HOSTESS BRANDS INC (TWNK) Stock Fundamental Analysis
USA - NASDAQ:TWNK - US44109J1060 - Common Stock
33.3 USD
-0.05 (-0.15%)
33.34 USD
+0.04 (+0.12%)
Overall TWNK gets a fundamental rating of 5 out of 10. We evaluated TWNK against 87 industry peers in the Food Products industry. TWNK scores excellent on profitability, but there are some minor concerns on its financial health. 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.
In the past 5 years TWNK has always been profitable.
Each year in the past 5 years TWNK had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.83%, TWNK is doing good in the industry, outperforming 63.44% of the companies in the same industry.
TWNK's Return On Equity of 9.18% is fine compared to the rest of the industry. TWNK outperforms 64.52% of its industry peers.
TWNK's Return On Invested Capital of 5.38% is fine compared to the rest of the industry. TWNK outperforms 63.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TWNK is significantly below the industry average of 28.34%.
The 3 year average ROIC (4.37%) for TWNK is below the current ROIC(5.38%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of TWNK has declined.
Looking at the Operating Margin, with a value of 16.91%, TWNK belongs to the top of the industry, outperforming 94.62% of the companies in the same industry.
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.
In the last couple of years the Gross Margin of TWNK has declined.
| 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
TWNK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TWNK has less shares outstanding
TWNK has a better debt/assets ratio than last year.
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.
TWNK has a debt to FCF ratio of 9.63. This is a negative value and a sign of low solvency as TWNK would need 9.63 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.63, TWNK is in the better half of 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 has a Debt to Equity ratio (0.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 9.63 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.68
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.80 indicates that TWNK should not have too much problems paying its short term obligations.
The Current ratio of TWNK (1.80) is comparable to the rest of the industry.
A Quick Ratio of 1.47 indicates that TWNK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.47, TWNK is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
TWNK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.47%, which is quite good.
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.
The Revenue has been growing by 11.84% on average over the past years. This is quite good.
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
Based on estimates for the next years, TWNK will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.80% on average per year.
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
TWNK is valuated quite expensively with a Price/Earnings ratio of 32.02.
TWNK's Price/Earnings ratio is in line with the industry average.
TWNK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
TWNK is valuated quite expensively with a Price/Forward Earnings ratio of 26.64.
TWNK's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TWNK to the average of the S&P500 Index (22.82), we can say TWNK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 26.64 |
4.2 Price Multiples
TWNK's Enterprise Value to EBITDA ratio is in line with the industry average.
TWNK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.86 | ||
| EV/EBITDA | 17.97 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TWNK has a very decent profitability rating, which may justify a higher PE ratio.
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 |
33.3
-0.05 (-0.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners19.27%
Ins Owner Change0%
Market Cap4.42B
Revenue(TTM)1.38B
Net Income(TTM)169.94M
Analysts70
Price Target34.74 (4.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.59%
Min EPS beat(2)2.05%
Max EPS beat(2)5.14%
EPS beat(4)4
Avg EPS beat(4)3.97%
Min EPS beat(4)1.05%
Max EPS beat(4)7.63%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-3.6%
Max Revenue beat(2)0.06%
Revenue beat(4)3
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-3.6%
Max Revenue beat(4)5.27%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.74%
PT rev (3m)16.56%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)0%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)-0.87%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 26.64 | ||
| P/S | 3.2 | ||
| P/FCF | 42.86 | ||
| P/OCF | 17.7 | ||
| P/B | 2.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.97 |
EPS(TTM)1.04
EY3.12%
EPS(NY)1.25
Fwd EY3.75%
FCF(TTM)0.78
FCFY2.33%
OCF(TTM)1.88
OCFY5.65%
SpS10.41
BVpS13.94
TBVpS-5.91
PEG (NY)1.78
PEG (5Y)4.35
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 9.18% | ||
| ROCE | 7.06% | ||
| ROIC | 5.38% | ||
| ROICexc | 5.54% | ||
| ROICexgc | 30.86% | ||
| OM | 16.91% | ||
| PM (TTM) | 12.28% | ||
| GM | 34.99% | ||
| FCFM | 7.46% |
ROA(3y)3.36%
ROA(5y)2.84%
ROE(3y)6.69%
ROE(5y)5.91%
ROIC(3y)4.37%
ROIC(5y)3.94%
ROICexc(3y)4.63%
ROICexc(5y)4.2%
ROICexgc(3y)35.07%
ROICexgc(5y)36.04%
ROCE(3y)5.74%
ROCE(5y)5.17%
ROICexgc growth 3Y-5.58%
ROICexgc growth 5Y-14.6%
ROICexc growth 3Y12.1%
ROICexc growth 5Y0.38%
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%
F-Score8
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 9.63 | ||
| Debt/EBITDA | 3.32 | ||
| Cap/Depr | 235.98% | ||
| Cap/Sales | 10.61% | ||
| Interest Coverage | 4.78 | ||
| Cash Conversion | 84.43% | ||
| Profit Quality | 60.75% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 2.54 |
F-Score8
WACC7.88%
ROIC/WACC0.68
Cap/Depr(3y)149.99%
Cap/Depr(5y)132.08%
Cap/Sales(3y)7.02%
Cap/Sales(5y)6.24%
Profit Quality(3y)114.45%
Profit Quality(5y)131.78%
High Growth Momentum
Growth
EPS 1Y (TTM)9.47%
EPS 3Y17.37%
EPS 5Y7.36%
EPS Q2Q%27.27%
EPS Next Y18%
EPS Next 2Y13.51%
EPS Next 3Y11.36%
EPS Next 5Y8.8%
Revenue 1Y (TTM)10%
Revenue growth 3Y14.38%
Revenue growth 5Y11.84%
Sales Q2Q%3.49%
Revenue Next Year5.6%
Revenue Next 2Y5.07%
Revenue Next 3Y4.87%
Revenue Next 5Y4.32%
EBIT growth 1Y12.2%
EBIT growth 3Y18.73%
EBIT growth 5Y3.52%
EBIT Next Year45.07%
EBIT Next 3Y18.06%
EBIT Next 5Y17.33%
FCF growth 1Y-21.87%
FCF growth 3Y4.56%
FCF growth 5Y-1.62%
OCF growth 1Y34.54%
OCF growth 3Y20%
OCF growth 5Y8.73%
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.
What is the valuation status for TWNK stock?
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.