Analyzing FLOWERS FOODS INC (NYSE:FLO)'s Dividend Potential.

FLOWERS FOODS INC (NYSE:FLO) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. FLO demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Understanding FLO's Dividend

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. FLO earns a 8 out of 10:

• FLO has a Yearly Dividend Yield of 5.26%, which is a nice return.
• FLO's Dividend Yield is rather good when compared to the industry average which is at 4.35. FLO pays more dividend than 87.64% of the companies in the same industry.
• FLO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
• The dividend of FLO is nicely growing with an annual growth rate of 7.46%!
• FLO has been paying a dividend for at least 10 years, so it has a reliable track record.
• FLO has not decreased their dividend for at least 10 years, which is a reliable track record.

How We Gauge Health for FLO

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. FLO has earned a 5 out of 10:

• FLO has an Altman-Z score of 3.48. This indicates that FLO is financially healthy and has little risk of bankruptcy at the moment.
• FLO has a better Altman-Z score (3.48) than 77.53% of its industry peers.
• FLO has a debt to FCF ratio of 3.69. This is a good value and a sign of high solvency as FLO would need 3.69 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.69, FLO is in the better half of the industry, outperforming 74.16% of the companies in the same industry.

Understanding FLO's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of FLO, the assigned 8 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 7.30%, FLO is in the better half of the industry, outperforming 76.40% of the companies in the same industry.
• With an excellent Return On Equity value of 17.60%, FLO belongs to the best of the industry, outperforming 87.64% of the companies in the same industry.
• The Return On Invested Capital of FLO (10.20%) is better than 82.02% of its industry peers.
• The 3 year average ROIC (9.98%) for FLO is below the current ROIC(10.20%), indicating increased profibility in the last year.
• FLO has a better Profit Margin (4.86%) than 69.66% of its industry peers.
• FLO's Profit Margin has improved in the last couple of years.
• With a decent Operating Margin value of 7.44%, FLO is doing good in the industry, outperforming 70.79% of the companies in the same industry.
• In the last couple of years the Operating Margin of FLO has grown nicely.
• Looking at the Gross Margin, with a value of 49.50%, FLO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of FLO for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.