FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
USA - NYSE:FLO - US3434981011 - Common Stock
13.48 USD
-0.27 (-1.96%)
13.59 USD
+0.11 (+0.82%)
FLO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 89 industry peers in the Food Products industry. While FLO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FLO has a valuation in line with the averages, but on the other hand it scores bad on growth. 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.
FLO had positive earnings in each of the past 5 years.
FLO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FLO has a Return On Assets of 5.05%. This is in the better half of the industry: FLO outperforms 69.66% of its industry peers.
Looking at the Return On Equity, with a value of 15.37%, FLO belongs to the top of the industry, outperforming 83.15% of the companies in the same industry.
FLO has a Return On Invested Capital of 7.62%. This is in the better half of the industry: FLO outperforms 74.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FLO is significantly below the industry average of 28.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 15.37% | ||
| ROIC | 7.62% |
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 4.30% is fine compared to the rest of the industry. FLO outperforms 66.29% of its industry peers.
FLO's Profit Margin has improved in the last couple of years.
FLO's Operating Margin of 7.31% is fine compared to the rest of the industry. FLO outperforms 67.42% of its industry peers.
FLO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 49.38%, FLO belongs to the best of the industry, outperforming 98.88% of the companies in the same industry.
FLO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.31% | ||
| PM (TTM) | 4.3% | ||
| GM | 49.38% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FLO is still creating some value.
The number of shares outstanding for FLO remains at a similar level compared to 1 year ago.
Compared to 5 years ago, FLO has less shares outstanding
FLO has a better debt/assets ratio than last year.
2.2 Solvency
FLO has an Altman-Z score of 2.40. This is not the best score and indicates that FLO is in the grey zone with still only limited risk for bankruptcy at the moment.
FLO's Altman-Z score of 2.40 is in line compared to the rest of the industry. FLO outperforms 56.18% of its industry peers.
The Debt to FCF ratio of FLO is 4.59, which is a neutral value as it means it would take FLO, 4.59 years of fcf income to pay off all of its debts.
FLO's Debt to FCF ratio of 4.59 is fine compared to the rest of the industry. FLO outperforms 75.28% of its industry peers.
FLO has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of FLO (1.23) is worse than 76.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 4.59 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.08
WACC7.06%
2.3 Liquidity
FLO has a Current Ratio of 1.26. This is a normal value and indicates that FLO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FLO (1.26) is worse than 67.42% of its industry peers.
A Quick Ratio of 0.74 indicates that FLO may have some problems paying its short term obligations.
FLO's Quick ratio of 0.74 is on the low side compared to the rest of the industry. FLO is outperformed by 62.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
FLO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.64%.
The Earnings Per Share has been growing slightly by 5.70% on average over the past years.
The Revenue has decreased by -0.61% in the past year.
FLO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.35% yearly.
EPS 1Y (TTM)-1.64%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%1.46%
3.2 Future
The Earnings Per Share is expected to decrease by -1.95% on average over the next years.
Based on estimates for the next years, FLO will show a small growth in Revenue. The Revenue will grow by 1.04% on average per year.
EPS Next Y-15.91%
EPS Next 2Y-8.18%
EPS Next 3Y-5.05%
EPS Next 5Y-1.95%
Revenue Next Year2.8%
Revenue Next 2Y1.43%
Revenue Next 3Y0.99%
Revenue Next 5Y1.04%
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
FLO is valuated reasonably with a Price/Earnings ratio of 11.23.
Compared to the rest of the industry, the Price/Earnings ratio of FLO indicates a somewhat cheap valuation: FLO is cheaper than 77.53% of the companies listed in the same industry.
FLO is valuated cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.49, FLO is valued correctly.
Based on the Price/Forward Earnings ratio, FLO is valued a bit cheaper than the industry average as 78.65% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.77. FLO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.23 | ||
| Fwd PE | 12.49 |
4.2 Price Multiples
FLO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FLO is cheaper than 66.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FLO is valued cheaply inside the industry as 87.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.42 | ||
| EV/EBITDA | 8.56 |
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 -5.05% in the coming years.
PEG (NY)N/A
PEG (5Y)1.97
EPS Next 2Y-8.18%
EPS Next 3Y-5.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.94%, FLO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.03, FLO pays a better dividend. On top of this FLO pays more dividend than 87.64% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.94% |
5.2 History
On average, the dividend of FLO grows each year by 7.46%, which is quite nice.
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
FLO pays out 93.80% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of FLO has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP93.8%
EPS Next 2Y-8.18%
EPS Next 3Y-5.05%
13.48
-0.27 (-1.96%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners80.73%
Inst Owner Change2.52%
Ins Owners2.34%
Ins Owner Change0.13%
Market Cap2.85B
Analysts52
Price Target16.7 (23.89%)
Short Float %9.7%
Short Ratio6.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.94% |
Yearly Dividend0.96
Dividend Growth(5Y)7.46%
DP93.8%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.65%
Min EPS beat(2)-7.75%
Max EPS beat(2)0.45%
EPS beat(4)3
Avg EPS beat(4)2.21%
Min EPS beat(4)-7.75%
Max EPS beat(4)11.18%
EPS beat(8)5
Avg EPS beat(8)0.31%
EPS beat(12)7
Avg EPS beat(12)1.66%
EPS beat(16)10
Avg EPS beat(16)3.51%
Revenue beat(2)0
Avg Revenue beat(2)-3.26%
Min Revenue beat(2)-3.76%
Max Revenue beat(2)-2.75%
Revenue beat(4)0
Avg Revenue beat(4)-2.73%
Min Revenue beat(4)-3.76%
Max Revenue beat(4)-1.69%
Revenue beat(8)0
Avg Revenue beat(8)-2.2%
Revenue beat(12)2
Avg Revenue beat(12)-1.69%
Revenue beat(16)4
Avg Revenue beat(16)-1.28%
PT rev (1m)-9.66%
PT rev (3m)-12.67%
EPS NQ rev (1m)-10.55%
EPS NQ rev (3m)-11.49%
EPS NY rev (1m)-3.9%
EPS NY rev (3m)-7.88%
Revenue NQ rev (1m)-1.19%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)-0.84%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.23 | ||
| Fwd PE | 12.49 | ||
| P/S | 0.56 | ||
| P/FCF | 7.42 | ||
| P/OCF | 5.57 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.56 |
EPS(TTM)1.2
EY8.9%
EPS(NY)1.08
Fwd EY8.01%
FCF(TTM)1.82
FCFY13.47%
OCF(TTM)2.42
OCFY17.94%
SpS24.14
BVpS6.76
TBVpS-3.6
PEG (NY)N/A
PEG (5Y)1.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 15.37% | ||
| ROCE | 9.92% | ||
| ROIC | 7.62% | ||
| ROICexc | 7.64% | ||
| ROICexgc | 18.29% | ||
| OM | 7.31% | ||
| PM (TTM) | 4.3% | ||
| GM | 49.38% | ||
| FCFM | 7.52% |
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%
ROICexcg growth 3Y-3.32%
ROICexcg 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-Score7
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 4.59 | ||
| Debt/EBITDA | 3.29 | ||
| Cap/Depr | 77.92% | ||
| Cap/Sales | 2.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.31% | ||
| Profit Quality | 174.74% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.4 |
F-Score7
WACC7.06%
ROIC/WACC1.08
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)-1.64%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%-16.67%
EPS Next Y-15.91%
EPS Next 2Y-8.18%
EPS Next 3Y-5.05%
EPS Next 5Y-1.95%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%1.46%
Revenue Next Year2.8%
Revenue Next 2Y1.43%
Revenue Next 3Y0.99%
Revenue Next 5Y1.04%
EBIT growth 1Y4.7%
EBIT growth 3Y2%
EBIT growth 5Y8.76%
EBIT Next Year47.38%
EBIT Next 3Y14.54%
EBIT Next 5Y8.49%
FCF growth 1Y130.51%
FCF growth 3Y12.24%
FCF growth 5Y1.28%
OCF growth 1Y66.92%
OCF growth 3Y6.19%
OCF growth 5Y2.37%