FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
NYSE:FLO - New York Stock Exchange, Inc. - US3434981011 - Common Stock - Currency: USD
FLO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 91 industry peers in the Food Products industry. While FLO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FLO has a valuation in line with the averages, but it does not seem to be growing. FLO also has an excellent dividend rating. This makes FLO very considerable 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.
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 7.30%, FLO is doing good in the industry, outperforming 76.47% of the companies in the same industry.
FLO has a Return On Equity of 17.60%. This is amongst the best in the industry. FLO outperforms 85.88% of its industry peers.
FLO's Return On Invested Capital of 10.20% is amongst the best of the industry. FLO outperforms 81.18% of its industry peers.
FLO had an Average Return On Invested Capital over the past 3 years of 9.98%. This is in line with the industry average of 8.87%.
The 3 year average ROIC (9.98%) for FLO is below the current ROIC(10.20%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 4.86%, FLO is doing good in the industry, outperforming 68.24% of the companies in the same industry.
FLO's Profit Margin has improved in the last couple of years.
FLO has a better Operating Margin (7.44%) than 67.06% of its industry peers.
In the last couple of years the Operating Margin of FLO has grown nicely.
FLO has a Gross Margin of 49.50%. This is amongst the best in the industry. FLO outperforms 100.00% of its industry peers.
FLO's Gross Margin has been stable in the last couple of years.
| 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
FLO has a better debt/assets ratio than last year.
2.2 Solvency
FLO has an Altman-Z score of 3.50. This indicates that FLO is financially healthy and has little risk of bankruptcy at the moment.
FLO's Altman-Z score of 3.50 is fine compared to the rest of the industry. FLO outperforms 77.65% of its industry peers.
FLO has a debt to FCF ratio of 3.69. This is a good value and a sign of high solvency as FLO would need 3.69 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.69, FLO is in the better half of the industry, outperforming 69.41% of the companies in the same industry.
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 worse Debt to Equity ratio (0.73) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.34
WACC7.62%
2.3 Liquidity
FLO has a Current Ratio of 1.20. This is a normal value and indicates that FLO is financially healthy and should not expect problems in meeting its short term obligations.
FLO's Current ratio of 1.20 is on the low side compared to the rest of the industry. FLO is outperformed by 64.71% of its industry peers.
FLO has a Quick Ratio of 1.20. This is a bad value and indicates that FLO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.72, FLO is doing worse than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
FLO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.67%.
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 0.25% 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)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
Based on estimates for the next years, FLO will show a small growth in Earnings Per Share. The EPS will grow by 3.88% on average per year.
The Revenue is expected to grow by 2.86% on average over the next years.
EPS Next Y-7.43%
EPS Next 2Y-1.44%
EPS Next 3Y1.29%
EPS Next 5Y3.88%
Revenue Next Year5.22%
Revenue Next 2Y3.14%
Revenue Next 3Y2.2%
Revenue Next 5Y2.86%
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 14.84, the valuation of FLO can be described as correct.
FLO's Price/Earnings ratio is a bit cheaper when compared to the industry. FLO is cheaper than 69.41% 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 29.75.
With a Price/Forward Earnings ratio of 16.04, FLO is valued correctly.
Based on the Price/Forward Earnings ratio, FLO is valued a bit cheaper than 70.59% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.44. FLO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 16.04 |
4.2 Price Multiples
FLO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FLO is cheaper than 63.53% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FLO indicates a somewhat cheap valuation: FLO is cheaper than 68.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.26 | ||
| EV/EBITDA | 9.21 |
4.3 Compensation for Growth
The excellent profitability rating of FLO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.6
EPS Next 2Y-1.44%
EPS Next 3Y1.29%
5. Dividend
5.1 Amount
FLO has a Yearly Dividend Yield of 5.09%, which is a nice return.
Compared to an average industry Dividend Yield of 3.93, FLO pays a better dividend. On top of this FLO pays more dividend than 88.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, FLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
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 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
81.83% of the earnings are spent on dividend by FLO. 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-1.44%
EPS Next 3Y1.29%
19
+0.26 (+1.39%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners74.57%
Inst Owner Change5.41%
Ins Owners6.99%
Ins Owner Change0.49%
Market Cap4.00B
Analysts52
Price Target21.29 (12.05%)
Short Float %4.47%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
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)-11.17%
PT rev (3m)-9.89%
EPS NQ rev (1m)-3.54%
EPS NQ rev (3m)-3.63%
EPS NY rev (1m)-9.67%
EPS NY rev (3m)-10.37%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)3.16%
Revenue NY rev (3m)3.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 16.04 | ||
| P/S | 0.78 | ||
| P/FCF | 14.26 | ||
| P/OCF | 9.7 | ||
| P/B | 2.84 | ||
| P/tB | 38.53 | ||
| EV/EBITDA | 9.21 |
EPS(TTM)1.28
EY6.74%
EPS(NY)1.18
Fwd EY6.24%
FCF(TTM)1.33
FCFY7.01%
OCF(TTM)1.96
OCFY10.31%
SpS24.23
BVpS6.7
TBVpS0.49
PEG (NY)N/A
PEG (5Y)2.6
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 | 3.5 |
F-Score9
WACC7.62%
ROIC/WACC1.34
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-7.43%
EPS Next 2Y-1.44%
EPS Next 3Y1.29%
EPS Next 5Y3.88%
Revenue 1Y (TTM)0.25%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%-1.59%
Revenue Next Year5.22%
Revenue Next 2Y3.14%
Revenue Next 3Y2.2%
Revenue Next 5Y2.86%
EBIT growth 1Y16.12%
EBIT growth 3Y2%
EBIT growth 5Y8.76%
EBIT Next Year48.83%
EBIT Next 3Y15.83%
EBIT Next 5Y14.73%
FCF growth 1Y27.38%
FCF growth 3Y12.24%
FCF growth 5Y1.28%
OCF growth 1Y18.12%
OCF growth 3Y6.19%
OCF growth 5Y2.37%