FLOWERS FOODS INC (FLO)
US3434981011 - Common Stock
FLO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 90 industry peers in the Food Products industry. FLO has an excellent profitability rating, but 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. With these ratings, FLO could be worth investigating further for dividend investing!.
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.
Each year in the past 5 years FLO has been profitable.
Each year in the past 5 years FLO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.02%, FLO is in the better half of the industry, outperforming 77.53% of the companies in the same industry.
The Return On Equity of FLO (17.11%) is better than 82.02% of its industry peers.
FLO has a better Return On Invested Capital (9.94%) than 83.15% 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 8.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 17.11% | ||
| ROIC | 9.94% |
ROA(3y)5.61%
ROA(5y)5.32%
ROE(3y)13.19%
ROE(5y)12.74%
ROIC(3y)9.98%
ROIC(5y)9.39%
1.3 Margins
FLO's Profit Margin of 4.70% is fine compared to the rest of the industry. FLO outperforms 66.29% of its industry peers.
In the last couple of years the Profit Margin of FLO has declined.
FLO's Operating Margin of 7.20% is fine compared to the rest of the industry. FLO outperforms 68.54% of its industry peers.
In the last couple of years the Operating Margin of FLO has grown nicely.
FLO has a Gross Margin of 49.30%. 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 | 7.2% | ||
| PM (TTM) | 4.7% | ||
| GM | 49.3% |
OM growth 3Y-5.26%
OM growth 5Y3.2%
PM growth 3Y-11.27%
PM growth 5Y-9.43%
GM growth 3Y-1.12%
GM growth 5Y0.25%
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.
FLO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FLO has been reduced compared to 5 years ago.
The debt/assets ratio for FLO is higher compared to a year ago.
2.2 Solvency
FLO has an Altman-Z score of 3.68. This indicates that FLO is financially healthy and has little risk of bankruptcy at the moment.
FLO has a better Altman-Z score (3.68) than 77.53% of its industry peers.
FLO has a debt to FCF ratio of 4.17. This is a neutral value as FLO would need 4.17 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.17, FLO is in the better half of the industry, outperforming 71.91% of the companies in the same industry.
FLO has a Debt/Equity ratio of 0.76. This is a neutral value indicating FLO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.76, FLO is not doing good in the industry: 62.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.25
WACC7.94%
2.3 Liquidity
FLO has a Current Ratio of 1.24. 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 1.24 is on the low side compared to the rest of the industry. FLO is outperformed by 60.67% of its industry peers.
A Quick Ratio of 0.79 indicates that FLO may have some problems paying its short term obligations.
FLO has a Quick ratio (0.79) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.44% over the past year.
Measured over the past 5 years, FLO shows a small growth in Earnings Per Share. The EPS has been growing by 5.01% on average per year.
The Revenue has been growing slightly by 1.52% in the past year.
Measured over the past years, FLO shows a small growth in Revenue. The Revenue has been growing by 5.20% on average per year.
EPS 1Y (TTM)2.44%
EPS 3Y-2.88%
EPS 5Y5.01%
EPS Q2Q%13.79%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y5.08%
Revenue growth 5Y5.2%
Sales Q2Q%-0.73%
3.2 Future
The Earnings Per Share is expected to grow by 3.20% 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 1.71% on average per year.
EPS Next Y5.25%
EPS Next 2Y5.04%
EPS Next 3Y4.26%
EPS Next 5Y3.2%
Revenue Next Year0.93%
Revenue Next 2Y1.34%
Revenue Next 3Y1.18%
Revenue Next 5Y1.71%
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 17.63, the valuation of FLO can be described as rather expensive.
FLO's Price/Earnings ratio is a bit cheaper when compared to the industry. FLO is cheaper than 71.91% of the companies in the same industry.
FLO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 16.78 indicates a correct valuation of FLO.
73.03% of the companies in the same industry are more expensive than FLO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.82. FLO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 16.78 |
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.
Based on the Price/Free Cash Flow ratio, FLO is valued a bit cheaper than 67.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.3 | ||
| EV/EBITDA | 10.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FLO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.36
PEG (5Y)3.52
EPS Next 2Y5.04%
EPS Next 3Y4.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.40%, FLO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.80, FLO pays a better dividend. On top of this FLO pays more dividend than 87.64% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, FLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
5.2 History
The dividend of FLO is nicely growing with an annual growth rate of 10.15%!
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)10.15%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
FLO pays out 83.51% 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.
DP83.51%
EPS Next 2Y5.04%
EPS Next 3Y4.26%
FLOWERS FOODS INC
NYSE:FLO (11/21/2024, 8:04:00 PM)
After market: 22.22 0 (0%)22.22
+0.12 (+0.54%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 16.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.36
PEG (5Y)3.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 17.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.2% | ||
| PM (TTM) | 4.7% | ||
| GM | 49.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.44%
EPS 3Y-2.88%
EPS 5Y
EPS Q2Q%
EPS Next Y5.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.52%
Revenue growth 3Y5.08%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y