FLOWERS FOODS INC (FLO)

US3434981011 - Common Stock

23.75  +0.03 (+0.13%)

After market: 23.75 0 (0%)

Fundamental Rating

5

Overall FLO gets a fundamental rating of 5 out of 10. We evaluated FLO against 91 industry peers in the Food Products industry. While FLO belongs to the best of the industry regarding profitability, 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.



7

1. Profitability

1.1 Basic Checks

In the past year FLO was profitable.
FLO had a positive operating cash flow in the past year.
Each year in the past 5 years FLO has been profitable.
In the past 5 years FLO always reported a positive cash flow from operatings.

1.2 Ratios

FLO has a Return On Assets of 3.60%. This is in the better half of the industry: FLO outperforms 62.64% of its industry peers.
Looking at the Return On Equity, with a value of 9.13%, FLO is in the better half of the industry, outperforming 62.64% of the companies in the same industry.
FLO's Return On Invested Capital of 9.10% is amongst the best of the industry. FLO outperforms 83.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FLO is above the industry average of 7.96%.
Industry RankSector Rank
ROA 3.6%
ROE 9.13%
ROIC 9.1%
ROA(3y)5.61%
ROA(5y)5.32%
ROE(3y)13.19%
ROE(5y)12.74%
ROIC(3y)9.98%
ROIC(5y)9.39%

1.3 Margins

FLO has a Profit Margin (2.42%) which is in line with its industry peers.
In the last couple of years the Profit Margin of FLO has declined.
FLO has a Operating Margin of 6.43%. This is in the better half of the industry: FLO outperforms 68.13% of its industry peers.
FLO's Operating Margin has improved in the last couple of years.
FLO has a better Gross Margin (48.30%) than 98.90% of its industry peers.
In the last couple of years the Gross Margin of FLO has remained more or less at the same level.
Industry RankSector Rank
OM 6.43%
PM (TTM) 2.42%
GM 48.3%
OM growth 3Y-5.26%
OM growth 5Y3.2%
PM growth 3Y-11.27%
PM growth 5Y-9.43%
GM growth 3Y-1.12%
GM growth 5Y0.25%

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FLO is creating some value.
FLO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FLO has less shares outstanding
FLO has a worse debt/assets ratio than last year.

2.2 Solvency

FLO has an Altman-Z score of 3.64. This indicates that FLO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.64, FLO is doing good in the industry, outperforming 78.02% of the companies in the same industry.
The Debt to FCF ratio of FLO is 4.84, which is a neutral value as it means it would take FLO, 4.84 years of fcf income to pay off all of its debts.
FLO has a Debt to FCF ratio of 4.84. This is in the better half of the industry: FLO outperforms 73.63% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that FLO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.79, FLO is not doing good in the industry: 60.44% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF 4.84
Altman-Z 3.64
ROIC/WACC1.16
WACC7.83%

2.3 Liquidity

FLO has a Current Ratio of 1.04. This is a normal value and indicates that FLO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.04, FLO is doing worse than 72.53% of the companies in the same industry.
FLO has a Quick Ratio of 1.04. This is a bad value and indicates that FLO is not financially healthy enough and could expect problems in meeting its short term obligations.
FLO's Quick ratio of 0.63 is on the low side compared to the rest of the industry. FLO is outperformed by 69.23% of its industry peers.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 0.63

3

3. Growth

3.1 Past

FLO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.25%.
FLO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.01% yearly.
FLO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.93%.
FLO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.20% yearly.
EPS 1Y (TTM)-6.25%
EPS 3Y-2.88%
EPS 5Y5.01%
EPS growth Q2Q-13.04%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y5.08%
Revenue growth 5Y5.2%
Revenue growth Q2Q4.28%

3.2 Future

The Earnings Per Share is expected to grow by 4.09% on average over the next years.
FLO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.67% yearly.
EPS Next Y3.59%
EPS Next 2Y4.95%
EPS Next 3Y5.87%
EPS Next 5Y4.09%
Revenue Next Year1.34%
Revenue Next 2Y1.62%
Revenue Next 3Y1.55%
Revenue Next 5Y1.67%

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 stable.
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

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 19.79 indicates a rather expensive valuation of FLO.
Based on the Price/Earnings ratio, FLO is valued a bit cheaper than the industry average as 70.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.42, FLO is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 19.10, the valuation of FLO can be described as rather expensive.
FLO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FLO is cheaper than 69.23% of the companies in the same industry.
FLO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.74.
Industry RankSector Rank
PE 19.79
Fwd PE 19.1

4.2 Price Multiples

FLO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FLO is cheaper than 64.84% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FLO is valued a bit cheaper than the industry average as 63.74% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 22.7
EV/EBITDA 12.57

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FLO does not grow enough to justify the current Price/Earnings ratio.
FLO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.51
PEG (5Y)3.95
EPS Next 2Y4.95%
EPS Next 3Y5.87%

6

5. Dividend

5.1 Amount

FLO has a Yearly Dividend Yield of 3.98%.
Compared to an average industry Dividend Yield of 3.36, FLO pays a better dividend. On top of this FLO pays more dividend than 89.01% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, FLO pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.98%

5.2 History

On average, the dividend of FLO grows each year by 10.15%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.15%
Div Incr Years11
Div Non Decr Years11

5.3 Sustainability

FLO pays out 158.18% of its income as dividend. This is not a sustainable payout ratio.
FLO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP158.18%
EPS Next 2Y4.95%
EPS Next 3Y5.87%

FLOWERS FOODS INC

NYSE:FLO (3/28/2024, 6:40:00 PM)

After market: 23.75 0 (0%)

23.75

+0.03 (+0.13%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.00B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.98%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 19.79
Fwd PE 19.1
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.51
PEG (5Y)3.95
Profitability
Industry RankSector Rank
ROA 3.6%
ROE 9.13%
ROCE
ROIC
ROICexc
ROICexgc
OM 6.43%
PM (TTM) 2.42%
GM 48.3%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.49
Health
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.04
Quick Ratio 0.63
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-6.25%
EPS 3Y-2.88%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.93%
Revenue growth 3Y5.08%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y