FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLO - US3434981011 - Common Stock
10.94 USD
+0.05 (+0.46%)
10.94 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.
FLO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.46%, FLO is doing good in the industry, outperforming 73.56% of the companies in the same industry.
FLO has a better Return On Equity (13.66%) than 87.36% of its industry peers.
The Return On Invested Capital of FLO (8.07%) is better than 83.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FLO is significantly below the industry average of 28.50%.
| 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
The Profit Margin of FLO (3.78%) is better than 67.82% 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 70.11% of its industry peers.
In the last couple of years the Operating Margin of FLO has grown nicely.
FLO has a better Gross Margin (48.94%) than 97.70% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FLO is still creating some value.
FLO has about the same amout of shares outstanding than it did 1 year ago.
FLO has less shares outstanding than it did 5 years ago.
FLO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.18 indicates that FLO is not a great score, but indicates only limited risk for bankruptcy at the moment.
FLO has a Altman-Z score of 2.18. This is comparable to the rest of the industry: FLO outperforms 49.43% of its industry peers.
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's Debt to FCF ratio of 5.50 is fine compared to the rest of the industry. FLO outperforms 78.16% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that FLO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, FLO is not doing good in the industry: 71.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.18
WACC6.85%
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 82.76% 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.
FLO has a Quick ratio of 0.47. This is in the lower half of the industry: FLO underperforms 75.86% 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.
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.
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 -3.39% 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 0.93% on average per year.
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
Based on the Price/Earnings ratio of 9.95, the valuation of FLO can be described as reasonable.
FLO's Price/Earnings ratio is rather cheap when compared to the industry. FLO is cheaper than 86.21% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. FLO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.96 indicates a reasonable valuation of FLO.
82.76% of the companies in the same industry are more expensive than FLO, based on the Price/Forward Earnings ratio.
FLO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLO is valued a bit cheaper than 72.41% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FLO indicates a rather cheap valuation: FLO is cheaper than 90.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.1 | ||
| EV/EBITDA | 7.78 |
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 -6.83% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.74
EPS Next 2Y-11.7%
EPS Next 3Y-6.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.11%, FLO is a good candidate for dividend investing.
FLO's Dividend Yield is rather good when compared to the industry average which is at 2.42. FLO pays more dividend than 96.55% of the companies in the same industry.
FLO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.11% |
5.2 History
On average, the dividend of FLO grows each year by 7.46%, which is quite nice.
FLO has been paying a dividend for at least 10 years, so it has 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.
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%
10.94
+0.05 (+0.46%)
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-0.11%
Market Cap2.31B
Revenue(TTM)5.13B
Net Income(TTM)194.02M
Analysts51.43
Price Target14.03 (28.24%)
Short Float %10%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.11% |
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)0%
PT rev (3m)-16.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.88%
EPS NY rev (1m)-2.12%
EPS NY rev (3m)-2.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 10.96 | ||
| P/S | 0.45 | ||
| P/FCF | 7.1 | ||
| P/OCF | 5.12 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.78 |
EPS(TTM)1.1
EY10.05%
EPS(NY)1
Fwd EY9.12%
FCF(TTM)1.54
FCFY14.08%
OCF(TTM)2.14
OCFY19.53%
SpS24.31
BVpS6.73
TBVpS-3.58
PEG (NY)N/A
PEG (5Y)1.74
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 | 2.18 |
F-Score4
WACC6.85%
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 9.95 and the Price/Book (PB) ratio is 1.63.
What is the financial health of FLOWERS FOODS INC (FLO) stock?
The financial health rating of FLOWERS FOODS INC (FLO) is 3 / 10.