Blue Buffalo Pet Products (BUFF) has a market cap of $4.8 billion. It rose 3.2% to close at $24.46 per share on October 5, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 1.9%, -5.9%, and 30.7%, respectively, on the same day.
BUFF is trading 0.18% below its 20-day moving average, 3.6% below its 50-day moving average, and 6.3% above its 200-day moving average.
Related ETF and peers
The iShares Morningstar Mid-Cap Growth ETF (JKH) invests 0.14% of its holdings in Blue Buffalo Pet Products. The ETF tracks a market cap–weighted index of mid-cap companies selected by Morningstar based on their growth characteristics. JKH’s YTD price movement was 4.5% on October 5.
The market caps of BUFF’s competitors are as follows:
DA Davidson has initiated its coverage of Blue Buffalo Pet Products with a “buy” rating, and it’s set the stock’s price target at $29.0 per share.
Performance of Blue Buffalo Pet Products in 2Q16
Blue Buffalo Pet Products reported 2Q16 net sales of $286.9 million, a rise of 13.0% over the $254.0 million it reported in 2Q15. The company’s gross profit margin and operating income rose 12.9% and 53.9%, respectively, between 2Q15 and 2Q16.
Its net income and EPS (earnings per share) rose to $36.6 million and $0.18, respectively, in 2Q16, compared to $22.6 million and $0.11, respectively, in 2Q15. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and adjusted EPS of $68.3 million and $0.19, respectively, in 2Q16, rises of 40.5% and 46.2% respectively, over 2Q15.
BUFF’s cash and cash equivalents and inventories rose 22.0% and 4.8%, respectively, between 4Q15 and 2Q16. Its current ratio rose to 6.1x in 2Q16 from 3.7x in 4Q15.
Blue Buffalo Pet Products has made the following projections for 2016:
- net sales of $1.1 billion–$1.2 billion
- gross margin of ~44%
- adjusted EPS of $0.74–$0.76, excluding costs related to litigation and BUFF’s secondary public offering
- capital expenditure of $50 million–$60 million
- effective tax rate of ~37.3%
In the next part of this series, we’ll take a look at Toyota Motor (TM).