FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
NYSE:FLO - New York Stock Exchange, Inc. - US3434981011 - Common Stock - Currency: USD
FLO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 90 industry peers in the Food Products industry. While FLO has a great profitability rating, 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. FLO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FLO had positive earnings in the past year.
In the past year FLO had a positive cash flow from operations.
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 (5.27%) than 70.00% of its industry peers.
Looking at the Return On Equity, with a value of 16.11%, FLO belongs to the top of the industry, outperforming 85.56% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.80%, FLO is in the better half of the industry, outperforming 74.44% 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 above the industry average of 7.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 16.11% | ||
| ROIC | 7.8% |
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
FLO has a better Profit Margin (4.49%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of FLO has grown nicely.
Looking at the Operating Margin, with a value of 7.51%, FLO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
FLO's Operating Margin has improved in the last couple of years.
FLO has a better Gross Margin (49.65%) than 100.00% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.51% | ||
| PM (TTM) | 4.49% | ||
| GM | 49.65% |
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.
Compared to 1 year ago, FLO has about the same amount of shares outstanding.
FLO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FLO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.53 indicates that FLO is not a great score, but indicates only limited risk for bankruptcy at the moment.
FLO has a Altman-Z score (2.53) which is in line with its industry peers.
FLO has a debt to FCF ratio of 5.64. This is a neutral value as FLO would need 5.64 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.64, FLO is doing good in the industry, outperforming 78.89% of the companies in the same industry.
FLO has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.27, FLO is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 5.64 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.82
WACC9.45%
2.3 Liquidity
A Current Ratio of 1.26 indicates that FLO should not have too much problems paying its short term obligations.
FLO has a Current ratio of 1.26. This is in the lower half of the industry: FLO underperforms 66.67% of its industry peers.
FLO has a Quick Ratio of 1.26. 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 0.73 is on the low side compared to the rest of the industry. FLO is outperformed by 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
FLO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.88%.
Measured over the past 5 years, FLO shows a small growth in Earnings Per Share. The EPS has been growing by 5.70% on average per year.
The Revenue has decreased by -1.02% in the past year.
FLO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.35% yearly.
EPS 1Y (TTM)5.88%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%-5.41%
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%-1.43%
3.2 Future
The Earnings Per Share is expected to decrease by -1.15% 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 1.42% yearly.
EPS Next Y-12.49%
EPS Next 2Y-4.89%
EPS Next 3Y-2.6%
EPS Next 5Y-1.15%
Revenue Next Year3.98%
Revenue Next 2Y2.27%
Revenue Next 3Y1.86%
Revenue Next 5Y1.42%
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 decreasing.
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
FLO is valuated correctly with a Price/Earnings ratio of 12.85.
Compared to the rest of the industry, the Price/Earnings ratio of FLO indicates a somewhat cheap valuation: FLO is cheaper than 72.22% of the companies listed in the same industry.
FLO is valuated cheaply when we compare the Price/Earnings ratio to 26.65, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.98, FLO is valued correctly.
FLO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FLO is cheaper than 71.11% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.27. FLO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.85 | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
FLO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FLO is cheaper than 62.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FLO is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.72 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
FLO has an outstanding profitability rating, which may justify a higher PE ratio.
FLO's earnings are expected to decrease with -2.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.25
EPS Next 2Y-4.89%
EPS Next 3Y-2.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.23%, FLO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.69, FLO pays a better dividend. On top of this FLO pays more dividend than 87.78% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, FLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.23% |
5.2 History
On average, the dividend of FLO grows each year by 7.46%, which is quite nice.
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 89.56% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of FLO has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP89.56%
EPS Next 2Y-4.89%
EPS Next 3Y-2.6%
16.19
+0.32 (+2.02%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners80.46%
Inst Owner Change8.86%
Ins Owners2.34%
Ins Owner Change0.87%
Market Cap3.42B
Analysts52
Price Target19.13 (18.16%)
Short Float %7.22%
Short Ratio5.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.23% |
Yearly Dividend0.96
Dividend Growth(5Y)7.46%
DP89.56%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.39%
Min EPS beat(2)-7.75%
Max EPS beat(2)4.97%
EPS beat(4)3
Avg EPS beat(4)3.85%
Min EPS beat(4)-7.75%
Max EPS beat(4)11.18%
EPS beat(8)5
Avg EPS beat(8)2.26%
EPS beat(12)7
Avg EPS beat(12)2.84%
EPS beat(16)10
Avg EPS beat(16)4.3%
Revenue beat(2)0
Avg Revenue beat(2)-3.23%
Min Revenue beat(2)-3.76%
Max Revenue beat(2)-2.7%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-3.76%
Max Revenue beat(4)-1.69%
Revenue beat(8)1
Avg Revenue beat(8)-1.66%
Revenue beat(12)2
Avg Revenue beat(12)-1.51%
Revenue beat(16)5
Avg Revenue beat(16)-1.1%
PT rev (1m)-8.54%
PT rev (3m)-9.64%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-4.16%
EPS NY rev (1m)-4.14%
EPS NY rev (3m)-5.47%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)-1.61%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.85 | ||
| Fwd PE | 13.98 | ||
| P/S | 0.67 | ||
| P/FCF | 10.72 | ||
| P/OCF | 7.71 | ||
| P/B | 2.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.6 |
EPS(TTM)1.26
EY7.78%
EPS(NY)1.16
Fwd EY7.15%
FCF(TTM)1.51
FCFY9.33%
OCF(TTM)2.1
OCFY12.96%
SpS24.06
BVpS6.7
TBVpS-3.67
PEG (NY)N/A
PEG (5Y)2.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 16.11% | ||
| ROCE | 10.15% | ||
| ROIC | 7.8% | ||
| ROICexc | 7.81% | ||
| ROICexgc | 18.71% | ||
| OM | 7.51% | ||
| PM (TTM) | 4.49% | ||
| GM | 49.65% | ||
| FCFM | 6.28% |
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-Score7
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 5.64 | ||
| Debt/EBITDA | 3.32 | ||
| Cap/Depr | 77.58% | ||
| Cap/Sales | 2.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.82% | ||
| Profit Quality | 139.8% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.53 |
F-Score7
WACC9.45%
ROIC/WACC0.82
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)5.88%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%-5.41%
EPS Next Y-12.49%
EPS Next 2Y-4.89%
EPS Next 3Y-2.6%
EPS Next 5Y-1.15%
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%-1.43%
Revenue Next Year3.98%
Revenue Next 2Y2.27%
Revenue Next 3Y1.86%
Revenue Next 5Y1.42%
EBIT growth 1Y12.07%
EBIT growth 3Y2%
EBIT growth 5Y8.76%
EBIT Next Year50.04%
EBIT Next 3Y15.11%
EBIT Next 5Y9.08%
FCF growth 1Y124.29%
FCF growth 3Y12.24%
FCF growth 5Y1.28%
OCF growth 1Y50.38%
OCF growth 3Y6.19%
OCF growth 5Y2.37%