FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLO - US3434981011 - Common Stock
10.73 USD
-0.11 (-1.01%)
10.83 USD
+0.1 (+0.93%)
FLO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. FLO has an excellent profitability rating, but there are concerns on its financial health. FLO has a bad growth rate and is valued cheaply. FLO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FLO had positive earnings in the past year.
In the past year FLO had a positive cash flow from operations.
Each year in the past 5 years FLO has been profitable.
In the past 5 years FLO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.46%, FLO is in the better half of the industry, outperforming 71.26% of the companies in the same industry.
FLO has a Return On Equity of 13.66%. This is amongst the best in the industry. FLO outperforms 85.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.07%, FLO belongs to the top of the industry, outperforming 80.46% 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 28.38%.
| 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
The Profit Margin of FLO (3.78%) is better than 65.52% of its industry peers.
In the last couple of years the Profit Margin of FLO has grown nicely.
With a decent Operating Margin value of 6.94%, FLO is doing good in the industry, outperforming 68.97% of the companies in the same industry.
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.
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
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.
The number of shares outstanding for FLO has been reduced compared to 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 (2.18) which 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.
FLO has a Debt/Equity ratio of 0.98. This is a neutral value indicating FLO is somewhat dependend on debt financing.
The Debt to Equity ratio of FLO (0.98) is worse than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.2
WACC6.75%
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's Current ratio of 0.79 is on the low side compared to the rest of the industry. FLO is outperformed by 81.61% of its industry peers.
A Quick Ratio of 0.47 indicates that FLO may have some problems paying its short term obligations.
The Quick ratio of FLO (0.47) is worse than 73.56% 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.
FLO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.70% yearly.
The Revenue has been growing slightly by 0.26% 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)-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
Based on estimates for the next years, FLO will show a decrease in Earnings Per Share. The EPS will decrease by -2.23% on average per year.
Based on estimates for the next years, FLO will show a small growth in Revenue. The Revenue will grow by 1.06% on average per year.
EPS Next Y-16.62%
EPS Next 2Y-8.21%
EPS Next 3Y-5.34%
EPS Next 5Y-2.23%
Revenue Next Year2.84%
Revenue Next 2Y1.42%
Revenue Next 3Y0.95%
Revenue Next 5Y1.06%
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.
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
FLO is valuated reasonably with a Price/Earnings ratio of 9.75.
86.21% of the companies in the same industry are more expensive than FLO, based on the Price/Earnings ratio.
FLO is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.95, which indicates a very decent valuation of FLO.
Based on the Price/Forward Earnings ratio, FLO is valued cheaply inside the industry as 88.51% of the companies are valued more expensively.
FLO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 9.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FLO indicates a somewhat cheap valuation: FLO is cheaper than 75.86% of the companies listed in the same industry.
FLO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FLO is cheaper than 90.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.96 | ||
| EV/EBITDA | 7.76 |
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)1.71
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.
The stock price of FLO dropped by -28.66% 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.
FLO's Dividend Yield is rather good when compared to the industry average which is at 5.21. 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 2.40.
| 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 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
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-8.21%
EPS Next 3Y-5.34%
10.73
-0.11 (-1.01%)
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 Change0.01%
Market Cap2.27B
Revenue(TTM)5.13B
Net Income(TTM)194.02M
Analysts51.43
Price Target14.03 (30.75%)
Short Float %9.7%
Short Ratio4.67
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)-11.08%
EPS NQ rev (3m)-12.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 9.95 | ||
| P/S | 0.44 | ||
| P/FCF | 6.96 | ||
| P/OCF | 5.02 | ||
| P/B | 1.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.76 |
EPS(TTM)1.1
EY10.25%
EPS(NY)1.08
Fwd EY10.05%
FCF(TTM)1.54
FCFY14.36%
OCF(TTM)2.14
OCFY19.91%
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 | 2.18 |
F-Score4
WACC6.75%
ROIC/WACC1.2
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-2.23%
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 5Y1.06%
EBIT growth 1Y-3.26%
EBIT growth 3Y2%
EBIT growth 5Y8.76%
EBIT Next Year42.85%
EBIT Next 3Y12.85%
EBIT Next 5Y8.32%
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 9.75 and the Price/Book (PB) ratio is 1.6.
What is the financial health of FLOWERS FOODS INC (FLO) stock?
The financial health rating of FLOWERS FOODS INC (FLO) is 3 / 10.