Utz Brands, Inc. (UTZ) 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 above its 5-year median

Utz Brands's EV/EBITDA of 46.3 is above its 5-year median of 26.4.

P/B above the industry

Utz Brands's price-to-book of 3.04 is above the Food and Kindred Products median of 2.12.

Trading above fair value

The share price of $14.25 is above our fair value estimate of $4.91.

Margin of safety under 20%

The price is 190% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 0.7% 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 0.5% over the last twelve months; the Food and Kindred Products median is 2.7%.

Guidance raised

Utz Brands raised its fiscal year 2026 Depreciation and amortization outlook on May 6, 2026.

Gross margin slipping

Gross margin was 24.6% over the last twelve months, against 24.8% a year earlier.

Return on equity under 15%

Return on equity was -5.5% over the last twelve months and averaged 0.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -0.8%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Utz Brands's return on equity of -5.5% is below the Food and Kindred Products median of 6.6%.

Earnings over 5 years

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

Net margin below its 5-year average

Net margin was -2.7% over the last twelve months, against a 5-year average of 0.2%.

Net margin below the industry

Utz Brands's net margin of -2.7% is below the Food and Kindred Products median of 2.7%.

High debt

Debt is 130% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 141% five years ago to 130%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 6.8% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense -0.4 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.07 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.14; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Utz Brands paid dividends worth 1.8% of the share price over the last twelve months.

Yield below Treasuries

The 1.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Utz Brands yields 1.8%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Not covered by free cash flow

Dividends take 950% of free cash flow.