FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLO - US3434981011 - Common Stock
10.71 USD
-0.07 (-0.65%)
10.71 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FLO. FLO was compared to 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 is valued quite cheap, but it does not seem to be growing. 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
The Return On Assets of FLO (4.46%) is better than 72.09% of its industry peers.
FLO has a Return On Equity of 13.66%. This is amongst the best in the industry. FLO outperforms 84.88% of its industry peers.
With an excellent Return On Invested Capital value of 8.07%, FLO belongs to the best of the industry, outperforming 80.23% of the companies in the same industry.
FLO had an Average Return On Invested Capital over the past 3 years of 9.98%. This is significantly below the industry average of 28.77%.
| 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
With a decent Profit Margin value of 3.78%, FLO is doing good in the industry, outperforming 65.12% of the companies in the same industry.
In the last couple of years the Profit Margin of FLO has grown nicely.
FLO has a Operating Margin of 6.94%. This is in the better half of the industry: FLO outperforms 68.60% of its industry peers.
FLO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 48.94%, FLO belongs to the best of the industry, outperforming 97.67% 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
FLO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
FLO has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for FLO has been reduced compared to 5 years ago.
The debt/assets ratio for FLO has been reduced compared to a year ago.
2.2 Solvency
FLO has an Altman-Z score of 2.17. 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.
The Altman-Z score of FLO (2.17) 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.
FLO has a better Debt to FCF ratio (5.50) than 79.07% 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 70.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.18
WACC6.83%
2.3 Liquidity
A Current Ratio of 0.79 indicates that FLO may have some problems paying its short term obligations.
The Current ratio of FLO (0.79) is worse than 81.40% 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.
The Quick ratio of FLO (0.47) is worse than 74.42% 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.
The Earnings Per Share has been growing slightly by 5.70% on average over the past years.
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.
FLO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.93% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FLO is valuated reasonably with a Price/Earnings ratio of 9.74.
FLO's Price/Earnings ratio is rather cheap when compared to the industry. FLO is cheaper than 86.05% of the companies in the same industry.
FLO is valuated cheaply when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.73, which indicates a very decent valuation of FLO.
82.56% of the companies in the same industry are more expensive than FLO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.69. FLO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLO is valued a bit cheaper than 75.58% of the companies in the same industry.
FLO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FLO is cheaper than 91.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.95 | ||
| EV/EBITDA | 7.73 |
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 -6.83% in the coming years.
PEG (NY)N/A
PEG (5Y)1.71
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.
The stock price of FLO dropped by -22.11% 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 5.10, FLO pays a better dividend. On top of this FLO pays more dividend than 96.51% 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
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
The Dividend Rate of FLO has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP106.99%
EPS Next 2Y-11.7%
EPS Next 3Y-6.83%
10.71
-0.07 (-0.65%)
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 Cap2.26B
Revenue(TTM)5.13B
Net Income(TTM)194.02M
Analysts51.43
Price Target14.03 (31%)
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 | 9.74 | ||
| Fwd PE | 10.73 | ||
| P/S | 0.44 | ||
| P/FCF | 6.95 | ||
| P/OCF | 5.01 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.73 |
EPS(TTM)1.1
EY10.27%
EPS(NY)1
Fwd EY9.32%
FCF(TTM)1.54
FCFY14.38%
OCF(TTM)2.14
OCFY19.95%
SpS24.31
BVpS6.73
TBVpS-3.58
PEG (NY)N/A
PEG (5Y)1.71
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
WACC6.83%
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 9.74 and the Price/Book (PB) ratio is 1.59.
What is the financial health of FLOWERS FOODS INC (FLO) stock?
The financial health rating of FLOWERS FOODS INC (FLO) is 3 / 10.