BellRing brands stock analysis (BRBR)
(I dont hold any shares of BRBR)
Bellring Brands sells protein ready to drink and powder supplements. The supplement market has been growing for years and especially since protein based products entered the big supermarkets, the market has been growing even stronger also for the average consumer.
Bellring has benefited greatly from this trend and in the last 5 years revenue has doubled
Roic continues to grow and is currently at an all time high of 40%
This year is also their first year buying back shares so far they have bought back 1.6% of their shares
That sounds good for bellring but where is their moat what is protecting their profits?
Firstly their CEO has been ceo for 5 years but before that she was not unknown Darcy Horn Davenport has been with the company for 13 years and has worked her way up to ceo and so far she is delivering
One of her strengths is said to be innovation, so in recent years they have established relationships with manufacturers all over the US to have the capacity to bring out more and more new products.
Thirdly, marketing their brands their marketing strategy consists of three pillars 1. highlighting the brand and making the ingredients clear and what they bring to athletes 2. licensing partnerships with larger companies such as Dunkin and 3. expanding their direct advertising partners such as influenza and sports teams
P/FCF is at 30
And I don't hold any shares and don't plan to in the future but what do you think about the stock would you buy it?
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