B&G FOODS INC (BGS) Stock Fundamental Analysis
NYSE:BGS - New York Stock Exchange, Inc. - US05508R1068 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to BGS. BGS was compared to 91 industry peers in the Food Products industry. There are concerns on the financial health of BGS while its profitability can be described as average. BGS has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
BGS had positive earnings in the past year.
In the past year BGS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BGS reported negative net income in multiple years.
In the past 5 years BGS always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -0.77%, BGS is not doing good in the industry: 68.24% of the companies in the same industry are doing better.
BGS's Return On Equity of -3.48% is on the low side compared to the rest of the industry. BGS is outperformed by 69.41% of its industry peers.
With a decent Return On Invested Capital value of 9.03%, BGS is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BGS is below the industry average of 9.02%.
The last Return On Invested Capital (9.03%) for BGS is above the 3 year average (5.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.77% | ||
| ROE | -3.48% | ||
| ROIC | 9.03% |
ROA(3y)-0.15%
ROA(5y)1.08%
ROE(3y)-0.64%
ROE(5y)4.67%
ROIC(3y)5.03%
ROIC(5y)5.33%
1.3 Margins
BGS has a Operating Margin of 16.82%. This is amongst the best in the industry. BGS outperforms 89.41% of its industry peers.
In the last couple of years the Operating Margin of BGS has grown nicely.
BGS's Gross Margin of 21.87% is in line compared to the rest of the industry. BGS outperforms 49.41% of its industry peers.
In the last couple of years the Gross Margin of BGS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.82% | ||
| PM (TTM) | N/A | ||
| GM | 21.87% |
OM growth 3Y-6.24%
OM growth 5Y3.76%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.37%
GM growth 5Y1.45%
2. Health
2.1 Basic Checks
BGS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BGS has been increased compared to 1 year ago.
BGS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BGS has been reduced compared to a year ago.
2.2 Solvency
BGS has an Altman-Z score of 1.44. This is a bad value and indicates that BGS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.44, BGS is not doing good in the industry: 63.53% of the companies in the same industry are doing better.
The Debt to FCF ratio of BGS is 18.12, which is on the high side as it means it would take BGS, 18.12 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BGS (18.12) is worse than 60.00% of its industry peers.
BGS has a Debt/Equity ratio of 2.40. This is a high value indicating a heavy dependency on external financing.
BGS's Debt to Equity ratio of 2.40 is on the low side compared to the rest of the industry. BGS is outperformed by 90.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 18.12 | ||
| Altman-Z | 1.44 |
ROIC/WACC1.26
WACC7.16%
2.3 Liquidity
BGS has a Current Ratio of 1.64. This is a normal value and indicates that BGS is financially healthy and should not expect problems in meeting its short term obligations.
BGS has a Current ratio (1.64) which is in line with its industry peers.
A Quick Ratio of 0.49 indicates that BGS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.49, BGS is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
BGS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.70%.
BGS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.66% yearly.
BGS shows a decrease in Revenue. In the last year, the revenue decreased by -7.04%.
The Revenue has been growing slightly by 3.93% on average over the past years.
EPS 1Y (TTM)-36.7%
EPS 3Y-24.05%
EPS 5Y-11.66%
EPS Q2Q%-51.85%
Revenue 1Y (TTM)-7.04%
Revenue growth 3Y1.57%
Revenue growth 5Y3.93%
Sales Q2Q%-8.29%
3.2 Future
Based on estimates for the next years, BGS will show a decrease in Earnings Per Share. The EPS will decrease by -8.15% on average per year.
Based on estimates for the next years, BGS will show a decrease in Revenue. The Revenue will decrease by -1.93% on average per year.
EPS Next Y-30.63%
EPS Next 2Y-17.24%
EPS Next 3Y-8.15%
EPS Next 5YN/A
Revenue Next Year-6.17%
Revenue Next 2Y-3.28%
Revenue Next 3Y-1.93%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.67, which indicates a very decent valuation of BGS.
Compared to the rest of the industry, the Price/Earnings ratio of BGS indicates a rather cheap valuation: BGS is cheaper than 89.41% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, BGS is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.84, the valuation of BGS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BGS is valued cheaply inside the industry as 92.94% of the companies are valued more expensively.
BGS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 9.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BGS is valued cheaply inside the industry as 83.53% of the companies are valued more expensively.
90.59% of the companies in the same industry are more expensive than BGS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.6 | ||
| EV/EBITDA | 6.36 |
4.3 Compensation for Growth
A cheap valuation may be justified as BGS's earnings are expected to decrease with -8.15% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-17.24%
EPS Next 3Y-8.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.88%, BGS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.94, BGS pays a better dividend. On top of this BGS pays more dividend than 100.00% of the companies listed in the same industry.
BGS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.88% |
5.2 History
The dividend of BGS decreases each year by -11.46%.
BGS has paid a dividend for at least 10 years, which is a reliable track record.
BGS has decreased its dividend recently.
Dividend Growth(5Y)-11.46%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of BGS are negative and hence is the payout ratio. BGS will probably not be able to sustain this dividend level.
The Dividend Rate of BGS has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-228.13%
EPS Next 2Y-17.24%
EPS Next 3Y-8.15%
6.67
+0.27 (+4.22%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners69.72%
Inst Owner Change2.98%
Ins Owners3.08%
Ins Owner Change2.75%
Market Cap528.00M
Analysts48.57
Price Target8.09 (21.29%)
Short Float %13.17%
Short Ratio6.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.88% |
Yearly Dividend0.75
Dividend Growth(5Y)-11.46%
DP-228.13%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-27.25%
Min EPS beat(2)-35.09%
Max EPS beat(2)-19.41%
EPS beat(4)1
Avg EPS beat(4)-16.26%
Min EPS beat(4)-35.09%
Max EPS beat(4)3.61%
EPS beat(8)5
Avg EPS beat(8)11.88%
EPS beat(12)5
Avg EPS beat(12)-0.21%
EPS beat(16)5
Avg EPS beat(16)-3.03%
Revenue beat(2)1
Avg Revenue beat(2)-1.26%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)1%
Revenue beat(4)2
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)1%
Revenue beat(8)3
Avg Revenue beat(8)-0.55%
Revenue beat(12)4
Avg Revenue beat(12)-0.78%
Revenue beat(16)6
Avg Revenue beat(16)-0.73%
PT rev (1m)-1.74%
PT rev (3m)-8.87%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)0.66%
EPS NY rev (1m)-1.92%
EPS NY rev (3m)-3.49%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 9.84 | ||
| P/S | 0.27 | ||
| P/FCF | 4.6 | ||
| P/OCF | 3.7 | ||
| P/B | 0.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.36 |
EPS(TTM)0.69
EY10.34%
EPS(NY)0.68
Fwd EY10.16%
FCF(TTM)1.45
FCFY21.75%
OCF(TTM)1.8
OCFY27.01%
SpS24.75
BVpS9.54
TBVpS-17.76
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.77% | ||
| ROE | -3.48% | ||
| ROCE | 11.44% | ||
| ROIC | 9.03% | ||
| ROICexc | 9.21% | ||
| ROICexgc | 39.12% | ||
| OM | 16.82% | ||
| PM (TTM) | N/A | ||
| GM | 21.87% | ||
| FCFM | 5.86% |
ROA(3y)-0.15%
ROA(5y)1.08%
ROE(3y)-0.64%
ROE(5y)4.67%
ROIC(3y)5.03%
ROIC(5y)5.33%
ROICexc(3y)5.09%
ROICexc(5y)5.39%
ROICexgc(3y)17.45%
ROICexgc(5y)19.68%
ROCE(3y)6.37%
ROCE(5y)6.75%
ROICexcg growth 3Y-6.86%
ROICexcg growth 5Y-0.58%
ROICexc growth 3Y-1.75%
ROICexc growth 5Y5.17%
OM growth 3Y-6.24%
OM growth 5Y3.76%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.37%
GM growth 5Y1.45%
F-Score6
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 18.12 | ||
| Debt/EBITDA | 4.56 | ||
| Cap/Depr | 40.44% | ||
| Cap/Sales | 1.42% | ||
| Interest Coverage | 2.07 | ||
| Cash Conversion | 35.82% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 1.44 |
F-Score6
WACC7.16%
ROIC/WACC1.26
Cap/Depr(3y)39.06%
Cap/Depr(5y)46.27%
Cap/Sales(3y)1.47%
Cap/Sales(5y)1.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.7%
EPS 3Y-24.05%
EPS 5Y-11.66%
EPS Q2Q%-51.85%
EPS Next Y-30.63%
EPS Next 2Y-17.24%
EPS Next 3Y-8.15%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.04%
Revenue growth 3Y1.57%
Revenue growth 5Y3.93%
Sales Q2Q%-8.29%
Revenue Next Year-6.17%
Revenue Next 2Y-3.28%
Revenue Next 3Y-1.93%
Revenue Next 5YN/A
EBIT growth 1Y36.76%
EBIT growth 3Y-4.77%
EBIT growth 5Y7.84%
EBIT Next Year20.43%
EBIT Next 3Y7.41%
EBIT Next 5YN/A
FCF growth 1Y3277.41%
FCF growth 3Y-4.48%
FCF growth 5Y5.75%
OCF growth 1Y336.16%
OCF growth 3Y-4.17%
OCF growth 5Y3.41%