Traeger (COOK) AI Stock Analysis

• Market Cap: $142.68M
• Dividend Yield: N/A
• Average Volume (3M): 299.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: -2.55%
• EPS Growth: 33.49%
• Country: US
• Employees: 665
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.01
• Shares Outstanding: 135,886,230
• 10 Day Avg. Volume: 229,940
• 30 Day Avg. Volume: 299,104
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.59
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 49.18
• 1Y Price Target: $1.79
• Price Target Upside: 70.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 45 Neutral
• Price Target: $1.00 ▼(-4.76% Downside)

Traeger's overall stock score reflects significant financial challenges, bearish technical indicators, and a negative valuation outlook. While strategic initiatives offer some hope, the immediate financial and operational hurdles weigh heavily on the stock's prospects.

Positive Factors

Cash Generation

Improved cash generation indicates better financial management and operational efficiency, providing more resources for strategic investments and debt reduction.

Strategic Partnerships

Collaborations with major brands can enhance market reach and brand visibility, potentially driving sales growth and consumer engagement over the long term.

Cost Savings Initiatives

Cost-saving initiatives like Project Gravity can improve margins and profitability, providing a buffer against external pressures like tariffs and economic downturns.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in maintaining sales momentum, which can impact long-term growth prospects and market competitiveness.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities or weather economic downturns.

Gross Margin Pressure

Sustained pressure on gross margins can erode profitability, making it harder to invest in product development and marketing, thus affecting long-term competitiveness.

Traeger Business Overview & Revenue Model

Company Description

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbeque grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs and sauces, seasonings, and marinades; covers, drip trays, bucket liners, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise. The company was incorporated in 2017 and is headquartered in Salt Lake City, Utah.

How the Company Makes Money

Traeger generates revenue primarily through the sale of its wood pellet grills, which are the core of its product line, along with grilling accessories, wood pellets, and other related products. The company employs a direct-to-consumer sales model via its e-commerce platform and also distributes products through a network of retailers, enhancing market reach. Key revenue streams include not only the initial sale of grills but also ongoing sales of consumables such as wood pellets and accessories, leading to repeat customer purchases. Additionally, Traeger benefits from partnerships with various retailers and collaborations that enhance brand visibility and product availability. Seasonal promotions, product launches, and brand loyalty programs further contribute to its earnings.

Traeger Financial Statement Overview

Summary

Traeger's financial performance is challenged by declining revenues and persistent losses. The income statement shows negative growth and margins, while the balance sheet indicates high leverage and negative returns. Cash flow improvements are noted but are constrained by ongoing losses.

Income Statement

Traeger's income statement shows declining revenue with a negative growth rate of -3.82% TTM, indicating challenges in maintaining sales momentum. The gross profit margin has decreased to 40.91% TTM, reflecting pressure on profitability. The net profit margin remains negative at -6.02% TTM, highlighting ongoing losses. Despite a slight improvement in EBITDA margin to 2.30% TTM, the EBIT margin is still negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.59 TTM, indicating significant leverage and potential financial risk. Return on equity is negative at -12.58% TTM, reflecting poor profitability relative to shareholder equity. The equity ratio stands at 35.13% TTM, showing moderate reliance on equity financing. Overall, the balance sheet suggests financial instability with high leverage and negative returns.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 52.33% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.27 TTM, suggesting moderate cash flow coverage of net losses. The free cash flow to net income ratio is 0.57 TTM, reflecting some ability to generate cash despite negative net income. While cash flow metrics show improvement, they are still constrained by ongoing losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	579.45M	604.07M	605.88M	655.90M	785.54M	545.77M
Gross Profit	237.04M	255.47M	223.56M	228.77M	303.71M	235.36M
EBITDA	13.31M	53.86M	6.64M	-296.52M	-16.13M	99.31M
Net Income	-34.91M	-34.01M	-84.40M	-382.14M	-88.82M	31.05M
Balance Sheet
Total Assets	780.62M	830.68M	860.76M	946.72M	1.18B	989.58M
Cash, Cash Equivalents and Short-Term Investments	10.30M	14.98M	29.92M	39.05M	16.74M	11.56M
Total Debt	436.93M	434.13M	458.70M	494.25M	421.63M	437.84M
Total Liabilities	506.37M	554.25M	569.41M	611.85M	571.50M	514.54M
Stockholders Equity	274.25M	276.43M	291.35M	334.87M	609.52M	475.04M
Cash Flow
Free Cash Flow	11.46M	11.89M	43.64M	-13.81M	-51.47M	31.96M
Operating Cash Flow	20.07M	23.89M	64.04M	5.09M	-27.19M	46.60M
Investing Cash Flow	-9.09M	-12.33M	-17.38M	-18.90M	-81.13M	-27.34M
Financing Cash Flow	-18.71M	-26.50M	-68.30M	48.63M	113.51M	-14.78M

Traeger Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COOK, the sentiment is Negative. The current price of 1.05 is below the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.22, and below the 200-day MA of 1.68, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 41.31 is Neutral, neither overbought nor oversold. The STOCH value of 28.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COOK.

Traeger Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETD	74 Outperform	$701.81M	13.70	10.69%	6.96%	-4.89%	-19.26%
HBB	69 Neutral	$201.88M	6.37	20.79%	3.14%	-2.09%	-5.04%
BSET	66 Neutral	$132.80M	17.12	4.70%	5.23%	-2.74%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
COOK	45 Neutral	$142.68M	―	-12.22%	―	-2.55%	33.49%
LCUT	45 Neutral	$76.58M	―	-17.08%	5.03%	-1.14%	-95.76%
SNBR	38 Underperform	$146.87M	―	―	―	-14.40%	-2.14%

Traeger Corporate Events

Traeger, Inc. Earnings Call: Mixed Sentiments and Strategic Moves

The recent earnings call for Traeger, Inc. presented a mixed sentiment, reflecting both positive and negative aspects of the company’s current financial standing. While the company showcased effective strategies in tariff mitigation and cost savings, as well as strong consumer demand and strategic brand partnerships, these were counterbalanced by significant revenue and margin declines, particularly in the MEATER segment, leading to a cautious outlook.

Traeger, Inc. Reports Q2 2025 Financial Results

Traeger, Inc., based in Salt Lake City, is a leading innovator in the outdoor cooking industry, known for its wood pellet grills that offer versatile cooking options such as grilling, smoking, and baking. In its latest earnings report for the second quarter of fiscal 2025, Traeger announced a decrease in total revenues by 13.6% to $145.5 million and reported a net loss of $7.4 million. The company highlighted its Project Gravity initiative aimed at streamlining operations and achieving $30 million in annualized cost savings. Key financial metrics showed a decline in grill sales by 21.9%, while consumables rose by 7.5%, and accessories fell by 11.9%. The company’s gross profit margin decreased to 39.2%, impacted by tariffs and promotional activities. Despite these challenges, Traeger is focused on mitigating tariff impacts and improving profitability through strategic initiatives. Looking forward, Traeger remains committed to enhancing operational efficiency and expects to see improvements in Adjusted EBITDA in the latter half of 2025, driven by ongoing efforts to streamline operations and manage costs effectively.