FLOWERS FOODS INC (FLO)
US3434981011 - Common Stock
FLO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 91 industry peers in the Food Products industry. While FLO has a great profitability rating, there are some minor concerns on its financial health. FLO has a valuation in line with the averages, but it does not seem to be growing. Finally FLO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FLO was profitable.
FLO had a positive operating cash flow in the past year.
In the past 5 years FLO has always been profitable.
Each year in the past 5 years FLO had a positive operating cash flow.
1.2 Ratios
FLO has a Return On Assets of 7.02%. This is in the better half of the industry: FLO outperforms 75.56% of its industry peers.
Looking at the Return On Equity, with a value of 17.11%, FLO belongs to the top of the industry, outperforming 82.22% of the companies in the same industry.
FLO's Return On Invested Capital of 9.94% is amongst the best of the industry. FLO outperforms 81.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FLO is in line with the industry average of 8.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 17.11% | ||
| ROIC | 9.94% |
ROA(3y)5.61%
ROA(5y)5.32%
ROE(3y)13.19%
ROE(5y)12.74%
ROIC(3y)9.98%
ROIC(5y)9.39%
1.3 Margins
FLO's Profit Margin of 4.70% is fine compared to the rest of the industry. FLO outperforms 65.56% of its industry peers.
In the last couple of years the Profit Margin of FLO has declined.
The Operating Margin of FLO (7.20%) is better than 67.78% of its industry peers.
In the last couple of years the Operating Margin of FLO has grown nicely.
The Gross Margin of FLO (49.30%) is better than 98.89% of its industry peers.
FLO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.2% | ||
| PM (TTM) | 4.7% | ||
| GM | 49.3% |
OM growth 3Y-5.26%
OM growth 5Y3.2%
PM growth 3Y-11.27%
PM growth 5Y-9.43%
GM growth 3Y-1.12%
GM growth 5Y0.25%
2. Health
2.1 Basic Checks
FLO 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 FLO has been reduced compared to 1 year ago.
FLO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FLO has a worse debt to assets ratio.
2.2 Solvency
FLO has an Altman-Z score of 3.58. This indicates that FLO is financially healthy and has little risk of bankruptcy at the moment.
FLO's Altman-Z score of 3.58 is fine compared to the rest of the industry. FLO outperforms 76.67% of its industry peers.
The Debt to FCF ratio of FLO is 4.17, which is a neutral value as it means it would take FLO, 4.17 years of fcf income to pay off all of its debts.
FLO has a Debt to FCF ratio of 4.17. This is in the better half of the industry: FLO outperforms 67.78% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that FLO is somewhat dependend on debt financing.
FLO's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. FLO is outperformed by 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 3.58 |
ROIC/WACC1.24
WACC8%
2.3 Liquidity
FLO has a Current Ratio of 1.24. This is a normal value and indicates that FLO is financially healthy and should not expect problems in meeting its short term obligations.
FLO has a Current ratio of 1.24. This is in the lower half of the industry: FLO underperforms 60.00% of its industry peers.
A Quick Ratio of 0.79 indicates that FLO may have some problems paying its short term obligations.
FLO's Quick ratio of 0.79 is on the low side compared to the rest of the industry. FLO is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.44% over the past year.
FLO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.01% yearly.
The Revenue has been growing slightly by 1.52% in the past year.
The Revenue has been growing slightly by 5.20% on average over the past years.
EPS 1Y (TTM)2.44%
EPS 3Y-2.88%
EPS 5Y5.01%
EPS Q2Q%13.79%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y5.08%
Revenue growth 5Y5.2%
Sales Q2Q%-0.73%
3.2 Future
The Earnings Per Share is expected to grow by 4.09% on average over the next years.
The Revenue is expected to grow by 1.34% on average over the next years.
EPS Next Y6.79%
EPS Next 2Y4.96%
EPS Next 3Y4.53%
EPS Next 5Y4.09%
Revenue Next Year0.66%
Revenue Next 2Y1.11%
Revenue Next 3Y0.93%
Revenue Next 5Y1.34%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.23 indicates a correct valuation of FLO.
Compared to the rest of the industry, the Price/Earnings ratio of FLO indicates a somewhat cheap valuation: FLO is cheaper than 72.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, FLO is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.47, the valuation of FLO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FLO indicates a somewhat cheap valuation: FLO is cheaper than 74.44% of the companies listed in the same industry.
FLO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.23 | ||
| Fwd PE | 15.47 |
4.2 Price Multiples
FLO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FLO is cheaper than 63.33% of the companies in the same industry.
66.67% of the companies in the same industry are more expensive than FLO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.84 | ||
| EV/EBITDA | 10.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FLO does not grow enough to justify the current Price/Earnings ratio.
FLO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.39
PEG (5Y)3.24
EPS Next 2Y4.96%
EPS Next 3Y4.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.65%, FLO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.83, FLO pays a better dividend. On top of this FLO pays more dividend than 88.89% of the companies listed in the same industry.
FLO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
5.2 History
The dividend of FLO is nicely growing with an annual growth rate of 10.15%!
FLO has paid a dividend for at least 10 years, which is a reliable track record.
FLO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.15%
Div Incr Years22
Div Non Decr Years22
5.3 Sustainability
83.51% of the earnings are spent on dividend by FLO. This is not a sustainable payout ratio.
The dividend of FLO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP83.51%
EPS Next 2Y4.96%
EPS Next 3Y4.53%
FLOWERS FOODS INC
NYSE:FLO (12/20/2024, 8:11:52 PM)
After market: 21.06 +0.61 (+2.98%)20.45
-0.18 (-0.87%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners69.23%
Inst Owner Change3.29%
Ins Owners6.95%
Ins Owner Change-0.24%
Market Cap4.31B
Analysts52
Price Target23.63 (15.55%)
Short Float %2.79%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
Dividend Growth(5Y)10.15%
DP83.51%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.09%
Min EPS beat(2)7%
Max EPS beat(2)11.18%
EPS beat(4)2
Avg EPS beat(4)0.69%
Min EPS beat(4)-9.77%
Max EPS beat(4)11.18%
EPS beat(8)4
Avg EPS beat(8)2.26%
EPS beat(12)7
Avg EPS beat(12)3.31%
EPS beat(16)11
Avg EPS beat(16)5.78%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-2.39%
Max Revenue beat(2)-1.69%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-2.39%
Max Revenue beat(4)-0.96%
Revenue beat(8)1
Avg Revenue beat(8)-1.45%
Revenue beat(12)3
Avg Revenue beat(12)-1.02%
Revenue beat(16)6
Avg Revenue beat(16)-0.72%
PT rev (1m)-4.47%
PT rev (3m)-4.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.52%
EPS NY rev (1m)1.46%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.23 | ||
| Fwd PE | 15.47 | ||
| P/S | 0.84 | ||
| P/FCF | 16.84 | ||
| P/OCF | 11.5 | ||
| P/B | 3.06 | ||
| P/tB | 46.27 | ||
| EV/EBITDA | 10.13 |
EPS(TTM)1.26
EY6.16%
EPS(NY)1.32
Fwd EY6.46%
FCF(TTM)1.21
FCFY5.94%
OCF(TTM)1.78
OCFY8.69%
SpS24.32
BVpS6.68
TBVpS0.44
PEG (NY)2.39
PEG (5Y)3.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 17.11% | ||
| ROCE | 12.88% | ||
| ROIC | 9.94% | ||
| ROICexc | 9.99% | ||
| ROICexgc | 18.5% | ||
| OM | 7.2% | ||
| PM (TTM) | 4.7% | ||
| GM | 49.3% | ||
| FCFM | 4.99% |
ROA(3y)5.61%
ROA(5y)5.32%
ROE(3y)13.19%
ROE(5y)12.74%
ROIC(3y)9.98%
ROIC(5y)9.39%
ROICexc(3y)10.47%
ROICexc(5y)9.92%
ROICexgc(3y)20.02%
ROICexgc(5y)19.22%
ROCE(3y)12.96%
ROCE(5y)12.19%
ROICexcg growth 3Y-4.31%
ROICexcg growth 5Y2.86%
ROICexc growth 3Y-3.36%
ROICexc growth 5Y5.81%
OM growth 3Y-5.26%
OM growth 5Y3.2%
PM growth 3Y-11.27%
PM growth 5Y-9.43%
GM growth 3Y-1.12%
GM growth 5Y0.25%
F-Score8
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.17 | ||
| Debt/EBITDA | 2.02 | ||
| Cap/Depr | 74.46% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.92% | ||
| Profit Quality | 106.25% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 3.58 |
F-Score8
WACC8%
ROIC/WACC1.24
Cap/Depr(3y)103.74%
Cap/Depr(5y)90.47%
Cap/Sales(3y)3.14%
Cap/Sales(5y)2.83%
Profit Quality(3y)119.57%
Profit Quality(5y)150.58%
High Growth Momentum
Growth
EPS 1Y (TTM)2.44%
EPS 3Y-2.88%
EPS 5Y5.01%
EPS Q2Q%13.79%
EPS Next Y6.79%
EPS Next 2Y4.96%
EPS Next 3Y4.53%
EPS Next 5Y4.09%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y5.08%
Revenue growth 5Y5.2%
Sales Q2Q%-0.73%
Revenue Next Year0.66%
Revenue Next 2Y1.11%
Revenue Next 3Y0.93%
Revenue Next 5Y1.34%
EBIT growth 1Y10.28%
EBIT growth 3Y-0.45%
EBIT growth 5Y8.57%
EBIT Next Year52.95%
EBIT Next 3Y17.06%
EBIT Next 5Y11.01%
FCF growth 1Y78.43%
FCF growth 3Y-14.83%
FCF growth 5Y2.31%
OCF growth 1Y16.67%
OCF growth 3Y-8.4%
OCF growth 5Y3.38%