BellRing Brands (BRBR): Reassessing Valuation After New $600m Share Repurchase Authorization

BellRing Brands has doubled down on returning cash to shareholders, wrapping up a 2.61% buyback tranche while simultaneously rolling out a fresh two year, 600 million dollar repurchase authorization.

See our latest analysis for BellRing Brands.

Even with the new buyback indicating management’s confidence, BellRing’s 90 day share price return of negative 26.32% and one year total shareholder return of negative 59.86% show that momentum has been fading despite a solid multi year track record.

If this kind of capital return story has you thinking more broadly about opportunities, it might be worth exploring fast growing stocks with high insider ownership as a way to spot the next potential compounder.

With earnings still growing, a hefty discount to analyst targets and another large buyback in place, investors now face a crucial question: Is BellRing quietly undervalued, or is the market already discounting its future gains?

Most Popular Narrative Narrative: 21% Undervalued

Compared with BellRing Brands last close at 30.85 dollars, the most followed narrative points to a meaningfully higher fair value anchored in steady compounding.

In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 24.9x on those 2028 earnings, up from 20.8x today. This future PE is greater than the current PE for the US Personal Products industry at 22.8x.

Read the complete narrative.

Curious what kind of earnings runway and margin lift underpin that richer multiple and elevated fair value, or how buybacks reshape the per share story over time?

Result: Fair Value of $39.07 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising input costs and intensifying competition could pressure margins and challenge BellRing’s ability to deliver the earnings and valuation implied by this narrative.

Find out about the key risks to this BellRing Brands narrative.

Build Your Own BellRing Brands Narrative

If you see the story differently or prefer to dig into the numbers yourself, you can build a custom view in minutes: Do it your way.

A great starting point for your BellRing Brands research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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