FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLO - US3434981011 - Common Stock
11.07 USD
+0.38 (+3.55%)
11.0699 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. FLO scores excellent on profitability, but there are concerns on its financial health. FLO is valued quite cheap, but it does not seem to be growing. Finally 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.
Each year in the past 5 years FLO has been profitable.
FLO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FLO has a Return On Assets of 4.46%. This is in the better half of the industry: FLO outperforms 71.26% of its industry peers.
With an excellent Return On Equity value of 13.66%, FLO belongs to the best of the industry, outperforming 85.06% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.07%, FLO belongs to the best of the industry, outperforming 80.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FLO is significantly below the industry average of 28.38%.
| 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.
In the last couple of years the Profit Margin of FLO has grown nicely.
Looking at the Operating Margin, with a value of 6.94%, FLO is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
FLO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.94%, FLO belongs to the top of the industry, outperforming 97.70% 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 | 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.
The debt/assets ratio for FLO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.19 indicates that FLO is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of FLO (2.19) is comparable to the rest of the industry.
The Debt to FCF ratio of FLO is 5.50, which is a neutral value as it means it would take FLO, 5.50 years of fcf income to pay off all of its debts.
FLO has a better Debt to FCF ratio (5.50) than 78.16% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that FLO is somewhat dependend on debt financing.
FLO has a worse Debt to Equity ratio (0.98) than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.19 |
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 has a Current ratio of 0.79. This is amonst the worse of the industry: FLO underperforms 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.
FLO has a Quick ratio of 0.47. This is in the lower half of the industry: FLO underperforms 73.56% of its industry peers.
| 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%.
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 small growth in Revenue. The Revenue has grown by 0.26% 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)-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.
The Revenue is expected to grow by 0.93% on average over the next years.
EPS Next Y-16.62%
EPS Next 2Y-8.21%
EPS Next 3Y-5.34%
EPS Next 5Y-3.39%
Revenue Next Year2.84%
Revenue Next 2Y1.42%
Revenue Next 3Y0.95%
Revenue Next 5Y0.93%
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.
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
With a Price/Earnings ratio of 10.06, the valuation of FLO can be described as very reasonable.
FLO's Price/Earnings ratio is rather cheap when compared to the industry. FLO is cheaper than 83.91% of the companies in the same industry.
FLO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.37.
FLO is valuated reasonably with a Price/Forward Earnings ratio of 10.27.
Based on the Price/Forward Earnings ratio, FLO is valued cheaper than 86.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.20. FLO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
FLO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FLO is cheaper than 77.01% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FLO is valued cheaply inside the industry as 90.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 7.85 |
4.3 Compensation for Growth
FLO has a very decent profitability rating, which may justify a higher PE ratio.
FLO's earnings are expected to decrease with -5.34% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.76
EPS Next 2Y-8.21%
EPS Next 3Y-5.34%
5. Dividend
5.1 Amount
FLO has a Yearly Dividend Yield of 9.13%, which is a nice return.
In the last 3 months the price of FLO has falen by -25.25%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
FLO's Dividend Yield is rather good when compared to the industry average which is at 5.06. FLO pays more dividend than 96.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, FLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.13% |
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
106.99% of the earnings are spent on dividend by FLO. 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-8.21%
EPS Next 3Y-5.34%
11.07
+0.38 (+3.55%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners85.86%
Inst Owner Change3.74%
Ins Owners2.31%
Ins Owner Change-0.05%
Market Cap2.34B
Revenue(TTM)5.13B
Net Income(TTM)194.02M
Analysts51.43
Price Target14.03 (26.74%)
Short Float %9.16%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.13% |
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)-16.03%
PT rev (3m)-16.67%
EPS NQ rev (1m)-11.88%
EPS NQ rev (3m)-12.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 10.27 | ||
| P/S | 0.46 | ||
| P/FCF | 7.19 | ||
| P/OCF | 5.18 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.85 |
EPS(TTM)1.1
EY9.94%
EPS(NY)1.08
Fwd EY9.74%
FCF(TTM)1.54
FCFY13.92%
OCF(TTM)2.14
OCFY19.3%
SpS24.31
BVpS6.73
TBVpS-3.58
PEG (NY)N/A
PEG (5Y)1.76
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 | 2.19 |
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-16.62%
EPS Next 2Y-8.21%
EPS Next 3Y-5.34%
EPS Next 5Y-3.39%
Revenue 1Y (TTM)0.26%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%3.02%
Revenue Next Year2.84%
Revenue Next 2Y1.42%
Revenue Next 3Y0.95%
Revenue Next 5Y0.93%
EBIT growth 1Y-3.26%
EBIT growth 3Y2%
EBIT growth 5Y8.76%
EBIT Next Year42.85%
EBIT Next 3Y12.85%
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 10.06 and the Price/Book (PB) ratio is 1.65.
What is the financial health of FLOWERS FOODS INC (FLO) stock?
The financial health rating of FLOWERS FOODS INC (FLO) is 3 / 10.