Mama's Creations Inc. Common Stock (MAMA)

FairStock Score: 53/100 — MIXED

Key Financials

Strengths

• Generates $6 million in annual free cash flow (1.1% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 13.6% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.27, providing financial flexibility
• Altman Z-Score of 11.5 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($2) with negative 621% margin of safety—limited downside protection

AI Analysis

Mama's Creations Inc. Common Stock is a micro-cap consumer defensive company valued at $569 million. The business generates $172 million in annual revenue with a 1.3% net margin and $6 million in free cash flow. From a quality standpoint, Mama's shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 11.5 confirms fortress-level solvency. On valuation, the stock is commanding a steep 108.1x multiple, with trades far above its Graham Number ($2) with no margin of safety. Growth dynamics show revenue growing at 60.8% and profit growth of 39.5%. Our composite FairStock Score of 53/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Mama's's 61% revenue growth trajectory could accelerate as it captures additional market share in the consumer defensive sector. With $6 million in annual free cash flow (1.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 108x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer