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 89 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
In the past year BGS was profitable.
In the past year BGS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BGS reported negative net income in multiple years.
BGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BGS has a Return On Assets of -7.10%. This is in the lower half of the industry: BGS underperforms 73.03% of its industry peers.
BGS's Return On Equity of -40.89% is on the low side compared to the rest of the industry. BGS is outperformed by 76.40% of its industry peers.
BGS's Return On Invested Capital of 5.62% is fine compared to the rest of the industry. BGS outperforms 62.92% of its industry peers.
BGS had an Average Return On Invested Capital over the past 3 years of 5.47%. This is below the industry average of 7.60%.
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
The Operating Margin of BGS (10.30%) is better than 76.40% of its industry peers.
In the last couple of years the Operating Margin of BGS has declined.
With a Gross Margin value of 21.41%, BGS perfoms like the industry average, outperforming 49.44% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BGS is destroying value.
BGS has more shares outstanding than it did 1 year ago.
BGS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BGS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that BGS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.40, BGS perfoms like the industry average, outperforming 40.45% 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.
BGS has a Debt/Equity ratio of 3.90. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.90, BGS is doing worse than 89.89% 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
BGS has a Current Ratio of 3.31. This indicates that BGS is financially healthy and has no problem in meeting its short term obligations.
BGS has a Current ratio of 3.31. This is amongst the best in the industry. BGS outperforms 84.27% of its industry peers.
A Quick Ratio of 1.07 indicates that BGS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.07, BGS is doing good in the industry, outperforming 64.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
BGS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.78%.
BGS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.66% yearly.
The Revenue has decreased by -7.06% in the past year.
Measured over the past years, BGS shows a small growth in Revenue. The Revenue has been growing by 3.08% on average per year.
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
Based on estimates for the next years, BGS will show a small growth in Earnings Per Share. The EPS will grow by 4.88% on average per year.
The Revenue is expected to decrease by -0.81% on average over the next years.
EPS Next Y-19.22%
EPS Next 2Y-6.61%
EPS Next 3Y4.88%
EPS Next 5YN/A
Revenue Next Year-3.34%
Revenue Next 2Y-1.66%
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.
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
The Price/Earnings ratio is 7.75, which indicates a rather cheap valuation of BGS.
88.76% of the companies in the same industry are more expensive than BGS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BGS to the average of the S&P500 Index (26.32), we can say BGS is valued rather cheaply.
A Price/Forward Earnings ratio of 7.11 indicates a rather cheap valuation of BGS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BGS indicates a rather cheap valuation: BGS is cheaper than 98.88% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, BGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 7.11 |
4.2 Price Multiples
69.66% of the companies in the same industry are more expensive than BGS, based on the Enterprise Value to EBITDA ratio.
100.00% of the companies in the same industry are more expensive than BGS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.91 | ||
| EV/EBITDA | 8.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.61%
EPS Next 3Y4.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 16.78%, BGS is a good candidate for dividend investing.
In the last 3 months the price of BGS has falen by -40.47%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
BGS's Dividend Yield is rather good when compared to the industry average which is at 4.45. BGS pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, BGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.78% |
5.2 History
The dividend of BGS decreases each year by -16.36%.
BGS has been paying a dividend for at least 10 years, so it has a reliable track record.
BGS has decreased its dividend recently.
Dividend Growth(5Y)-16.36%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of BGS are negative and hence is the payout ratio. BGS will probably not be able to sustain this dividend level.
DP-28.6%
EPS Next 2Y-6.61%
EPS Next 3Y4.88%
4.34
-0.19 (-4.19%)
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 Change18.61%
Market Cap346.33M
Analysts48.57
Price Target5.61 (29.26%)
Short Float %24.14%
Short Ratio6.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.78% |
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)-24.51%
PT rev (3m)-24.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 7.11 | ||
| P/S | 0.18 | ||
| P/FCF | 2.91 | ||
| P/OCF | 2.32 | ||
| P/B | 0.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.12 |
EPS(TTM)0.56
EY12.9%
EPS(NY)0.61
Fwd EY14.07%
FCF(TTM)1.49
FCFY34.38%
OCF(TTM)1.87
OCFY43.02%
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-19.22%
EPS Next 2Y-6.61%
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-3.34%
Revenue Next 2Y-1.66%
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%