One-glance verdict
Undervalued
$17.54 our estimate vs market $12.03
Wall Street consensus: $15.00 (-14.5% lower than our fair-value estimate)
31% below our estimate, below the bear case
Fundamentals snapshot
Armanino Foods of Distinction, Inc.
AMNF · OQX · Consumer Defensive · Packaged Foods
Current price
$12.03
52-week range
$8.75 - $12.25
Market cap
$368.58M
Balance sheet
Healthy
1,974.19x Strong cushion
Net cash $16.42M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 9.7% last year.
- Reward Returns 47.9% on equity, ahead of 80% of its peers.
- Risk Stock trades 15.7% above its 5-year average P/E.
- Risk Insider ownership is only 0.0% (peer median: 3.4%).
What this company does
Armanino Foods of Distinction, Inc.
Armanino Foods of Distinction, Inc. makes and sells frozen and refrigerated Italian-style sauces and pastas, with their money primarily coming from selling these products to restaurants and grocery stores. This matters because it shows how the company makes its income and where its customers are.
How the company got here
Armanino Foods of Distinction, Inc. has a rich history rooted in family farming and a forward-thinking approach to the food industry. Originally a family farm, the company evolved when William J. "Bill" Armanino saw the potential in mass-produced convenience foods. He pioneered the use of freeze-dried herbs in products like Kraft sour cream and, by the late 1960s, had transformed the family business into a national herb supplier. A significant turning point came in the 1970s when Bill introduced his mother's pesto to the U.S. market, making Armanino the first company to sell classic Genovese pesto on a retail level and eventually becoming the nation's leading pesto supplier. The company was founded in October 1986, and its journey has been marked by continuous growth and diversification into a wide range of Italian specialty food items.
What it actually does
Armanino Foods of Distinction, Inc. is a food company that makes and sells frozen Italian specialty foods. Think of them as the folks behind those delicious pesto sauces, stuffed pastas, and other Italian-inspired dishes you might find in the freezer aisle of your grocery store. They create these products for both regular shoppers (retail) and for restaurants and other food service businesses (foodservice). Their goal is to bring authentic Italian flavors to a wide range of customers.
Pestos and Sauces
This is a core part of Armanino's business, and it's what they are perhaps most famous for. They produce a variety of pesto sauces, including the classic basil pesto that they helped make popular in the U.S. They also offer other flavors like cilantro, roasted red pepper, and even some spicier options like harissa and chimichurri. These sauces are used by consumers at home and by restaurants as a base for pasta dishes, a flavor enhancer for other foods, or as a finishing sauce. This segment represents a significant portion of the company's offerings, providing a flavorful foundation for many meals.
Pastas and Prepared Foods
Beyond sauces, Armanino also makes a variety of pasta products, particularly stuffed pastas like ravioli and tortellini, as well as pasta sheets. They also offer cooked meat products and prepared meals. These items are designed for convenience, allowing consumers and foodservice operators to easily prepare Italian-inspired dishes. This business line complements their sauces, offering a more complete meal solution and contributing a substantial part of the company's revenue by providing ready-to-cook or heat-and-eat options.
What management is betting on now
Armanino Foods' management is focused on growing the business by strengthening its presence in the U.S. foodservice sector, which includes partnering with large quick-service restaurant chains. They are also looking to expand their international reach, particularly in Asian markets. A key part of their strategy involves improving their profit margins by focusing on higher-margin products, managing costs effectively through long-term agreements for ingredients, and increasing manufacturing efficiency. This approach aims to build a more profitable and durable business model for the future.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $17.54 vs current price $12.03
Wall Street consensus is the average analyst price target: $15.00 (-14.5% lower than our fair-value estimate).
Our most-likely fair value is $17.54 a share — about 45.8% above today's price of $12.03, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $16.4M - more cash than debt. Interest coverage 1974.2x.
Net debt
$-16.42M
Interest coverage
1,974.19x
Armanino Foods of Distinction, Inc.'s profit covers its interest bill about 1974.2 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
AMNF
BASELINE
Armanino Foods of Distinction, Inc.
Total debt $10.85M Interest coverage 1,974.19x This is the baseline the peer rows are being compared against.
Total debt $22.47M Interest coverage 210.03x -89% vs AMNF Carries about 9.4x less debt cushion than AMNF.
Total debt $2.58B Interest coverage 1.23x -100% vs AMNF Carries about 1609.1x less debt cushion than AMNF.
Total debt $407.81M Interest coverage -16.63x -100% vs AMNF This peer has almost no interest-payment cushion compared with AMNF.
Total debt $12.92M Interest coverage 15.07x -99% vs AMNF Carries about 131.0x less debt cushion than AMNF.
Total debt $148.73M Interest coverage 35.80x -98% vs AMNF Carries about 55.1x less debt cushion than AMNF.
What you should know
The case for and against AMNF
3 Rewards
2 Risks
Rewards
-
Revenue grew 9.7% last year.
-
Returns 47.9% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 15.7% above its 5-year average P/E.
-
Insider ownership is only 0.0% (peer median: 3.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
19.10x
Forward P/E
—
P/B
8.05x
P/S
4.65x
EV/EBITDA
12.91x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
48.7%
Operating margin
29.5%
Net margin
24.8%
ROE
47.9%
ROA
26.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.24x
Current ratio
5.57x
Quick ratio
4.76x
Total debt
$10.85M
Total cash
$27.27M
Growth
How the business has been compounding
Revenue TTM
$79.20M
Revenue 5Y CAGR
6.2%
EPS TTM
0.63
EPS 5Y CAGR
30.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$15.09M
Free CF TTM
$13.07M
FCF margin
16.5%
Dividend
Shareholder payout
Yield
1.7%
Payout ratio
23.8%
Last ex-div date
2026-10-16