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Bull Of The Day: Mamas Creations (MAMA)

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Mama’s Creations (MAMA - Free Report) is a Zacks Rank #1 (Strong Buy) that has a F for Value and an A for Growth. This company is marketer and manufacturer of fresh deli prepared foods which serves grocery, mass, club and convenience stores. With the start of the Iran war, consumers have been tightening their belts, and that has sent this stock down a little making it ripe for the picking. Let’s learn more about why this stock is the Bull of the Day.

Description                                              

Mama's Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini's, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty and Daniel Mancini on July 22, 2009 and is headquartered in East Rutherford, NJ.

Earnings History                                                         

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

Mama’s Creations (MAMA - Free Report) has reported four straight beats of the Zacks Consensus Estimate.  Over the course of the last year, the average positive earnings surprise works out to be 133%.

The company recently reported earnings of 3 cents when the Zacks Consensus Estimate was calling for a loss of a penny and that 4 cent beat translates to a positive earnings surprise of 400%.

Earnings Estimates Revisions

Earnings estimate revisions is what the Zacks Rank is all about. 

Estimates for 2026 are holding still for Mama’s Creations (MAMA - Free Report) .

The current fiscal year 2026 has held still at a gain of $0.13 over the last 90 days.

Fiscal 2027 has increased from $0.24 to $0.27 over the last 60 days.

Valuation                                                                                                        

The valuation for MAMA is rather stiff right here they're forward earnings multiple of 52.7x and that is well ahead of the market multiple which averages around 18x.  Price to book comes in at 11.6x which is pretty high given that this is an asset heavy business. Price to sales comes in at 3.8x but could easily expand to 5x under good conditions. 

The company posted year over year sales growth of 50% in the most recent quarter and that is something you wouldn't expect for a company in the food industry. What you would expect from the food industry is low margins and that is what MAMA is dealing with. If they can lift their operating margins out of the mid to high 3% range we could see an even higher multiple.

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