Traeger, Inc. (COOK) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

Traeger's price-to-book of 1.23 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 3.01.

Trading below fair value

The share price of $61.79 is below our fair value estimate of $134.58.

Margin of safety over 20%

The price is 54.1% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -5.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -25.5% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is -0.2%.

Guidance lowered

Traeger lowered its Full Year Fiscal 2026 Total revenue outlook on Aug 5, 2026.

Gross margin slipping

Gross margin was 39.1% over the last twelve months, against 40.1% a year earlier.

Return on equity under 15%

Return on equity was -31.5% over the last twelve months and averaged -37.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -5.1%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Traeger's return on equity of -31.5% is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -3.3%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was -11.8% over the last twelve months, against a 5-year average of -22.0%.

Net margin below the industry

Traeger's net margin of -11.8% is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -3.1%.

High debt

Debt is 286% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 92.1% five years ago to 286%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 17.6% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense -1.1 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 3.31 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is -0.87; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Traeger has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.