B&G FOODS INC (BGS) Stock Fundamental Analysis
NYSE:BGS - New York Stock Exchange, Inc. - US05508R1068 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to BGS. BGS was compared to 91 industry peers in the Food Products industry. There are concerns on the financial health of BGS while its profitability can be described as average. BGS is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
BGS had positive earnings in the past year.
In the past year BGS had a positive cash flow from operations.
In multiple years BGS reported negative net income over the last 5 years.
In the past 5 years BGS always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -7.10%, BGS is not doing good in the industry: 72.53% of the companies in the same industry are doing better.
BGS has a Return On Equity of -40.89%. This is in the lower half of the industry: BGS underperforms 75.82% of its industry peers.
BGS has a better Return On Invested Capital (5.62%) than 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BGS is significantly below the industry average of 28.40%.
The last Return On Invested Capital (5.62%) for BGS is above the 3 year average (5.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.1% | ||
| ROE | -40.89% | ||
| ROIC | 5.62% |
ROA(3y)-3.53%
ROA(5y)-1.07%
ROE(3y)-19.02%
ROE(5y)-6.77%
ROIC(3y)5.47%
ROIC(5y)5.49%
1.3 Margins
BGS's Operating Margin of 10.30% is fine compared to the rest of the industry. BGS outperforms 75.82% of its industry peers.
In the last couple of years the Operating Margin of BGS has declined.
BGS's Gross Margin of 21.41% is in line compared to the rest of the industry. BGS outperforms 49.45% of its industry peers.
BGS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.3% | ||
| PM (TTM) | N/A | ||
| GM | 21.41% |
OM growth 3Y1.28%
OM growth 5Y-2.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.91%
GM growth 5Y-1.1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BGS is destroying value.
Compared to 1 year ago, BGS has more shares outstanding
BGS has more shares outstanding than it did 5 years ago.
BGS has a worse debt/assets ratio than last year.
2.2 Solvency
BGS has an Altman-Z score of 1.40. This is a bad value and indicates that BGS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.40, BGS is doing worse than 60.44% of the companies in the same industry.
BGS has a debt to FCF ratio of 16.85. This is a negative value and a sign of low solvency as BGS would need 16.85 years to pay back of all of its debts.
BGS has a Debt to FCF ratio (16.85) which is in line with its industry peers.
A Debt/Equity ratio of 3.90 is on the high side and indicates that BGS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.90, BGS is doing worse than 89.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 16.85 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.8
WACC7.04%
2.3 Liquidity
A Current Ratio of 3.31 indicates that BGS has no problem at all paying its short term obligations.
BGS has a better Current ratio (3.31) than 82.42% of its industry peers.
BGS has a Quick Ratio of 1.07. This is a normal value and indicates that BGS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BGS (1.07) is better than 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for BGS have decreased strongly by -37.78% in the last year.
The earnings per share for BGS have been decreasing by -15.66% on average. This is quite bad
BGS shows a decrease in Revenue. In the last year, the revenue decreased by -7.06%.
BGS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.08% yearly.
EPS 1Y (TTM)-37.78%
EPS 3Y-27.93%
EPS 5Y-15.66%
EPS Q2Q%-77.78%
Revenue 1Y (TTM)-7.06%
Revenue growth 3Y-2.05%
Revenue growth 5Y3.08%
Sales Q2Q%-10.48%
3.2 Future
The Earnings Per Share is expected to grow by 4.88% on average over the next years.
The Revenue is expected to decrease by -0.81% on average over the next years.
EPS Next Y-18.07%
EPS Next 2Y-5.31%
EPS Next 3Y4.88%
EPS Next 5YN/A
Revenue Next Year-3.39%
Revenue Next 2Y-1.58%
Revenue Next 3Y-0.81%
Revenue Next 5YN/A
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 accelerating.
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
A Price/Earnings ratio of 8.05 indicates a reasonable valuation of BGS.
Based on the Price/Earnings ratio, BGS is valued cheaply inside the industry as 89.01% of the companies are valued more expensively.
BGS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 7.19, the valuation of BGS can be described as very cheap.
BGS's Price/Forward Earnings ratio is rather cheap when compared to the industry. BGS is cheaper than 97.80% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, BGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 7.19 |
4.2 Price Multiples
BGS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BGS is cheaper than 69.23% of the companies in the same industry.
BGS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BGS is cheaper than 97.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.02 | ||
| EV/EBITDA | 8.17 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.31%
EPS Next 3Y4.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 17.47%, BGS is a good candidate for dividend investing.
In the last 3 months the price of BGS has falen by -31.46%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.75, BGS pays a better dividend. On top of this BGS pays more dividend than 100.00% of the companies listed in the same industry.
BGS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.47% |
5.2 History
The dividend of BGS decreases each year by -16.36%.
BGS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BGS decreased recently.
Dividend Growth(5Y)-16.36%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
BGS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-28.6%
EPS Next 2Y-5.31%
EPS Next 3Y4.88%
4.51
-0.03 (-0.66%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners76.66%
Inst Owner Change12.63%
Ins Owners3.87%
Ins Owner Change17.47%
Market Cap359.90M
Analysts48.57
Price Target5.69 (26.16%)
Short Float %21.35%
Short Ratio5.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.47% |
Yearly Dividend0.76
Dividend Growth(5Y)-16.36%
DP-28.6%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-36.59%
Min EPS beat(2)-74.14%
Max EPS beat(2)0.96%
EPS beat(4)1
Avg EPS beat(4)-31.92%
Min EPS beat(4)-74.14%
Max EPS beat(4)0.96%
EPS beat(8)4
Avg EPS beat(8)-8.07%
EPS beat(12)6
Avg EPS beat(12)-4.5%
EPS beat(16)6
Avg EPS beat(16)-5.82%
Revenue beat(2)0
Avg Revenue beat(2)-4.33%
Min Revenue beat(2)-8.34%
Max Revenue beat(2)-0.33%
Revenue beat(4)1
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-8.34%
Max Revenue beat(4)1%
Revenue beat(8)2
Avg Revenue beat(8)-1.85%
Revenue beat(12)3
Avg Revenue beat(12)-1.38%
Revenue beat(16)6
Avg Revenue beat(16)-0.65%
PT rev (1m)-23.37%
PT rev (3m)-23.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.02%
EPS NY rev (1m)1.42%
EPS NY rev (3m)-15.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 7.19 | ||
| P/S | 0.19 | ||
| P/FCF | 3.02 | ||
| P/OCF | 2.42 | ||
| P/B | 0.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.17 |
EPS(TTM)0.56
EY12.42%
EPS(NY)0.63
Fwd EY13.92%
FCF(TTM)1.49
FCFY33.08%
OCF(TTM)1.87
OCFY41.4%
SpS23.59
BVpS6.43
TBVpS-16.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.1% | ||
| ROE | -40.89% | ||
| ROCE | 7.12% | ||
| ROIC | 5.62% | ||
| ROICexc | 5.75% | ||
| ROICexgc | 18.36% | ||
| OM | 10.3% | ||
| PM (TTM) | N/A | ||
| GM | 21.41% | ||
| FCFM | 6.32% |
ROA(3y)-3.53%
ROA(5y)-1.07%
ROE(3y)-19.02%
ROE(5y)-6.77%
ROIC(3y)5.47%
ROIC(5y)5.49%
ROICexc(3y)5.55%
ROICexc(5y)5.56%
ROICexgc(3y)18.01%
ROICexgc(5y)19.46%
ROCE(3y)6.92%
ROCE(5y)6.95%
ROICexcg growth 3Y3.07%
ROICexcg growth 5Y-1.07%
ROICexc growth 3Y8.6%
ROICexc growth 5Y3.07%
OM growth 3Y1.28%
OM growth 5Y-2.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.91%
GM growth 5Y-1.1%
F-Score4
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 16.85 | ||
| Debt/EBITDA | 7.09 | ||
| Cap/Depr | 34.02% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 1.28 | ||
| Cash Conversion | 52.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.4 |
F-Score4
WACC7.04%
ROIC/WACC0.8
Cap/Depr(3y)29.53%
Cap/Depr(5y)36.62%
Cap/Sales(3y)1.24%
Cap/Sales(5y)1.44%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-37.78%
EPS 3Y-27.93%
EPS 5Y-15.66%
EPS Q2Q%-77.78%
EPS Next Y-18.07%
EPS Next 2Y-5.31%
EPS Next 3Y4.88%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.06%
Revenue growth 3Y-2.05%
Revenue growth 5Y3.08%
Sales Q2Q%-10.48%
Revenue Next Year-3.39%
Revenue Next 2Y-1.58%
Revenue Next 3Y-0.81%
Revenue Next 5YN/A
EBIT growth 1Y-43.58%
EBIT growth 3Y-0.8%
EBIT growth 5Y0.97%
EBIT Next Year24%
EBIT Next 3Y9.52%
EBIT Next 5YN/A
FCF growth 1Y281.6%
FCF growth 3Y26.99%
FCF growth 5Y90.55%
OCF growth 1Y196.22%
OCF growth 3Y11.74%
OCF growth 5Y23.02%