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Armanino Foods Of Distinction: An Unknown Gem

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Wealth Insights


  • Armanino Foods of Distinction is an unknown producer of upscale frozen food products.
  • The company boasts growth, strong fundamentals, and pays a great dividend.
  • While the company carries risk simply due to its small size in a massive industry, the company is a great business and wealth generator.

There are thousands of publicly traded companies in the world, which makes it near impossible to be aware of every investment opportunity out there. When you get into small-cap stocks, it becomes even more difficult as coverage lessens as market caps shrink. One small cap that has caught our attention is Armanino Foods of Distinction (OTCPK:AMNF). Not only does the company's interesting name grab our attention, but the company has rock-solid fundamentals, exhibits growth, and pays a strong dividend. With a market cap of less than $100 million, this small company has the potential to pack a large punch for investors.

Armanino Foods is a manufacturer and seller of upscale foods, primarily frozen Italian food. Its products range from pesto sauces, to pasta, to meatballs, and poultry products. The company was founded in 1986 and is located in Hayward, CA. The company generates more than $35 million in annual revenue.

Financial Performance

Source: YCharts

Armanino Foods has exhibited strong growth over the past decade. The company's performance dipped some during the recession, but it has roared back since then. Over the past decade, the business has grown revenue at a CAGR of 7.93%, and earnings per share at a CAGR of 19.09%. These are very robust growth rates for a packaged foods business.

To get additional perspective on the company's strengths and weaknesses, we will begin by analyzing Armanino Foods' profitability. We start with operating margin and FCF conversion. The company has grown immensely over the past decade (more than doubling revenue), so the expanding margin is a great sign, and likely that the company is scaling effectively. Meanwhile, the company is converting revenue at a decent rate. The conversion rate flirts with our 10% benchmark but falls just short. While we would like to see our benchmarks hit, the company's strong revenue growth makes up for this as FCF is still growing

This article was written by

Wealth Insights profile picture
I provide straight forward insights on stocks and markets using fundamental analysis and common sense. - Bachelor's degree in Business Administration with a concentration in Financial Analysis. Been investing and following the markets for more than a decade.- Wealth Insights is an investor, and investment author. His content is not geared to anyone's specific investment goals, time horizons, or risk tolerance. Content is for illustrative purposes only, and is not intended to displace advice from a fee based financial adviser. It is not to be taken as investment advice, or influence investor decision making. Accuracy of data is not guaranteed.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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