Balancing Dividends and Fundamentals: The Case of FLOWERS FOODS INC (NYSE:FLO).

Our stock screening tool has identified FLOWERS FOODS INC (NYSE:FLO) as a strong dividend contender with robust fundamentals. FLO exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Evaluating Dividend: FLO

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. FLO scores a 8 out of 10:

• With a Yearly Dividend Yield of 5.18%, FLO is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 3.92, FLO pays a better dividend. On top of this FLO pays more dividend than 89.01% of the companies listed in the same industry.
• FLO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
• On average, the dividend of FLO grows each year by 7.46%, which is quite nice.
• FLO has been paying a dividend for at least 10 years, so it has 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.

Unpacking FLO's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. FLO was assigned a score of 5 for health:

• An Altman-Z score of 3.47 indicates that FLO is not in any danger for bankruptcy at the moment.
• FLO has a Altman-Z score of 3.47. This is in the better half of the industry: FLO outperforms 78.02% of its industry peers.
• The Debt to FCF ratio of FLO is 3.69, which is a good value as it means it would take FLO, 3.69 years of fcf income to pay off all of its debts.
• FLO has a Debt to FCF ratio of 3.69. This is in the better half of the industry: FLO outperforms 72.53% of its industry peers.

Profitability Insights: FLO

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, FLO has achieved a 8:

• FLO has a Return On Assets of 7.30%. This is in the better half of the industry: FLO outperforms 78.02% of its industry peers.
• FLO has a better Return On Equity (17.60%) than 87.91% of its industry peers.
• The Return On Invested Capital of FLO (10.20%) is better than 82.42% of its industry peers.
• The 3 year average ROIC (9.98%) for FLO is below the current ROIC(10.20%), indicating increased profibility in the last year.
• With a decent Profit Margin value of 4.86%, FLO is doing good in the industry, outperforming 70.33% of the companies in the same industry.
• In the last couple of years the Profit Margin of FLO has grown nicely.
• FLO has a better Operating Margin (7.44%) than 69.23% of its industry peers.
• FLO's Operating Margin has improved in the last couple of years.
• The Gross Margin of FLO (49.50%) is better than 100.00% of its industry peers.

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For an up to date full fundamental analysis you can check the fundamental report of FLO

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.