 Outperform | $302.84B | 28.60 | 41.86% | 2.76% | 1.96% | -0.45% | |
69 Neutral | $3.92B | 21.12 | 40.81% | ― | 0.34% | 9.48% | |
62 Neutral | $20.67B | 14.36 | -12.41% | 3.14% | 1.24% | 2.53% | |
49 Neutral | $63.07M | ― | 71.20% | ― | -15.11% | 55.55% | |
44 Neutral | $48.38M | ― | -183.38% | ― | 31.88% | 9.47% |
* Consumer Defensive Sector Average
Performance Comparison
BRFH
Barfresh Food Group
3.06
1.96
178.18%
KO
Coca-Cola
70.37
11.45
19.43%
MNST
Monster Beverage
57.86
0.12
0.21%
FIZZ
National Beverage
41.89
-4.24
-9.19%
REED
Reed's
1.39
-0.19
-12.03%
CELH
Celsius Holdings
33.65
-48.88
-59.23%
Barfresh Food Group Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -10.26% | Next Earnings Date: May 20, 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.