$17.00
arrow_drop_up2.59%Is UTZ a Buy or Sell based on AI Analysis?
Fundamental Analysis
Utz Brands, Inc. has shown strong revenue growth of 2.12% in the last year, with a market value score of 21 indicating potential undervaluation. The company boasts a healthy dividend yield of 1.25% and a solid gross margin of 31.74%, signifying strong profitability. Additionally, Utz Brands has a current ratio of 1.42, demonstrating its ability to meet short-term obligations with ease. The company's net debt to assets ratio of 1.35 suggests a moderate level of leverage, while its return on assets of 0.76% reflects efficient asset utilization. On the other hand, Utz Brands, Inc. has struggled with negative net income of -$24.94M and a trailing PE ratio of -60.03, indicating lower profitability and potential overvaluation. Despite a solid dividend yield, the company's free cashflow margin of 1.45% raises concerns about its ability to generate sufficient cash for future growth and investment. Furthermore, the company's low return on equity of -2.82% suggests inefficiency in utilizing shareholders' funds. Utz Brands also faces challenges with its operating margin of 2.88%, which may indicate the need for improved cost management strategies to boost profitability and overall financial performance.
Positive Development
UTZ's stock price increased by 0.0289 from 18.11 to 18.61 from 2024-03-26 to 2024-04-01. This indicates an uptick in investor confidence in the company. UTZ has been gaining from its robust consumer demand, bolstered by consistent innovation, new product launches, and strategic acquisitions. This shows the company's ability to adapt and innovate in response to market conditions, which could help to drive future growth. The company has been investing in a global restructuring plan, which could lead to increased efficiency and cost savings in the future.
Negative Development
The company's current ratio is 1.4221, which indicates that it may have difficulty paying short-term debts. This could be a concern for investors looking for stable, low-risk investments. The company's long-term debt to total asset ratio is 0.3268, which is higher than the industry average. This could indicate that the company is over-leveraging itself and may struggle to meet its debt obligations in the future. The company's net margin is -0.0786, indicating a negative return on investment. This could indicate that the company is not generating enough profits to cover its costs, which could be a concern for investors.
Technical Analysis
Utz Brands, Inc. (UTZ) has a neutral technical rating based on various indicators. In the past month, the stock has received 1 buy signal and 5 hold signals from indicators such as ATR, RSI, MACD, CCI, ADX, and ROC. However, there have also been 2 sell signals from indicators like WILLR and STOCHRSI. This mixed sentiment suggests that the stock is currently in a consolidation phase and may not have a clear direction in the short term. The stock's current price of $18.24 is below the analyst forecast price of $18, indicating a potential downside of -1.29%. Furthermore, the technical indicators for Utz Brands, Inc. show that the stock has a beta of 0.97, indicating that it is relatively less volatile compared to the overall market. The stock has a fifty-two week high of $19.21 and a low of $11.17, with a market capitalization of $1.5B. The company has a current price discount of 38.03% compared to its all-time high, and a debt-to-equity ratio of 0.71. These factors suggest that Utz Brands, Inc. may be a stable investment option with moderate growth potential in the consumer defensive sector.
Conclusion and recommendation
Based on the data provided, Utz Brands, Inc. (UTZ) appears to be a stable company in the Consumer Defensive sector with a neutral analyst recommendation. The company's financials show a market cap of $1.5 billion and revenue of $1.44 billion, with a dividend yield of 1.25%. Utz Brands also has a solid technical rating of NEUTRAL and has shown positive price changes over various time periods, such as a 35.68% increase in six months and 83.82% in five years. However, the company's net income is currently negative at -$24.94 million, and its return on equity is -2.82%. With a price to sales ratio of 1.06 and price to book ratio of 2.24, Utz Brands seems to be reasonably priced in comparison to its performance. In conclusion, Utz Brands, Inc. presents a promising investment opportunity for those seeking stability and potential long-term growth in the Consumer Defensive sector. While the company's financial performance has been steady with positive price changes over time, investors should be cautious of the negative net income and return on equity figures. It is recommended to closely monitor Utz Brands' financial health and performance indicators, such as earnings growth and profitability margins, before making any investment decisions. Additionally, keeping an eye on industry and sector trends could provide valuable insights into the company's future prospects.