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Utz Brands Inc

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Utz Brands Inc AI Insights

Informational only. Not investment advice.
As of 2026-02-06

Snapshot

  • Goodwill & intangibles of 1.8B represent 254% of equity - tangible book value is negative 1.1B, creating material impairment risk.[Goodwill and Other Intangible Assets]
  • FCF TTM is -25.5M despite 101M operating cash flow - capex of 127M (8.8% of revenue) consuming all cash generation.[Free Cash Flow TTM]
  • Interest expense of 40.4M TTM exceeds operating income of 23.8M - debt service consuming 170% of operating profit.[Interest Expense TTM]

Watch Triggers

  • Free Cash Flow TTM: Turn positive (>0)Validates capex investments generating returns; current -25.5M unsustainable
  • Interest Expense TTM: Falls below Operating IncomeInterest coverage <1x is distress signal; needs operating income >40M
  • Operating Margin TTM: Exceeds 5%Would match industry median and signal operating leverage from capex

Bull Case

Gross margin 34.2% exceeds industry median 29.8% - pricing power exists if operating leverage improves post-capex cycle.

Gross Margin TTMGross Profit TTM

P/S ratio 0.66x vs industry median 0.78x offers modest discount if turnaround materializes.

P/S RatioEnterprise Value

Bear Case

Negative tangible equity (-1.1B) with 1.0B debt creates refinancing risk; interest coverage below 1x.

Tangible Book ValueTotal DebtInterest Expense TTM

Paying 5.3M dividends while FCF is -25.5M - unsustainable capital allocation eroding balance sheet.

Free Cash Flow TTMCommon Stock Dividend Paid

Bull vs Bear Balance

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Forward Thesis

Margin expansion unlikely until capex cycle completes and debt burden reduces

1-3yhigh
  • Operating margin 1.7% vs industry median 5.1%
  • Debt/equity 1.43x with 40M annual interest
  • Capex 3x industry median as % of revenue
Net margin 0.4% vs industry 2.6%ROIC 0.3% vs industry 4.2%FCF negative while paying dividends

Valuation Context

Caveats

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