Part 1: Deep dive on Freshpet (FRPT)
Paid subscribers to Jonah’s Growth Stock Deep Dives receive ~2 deep dives per month (8,000+ words), ~2 mini deep dives per month (2,000+ words) and quarterly earnings commentary on most of my portfolio companies plus access to my investment portfolio (up +145.6% YTD in 2024, up +134% in 2023 and up +2,500% since January 2020) with real-time activity, notes/commentary and charts throughout the day.
My investment strategy is pretty simple. I want to own 20-30 high-quality growth stocks with the best fundamentals at the most reasonable valuations — if the fundamentals begin to disappoint or the valuation no longer looks compelling I will trim or sell my position. If the fundamentals remain strong and valuation remains reasonable then I’ll add on pullbacks. I only want to own stocks that have at least 50% upside within the next 1-2 years and at least 100% upside within the next 3-4 years. If I buy stocks that are too expensive, the fundamentals aren’t good enough or my investment thesis is flawed — then I’ll never hit my investment targets. My objective is to maximize performance in good markets and minimize losses in bad markets. I accomplish this by being very selective in what I own but also using technical analysis and hedges to protect my portfolio in market downturns.
Company: Freshpet
Ticker: (FRPT)
Website: Freshpet.com
IPO date: November 07, 2014
IPO price: $15
Current stock price: $131.17 (~39% CAGR since IPO)
Outstanding shares: 48.43 million
52-week high: $132.29 on May 28, 2024
52-week low: $54.60 on November 01, 2023
ATH: $186.98 on May 03, 2021
Market cap: $6.352 billion
Net cash/debt: -$135.69 million (net debt)
Enterprise value: $6.488 billion
Headquarters: Secaucus, New Jersey, United States
Number of employees: 1,080+
Average price target from analysts: $139.44
Investor Relations: Investors.freshpet.com
Q1 2024 Earnings Report: https://investors.freshpet.com/investors/investor-news/press-release-details/2024/Freshpet-Inc.-Reports-First-Quarter-2024-Financial-Results/default.aspx
Q1 2024 Investor Presentation: https://s21.q4cdn.com/902450038/files/doc_financials/2024/q1/Freshpet-1Q24-Earnings-Presentation__Final.pdf
Outline
Introduction [part 1]
Company Background [part 1]
Opportunity [part 1]
Business Model [part 1]
Competitive Advantages [part 1]
Risks [part 1]
Valuation [part 2]
Investment Model [part 2]
Analysts [part 2]
Technicals [part 2]
Conclusion [part 2]