FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
NYSE:FLO - New York Stock Exchange, Inc. - US3434981011 - Common Stock - Currency: USD
Overall FLO gets a fundamental rating of 5 out of 10. We evaluated FLO 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 on the other hand it scores bad on growth. FLO also has an excellent dividend rating.
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.
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 better Return On Assets (5.27%) than 73.33% of its industry peers.
With an excellent Return On Equity value of 16.11%, FLO belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
FLO has a Return On Invested Capital of 7.80%. This is in the better half of the industry: FLO outperforms 74.44% of its industry peers.
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 8.11%.
| 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 Profit Margin of 4.49%. This is in the better half of the industry: FLO outperforms 68.89% 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 7.51%, FLO is doing good in 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's Gross Margin of 49.65% is amongst the best of the industry. FLO outperforms 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FLO is creating some value.
Compared to 1 year ago, FLO has about the same amount of shares outstanding.
Compared to 5 years ago, FLO has less shares outstanding
FLO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.56 indicates that FLO is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of FLO (2.56) is better than 61.11% of 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.
FLO has a better Debt to FCF ratio (5.64) than 80.00% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that FLO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.27, FLO is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 5.64 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.03
WACC7.59%
2.3 Liquidity
FLO has a Current Ratio of 1.26. This is a normal value and indicates that FLO is financially healthy and should not expect problems in meeting its short term obligations.
FLO has a worse Current ratio (1.26) than 67.78% of its industry peers.
A Quick Ratio of 0.73 indicates that FLO may have some problems paying its short term obligations.
FLO has a worse Quick ratio (0.73) than 62.22% 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%.
The Earnings Per Share has been growing slightly by 5.70% on average over the past years.
Looking at the last year, FLO shows a decrease in Revenue. The Revenue has decreased by -1.02% in the last year.
The Revenue has been growing slightly by 4.35% on average over the past years.
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 grow by 2.58% on average over the next years.
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-8.71%
EPS Next 2Y-2.29%
EPS Next 3Y-0.01%
EPS Next 5Y2.58%
Revenue Next Year5.68%
Revenue Next 2Y3.32%
Revenue Next 3Y2.61%
Revenue Next 5Y2.8%
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 13.41.
Compared to the rest of the industry, the Price/Earnings ratio of FLO indicates a somewhat cheap valuation: FLO is cheaper than 71.11% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. FLO is valued slightly cheaper when compared to this.
FLO is valuated correctly with a Price/Forward Earnings ratio of 13.83.
73.33% of the companies in the same industry are more expensive than FLO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, FLO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 13.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FLO is on the same level as its industry peers.
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 | 11.19 | ||
| EV/EBITDA | 9.92 |
4.3 Compensation for Growth
FLO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.35
EPS Next 2Y-2.29%
EPS Next 3Y-0.01%
5. Dividend
5.1 Amount
FLO has a Yearly Dividend Yield of 5.82%, which is a nice return.
FLO's Dividend Yield is rather good when compared to the industry average which is at 4.64. FLO pays more dividend than 87.78% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, FLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.82% |
5.2 History
The dividend of FLO is nicely growing with an annual growth rate of 7.46%!
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)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.
FLO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP89.56%
EPS Next 2Y-2.29%
EPS Next 3Y-0.01%
16.9
-0.1 (-0.59%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners74.57%
Inst Owner Change8.93%
Ins Owners6.99%
Ins Owner Change0.54%
Market Cap3.57B
Analysts52
Price Target20.91 (23.73%)
Short Float %6.52%
Short Ratio5.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.82% |
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)-1.2%
PT rev (3m)-1.8%
EPS NQ rev (1m)-4.18%
EPS NQ rev (3m)-6.24%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)-1.45%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 13.83 | ||
| P/S | 0.7 | ||
| P/FCF | 11.19 | ||
| P/OCF | 8.05 | ||
| P/B | 2.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.92 |
EPS(TTM)1.26
EY7.46%
EPS(NY)1.22
Fwd EY7.23%
FCF(TTM)1.51
FCFY8.94%
OCF(TTM)2.1
OCFY12.42%
SpS24.06
BVpS6.7
TBVpS-3.67
PEG (NY)N/A
PEG (5Y)2.35
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 | 2.56 |
F-Score7
WACC7.59%
ROIC/WACC1.03
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-8.71%
EPS Next 2Y-2.29%
EPS Next 3Y-0.01%
EPS Next 5Y2.58%
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%-1.43%
Revenue Next Year5.68%
Revenue Next 2Y3.32%
Revenue Next 3Y2.61%
Revenue Next 5Y2.8%
EBIT growth 1Y12.07%
EBIT growth 3Y2%
EBIT growth 5Y8.76%
EBIT Next Year50.04%
EBIT Next 3Y15.11%
EBIT Next 5Y11.34%
FCF growth 1Y124.29%
FCF growth 3Y12.24%
FCF growth 5Y1.28%
OCF growth 1Y50.38%
OCF growth 3Y6.19%
OCF growth 5Y2.37%