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Marzetti Company
(NASDAQ:MZTI)
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Rating:74Outperform
Price Target:
$131.00
▲(15.47% Upside)
Action:Upgraded
Date:08/26/26
The score is driven primarily by solid underlying financial quality—especially strong operating cash flow/free cash flow and improved margins—tempered by the significant 2026 revenue drop and higher leverage. Management’s FY27 guidance and tone are supportive, but near-term operational headwinds (Cyclospora impact, commodity inflation, and volume/category softness) limit upside. Technicals are modestly positive but not fully strong versus the longer-term trend, while valuation and dividend yield are reasonably attractive.
Positive Factors
Strong Cash Generation
Robust operating and free cash flow indicates strong earnings quality and internal funding capacity. This supports dividends, share repurchases, acquisitions and investment while reducing reliance on external financing.
Negative Factors
Revenue and Volume Weakness
Underlying demand remains uneven despite acquisition contributions. Retail category softness, club-channel reductions and weak core volumes may limit organic growth and make FY27 expansion increasingly dependent on Bachan's and selected customers.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Robust operating and free cash flow indicates strong earnings quality and internal funding capacity. This supports dividends, share repurchases, acquisitions and investment while reducing reliance on external financing.
Read all positive factors
Marzetti Company (MZTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.76B
Dividend Yield3.94%
Average Volume (3M)343.59K
Price to Earnings (P/E)15.9
Beta (1Y)0.24
Revenue Growth1.08%
EPS Growth14.93%
CountryUS
Employees3,500
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)6.39
Shares Outstanding27,291,000
10 Day Avg. Volume375,123
30 Day Avg. Volume343,594
Financial Highlights & Ratios
PEG Ratio1.10
Price to Book (P/B)3.13
Price to Sales (P/S)1.62
P/FCF Ratio15.17
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$129.33Price Target Upside14.00% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)6.78
Revenue Forecast (FY)$2.00B
Marzetti Company Business Overview & Revenue Model
Company Description
The Marzetti Company is a producer and distributor of various specialized food items. Their extensive product line includes garlic breads, dinner rolls, salad dressings, dips, pasta, and croutons. These offerings are supplied to both retail outlet...
How the Company Makes Money
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Marzetti Company Earnings Call Summary
Earnings Call Date:Aug 25, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a constructive operational and financial story: the company achieved record annual and quarterly profitability, sustained gross margin expansion (12 consecutive quarters), strong free cash flow, and an accretive acquisition (Bachan's) with clear growth and integration plans. Offsetting these positives are near-term top-line pressures — a reported 2.2% sales decline, core volume softness, category/channel weakness (dressings and club channel), the discontinuation of a temporary supply agreement, commodity inflation risks, and an expected ~250 basis-point Cyclospora-related headwind in Q1 that will pressure Q1 operating income. Management provided a path to mid-single-digit revenue growth and ~100 basis points of gross margin expansion for FY27, driven by Bachan's accretion and ongoing productivity, but acknowledged timing risks in Q1.Positive Updates
Record Fiscal Year and Quarter Financials
Completed FY26 with record net sales, gross profit and operating income (fourth consecutive year of record net sales and gross profit; third consecutive year of record operating income). Delivered record fourth quarter gross profit and operating income.
Negative Updates
Reported Sales Decline and Core Volume Weakness
Reported consolidated net sales decreased 2.2% to $465M. Core volume and product mix pressures were noted (product mix -33 basis points). Excluding prior-year temporary supply agreement, adjusted net sales improved only 40 basis points. Organic retail volumes (ex-Bachan's) showed notable pressure (management commentary indicated base retail modest declines; analysts referenced ~7% organic volume decline).
Read all updates
Q4-2026 Updates
Positive
Negative
Record Fiscal Year and Quarter Financials
Completed FY26 with record net sales, gross profit and operating income (fourth consecutive year of record net sales and gross profit; third consecutive year of record operating income). Delivered record fourth quarter gross profit and operating income.
Read all positive updates
Company Guidance
The company guided to mid‑single‑digit consolidated revenue growth in FY27 (retail mid‑single‑digits driven by Bachan’s; foodservice low‑to‑mid‑single‑digits), about 100 basis points of consolidated gross‑margin expansion (roughly half from Bachan’s accretion and half from commodity risk‑management/cost‑savings), and assumed ~5% commodity inflation (about a 50‑bp dilutive effect). They expect a Q1 Cyclospora‑related net‑sales headwind of ~250 basis points and do not expect margin improvement in Q1 (projecting roughly a 15% decline in Q1 operating income), with steady margin accretion thereafter; SG&A is guided to grow 10–15% (driven by Bachan’s SG&A; base SG&A up with inflation); FY27 tax rate ~23%; CapEx ~$90 million (College Park the largest program); and the balance sheet remains flexible with < $200 million of term debt (~4.8% effective interest), ongoing dividends and share‑repurchase capacity.Marzetti Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
83
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.93B | 1.91B | 1.87B | 1.82B | 1.68B |
| Gross Profit | 477.29M | 455.65M | 432.30M | 388.57M | 355.72M |
| EBITDA | 263.39M | 287.59M | 270.13M | 217.69M | 189.50M |
| Net Income | 191.61M | 167.35M | 158.61M | 111.29M | 89.59M |
Balance Sheet | |||||
| Total Assets | 1.27B | 1.27B | 1.21B | 1.11B | 1.09B |
| Cash, Cash Equivalents and Short-Term Investments | 161.48M | 161.48M | 163.44M | 88.47M | 60.28M |
| Total Debt | 55.55M | 55.55M | 57.67M | 29.99M | 36.23M |
| Total Liabilities | 276.23M | 276.23M | 281.16M | 250.73M | 245.69M |
| Stockholders Equity | 998.50M | 998.50M | 925.77M | 862.27M | 844.69M |
Cash Flow | |||||
| Free Cash Flow | 206.14M | 203.50M | 183.98M | 135.72M | -30.16M |
| Operating Cash Flow | 283.82M | 261.50M | 251.55M | 225.90M | 101.81M |
| Investing Cash Flow | -470.04M | -148.21M | -67.43M | -90.78M | -132.24M |
| Financing Cash Flow | 49.84M | -115.26M | -109.15M | -106.93M | -97.34M |
Marzetti Company Technical Analysis
Negative
113.45
Price Trends
110.17
Negative
111.74
Negative
133.45
Negative
Market Momentum
-2.21
Positive
33.19
Neutral
7.82
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MZTI, the sentiment is Negative. The current price of 113.45 is above the 20-day moving average (MA) of 110.72, above the 50-day MA of 110.17, and below the 200-day MA of 133.45, indicating a bearish trend. The MACD of -2.21 indicates Positive momentum. The RSI at 33.19 is Neutral, neither overbought nor oversold. The STOCH value of 7.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MZTI.
Marzetti Company Risk Analysis
Marzetti Company disclosed 27 risk factors in its most recent earnings report. Marzetti Company reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Marzetti Company Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.76B | 15.88 | 17.27% | 3.94% | 1.08% | 14.93% | |
67 Neutral | $13.17B | 56.31 | 4.06% | 3.65% | 5.08% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | $1.10B | 6.50 | -35.53% | ― | 5.86% | -19.48% | |
58 Neutral | $7.23B | -3.68 | -24.31% | 8.33% | -2.85% | -265.99% | |
53 Neutral | $6.52B | 15.63 | 10.18% | 7.45% | -4.96% | -33.88% | |
46 Neutral | $1.32B | 23.50 | 4.13% | 12.19% | 2.46% | -75.05% |
* Consumer Defensive Sector Average
MZTI
Marzetti Company
101.47
-78.14
-43.51%
CPB
Campbell Soup
20.94
-10.80
-34.03%
CAG
Conagra Brands
14.70
-3.31
-18.40%
FLO
Flowers Foods
6.11
-7.24
-54.24%
SJM
JM Smucker
121.07
14.59
13.71%
BRBR
BellRing Brands
9.30
-28.01
-75.07%
Marzetti Company Corporate Events
DividendsShareholder Meetings
Marzetti Company Declares Fiscal 2027 Quarterly Dividend
Positive
Aug 19, 2026
On August 19, 2026, The Marzetti Company announced that its board had declared a first quarter fiscal 2027 quarterly cash dividend of $1.00 per common share, payable September 30, 2026 to shareholders of record on September 8, 2026. The move maint...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.