FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLO - US3434981011 - Common Stock
10.77 USD
+0.37 (+3.56%)
10.77 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FLO. FLO was compared to 87 industry peers in the Food Products industry. While FLO has a great profitability rating, there are quite some concerns on its financial health. FLO has a bad growth rate and is valued cheaply. Finally FLO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FLO was profitable.
In the past year FLO had a positive cash flow from operations.
FLO had positive earnings in each of the past 5 years.
In the past 5 years FLO always reported a positive cash flow from operatings.
1.2 Ratios
FLO has a Return On Assets of 4.46%. This is in the better half of the industry: FLO outperforms 71.26% of its industry peers.
FLO's Return On Equity of 13.66% is amongst the best of the industry. FLO outperforms 85.06% of its industry peers.
FLO has a better Return On Invested Capital (8.07%) than 80.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FLO is significantly below the industry average of 28.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.46% | ||
| ROE | 13.66% | ||
| ROIC | 8.07% |
ROA(3y)5.93%
ROA(5y)5.74%
ROE(3y)14.18%
ROE(5y)13.65%
ROIC(3y)9.98%
ROIC(5y)9.92%
1.3 Margins
FLO's Profit Margin of 3.78% is fine compared to the rest of the industry. FLO outperforms 65.52% of its industry peers.
FLO's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 6.94%, FLO is doing good in the industry, outperforming 68.97% of the companies in the same industry.
FLO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.94%, FLO belongs to the top of the industry, outperforming 98.85% of the companies in the same industry.
In the last couple of years the Gross Margin of FLO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.94% | ||
| PM (TTM) | 3.78% | ||
| GM | 48.94% |
OM growth 3Y-3.43%
OM growth 5Y4.23%
PM growth 3Y0.7%
PM growth 5Y4.04%
GM growth 3Y-0.18%
GM growth 5Y0.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FLO is creating some value.
Compared to 1 year ago, FLO has about the same amount of shares outstanding.
FLO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FLO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.16 indicates that FLO is not a great score, but indicates only limited risk for bankruptcy at the moment.
FLO has a Altman-Z score (2.16) which is in line with its industry peers.
The Debt to FCF ratio of FLO is 5.50, which is a neutral value as it means it would take FLO, 5.50 years of fcf income to pay off all of its debts.
FLO has a Debt to FCF ratio of 5.50. This is in the better half of the industry: FLO outperforms 78.16% of its industry peers.
FLO has a Debt/Equity ratio of 0.98. This is a neutral value indicating FLO is somewhat dependend on debt financing.
FLO's Debt to Equity ratio of 0.98 is on the low side compared to the rest of the industry. FLO is outperformed by 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.16 |
ROIC/WACC1.19
WACC6.77%
2.3 Liquidity
FLO has a Current Ratio of 0.79. This is a bad value and indicates that FLO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.79, FLO is not doing good in the industry: 81.61% of the companies in the same industry are doing better.
A Quick Ratio of 0.47 indicates that FLO may have some problems paying its short term obligations.
FLO has a Quick ratio of 0.47. This is in the lower half of the industry: FLO underperforms 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The earnings per share for FLO have decreased strongly by -12.70% in the last year.
FLO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.70% yearly.
FLO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.26%.
FLO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.35% yearly.
EPS 1Y (TTM)-12.7%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%-30.3%
Revenue 1Y (TTM)0.26%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%3.02%
3.2 Future
The Earnings Per Share is expected to decrease by -2.23% on average over the next years.
The Revenue is expected to grow by 1.06% on average over the next years.
EPS Next Y-16.62%
EPS Next 2Y-8.21%
EPS Next 3Y-5.34%
EPS Next 5Y-2.23%
Revenue Next Year2.84%
Revenue Next 2Y1.42%
Revenue Next 3Y0.95%
Revenue Next 5Y1.06%
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 decreasing.
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
The Price/Earnings ratio is 9.79, which indicates a very decent valuation of FLO.
Based on the Price/Earnings ratio, FLO is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of FLO to the average of the S&P500 Index (25.98), we can say FLO is valued rather cheaply.
The Price/Forward Earnings ratio is 9.99, which indicates a very decent valuation of FLO.
Based on the Price/Forward Earnings ratio, FLO is valued cheaper than 89.66% of the companies in the same industry.
FLO is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 9.99 |
4.2 Price Multiples
FLO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FLO is cheaper than 75.86% of the companies in the same industry.
90.80% 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 | 6.99 | ||
| EV/EBITDA | 7.58 |
4.3 Compensation for Growth
The decent profitability rating of FLO may justify a higher PE ratio.
A cheap valuation may be justified as FLO's earnings are expected to decrease with -5.34% in the coming years.
PEG (NY)N/A
PEG (5Y)1.72
EPS Next 2Y-8.21%
EPS Next 3Y-5.34%
5. Dividend
5.1 Amount
FLO has a Yearly Dividend Yield of 9.44%, which is a nice return.
The stock price of FLO dropped by -28.39% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 5.20, FLO pays a better dividend. On top of this FLO pays more dividend than 96.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, FLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.44% |
5.2 History
The dividend of FLO is nicely growing with an annual growth rate of 7.46%!
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)7.46%
Div Incr Years22
Div Non Decr Years22
5.3 Sustainability
106.99% of the earnings are spent on dividend by FLO. This is not a sustainable payout ratio.
FLO's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP106.99%
EPS Next 2Y-8.21%
EPS Next 3Y-5.34%
10.77
+0.37 (+3.56%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners85.86%
Inst Owner Change3.74%
Ins Owners2.31%
Ins Owner Change0.01%
Market Cap2.27B
Revenue(TTM)5.13B
Net Income(TTM)194.02M
Analysts51.43
Price Target14.03 (30.27%)
Short Float %9.7%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.44% |
Yearly Dividend0.96
Dividend Growth(5Y)7.46%
DP106.99%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.05%
Min EPS beat(2)-0.34%
Max EPS beat(2)0.45%
EPS beat(4)2
Avg EPS beat(4)-0.67%
Min EPS beat(4)-7.75%
Max EPS beat(4)4.97%
EPS beat(8)4
Avg EPS beat(8)0.01%
EPS beat(12)6
Avg EPS beat(12)1.28%
EPS beat(16)9
Avg EPS beat(16)2.31%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-2.75%
Max Revenue beat(2)-1.32%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-3.76%
Max Revenue beat(4)-1.32%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)1
Avg Revenue beat(12)-1.85%
Revenue beat(16)3
Avg Revenue beat(16)-1.43%
PT rev (1m)-16.03%
PT rev (3m)-16.67%
EPS NQ rev (1m)-11.08%
EPS NQ rev (3m)-12.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 9.99 | ||
| P/S | 0.44 | ||
| P/FCF | 6.99 | ||
| P/OCF | 5.04 | ||
| P/B | 1.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.58 |
EPS(TTM)1.1
EY10.21%
EPS(NY)1.08
Fwd EY10.01%
FCF(TTM)1.54
FCFY14.3%
OCF(TTM)2.14
OCFY19.83%
SpS24.31
BVpS6.73
TBVpS-3.58
PEG (NY)N/A
PEG (5Y)1.72
Graham Number12.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.46% | ||
| ROE | 13.66% | ||
| ROCE | 10.51% | ||
| ROIC | 8.07% | ||
| ROICexc | 8.11% | ||
| ROICexgc | 22.75% | ||
| OM | 6.94% | ||
| PM (TTM) | 3.78% | ||
| GM | 48.94% | ||
| FCFM | 6.34% |
ROA(3y)5.93%
ROA(5y)5.74%
ROE(3y)14.18%
ROE(5y)13.65%
ROIC(3y)9.98%
ROIC(5y)9.92%
ROICexc(3y)10.22%
ROICexc(5y)10.45%
ROICexgc(3y)19.22%
ROICexgc(5y)20.02%
ROCE(3y)13.04%
ROCE(5y)12.97%
ROICexgc growth 3Y-3.32%
ROICexgc growth 5Y5.84%
ROICexc growth 3Y-1.65%
ROICexc growth 5Y7.13%
OM growth 3Y-3.43%
OM growth 5Y4.23%
PM growth 3Y0.7%
PM growth 5Y4.04%
GM growth 3Y-0.18%
GM growth 5Y0.73%
F-Score4
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.5 | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 75.86% | ||
| Cap/Sales | 2.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.37% | ||
| Profit Quality | 167.69% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 2.16 |
F-Score4
WACC6.77%
ROIC/WACC1.19
Cap/Depr(3y)95.72%
Cap/Depr(5y)92.68%
Cap/Sales(3y)2.88%
Cap/Sales(5y)2.85%
Profit Quality(3y)125.18%
Profit Quality(5y)141.19%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.7%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%-30.3%
EPS Next Y-16.62%
EPS Next 2Y-8.21%
EPS Next 3Y-5.34%
EPS Next 5Y-2.23%
Revenue 1Y (TTM)0.26%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%3.02%
Revenue Next Year2.84%
Revenue Next 2Y1.42%
Revenue Next 3Y0.95%
Revenue Next 5Y1.06%
EBIT growth 1Y-3.26%
EBIT growth 3Y2%
EBIT growth 5Y8.76%
EBIT Next Year42.85%
EBIT Next 3Y12.85%
EBIT Next 5Y8.32%
FCF growth 1Y72.17%
FCF growth 3Y12.24%
FCF growth 5Y1.28%
OCF growth 1Y38.09%
OCF growth 3Y6.19%
OCF growth 5Y2.37%
FLOWERS FOODS INC / FLO FAQ
What is the ChartMill fundamental rating of FLOWERS FOODS INC (FLO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to FLO.
Can you provide the valuation status for FLOWERS FOODS INC?
ChartMill assigns a valuation rating of 7 / 10 to FLOWERS FOODS INC (FLO). This can be considered as Undervalued.
What is the profitability of FLO stock?
FLOWERS FOODS INC (FLO) has a profitability rating of 7 / 10.
What are the PE and PB ratios of FLOWERS FOODS INC (FLO) stock?
The Price/Earnings (PE) ratio for FLOWERS FOODS INC (FLO) is 9.79 and the Price/Book (PB) ratio is 1.6.
What is the financial health of FLOWERS FOODS INC (FLO) stock?
The financial health rating of FLOWERS FOODS INC (FLO) is 3 / 10.