📊 FRPT Key Takeaways
Is Freshpet, Inc. (FRPT) a Good Investment?
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%.
Freshpet shows solid fundamental momentum with double-digit revenue growth, strong gross margins, and a balance sheet that is exceptionally liquid and lightly levered. The core business appears healthier as operating income and cash generation improve, but the very low free cash flow and gap between operating income and net income suggest earnings quality and capital intensity still need close monitoring.
Why Buy Freshpet, Inc. Stock? 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
- Double-digit revenue growth with a healthy 40.8% gross margin indicates strong product economics
- Excellent financial health with 5.54x current ratio, 0.05x debt-to-equity, and high interest coverage
- Positive operating cash flow and improving profitability provide support for continued expansion
FRPT Stock Risks: Freshpet, Inc. Investment Risks
- 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
- Free cash flow remains thin at 1.1% of revenue because capital expenditures are consuming most operating cash flow
- Net income materially exceeds operating income, which may indicate meaningful non-operating or one-time benefits
- Operating margin is still modest at 6.9%, leaving less room for execution missteps or cost inflation
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
- Free cash flow conversion after capital expenditures
- Operating margin expansion and consistency of operating income growth
Freshpet, Inc. (FRPT) Financial Metrics & Key Ratios
💡 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 Profit Margin, ROE & Profitability Analysis
FRPT vs Market Sector: How Freshpet, Inc. Compares
How Freshpet, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Freshpet, Inc. Stock Overvalued? FRPT Valuation Analysis 2026
Based on fundamental analysis, Freshpet, Inc. has mixed fundamental signals relative to the Market 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.
Freshpet, Inc. Balance Sheet: FRPT Debt, Cash & Liquidity
FRPT Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
FRPT Quarterly Earnings & 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.
Freshpet, Inc. Dividends, Buybacks & Capital Allocation
FRPT SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 69% combined 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). ChatGPT: Double-digit revenue growth with a healthy 40.8% gross margin indicates strong product economics. Excellent financial health with 5.54x current ratio, 0.05x debt-to-equity, and high interest coverage.
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. ChatGPT: Free cash flow remains thin at 1.1% of revenue because capital expenditures are consuming most operating cash flow. Net income materially exceeds operating income, which may indicate meaningful non-operating or one-time benefits.
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 April 2026, Freshpet, Inc. has a BUY rating with 69% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. 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 BUY 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 Market stocks?
Vs Default sector averages: Net margin 12.6% (avg: 12%), ROE 11.5% (avg: 15%), current ratio 5.54 (avg: 1.8).