📊 FRPT Key Takeaways
Is FRPT a Good Investment? Thesis Analysis
Freshpet demonstrates solid revenue growth (13% YoY) and strong profitability with healthy gross margins (40.8%), supported by excellent liquidity (5.54x current ratio) and minimal leverage (0.05x debt/equity). However, concerning trends include stagnant net income growth (0.0% YoY) despite revenue gains, weak free cash flow generation (1.1% FCF margin) relative to large CapEx requirements, and deteriorating operating leverage with operating margin declining to 6.9%.
Why Buy FRPT? Key Strengths
- Strong revenue growth of 13% YoY indicating market demand and business expansion
- Excellent balance sheet health with 5.54x current ratio, 278M cash, and minimal debt (0.05x D/E)
- Solid gross margin of 40.8% demonstrates pricing power and product mix efficiency
- Robust interest coverage of 24.7x provides substantial debt servicing capacity
FRPT Investment Risks to Consider
- Operating income growth decelerating significantly relative to revenue growth, suggesting cost structure pressures or operating deleverage
- Net income flat YoY (0.0%) despite 13% revenue growth indicates margin compression and earnings quality concerns
- Excessive capital intensity with CapEx of 148.2M consuming 92% of operating cash flow, leaving minimal free cash flow of 12.4M (1.1% margin)
- Elevated insider trading activity (31 Form 4 filings) may signal insider concerns or capital structure management
Key Metrics to Watch
- Operating margin trend - watch for stabilization or further compression below 6.9%
- Free cash flow generation - monitor if CapEx investments translate to improved margins and cash conversion
- Revenue growth sustainability - track whether 13% growth rate can be maintained without margin dilution
FRPT Financial Metrics
💡 AI Analyst Insight
The relatively thin 1.1% FCF margin may limit capital allocation flexibility. Strong liquidity with a 5.54x current ratio provides a solid financial cushion.
FRPT Profitability Ratios
FRPT vs Default Sector
How Freshpet, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FRPT Overvalued or Undervalued?
Based on fundamental analysis, Freshpet, Inc. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FRPT Balance Sheet & Liquidity
FRPT 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Freshpet, Inc.'s revenue has grown significantly by 159% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.70 indicates the company is currently unprofitable.
FRPT Growth Metrics (YoY)
FRPT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $253.4M | $11.9M | $0.24 |
| Q2 2025 | $235.3M | -$1.7M | $-0.03 |
| Q1 2025 | $223.8M | -$12.7M | $-0.26 |
| Q3 2024 | $200.6M | -$7.2M | $-0.15 |
| Q2 2024 | $183.3M | -$1.7M | $-0.03 |
| Q1 2024 | $167.5M | $18.6M | $0.37 |
| Q3 2023 | $151.3M | -$7.2M | $-0.15 |
| Q2 2023 | $146.0M | -$17.0M | $-0.35 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FRPT Capital Allocation
FRPT SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Freshpet, Inc. (CIK: 0001611647)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FRPT
What is the AI rating for FRPT?
Freshpet, Inc. (FRPT) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FRPT's key strengths?
Claude: Strong revenue growth of 13% YoY indicating market demand and business expansion. Excellent balance sheet health with 5.54x current ratio, 278M cash, and minimal debt (0.05x D/E).
What are the risks of investing in FRPT?
Claude: Operating income growth decelerating significantly relative to revenue growth, suggesting cost structure pressures or operating deleverage. Net income flat YoY (0.0%) despite 13% revenue growth indicates margin compression and earnings quality concerns.
What is FRPT's revenue and growth?
Freshpet, Inc. reported revenue of $1.1B.
Does FRPT pay dividends?
Freshpet, Inc. does not currently pay dividends.
Where can I find FRPT SEC filings?
Official SEC filings for Freshpet, Inc. (CIK: 0001611647) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FRPT's EPS?
Freshpet, Inc. has a diluted EPS of $2.64.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FRPT a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Freshpet, Inc. has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FRPT stock overvalued or undervalued?
Valuation metrics for FRPT: ROE of 11.5% (sector avg: 15%), net margin of 12.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FRPT stock in 2026?
Our dual AI analysis gives Freshpet, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is FRPT's free cash flow?
Freshpet, Inc.'s operating cash flow is $160.6M, with capital expenditures of $148.2M. FCF margin is 1.1%.
How does FRPT compare to other Default stocks?
Vs Default sector averages: Net margin 12.6% (avg: 12%), ROE 11.5% (avg: 15%), current ratio 5.54 (avg: 1.8).