33.3 USD
-0.05 (-0.15%)
33.34 USD
+0.04 (+0.12%)
TWNK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. TWNK has only an average score on both its financial health and profitability. TWNK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- TWNK had positive earnings in the past year.
- TWNK had a positive operating cash flow in the past year.
1.2 Ratios
- The Return On Assets of TWNK (4.83%) is better than 63.44% of its industry peers.
- With a decent Return On Equity value of 9.18%, TWNK is doing good in the industry, outperforming 64.52% of the companies in the same industry.
- The Return On Invested Capital of TWNK (5.38%) is better than 63.44% of its industry peers.
- TWNK had an Average Return On Invested Capital over the past 3 years of 4.37%. This is significantly below the industry average of 27.79%.
- The last Return On Invested Capital (5.38%) for TWNK is above the 3 year average (4.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 9.18% | ||
| ROIC | 5.38% |
ROA(3y)3.36%
ROA(5y)2.84%
ROE(3y)6.69%
ROE(5y)5.91%
ROIC(3y)4.37%
ROIC(5y)3.94%
1.3 Margins
- TWNK has a better Profit Margin (12.28%) than 90.32% of its industry peers.
- TWNK's Profit Margin has declined in the last couple of years.
- TWNK's Operating Margin of 16.91% is amongst the best of the industry. TWNK outperforms 94.62% of its industry peers.
- TWNK's Operating Margin has declined in the last couple of years.
- TWNK has a Gross Margin of 34.99%. This is amongst the best in the industry. TWNK outperforms 87.10% of its industry peers.
- TWNK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.91% | ||
| PM (TTM) | 12.28% | ||
| GM | 34.99% |
OM growth 3Y3.8%
OM growth 5Y-7.44%
PM growth 3Y20.25%
PM growth 5Y-15.96%
GM growth 3Y1.25%
GM growth 5Y-4.03%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TWNK is destroying value.
- Compared to 1 year ago, TWNK has less shares outstanding
- The debt/assets ratio for TWNK has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.54 indicates that TWNK is not a great score, but indicates only limited risk for bankruptcy at the moment.
- TWNK has a Altman-Z score of 2.54. This is comparable to the rest of the industry: TWNK outperforms 58.06% of its industry peers.
- The Debt to FCF ratio of TWNK is 9.63, which is on the high side as it means it would take TWNK, 9.63 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 9.63, TWNK is doing good in the industry, outperforming 63.44% of the companies in the same industry.
- TWNK has a Debt/Equity ratio of 0.53. This is a neutral value indicating TWNK is somewhat dependend on debt financing.
- TWNK's Debt to Equity ratio of 0.53 is in line compared to the rest of the industry. TWNK outperforms 48.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 9.63 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.68
WACC7.88%
2.3 Liquidity
- TWNK has a Current Ratio of 1.80. This is a normal value and indicates that TWNK is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of TWNK (1.80) is comparable to the rest of the industry.
- TWNK has a Quick Ratio of 1.47. This is a normal value and indicates that TWNK is financially healthy and should not expect problems in meeting its short term obligations.
- TWNK has a Quick ratio of 1.47. This is in the better half of the industry: TWNK outperforms 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.47% over the past year.
- TWNK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.36% yearly.
- Looking at the last year, TWNK shows a quite strong growth in Revenue. The Revenue has grown by 10.00% in the last year.
- Measured over the past years, TWNK shows a quite strong growth in Revenue. The Revenue has been growing by 11.84% on average per year.
EPS 1Y (TTM)9.47%
EPS 3Y17.37%
EPS 5Y7.36%
EPS Q2Q%27.27%
Revenue 1Y (TTM)10%
Revenue growth 3Y14.38%
Revenue growth 5Y11.84%
Sales Q2Q%3.49%
3.2 Future
- TWNK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.80% yearly.
- TWNK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.32% yearly.
EPS Next Y18%
EPS Next 2Y13.51%
EPS Next 3Y11.36%
EPS Next 5Y8.8%
Revenue Next Year5.6%
Revenue Next 2Y5.07%
Revenue Next 3Y4.87%
Revenue Next 5Y4.32%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- A Price/Earnings ratio of 32.02 indicates a quite expensive valuation of TWNK.
- Compared to the rest of the industry, the Price/Earnings ratio of TWNK is on the same level as its industry peers.
- TWNK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.82.
- Based on the Price/Forward Earnings ratio of 26.64, the valuation of TWNK can be described as expensive.
- TWNK's Price/Forward Earnings is on the same level as the industry average.
- TWNK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 26.64 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as TWNK.
- TWNK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.86 | ||
| EV/EBITDA | 17.97 |
4.3 Compensation for Growth
- TWNK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.78
PEG (5Y)4.35
EPS Next 2Y13.51%
EPS Next 3Y11.36%
5. Dividend
5.1 Amount
- TWNK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HOSTESS BRANDS INC / TWNK FAQ
What is the ChartMill fundamental rating of HOSTESS BRANDS INC (TWNK) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TWNK.
Can you provide the valuation status for HOSTESS BRANDS INC?
ChartMill assigns a valuation rating of 2 / 10 to HOSTESS BRANDS INC (TWNK). This can be considered as Overvalued.
What is the profitability of TWNK stock?
HOSTESS BRANDS INC (TWNK) has a profitability rating of 7 / 10.
What is the financial health of HOSTESS BRANDS INC (TWNK) stock?
The financial health rating of HOSTESS BRANDS INC (TWNK) is 5 / 10.