FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
NYSE:FLO - New York Stock Exchange, Inc. - US3434981011 - Common Stock - Currency: USD
Taking everything into account, FLO scores 6 out of 10 in our fundamental rating. FLO was compared to 89 industry peers in the Food Products industry. FLO scores excellent on profitability, but there are some minor concerns on its financial health. FLO has a valuation in line with the averages, but it does not seem to be growing. Finally FLO also has an excellent dividend rating. These ratings could make FLO a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
FLO had positive earnings in the past year.
FLO had a positive operating cash flow in the past year.
In the past 5 years FLO has always been profitable.
FLO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FLO has a better Return On Assets (7.30%) than 75.28% of its industry peers.
Looking at the Return On Equity, with a value of 17.60%, FLO belongs to the top of the industry, outperforming 87.64% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.20%, FLO belongs to the top of the industry, outperforming 82.02% of the companies in the same industry.
FLO had an Average Return On Invested Capital over the past 3 years of 9.98%. This is in line with the industry average of 9.00%.
The last Return On Invested Capital (10.20%) for FLO is above the 3 year average (9.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 17.6% | ||
| ROIC | 10.2% |
ROA(3y)5.93%
ROA(5y)5.74%
ROE(3y)14.18%
ROE(5y)13.65%
ROIC(3y)9.98%
ROIC(5y)9.92%
1.3 Margins
The Profit Margin of FLO (4.86%) is better than 68.54% of its industry peers.
In the last couple of years the Profit Margin of FLO has grown nicely.
With a decent Operating Margin value of 7.44%, FLO is doing good in the industry, outperforming 69.66% of the companies in the same industry.
FLO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 49.50%, FLO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of FLO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.44% | ||
| PM (TTM) | 4.86% | ||
| GM | 49.5% |
OM growth 3Y-3.43%
OM growth 5Y4.23%
PM growth 3Y0.7%
PM growth 5Y4.04%
GM growth 3Y-0.18%
GM growth 5Y0.73%
2. Health
2.1 Basic Checks
FLO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for FLO remains at a similar level compared to 1 year ago.
FLO has less shares outstanding than it did 5 years ago.
FLO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.43 indicates that FLO is not in any danger for bankruptcy at the moment.
FLO has a Altman-Z score of 3.43. This is in the better half of the industry: FLO outperforms 76.40% of its industry peers.
FLO has a debt to FCF ratio of 3.69. This is a good value and a sign of high solvency as FLO would need 3.69 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.69, FLO is in the better half of the industry, outperforming 73.03% of the companies in the same industry.
FLO has a Debt/Equity ratio of 0.73. This is a neutral value indicating FLO is somewhat dependend on debt financing.
FLO has a worse Debt to Equity ratio (0.73) than 62.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 3.43 |
ROIC/WACC1.35
WACC7.55%
2.3 Liquidity
A Current Ratio of 1.20 indicates that FLO should not have too much problems paying its short term obligations.
FLO's Current ratio of 1.20 is on the low side compared to the rest of the industry. FLO is outperformed by 60.67% of its industry peers.
A Quick Ratio of 0.72 indicates that FLO may have some problems paying its short term obligations.
FLO has a Quick ratio (0.72) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.67% over the past year.
The Earnings Per Share has been growing slightly by 5.70% on average over the past years.
FLO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.25%.
FLO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.35% yearly.
EPS 1Y (TTM)6.67%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%10%
Revenue 1Y (TTM)0.25%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%-1.59%
3.2 Future
Based on estimates for the next years, FLO will show a small growth in Earnings Per Share. The EPS will grow by 2.58% on average per year.
Based on estimates for the next years, FLO will show a small growth in Revenue. The Revenue will grow by 2.80% on average per year.
EPS Next Y-7.93%
EPS Next 2Y-1.34%
EPS Next 3Y1.46%
EPS Next 5Y2.58%
Revenue Next Year5.88%
Revenue Next 2Y3.53%
Revenue Next 3Y3.02%
Revenue Next 5Y2.8%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 13.80, which indicates a correct valuation of FLO.
70.79% of the companies in the same industry are more expensive than FLO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.87, FLO is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.98, FLO is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FLO indicates a somewhat cheap valuation: FLO is cheaper than 73.03% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, FLO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 14.98 |
4.2 Price Multiples
65.17% of the companies in the same industry are more expensive than FLO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FLO is valued a bit cheaper than the industry average as 71.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.29 | ||
| EV/EBITDA | 8.8 |
4.3 Compensation for Growth
FLO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.42
EPS Next 2Y-1.34%
EPS Next 3Y1.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.34%, FLO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.33, FLO pays a better dividend. On top of this FLO pays more dividend than 87.64% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, FLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
5.2 History
The dividend of FLO is nicely growing with an annual growth rate of 7.46%!
FLO has paid a dividend for at least 10 years, which is a reliable track record.
FLO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.46%
Div Incr Years22
Div Non Decr Years22
5.3 Sustainability
FLO pays out 81.83% of its income as dividend. This is not a sustainable payout ratio.
The dividend of FLO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP81.83%
EPS Next 2Y-1.34%
EPS Next 3Y1.46%
17.66
-0.19 (-1.06%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners74.57%
Inst Owner Change0.29%
Ins Owners6.99%
Ins Owner Change0.54%
Market Cap3.73B
Analysts52
Price Target21.17 (19.88%)
Short Float %6.86%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
Yearly Dividend0.96
Dividend Growth(5Y)7.46%
DP81.83%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.08%
Min EPS beat(2)4.97%
Max EPS beat(2)11.18%
EPS beat(4)3
Avg EPS beat(4)3.34%
Min EPS beat(4)-9.77%
Max EPS beat(4)11.18%
EPS beat(8)5
Avg EPS beat(8)3.2%
EPS beat(12)8
Avg EPS beat(12)4.38%
EPS beat(16)11
Avg EPS beat(16)5.11%
Revenue beat(2)0
Avg Revenue beat(2)-2.2%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)-1.69%
Revenue beat(4)0
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-2.7%
Max Revenue beat(4)-1.14%
Revenue beat(8)1
Avg Revenue beat(8)-1.43%
Revenue beat(12)3
Avg Revenue beat(12)-1.1%
Revenue beat(16)5
Avg Revenue beat(16)-1.04%
PT rev (1m)0%
PT rev (3m)-10.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 14.98 | ||
| P/S | 0.73 | ||
| P/FCF | 13.29 | ||
| P/OCF | 9.04 | ||
| P/B | 2.64 | ||
| P/tB | 35.9 | ||
| EV/EBITDA | 8.8 |
EPS(TTM)1.28
EY7.25%
EPS(NY)1.18
Fwd EY6.67%
FCF(TTM)1.33
FCFY7.53%
OCF(TTM)1.95
OCFY11.07%
SpS24.17
BVpS6.68
TBVpS0.49
PEG (NY)N/A
PEG (5Y)2.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 17.6% | ||
| ROCE | 13.32% | ||
| ROIC | 10.2% | ||
| ROICexc | 10.22% | ||
| ROICexgc | 18.81% | ||
| OM | 7.44% | ||
| PM (TTM) | 4.86% | ||
| GM | 49.5% | ||
| FCFM | 5.5% |
ROA(3y)5.93%
ROA(5y)5.74%
ROE(3y)14.18%
ROE(5y)13.65%
ROIC(3y)9.98%
ROIC(5y)9.92%
ROICexc(3y)10.22%
ROICexc(5y)10.45%
ROICexgc(3y)19.22%
ROICexgc(5y)20.02%
ROCE(3y)13.04%
ROCE(5y)12.97%
ROICexcg growth 3Y-3.32%
ROICexcg growth 5Y5.84%
ROICexc growth 3Y-1.65%
ROICexc growth 5Y7.13%
OM growth 3Y-3.43%
OM growth 5Y4.23%
PM growth 3Y0.7%
PM growth 5Y4.04%
GM growth 3Y-0.18%
GM growth 5Y0.73%
F-Score9
Asset Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 82.96% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 10.57 | ||
| Cash Conversion | 76.56% | ||
| Profit Quality | 113.08% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.43 |
F-Score9
WACC7.55%
ROIC/WACC1.35
Cap/Depr(3y)95.72%
Cap/Depr(5y)92.68%
Cap/Sales(3y)2.88%
Cap/Sales(5y)2.85%
Profit Quality(3y)125.18%
Profit Quality(5y)141.19%
High Growth Momentum
Growth
EPS 1Y (TTM)6.67%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%10%
EPS Next Y-7.93%
EPS Next 2Y-1.34%
EPS Next 3Y1.46%
EPS Next 5Y2.58%
Revenue 1Y (TTM)0.25%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%-1.59%
Revenue Next Year5.88%
Revenue Next 2Y3.53%
Revenue Next 3Y3.02%
Revenue Next 5Y2.8%
EBIT growth 1Y16.12%
EBIT growth 3Y2%
EBIT growth 5Y8.76%
EBIT Next Year53.44%
EBIT Next 3Y18.2%
EBIT Next 5Y11.34%
FCF growth 1Y27.38%
FCF growth 3Y12.24%
FCF growth 5Y1.28%
OCF growth 1Y18.12%
OCF growth 3Y6.19%
OCF growth 5Y2.37%