FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
NYSE:FLO - New York Stock Exchange, Inc. - US3434981011 - Common Stock - Currency: USD
Taking everything into account, FLO scores 5 out of 10 in our fundamental rating. FLO was compared to 91 industry peers in the Food Products industry. FLO scores excellent on profitability, but 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. FLO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FLO had positive earnings in the past year.
In the past year FLO had a positive cash flow from operations.
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
The Return On Assets of FLO (5.27%) is better than 70.33% of its industry peers.
FLO's Return On Equity of 16.11% is amongst the best of the industry. FLO outperforms 84.62% of its industry peers.
FLO's Return On Invested Capital of 7.80% is fine compared to the rest of the industry. FLO outperforms 72.53% of its industry peers.
FLO had an Average Return On Invested Capital over the past 3 years of 9.98%. This is significantly below the industry average of 28.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 16.11% | ||
| ROIC | 7.8% |
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 has a Profit Margin of 4.49%. This is in the better half of the industry: FLO outperforms 67.03% of its industry peers.
In the last couple of years the Profit Margin of FLO has grown nicely.
FLO has a Operating Margin of 7.51%. This is in the better half of the industry: FLO outperforms 69.23% of its industry peers.
FLO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 49.65%, FLO belongs to the best of the industry, outperforming 98.90% 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 | 7.51% | ||
| PM (TTM) | 4.49% | ||
| GM | 49.65% |
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
FLO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, FLO has about the same amount of shares outstanding.
The number of shares outstanding for FLO has been reduced compared to 5 years ago.
Compared to 1 year ago, FLO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.51 indicates that FLO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.51, FLO is doing good in the industry, outperforming 60.44% of the companies in the same industry.
The Debt to FCF ratio of FLO is 5.64, which is a neutral value as it means it would take FLO, 5.64 years of fcf income to pay off all of its debts.
FLO has a Debt to FCF ratio of 5.64. This is in the better half of the industry: FLO outperforms 78.02% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that FLO has dependencies on debt financing.
FLO's Debt to Equity ratio of 1.27 is on the low side compared to the rest of the industry. FLO is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 5.64 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.04
WACC7.5%
2.3 Liquidity
A Current Ratio of 1.26 indicates that FLO should not have too much problems paying its short term obligations.
The Current ratio of FLO (1.26) is worse than 67.03% of its industry peers.
FLO has a Quick Ratio of 1.26. This is a bad value and indicates that FLO is not financially healthy enough and could expect problems in meeting its short term obligations.
FLO's Quick ratio of 0.73 is on the low side compared to the rest of the industry. FLO is outperformed by 60.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.88% over the past year.
Measured over the past 5 years, FLO shows a small growth in Earnings Per Share. The EPS has been growing by 5.70% on average per year.
Looking at the last year, FLO shows a decrease in Revenue. The Revenue has decreased by -1.02% in the last year.
Measured over the past years, FLO shows a small growth in Revenue. The Revenue has been growing by 4.35% on average per year.
EPS 1Y (TTM)5.88%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%-5.41%
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%-1.43%
3.2 Future
FLO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.15% yearly.
FLO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.42% yearly.
EPS Next Y-12.49%
EPS Next 2Y-4.89%
EPS Next 3Y-2.6%
EPS Next 5Y-1.15%
Revenue Next Year3.98%
Revenue Next 2Y2.27%
Revenue Next 3Y1.86%
Revenue Next 5Y1.42%
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 correctly with a Price/Earnings ratio of 12.51.
Based on the Price/Earnings ratio, FLO is valued a bit cheaper than 71.43% of the companies in the same industry.
FLO is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.61, FLO is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FLO indicates a somewhat cheap valuation: FLO is cheaper than 72.53% of the companies listed in the same industry.
FLO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 13.61 |
4.2 Price Multiples
60.44% of the companies in the same industry are more expensive than FLO, based on the Enterprise Value to EBITDA ratio.
82.42% 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 | 10.44 | ||
| EV/EBITDA | 9.44 |
4.3 Compensation for Growth
The decent profitability rating of FLO may justify a higher PE ratio.
FLO's earnings are expected to decrease with -2.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.19
EPS Next 2Y-4.89%
EPS Next 3Y-2.6%
5. Dividend
5.1 Amount
FLO has a Yearly Dividend Yield of 6.15%, which is a nice return.
Compared to an average industry Dividend Yield of 4.66, FLO pays a better dividend. On top of this FLO pays more dividend than 89.01% 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
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
89.56% 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.
DP89.56%
EPS Next 2Y-4.89%
EPS Next 3Y-2.6%
15.76
+0.06 (+0.38%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners80.46%
Inst Owner Change0.02%
Ins Owners2.34%
Ins Owner Change0.97%
Market Cap3.33B
Analysts52
Price Target19.13 (21.38%)
Short Float %8.79%
Short Ratio6.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
Yearly Dividend0.96
Dividend Growth(5Y)7.46%
DP89.56%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.39%
Min EPS beat(2)-7.75%
Max EPS beat(2)4.97%
EPS beat(4)3
Avg EPS beat(4)3.85%
Min EPS beat(4)-7.75%
Max EPS beat(4)11.18%
EPS beat(8)5
Avg EPS beat(8)2.26%
EPS beat(12)7
Avg EPS beat(12)2.84%
EPS beat(16)10
Avg EPS beat(16)4.3%
Revenue beat(2)0
Avg Revenue beat(2)-3.23%
Min Revenue beat(2)-3.76%
Max Revenue beat(2)-2.7%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-3.76%
Max Revenue beat(4)-1.69%
Revenue beat(8)1
Avg Revenue beat(8)-1.66%
Revenue beat(12)2
Avg Revenue beat(12)-1.51%
Revenue beat(16)5
Avg Revenue beat(16)-1.1%
PT rev (1m)-8.54%
PT rev (3m)-9.64%
EPS NQ rev (1m)0.8%
EPS NQ rev (3m)-3.38%
EPS NY rev (1m)-4.14%
EPS NY rev (3m)-4.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 13.61 | ||
| P/S | 0.65 | ||
| P/FCF | 10.44 | ||
| P/OCF | 7.51 | ||
| P/B | 2.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.44 |
EPS(TTM)1.26
EY7.99%
EPS(NY)1.16
Fwd EY7.35%
FCF(TTM)1.51
FCFY9.58%
OCF(TTM)2.1
OCFY13.32%
SpS24.06
BVpS6.7
TBVpS-3.67
PEG (NY)N/A
PEG (5Y)2.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 16.11% | ||
| ROCE | 10.15% | ||
| ROIC | 7.8% | ||
| ROICexc | 7.81% | ||
| ROICexgc | 18.71% | ||
| OM | 7.51% | ||
| PM (TTM) | 4.49% | ||
| GM | 49.65% | ||
| FCFM | 6.28% |
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 | 1.27 | ||
| Debt/FCF | 5.64 | ||
| Debt/EBITDA | 3.32 | ||
| Cap/Depr | 77.58% | ||
| Cap/Sales | 2.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.82% | ||
| Profit Quality | 139.8% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.51 |
F-Score7
WACC7.5%
ROIC/WACC1.04
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)5.88%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%-5.41%
EPS Next Y-12.49%
EPS Next 2Y-4.89%
EPS Next 3Y-2.6%
EPS Next 5Y-1.15%
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%-1.43%
Revenue Next Year3.98%
Revenue Next 2Y2.27%
Revenue Next 3Y1.86%
Revenue Next 5Y1.42%
EBIT growth 1Y12.07%
EBIT growth 3Y2%
EBIT growth 5Y8.76%
EBIT Next Year50.04%
EBIT Next 3Y15.11%
EBIT Next 5Y9.08%
FCF growth 1Y124.29%
FCF growth 3Y12.24%
FCF growth 5Y1.28%
OCF growth 1Y50.38%
OCF growth 3Y6.19%
OCF growth 5Y2.37%