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 5 out of 10 to FLO. FLO was compared to 91 industry peers in the Food Products industry. FLO scores excellent on profitability, but there are some minor concerns on its financial health. FLO is valued correctly, but it does not seem to be growing. Finally FLO also has an excellent dividend rating.
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.
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
FLO has a better Return On Assets (7.02%) than 75.58% of its industry peers.
FLO's Return On Equity of 17.11% is amongst the best of the industry. FLO outperforms 81.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.94%, FLO belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FLO is in line with the industry average of 9.03%.
| 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 has a Profit Margin of 4.70%. This is in the better half of the industry: FLO outperforms 63.95% of its industry peers.
FLO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.20%, FLO is in the better half of the industry, outperforming 66.28% 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 (49.30%) 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 | 7.2% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FLO is still creating some value.
Compared to 1 year ago, FLO has less shares outstanding
The number of shares outstanding for FLO has been reduced compared to 5 years ago.
FLO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.53 indicates that FLO is not in any danger for bankruptcy at the moment.
FLO's Altman-Z score of 3.53 is fine compared to the rest of the industry. FLO outperforms 76.74% of its industry peers.
The Debt to FCF ratio of FLO is 4.17, which is a neutral value as it means it would take FLO, 4.17 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.17, FLO is doing good in the industry, outperforming 66.28% 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.
Looking at the Debt to Equity ratio, with a value of 0.76, FLO is doing worse than 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 3.53 |
ROIC/WACC1.26
WACC7.91%
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 has a Current ratio of 1.24. This is in the lower half of the industry: FLO underperforms 62.79% of its industry peers.
FLO has a Quick Ratio of 1.24. 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 0.79, FLO is doing worse than 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
FLO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.44%.
The Earnings Per Share has been growing slightly by 5.01% on average over the past years.
The Revenue has been growing slightly by 1.52% in the past year.
The Revenue has been growing slightly by 5.20% on average over the past years.
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
FLO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.09% yearly.
The Revenue is expected to grow by 1.34% on average over the next years.
EPS Next Y6.79%
EPS Next 2Y4.96%
EPS Next 3Y4.53%
EPS Next 5Y4.09%
Revenue Next Year0.66%
Revenue Next 2Y1.31%
Revenue Next 3Y1.36%
Revenue Next 5Y1.34%
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 stable.
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 15.52, 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 68.60% of the companies in the same industry.
FLO is valuated rather cheaply when we compare the Price/Earnings ratio to 28.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.79, which indicates a correct valuation of FLO.
Based on the Price/Forward Earnings ratio, FLO is valued a bit cheaper than 74.42% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FLO to the average of the S&P500 Index (93.88), we can say FLO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 14.79 |
4.2 Price Multiples
FLO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FLO is cheaper than 61.63% 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 63.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.1 | ||
| EV/EBITDA | 9.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FLO does not grow enough to justify the current Price/Earnings ratio.
FLO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.29
PEG (5Y)3.1
EPS Next 2Y4.96%
EPS Next 3Y4.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.83%, FLO is a good candidate for dividend investing.
FLO's Dividend Yield is rather good when compared to the industry average which is at 3.86. FLO pays more dividend than 88.37% of the companies in the same industry.
FLO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.15%
Div Incr Years22
Div Non Decr Years22
5.3 Sustainability
FLO pays out 83.51% of its income as dividend. This is not a sustainable payout ratio.
The dividend of FLO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP83.51%
EPS Next 2Y4.96%
EPS Next 3Y4.53%
FLOWERS FOODS INC
NYSE:FLO (1/31/2025, 4:41:33 PM)
After market: 19.6 +0.05 (+0.26%)19.55
-0.18 (-0.91%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners69.23%
Inst Owner Change0.23%
Ins Owners6.95%
Ins Owner Change-0.34%
Market Cap4.12B
Analysts52
Price Target23.75 (21.48%)
Short Float %3.84%
Short Ratio4.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
Yearly Dividend0.93
Dividend Growth(5Y)10.15%
DP83.51%
Div Incr Years22
Div Non Decr Years22
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.09%
Min EPS beat(2)7%
Max EPS beat(2)11.18%
EPS beat(4)2
Avg EPS beat(4)0.69%
Min EPS beat(4)-9.77%
Max EPS beat(4)11.18%
EPS beat(8)4
Avg EPS beat(8)2.26%
EPS beat(12)7
Avg EPS beat(12)3.31%
EPS beat(16)11
Avg EPS beat(16)5.78%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-2.39%
Max Revenue beat(2)-1.69%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-2.39%
Max Revenue beat(4)-0.96%
Revenue beat(8)1
Avg Revenue beat(8)-1.45%
Revenue beat(12)3
Avg Revenue beat(12)-1.02%
Revenue beat(16)6
Avg Revenue beat(16)-0.72%
PT rev (1m)0.51%
PT rev (3m)-3.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.52%
EPS NY rev (1m)0%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 14.79 | ||
| P/S | 0.8 | ||
| P/FCF | 16.1 | ||
| P/OCF | 11 | ||
| P/B | 2.93 | ||
| P/tB | 44.23 | ||
| EV/EBITDA | 9.84 |
EPS(TTM)1.26
EY6.45%
EPS(NY)1.32
Fwd EY6.76%
FCF(TTM)1.21
FCFY6.21%
OCF(TTM)1.78
OCFY9.09%
SpS24.32
BVpS6.68
TBVpS0.44
PEG (NY)2.29
PEG (5Y)3.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 17.11% | ||
| ROCE | 12.88% | ||
| ROIC | 9.94% | ||
| ROICexc | 9.99% | ||
| ROICexgc | 18.5% | ||
| OM | 7.2% | ||
| PM (TTM) | 4.7% | ||
| GM | 49.3% | ||
| FCFM | 4.99% |
ROA(3y)5.61%
ROA(5y)5.32%
ROE(3y)13.19%
ROE(5y)12.74%
ROIC(3y)9.98%
ROIC(5y)9.39%
ROICexc(3y)10.47%
ROICexc(5y)9.92%
ROICexgc(3y)20.02%
ROICexgc(5y)19.22%
ROCE(3y)12.96%
ROCE(5y)12.19%
ROICexcg growth 3Y-4.31%
ROICexcg growth 5Y2.86%
ROICexc growth 3Y-3.36%
ROICexc growth 5Y5.81%
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%
F-Score8
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.17 | ||
| Debt/EBITDA | 2.02 | ||
| Cap/Depr | 74.46% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.92% | ||
| Profit Quality | 106.25% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 3.53 |
F-Score8
WACC7.91%
ROIC/WACC1.26
Cap/Depr(3y)103.74%
Cap/Depr(5y)90.47%
Cap/Sales(3y)3.14%
Cap/Sales(5y)2.83%
Profit Quality(3y)119.57%
Profit Quality(5y)150.58%
High Growth Momentum
Growth
EPS 1Y (TTM)2.44%
EPS 3Y-2.88%
EPS 5Y5.01%
EPS Q2Q%13.79%
EPS Next Y6.79%
EPS Next 2Y4.96%
EPS Next 3Y4.53%
EPS Next 5Y4.09%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y5.08%
Revenue growth 5Y5.2%
Sales Q2Q%-0.73%
Revenue Next Year0.66%
Revenue Next 2Y1.31%
Revenue Next 3Y1.36%
Revenue Next 5Y1.34%
EBIT growth 1Y10.28%
EBIT growth 3Y-0.45%
EBIT growth 5Y8.57%
EBIT Next Year52.95%
EBIT Next 3Y17.88%
EBIT Next 5Y11.01%
FCF growth 1Y78.43%
FCF growth 3Y-14.83%
FCF growth 5Y2.31%
OCF growth 1Y16.67%
OCF growth 3Y-8.4%
OCF growth 5Y3.38%