Quality Investor

Freshpet, Inc.

Rank #281Op. Leverage

FRPT · Nasdaq · Consumer Defensive

Freshpet, Inc. (FRPT) — Rank #281 by gross profitability (GP/assets 0.25) · ROE 11.2% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001611647 · all metrics point-in-time as of the filing date.

About

Freshpet, Inc., together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe.

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It offers dog food, cat food, and dog treats under the Freshpet brand name; and fresh treats under the Dognation and Dog Joy brand names. The company sells its products through a network of company-owned branded refrigerators, the Freshpet Fridges, as well as through various classes of retail, including grocery, mass, club, pet specialty, and international, as well as digital.

The company was incorporated in 2004 and is headquartered in Bedminster, New Jersey.

Industry
Packaged Foods
Sector
Consumer Defensive
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

FRPT-52.0% · -13.6% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$3.03B

P/E (annual)

23.9

P/S (annual)

2.8

P/B

2.5

P/OCF (annual)

18.9

Shareholder Yield

-11.5%

Employees

1,288

Industry

Packaged Foods

Exchange

Nasdaq

Signal Flags

2 green2 yellow
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.25
Return on equity
11.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.46
Current ratio
6.05×
Net cash
$350.81M

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
1.3%

Growth

1/2 pass
Revenue growth
13.0%
Piotroski F-Score
N/A
Share dilution
11.5%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

45.4%

stretched

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 11.5% — per-share value needs a total required return of 56.9% once share-count change is priced in.

vs. own 6-year median revenue growth: 29.2%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

39.1%

r = 10% (base)

45.4%

r = 12%

50.9%

Net debt / market cap: -9.9%

Base FCF: $12.4M3Y mean FCF: -$61.2M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

4.0xCheap
0.0xmed 7.2x18.6x

P / B

Price / book value per share

3.6xCheap
0.0xmed 8.8x20.3x

P / GP

Price / gross profit per share

9.8xCheap
0.0xmed 17.9x44.7x

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.25

Primary signal (Novy-Marx).

7th of 18 SIC 20 peers

Return on equity

11.2%

Gross margin

40.8%

6th of 18 SIC 20 peers

Revenue growth (YoY)

13.0%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

22.8%

Revenue CAGR (5Y)

28.2%

Earnings CAGR (3Y)

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.46

5th of 18 SIC 20 peers (best = lowest)

Current ratio

6.05×

2nd of 18 SIC 20 peers

Quick ratio

4.87×

Net cash

$350.81M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$12.38M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.91

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.3%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20202025
Hypergrowth
Op. Leverage