FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLO - US3434981011 - Common Stock
10.78 USD
+0.1 (+0.94%)
10.78 USD
0 (0%)
Overall FLO gets a fundamental rating of 5 out of 10. We evaluated FLO against 86 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
FLO had positive earnings in the past year.
FLO had a positive operating cash flow in the past year.
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 better Return On Assets (4.46%) than 72.41% of its industry peers.
Looking at the Return On Equity, with a value of 13.66%, FLO belongs to the top of the industry, outperforming 85.06% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.07%, FLO belongs to the top of the industry, outperforming 80.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FLO is significantly below the industry average of 28.77%.
| 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.
FLO's Operating Margin of 6.94% is fine compared to the rest of the industry. FLO outperforms 68.97% of its industry peers.
In the last couple of years the Operating Margin of FLO has grown nicely.
FLO's Gross Margin of 48.94% is amongst the best of the industry. FLO outperforms 97.70% of its industry peers.
FLO's Gross Margin has been stable in the last couple of years.
| 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
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 remains at a similar level compared to 1 year ago.
FLO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FLO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.17 indicates that FLO is not a great score, but indicates only limited risk for bankruptcy at the moment.
FLO has a Altman-Z score (2.17) which is comparable to the rest of the industry.
FLO has a debt to FCF ratio of 5.50. This is a neutral value as FLO would need 5.50 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.50, FLO is doing good in the industry, outperforming 78.16% of the companies in the same industry.
FLO has a Debt/Equity ratio of 0.98. This is a neutral value indicating FLO is somewhat dependend on debt financing.
FLO has a Debt to Equity ratio of 0.98. This is in the lower half of the industry: FLO underperforms 71.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.18
WACC6.84%
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.
FLO's Current ratio of 0.79 is on the low side compared to the rest of the industry. FLO is outperformed by 81.61% of its industry peers.
FLO has a Quick 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 Quick ratio value of 0.47, FLO is not doing good in the industry: 73.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
FLO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.70%.
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
FLO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.39% yearly.
The Revenue is expected to grow by 0.93% on average over the next years.
EPS Next Y-18.39%
EPS Next 2Y-11.7%
EPS Next 3Y-6.83%
EPS Next 5Y-3.39%
Revenue Next Year2.59%
Revenue Next 2Y0.8%
Revenue Next 3Y0.67%
Revenue Next 5Y0.93%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 9.80, the valuation of FLO can be described as very reasonable.
86.21% of the companies in the same industry are more expensive than FLO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.49, FLO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.80, the valuation of FLO can be described as reasonable.
FLO's Price/Forward Earnings ratio is rather cheap when compared to the industry. FLO is cheaper than 82.76% of the companies in the same industry.
FLO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FLO indicates a somewhat cheap valuation: FLO is cheaper than 75.86% of the companies listed in the same industry.
FLO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FLO is cheaper than 90.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7 | ||
| EV/EBITDA | 7.73 |
4.3 Compensation for Growth
FLO has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as FLO's earnings are expected to decrease with -6.83% in the coming years.
PEG (NY)N/A
PEG (5Y)1.72
EPS Next 2Y-11.7%
EPS Next 3Y-6.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.27%, FLO is a good candidate for dividend investing.
In the last 3 months the price of FLO has falen by -27.21%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.10, 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 2.31, FLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.27% |
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
FLO pays out 106.99% of its income as dividend. 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-11.7%
EPS Next 3Y-6.83%
10.78
+0.1 (+0.94%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.65%
Inst Owner Change3.74%
Ins Owners2.09%
Ins Owner Change-0.09%
Market Cap2.28B
Revenue(TTM)5.13B
Net Income(TTM)194.02M
Analysts51.43
Price Target14.03 (30.15%)
Short Float %9.16%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.27% |
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)-14.06%
PT rev (3m)-16.03%
EPS NQ rev (1m)-10.21%
EPS NQ rev (3m)-12.7%
EPS NY rev (1m)-2.12%
EPS NY rev (3m)-2.95%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 10.8 | ||
| P/S | 0.44 | ||
| P/FCF | 7 | ||
| P/OCF | 5.05 | ||
| P/B | 1.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.73 |
EPS(TTM)1.1
EY10.2%
EPS(NY)1
Fwd EY9.26%
FCF(TTM)1.54
FCFY14.29%
OCF(TTM)2.14
OCFY19.82%
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 | 2.17 |
F-Score4
WACC6.84%
ROIC/WACC1.18
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-18.39%
EPS Next 2Y-11.7%
EPS Next 3Y-6.83%
EPS Next 5Y-3.39%
Revenue 1Y (TTM)0.26%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%3.02%
Revenue Next Year2.59%
Revenue Next 2Y0.8%
Revenue Next 3Y0.67%
Revenue Next 5Y0.93%
EBIT growth 1Y-3.26%
EBIT growth 3Y2%
EBIT growth 5Y8.76%
EBIT Next Year39.33%
EBIT Next 3Y11.61%
EBIT Next 5Y7.56%
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 9.8 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.