FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
NYSE:FLO - New York Stock Exchange, Inc. - US3434981011 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to FLO. FLO was compared to 89 industry peers in the Food Products industry. FLO has an excellent profitability rating, but there are some minor concerns on its financial health. FLO is valued correctly, but it does not seem to be growing. FLO also has an excellent dividend rating. These ratings could make FLO a good candidate for dividend investing.
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
With a decent Return On Assets value of 7.30%, FLO is doing good in the industry, outperforming 76.40% of the companies in the same industry.
FLO's Return On Equity of 17.60% is amongst the best of the industry. FLO outperforms 87.64% of its industry peers.
FLO has a better Return On Invested Capital (10.20%) than 82.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FLO is in line with the industry average of 8.94%.
The last Return On Invested Capital (10.20%) for FLO is above the 3 year average (9.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 17.6% | ||
| ROIC | 10.2% |
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 4.86%. This is in the better half of the industry: FLO outperforms 69.66% of its industry peers.
FLO's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 7.44%, FLO is doing good in the industry, outperforming 70.79% of the companies in the same industry.
FLO's Operating Margin has improved in the last couple of years.
FLO has a better Gross Margin (49.50%) than 100.00% 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 | 7.44% | ||
| PM (TTM) | 4.86% | ||
| GM | 49.5% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FLO is creating some value.
Compared to 1 year ago, FLO has about the same amount of shares outstanding.
Compared to 5 years ago, FLO has less shares outstanding
The debt/assets ratio for FLO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.48 indicates that FLO is not in any danger for bankruptcy at the moment.
FLO has a Altman-Z score of 3.48. This is in the better half of the industry: FLO outperforms 77.53% of its industry peers.
The Debt to FCF ratio of FLO is 3.69, which is a good value as it means it would take FLO, 3.69 years of fcf income to pay off all of its debts.
FLO has a Debt to FCF ratio of 3.69. This is in the better half of the industry: FLO outperforms 74.16% of its industry peers.
FLO has a Debt/Equity ratio of 0.73. This is a neutral value indicating FLO is somewhat dependend on debt financing.
FLO has a Debt to Equity ratio of 0.73. This is in the lower half of the industry: FLO underperforms 62.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 3.48 |
ROIC/WACC1.33
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.20 indicates that FLO should not have too much problems paying its short term obligations.
FLO has a Current ratio of 1.20. This is in the lower half of the industry: FLO underperforms 60.67% of its industry peers.
A Quick Ratio of 0.72 indicates that FLO may have some problems paying its short term obligations.
FLO's Quick ratio of 0.72 is in line compared to the rest of the industry. FLO outperforms 42.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.67% over the past year.
The Earnings Per Share has been growing slightly by 5.70% on average over the past years.
The Revenue has been growing slightly by 0.25% in the past 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)6.67%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%10%
Revenue 1Y (TTM)0.25%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%-1.59%
3.2 Future
FLO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.58% yearly.
Based on estimates for the next years, FLO will show a small growth in Revenue. The Revenue will grow by 2.80% on average per year.
EPS Next Y-7.93%
EPS Next 2Y-1.34%
EPS Next 3Y1.46%
EPS Next 5Y2.58%
Revenue Next Year5.88%
Revenue Next 2Y3.53%
Revenue Next 3Y3.02%
Revenue Next 5Y2.8%
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
FLO is valuated correctly with a Price/Earnings ratio of 14.29.
69.66% of the companies in the same industry are more expensive than FLO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of FLO to the average of the S&P500 Index (28.33), we can say FLO is valued slightly cheaper.
FLO is valuated correctly with a Price/Forward Earnings ratio of 15.52.
Based on the Price/Forward Earnings ratio, FLO is valued a bit cheaper than the industry average as 73.03% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FLO to the average of the S&P500 Index (21.37), we can say FLO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 15.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLO is valued a bit cheaper than 65.17% of the companies in the same industry.
74.16% 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 | 13.76 | ||
| EV/EBITDA | 9.1 |
4.3 Compensation for Growth
FLO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.51
EPS Next 2Y-1.34%
EPS Next 3Y1.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.26%, FLO is a good candidate for dividend investing.
FLO's Dividend Yield is rather good when compared to the industry average which is at 4.35. FLO pays more dividend than 87.64% of the companies in the same industry.
FLO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
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 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 81.83% of its income as dividend. This is not a sustainable payout ratio.
FLO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP81.83%
EPS Next 2Y-1.34%
EPS Next 3Y1.46%
18.29
-0.12 (-0.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners74.57%
Inst Owner Change0.26%
Ins Owners6.99%
Ins Owner Change0.54%
Market Cap3.86B
Analysts52
Price Target21.17 (15.75%)
Short Float %6.44%
Short Ratio6.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
Yearly Dividend0.96
Dividend Growth(5Y)7.46%
DP81.83%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.08%
Min EPS beat(2)4.97%
Max EPS beat(2)11.18%
EPS beat(4)3
Avg EPS beat(4)3.34%
Min EPS beat(4)-9.77%
Max EPS beat(4)11.18%
EPS beat(8)5
Avg EPS beat(8)3.2%
EPS beat(12)8
Avg EPS beat(12)4.38%
EPS beat(16)11
Avg EPS beat(16)5.11%
Revenue beat(2)0
Avg Revenue beat(2)-2.2%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)-1.69%
Revenue beat(4)0
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-2.7%
Max Revenue beat(4)-1.14%
Revenue beat(8)1
Avg Revenue beat(8)-1.43%
Revenue beat(12)3
Avg Revenue beat(12)-1.1%
Revenue beat(16)5
Avg Revenue beat(16)-1.04%
PT rev (1m)0%
PT rev (3m)-10.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.63%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)-10.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 15.52 | ||
| P/S | 0.76 | ||
| P/FCF | 13.76 | ||
| P/OCF | 9.36 | ||
| P/B | 2.74 | ||
| P/tB | 37.18 | ||
| EV/EBITDA | 9.1 |
EPS(TTM)1.28
EY7%
EPS(NY)1.18
Fwd EY6.44%
FCF(TTM)1.33
FCFY7.27%
OCF(TTM)1.95
OCFY10.69%
SpS24.17
BVpS6.68
TBVpS0.49
PEG (NY)N/A
PEG (5Y)2.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 17.6% | ||
| ROCE | 13.32% | ||
| ROIC | 10.2% | ||
| ROICexc | 10.22% | ||
| ROICexgc | 18.81% | ||
| OM | 7.44% | ||
| PM (TTM) | 4.86% | ||
| GM | 49.5% | ||
| FCFM | 5.5% |
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-Score9
Asset Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 82.96% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 10.57 | ||
| Cash Conversion | 76.56% | ||
| Profit Quality | 113.08% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.48 |
F-Score9
WACC7.68%
ROIC/WACC1.33
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)6.67%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%10%
EPS Next Y-7.93%
EPS Next 2Y-1.34%
EPS Next 3Y1.46%
EPS Next 5Y2.58%
Revenue 1Y (TTM)0.25%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%-1.59%
Revenue Next Year5.88%
Revenue Next 2Y3.53%
Revenue Next 3Y3.02%
Revenue Next 5Y2.8%
EBIT growth 1Y16.12%
EBIT growth 3Y2%
EBIT growth 5Y8.76%
EBIT Next Year53.44%
EBIT Next 3Y18.2%
EBIT Next 5Y11.34%
FCF growth 1Y27.38%
FCF growth 3Y12.24%
FCF growth 5Y1.28%
OCF growth 1Y18.12%
OCF growth 3Y6.19%
OCF growth 5Y2.37%