Mama's Creations: Small Stock With Strong Long-Term Growth Potential

Entrepreneur, Idea, Competence, Vision, Target

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Mama's Creations (Nasdaq: MAMA) stands out as a small company with plenty of upside growth potential. The company achieved double-digit revenue growth over the past four years. Mama's Creations is expected to grow revenue and earnings at a strong pace for FY24 and FY25. MAMA's stock appears to be a good long-term pick as a growth at a reasonable price play.

Mama's Creations was formerly named MamaMancini's Holdings prior to August 2023. The company produces prepared refrigerated foods, mostly in the United States. Mama's food includes meatballs, lasagna, chicken, meatloaf, pasta entrees, and sausage-based meals. The company also offers salad bars, hot bars, deli foods, and other prepared foods.

Mama's Creations is based on an Italian family's original recipes. The meals are pre-cooked and only require heating, which provides a convenient way to get homemade-style food without the time and hassle of preparing and cooking from scratch. The products are sold in various supermarkets, club chains, and other distributors, with some meals available online from QVC.


Strong Growth Story

Mama's Creations made a growing business from traditional family Italian recipes and making them conveniently available in grocery stores as pre-cooked meals.

The company is a great growth story as it increased revenue from $9 million in FY14 up to $93 million in FY23. Mama's is on track to achieve $102 million in revenue for FY24 which ends in January. This would represent 9.5% revenue growth for the year. The company is also on track to achieve EPS of $0.16 which would be 166% earnings growth for FY24.

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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.

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