Cash Machine Trading Cheap – BellRing Brands Stock Set to Run?

January 7th, 2026 by Trefis Team
BRBR: BellRing Brands logo
BRBR
BellRing Brands

We think BellRing Brands (BRBR) stock is worth a look: It is growing, producing cash, and available at a significant valuation discount. Companies like this can use cash to fuel additional revenue growth, or simply pay their shareholders through dividends or buybacks. Either move makes them attractive to the market.

What Is Happening With BRBR

BRBR is down 12% so far this year and is now available at a significant discount to its 3-month, 1-year, and 2-year highs. This can be attributed to recent increased promotional activity and elevated input costs compressing gross profit margins, leading to an earnings per share miss in the latest quarter. Furthermore, revised fiscal year 2026 guidance below analyst expectations, driven by intensifying competition in key retail channels and persistent commodity price headwinds, has tempered future growth projections.

The stock may not reflect it yet, but here is what’s going well for the company: BellRing Brands delivered 16.1% net sales growth for fiscal year 2025, with Premier Protein volume up 18.4% and Dymatize sales jumping 32.9% in Q4, driven by new product lines and expanded household penetration. The company generated $261 million in cash from operations in 2025, maintains a healthy net leverage ratio of 2.1 times, and has authorized significant new share repurchase programs, signaling management confidence. While Q1 FY26 may see softer sales, plans to expand Premier Protein distribution points by over 20% and launch new innovations position the company for continued longer-term growth. Analysts widely view the stock as undervalued.

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BRBR Has Strong Fundamentals

  • Cash Yield: BellRing Brands offers an impressive cash flow yield of 8.8%.
  • Growing: Revenue growth of 16.1% over the last twelve months means that the cash pile is going to grow.
  • Valuation Discount: BRBR stock is currently trading at 34% below its 3-month high, 70% below its 1-year high, and 70% below its 2-year high.

Below is a quick comparison of BRBR fundamentals with S&P medians.

  BRBR S&P Median
Sector Consumer Staples –
Industry Packaged Foods & Meats –
Free Cash Flow Yield 8.8% 4.0%
   
Revenue Growth LTM 16.1% 6.2%
   
Operating Margin LTM 15.4% 18.8%
   
PS Ratio 1.3 3.3
PE Ratio 13.5 23.9
   
Discount vs 3-Month High -33.5% -3.9%
Discount vs 1-Year High -70.4% -8.7%
Discount vs 2-Year High -70.4% -11.1%

*LTM: Last Twelve Months

But What About The Risk Involved?

While BRBR stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. BRBR slid about 38% during the Covid pandemic and roughly 40% in the inflation shock. These aren’t minor dips by any means. Even with solid fundamentals, this stock shows it’s not immune when the market turns sour. Risk is real, and BRBR can take hits just like many others in tough times. But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read BRBR Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

If you want to see more details, read Buy or Sell BRBR Stock.

Other Stocks Like BRBR

Not ready to act on BRBR? You could consider these alternatives:

  1. Oracle (ORCL)
  2. ServiceNow (NOW)
  3. Coinbase Global (COIN)

We chose these stocks using the following criteria:

  1. Greater than $2 Bil in market cap
  2. Positive revenue growth
  3. High free cash flow yield
  4. Meaningful discount to 3M, 1Y, and 2Y highs

A portfolio that was built starting 12/31/2016 with stocks that fulfil the criteria above would have performed as follows:

  • Average 6-month and 12-month forward returns of 25.7% and 57.9% respectively
  • Win rate (percentage of picks returning positive) of >70% for both 6-month and 12-month periods

Why Stock Pickers Win More With Multi Asset Portfolios

Stocks can jump or crash but different assets move on different cycles. A multi asset portfolio helps you stay invested while cushioning swings in equities.

The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices