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Premium Brands
(TSX:PBH)
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Rating:55Neutral
Price Target:
C$74.00
▼(-7.01% Downside)
Action:Reiterated
Date:08/10/26
The score is primarily held back by weaker financial quality—thin margins, meaningful leverage, and historically inconsistent free cash flow—despite strong revenue growth. Technicals also detract, with the stock trading below major moving averages and muted momentum. These negatives are partly offset by a constructive earnings-call backdrop showing improving EBITDA, a free-cash-flow inflection, and progress on deleveraging, while valuation is mixed (high P/E but supported by a ~4% dividend yield).
Positive Factors
Strong revenue and volume growth
Sustained sales expansion, supported by strong organic volume growth, indicates broadening customer demand across PBH’s food portfolio. Continued penetration in specialty foods and U.S. protein can improve scale, strengthen channel presence, and support revenue compounding over the next several quarters.
Negative Factors
Thin and pressured profit margins
Very thin net margins leave limited protection against input-cost, mix, or operating pressures and make earnings sensitive to modest changes in profitability. The decline from earlier margin levels also raises questions about how sustainably PBH can convert its substantial revenue base into shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and volume growth
Sustained sales expansion, supported by strong organic volume growth, indicates broadening customer demand across PBH’s food portfolio. Continued penetration in specialty foods and U.S. protein can improve scale, strengthen channel presence, and support revenue compounding over the next several quarters.
Read all positive factors
Premium Brands (PBH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$3.78B
Dividend Yield4.77%
Average Volume (3M)204.79K
Price to Earnings (P/E)43.3
Beta (1Y)0.74
Revenue Growth20.43%
EPS Growth-21.27%
CountryCA
Employees12,036
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)1.65
Shares Outstanding52,157,738
10 Day Avg. Volume206,028
30 Day Avg. Volume204,795
Financial Highlights & Ratios
PEG Ratio-1.67
Price to Book (P/B)2.75
Price to Sales (P/S)0.61
P/FCF Ratio-36.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$112.29Price Target Upside41.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)5.9
Revenue Forecast (FY)C$9.26B
Premium Brands Business Overview & Revenue Model
Company Description
Headquartered in Richmond, Canada, and founded in 1917, Premium Brands Holdings Corporation (PBH.TO) is a prominent company engaged in the manufacturing and distribution of a wide array of food products throughout Canada and the United States. Its...
How the Company Makes Money
PBH makes money primarily by selling food products through its manufacturing and distribution businesses. Revenue is generated from (1) branded product sales, where PBH-owned brands are sold through retail and foodservice channels; (2) private-lab...
Premium Brands Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial inflection: strong top-line growth (+26.3%), robust organic volume expansion (10.7% specialty, 25% U.S. protein), an 83.2% surge in meat sticks, materially higher adjusted EBITDA (+29.5%), and the first positive net free cash flow ($68M) after years of negative cash flow. These gains are tempered by near-term headwinds — guidance revisions, timing delays for launches and promotions, a $53.1M shutdown loss and ongoing costs tied to new capacity — but management presented a clear path to leverage new capacity, improve margins, and reduce leverage, supporting an overall constructive outlook.Positive Updates
Record Quarterly Revenue
Total sales from continuing operations of $2.4 billion for the quarter, up $495 million or 26.3% vs. Q2 2025.
Negative Updates
Revised Revenue and EBITDA Guidance
2026 revenue guidance was revised to $9.1 billion–$9.3 billion and adjusted EBITDA guidance to $840 million–$870 million, down from prior expectations due to timing and demand issues.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Total sales from continuing operations of $2.4 billion for the quarter, up $495 million or 26.3% vs. Q2 2025.
Read all positive updates
Company Guidance
Management guided 2026 revenue of $9.1–$9.3 billion and adjusted EBITDA of $840–$870 million, reaffirmed its five‑year targets of $10 billion in sales and $1 billion of EBITDA by end‑2027, and said it expects strong back‑half growth; supporting metrics from the quarter include record Q2 sales of $2.4 billion (+26.3%), Q2 adjusted EBITDA of $225 million, Q2 net free cash flow of $68 million (first positive after four years), organic volume growth of 10.7% for Specialty U.S. (25% in U.S. protein) and meat sticks growth of 83.2%; balance‑sheet and CapEx metrics: debt/EBITDA down to 3.8:1 (from 4.3:1), short‑term targets reached (senior debt ≤3:1 and total debt ≤4:1) with a goal of total debt/EBITDA ≤3:1 by early–mid‑2027, Q2 CapEx $59 million (project CapEx $18.3M of the $1.1B plan + $21.6M other project + $19.1M maintenance), $41.6 million remaining to complete the $1.1B plan, and plans to close 4 older facilities and commission 2 new plants in the next 12 months while startup/restructuring costs continue to decline.Premium Brands Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.31B | 7.48B | 6.47B | 6.26B | 6.03B | 4.93B |
| Gross Profit | 1.33B | 1.18B | 1.29B | 1.21B | 1.10B | 901.90M |
| EBITDA | 598.70M | 510.10M | 430.90M | 392.70M | 363.20M | 337.40M |
| Net Income | 83.80M | 40.50M | 121.50M | 94.20M | 160.10M | 132.70M |
Balance Sheet | ||||||
| Total Assets | 7.21B | 5.95B | 5.80B | 5.16B | 5.08B | 4.41B |
| Cash, Cash Equivalents and Short-Term Investments | 15.30M | 29.30M | 49.20M | 27.60M | 11.40M | 16.50M |
| Total Debt | 3.63B | 3.42B | 3.20B | 2.65B | 2.58B | 1.95B |
| Total Liabilities | 4.85B | 4.29B | 4.03B | 3.39B | 3.27B | 2.63B |
| Stockholders Equity | 2.36B | 1.66B | 1.77B | 1.77B | 1.82B | 1.78B |
Cash Flow | ||||||
| Free Cash Flow | 14.90M | -125.40M | -111.70M | 34.20M | -131.90M | -76.90M |
| Operating Cash Flow | 229.10M | 93.60M | 253.10M | 433.90M | 96.50M | 66.30M |
| Investing Cash Flow | -689.80M | 33.10M | -315.30M | -299.20M | -343.60M | -808.90M |
| Financing Cash Flow | 463.10M | -146.60M | 83.80M | -118.50M | 242.00M | 396.10M |
Premium Brands Technical Analysis
Negative
79.58
Price Trends
82.05
Negative
84.61
Negative
88.73
Negative
Market Momentum
-2.37
Positive
20.12
Positive
3.20
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PBH, the sentiment is Negative. The current price of 79.58 is above the 20-day moving average (MA) of 76.38, below the 50-day MA of 82.05, and below the 200-day MA of 88.73, indicating a bearish trend. The MACD of -2.37 indicates Positive momentum. The RSI at 20.12 is Positive, neither overbought nor oversold. The STOCH value of 3.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PBH.
Premium Brands Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | C$1.89B | 24.18 | 15.93% | 2.07% | 14.96% | 35.61% | |
63 Neutral | C$392.63M | 11.24 | 6.30% | 4.99% | 14.25% | -44.39% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | C$3.20B | 6.11 | 36.83% | 5.54% | -21.88% | 189.83% | |
55 Neutral | C$3.78B | 43.28 | 4.19% | 4.81% | 20.43% | -21.27% | |
47 Neutral | C$244.61M | -12.38 | -311.77% | ― | 82.33% | -570.45% | |
25 Underperform | C$40.34M | -24.03 | 81.87% | ― | ― | ― |
* Consumer Defensive Sector Average
TSE:PBH
Premium Brands
71.25
-19.13
-21.16%
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Premium Brands Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Premium Brands posts record Q2 results, trims 2026 outlook but reaffirms 2027 targets
Positive
Aug 6, 2026
Premium Brands Holdings reported record second-quarter revenue of $2.38 billion, up 26.3% year over year, driven by 7.5% organic growth and strong U.S. Specialty Foods volume gains. The company also booked record adjusted EBITDA of $225 million, h...
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.