FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLO - US3434981011 - Common Stock
11.13 USD
-0.12 (-1.07%)
11.1793 USD
+0.05 (+0.44%)
Overall FLO gets a fundamental rating of 5 out of 10. We evaluated FLO against 87 industry peers in the Food Products industry. FLO scores excellent on profitability, but there are concerns on its financial health. FLO is cheap, 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.
- FLO had positive earnings in each of the past 5 years.
- Each year in the past 5 years FLO had a positive operating cash flow.
1.2 Ratios
- FLO's Return On Assets of 4.46% is fine compared to the rest of the industry. FLO outperforms 72.41% of its industry peers.
- With an excellent Return On Equity value of 13.66%, FLO belongs to the best of the industry, outperforming 83.91% of the companies in the same industry.
- FLO's Return On Invested Capital of 8.07% is amongst the best of the industry. FLO outperforms 81.61% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for FLO is significantly below the industry average of 27.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.46% | ||
| ROE | 13.66% | ||
| ROIC | 8.07% |
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 3.78%. This is in the better half of the industry: FLO outperforms 65.52% of its industry peers.
- In the last couple of years the Profit Margin of FLO has grown nicely.
- The Operating Margin of FLO (6.94%) is better than 68.97% of its industry peers.
- FLO's Operating Margin has improved in the last couple of years.
- FLO has a better Gross Margin (48.94%) than 97.70% of its industry peers.
- FLO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.94% | ||
| PM (TTM) | 3.78% | ||
| GM | 48.94% |
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.
- The number of shares outstanding for FLO remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, FLO has less shares outstanding
- FLO has a better debt/assets ratio than last year.
2.2 Solvency
- FLO has an Altman-Z score of 2.19. This is not the best score and indicates that FLO is in the grey zone with still only limited risk for bankruptcy at the moment.
- FLO has a Altman-Z score (2.19) which is in line with its industry peers.
- FLO has a debt to FCF ratio of 5.50. This is a neutral value as FLO would need 5.50 years to pay back of all of its debts.
- The Debt to FCF ratio of FLO (5.50) is better than 73.56% of its industry peers.
- A Debt/Equity ratio of 0.98 indicates that FLO is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.98, FLO is doing worse than 70.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.19 |
ROIC/WACC1.16
WACC6.94%
2.3 Liquidity
- A Current Ratio of 0.79 indicates that FLO may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.79, FLO is doing worse than 82.76% of the companies in the same industry.
- FLO has a Quick Ratio of 0.79. This is a bad value and indicates that FLO is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.47, FLO is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
- FLO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.70%.
- 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 0.26%.
- FLO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.35% yearly.
EPS 1Y (TTM)-12.7%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%-30.3%
Revenue 1Y (TTM)0.26%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%3.02%
3.2 Future
- Based on estimates for the next years, FLO will show a decrease in Earnings Per Share. The EPS will decrease by -3.39% on average per year.
- Based on estimates for the next years, FLO will show a small growth in Revenue. The Revenue will grow by 0.93% on average per year.
EPS Next Y-18.46%
EPS Next 2Y-11.86%
EPS Next 3Y-6.98%
EPS Next 5Y-3.39%
Revenue Next Year2.59%
Revenue Next 2Y0.78%
Revenue Next 3Y0.66%
Revenue Next 5Y0.93%
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.
- 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 10.12, which indicates a very decent valuation of FLO.
- Based on the Price/Earnings ratio, FLO is valued cheaper than 86.21% of the companies in the same industry.
- FLO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- Based on the Price/Forward Earnings ratio of 11.19, the valuation of FLO can be described as reasonable.
- FLO's Price/Forward Earnings ratio is rather cheap when compared to the industry. FLO is cheaper than 85.06% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, FLO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 11.19 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FLO is valued a bit cheaper than 72.41% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FLO indicates a rather cheap valuation: FLO is cheaper than 90.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.22 | ||
| EV/EBITDA | 7.88 |
4.3 Compensation for Growth
- The decent profitability rating of FLO may justify a higher PE ratio.
- A cheap valuation may be justified as FLO's earnings are expected to decrease with -6.98% in the coming years.
PEG (NY)N/A
PEG (5Y)1.77
EPS Next 2Y-11.86%
EPS Next 3Y-6.98%
5. Dividend
5.1 Amount
- FLO has a Yearly Dividend Yield of 9.02%, which is a nice return.
- FLO's Dividend Yield is rather good when compared to the industry average which is at 2.29. FLO pays more dividend than 96.55% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, FLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.02% |
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
- 106.99% of the earnings are spent on dividend by FLO. This is not a sustainable payout ratio.
- FLO's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP106.99%
EPS Next 2Y-11.86%
EPS Next 3Y-6.98%
FLOWERS FOODS INC / FLO FAQ
What is the ChartMill fundamental rating of FLOWERS FOODS INC (FLO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to FLO.
What is the valuation status of FLOWERS FOODS INC (FLO) stock?
ChartMill assigns a valuation rating of 7 / 10 to FLOWERS FOODS INC (FLO). This can be considered as Undervalued.
Can you provide the profitability details for FLOWERS FOODS INC?
FLOWERS FOODS INC (FLO) has a profitability rating of 7 / 10.
What is the valuation of FLOWERS FOODS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FLOWERS FOODS INC (FLO) is 10.12 and the Price/Book (PB) ratio is 1.65.
What is the financial health of FLOWERS FOODS INC (FLO) stock?
The financial health rating of FLOWERS FOODS INC (FLO) is 3 / 10.