Download PDF

1. Company Snapshot

1.a. Company Description

Freshpet, Inc.manufactures and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe.The company sells its products under the Freshpet brand; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online.


Freshpet, Inc.was incorporated in 2004 and is headquartered in Secaucus, New Jersey.

Show Full description

1.b. Last Insights on FRPT

Breaking News: Freshpet Inc presented at the Morgan Stanley Global Consumer Retail Conference on December 3 2025 No recent earnings release was found however the company shared insights on its performance and future outlook No specific numbers were provided but management discussed the firms strategy and growth plans Several analysts have a positive outlook on the stock with some recommending a buy rating from firms such as Goldman Sachs and hold rating from firms like Wells Fargo more information is awaited.

1.c. Company Highlights

2. Freshpet's Q3 2025 Earnings: Strong Sales Growth and Improved Operational Efficiency

Freshpet's third-quarter 2025 financial performance was marked by a 14% year-over-year increase in net sales to $288.8 million, driven primarily by volume growth. Adjusted gross margin was 46.0%, a 50 basis point decrease from the prior year period, while adjusted EBITDA was $54.6 million, up 25% year-over-year. The company's actual EPS was $0.46, beating estimates of $0.43. The strong sales growth was broad-based across channels, with 10% growth in xAOC, 10% in total U.S. Pet Retail Plus, 8% in U.S. Food, and 2% growth in Pet Specialty.

Publication Date: Nov -14

📋 Highlights
  • Free Cash Flow Achievement:: Achieved positive free cash flow in Q3, advancing full-year free cash flow by 1 year ahead of original 2026 target.
  • Sales Growth:: Q3 net sales rose 14% YoY to $288.8 million, driven by 12.9% volume growth and 1.1% positive price/mix.
  • Margin Expansion:: Adjusted EBITDA surged 25% YoY to $54.6 million, with full-year guidance raised to $190–$195 million (vs. prior $190–$210M).
  • Market Penetration:: Household penetration grew 10% YoY to 14.8 million households, with 13% retail space expansion and 13% distribution growth.
  • Operational Efficiency:: New bag technology nearing completion, expected to narrow margin gap between bagged and rolled products, with $140M CapEx guidance for 2025.

Operational Highlights

The company continued to outperform the U.S. dog food category, building market share across every channel and winning a disproportionate share of new pet parents. Freshpet's household penetration reached 14.8 million households, up 10% year-over-year, and total buy rate was $111, up 4% year-over-year. The company also made significant progress in operational efficiency, with the new bag technology expected to result in increased bagged product margins and decrease the margin gap between bags and rolled products.

Guidance and Outlook

For the remainder of the year, Freshpet expects net sales growth to be approximately 13% and adjusted EBITDA to be between $190 million and $195 million. The company is updating its CapEx guidance to approximately $140 million and expects to achieve positive free cash flow a year earlier than anticipated. Analysts estimate next year's revenue growth at 9.5%. With a current P/E Ratio of 21.12 and EV/EBITDA of 29.02, the market is pricing in a certain level of growth, which Freshpet appears to be on track to deliver.

Valuation and Future Prospects

Given Freshpet's strong sales growth, improving operational efficiency, and positive free cash flow, the company's valuation metrics appear reasonable. The P/S Ratio of 2.42 and ROE of 11.34% suggest that Freshpet is generating strong returns on equity. As the company continues to execute on its growth strategy and improve its operational efficiency, it is well-positioned to drive long-term shareholder value.

3. NewsRoom

Card image cap

Fisher Asset Management LLC Sells 40,178 Shares of Freshpet, Inc. $FRPT

Dec -04

Source: defenseworld.net

Card image cap

Freshpet, Inc. (FRPT) Presents at Morgan Stanley Global Consumer & Retail Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

Card image cap

3 Cyber Monday Stock Deals: More Than 50% Off in 2025

Dec -01

Source: fool.com

Card image cap

Freshpet, Inc. to Participate in the Morgan Stanley Global Consumer & Retail Conference

Nov -18

Source: globenewswire.com

Card image cap

Jana Partners' Strategic Move: Significant Addition of The Cooper Companies Inc

Nov -14

Source: gurufocus.com

Card image cap

Freshpet, Inc. (FRPT) Presents at J.P. Morgan U.S. Opportunities Forum Transcript

Nov -12

Source: seekingalpha.com

Card image cap

5 Stocks For the 60% Surge in Pet Spending

Nov -12

Source: 247wallst.com

Card image cap

Freshpet, Inc. to Participate in the J.P. Morgan U.S. Opportunities Forum

Nov -05

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.95%)

6. Segments

Grocery, Mass and Club

Expected Growth: 7.88%

Freshpet's 7.88% growth in Grocery, Mass, and Club segments is driven by increasing pet humanization, premiumization, and convenience trends. Strong distribution gains, expanded product offerings, and effective marketing strategies also contribute to growth. Additionally, the shift towards online shopping and Freshpet's e-commerce capabilities further support segment growth.

Pet Specialty and Natural

Expected Growth: 8.5%

Freshpet's Pet Specialty and Natural segment growth of 8.5% is driven by increasing pet humanization, premiumization, and health-consciousness among pet owners. The trend towards natural and organic pet food, coupled with the company's strong distribution network and innovative products, has contributed to this growth.

7. Detailed Products

Freshpet Select

A line of fresh, refrigerated pet food made with high-quality protein sources and whole vegetables.

Freshpet Vital

A line of fresh, refrigerated pet food designed for pets with specific dietary needs, such as weight management or digestive health.

Freshpet Deli Fresh

A line of fresh, refrigerated pet food made with high-quality protein sources and whole vegetables, designed to mimic the taste and texture of homemade food.

Freshpet Nature's Fresh

A line of fresh, refrigerated pet food made with natural ingredients and no artificial preservatives or additives.

8. Freshpet, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Freshpet's products are differentiated and have a strong brand presence, making it difficult for substitutes to gain traction.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative pet food options, Freshpet's strong brand loyalty and premium product offerings mitigate this power.

Bargaining Power Of Suppliers

Freshpet has a diversified supplier base and is not heavily reliant on any single supplier, reducing the bargaining power of suppliers.

Threat Of New Entrants

While there are barriers to entry in the pet food industry, new entrants can still pose a threat. However, Freshpet's established brand and strong distribution network provide a competitive advantage.

Intensity Of Rivalry

The pet food industry is highly competitive, with many established players and new entrants vying for market share. Freshpet must continue to innovate and differentiate its products to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.37%
Debt Cost 3.95%
Equity Weight 70.63%
Equity Cost 10.14%
WACC 8.32%
Leverage 41.57%

11. Quality Control: Freshpet, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Lancaster Colony

A-Score: 5.7/10

Value: 3.6

Growth: 5.9

Quality: 7.1

Yield: 4.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Hormel Foods

A-Score: 5.3/10

Value: 5.8

Growth: 4.0

Quality: 5.5

Yield: 7.0

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
McCormick

A-Score: 5.0/10

Value: 3.3

Growth: 4.2

Quality: 6.1

Yield: 5.0

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Lamb Weston

A-Score: 4.3/10

Value: 4.0

Growth: 6.6

Quality: 4.3

Yield: 4.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Freshpet

A-Score: 3.3/10

Value: 2.1

Growth: 9.1

Quality: 4.2

Yield: 0.0

Momentum: 0.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
BellRing Brands

A-Score: 3.1/10

Value: 5.4

Growth: 2.7

Quality: 6.1

Yield: 0.0

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

62.05$

Current Price

62.05$

Potential

-0.00%

Expected Cash-Flows