BRBR - BellRing Brands: Incredible Business Economics Make Valuation Justified

2024-05-10 23:19:26 ET

Summary

• BellRing, a previous spin-off from Post Holdings, sells sports nutrition products in the US through Premier Protein and Dymatize.
• The company has grown earnings impressively with great revenue growth met with high and rising margins, with Q2 results showing an accelerated continuation of the trend.
• The company has incredible business economics as the growth has been achieved in a capital light manner through third-party manufacturers.
• The current valuation reflects a fairly long growth runway ahead, making the current stock price a balanced risk-to-reward.

BellRing Brands ( BRBR ) was spun off from Post Holdings ( POST ) in 2019. The company sells sports nutrition products in the United States, including ready-to-drink protein shakes and other beverages, powders, and nutrition bars. BellRing owns the Premier Protein and Dymatize brands, of which Premier Protein accounts for the overwhelming majority of revenues....

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