FLOWERS FOODS INC (FLO) Stock Fundamental Analysis
NYSE:FLO - US3434981011 - Common Stock
15.04 USD
+0.13 (+0.87%)
15.04 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FLO. FLO was compared to 90 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 is valued correctly, 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.
FLO had a positive operating cash flow in the past year.
In the past 5 years FLO has always been profitable.
Each year in the past 5 years FLO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.27%, FLO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
The Return On Equity of FLO (16.11%) is better than 83.33% of its industry peers.
FLO's Return On Invested Capital of 7.80% is fine compared to the rest of the industry. FLO outperforms 73.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FLO is significantly below the industry average of 27.81%.
| 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
The Profit Margin of FLO (4.49%) is better than 67.78% of its industry peers.
FLO's Profit Margin has improved in the last couple of years.
The Operating Margin of FLO (7.51%) is better than 67.78% of its industry peers.
In the last couple of years the Operating Margin of FLO has grown nicely.
Looking at the Gross Margin, with a value of 49.65%, FLO belongs to the top of the industry, outperforming 98.89% 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 | 7.51% | ||
| 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.
FLO has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for FLO has been reduced compared to 5 years ago.
Compared to 1 year ago, FLO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.47 indicates that FLO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.47, FLO is in line with its industry, outperforming 58.89% of the companies in the same industry.
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 Debt to FCF ratio of 5.64. This is in the better half of the industry: FLO outperforms 77.78% of its industry peers.
FLO has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.27, FLO is doing worse than 78.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 5.64 | ||
| Altman-Z | 2.47 |
ROIC/WACC1.07
WACC7.31%
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.
The Current ratio of FLO (1.26) is worse than 68.89% of its industry peers.
A Quick Ratio of 0.73 indicates that FLO may have some problems paying 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 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 slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.64%.
FLO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.70% yearly.
The Revenue has been growing slightly by 0.25% in the past year.
Measured over the past years, FLO shows a small growth in Revenue. The Revenue has been growing by 4.35% on average per year.
EPS 1Y (TTM)-1.64%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)0.25%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%1.46%
3.2 Future
Based on estimates for the next years, FLO will show a decrease in Earnings Per Share. The EPS will decrease by -1.15% on average per year.
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-15.91%
EPS Next 2Y-8.18%
EPS Next 3Y-5.05%
EPS Next 5Y-1.15%
Revenue Next Year2.94%
Revenue Next 2Y1.54%
Revenue Next 3Y0.99%
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
The Price/Earnings ratio is 12.53, which indicates a correct valuation of FLO.
FLO's Price/Earnings ratio is a bit cheaper when compared to the industry. FLO is cheaper than 73.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.17. FLO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 13.94 indicates a correct valuation of FLO.
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 22.78, FLO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 13.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLO is valued a bit cheaper than 63.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FLO is valued cheaper than 85.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.96 | ||
| EV/EBITDA | 9.1 |
4.3 Compensation for Growth
FLO has a very decent profitability rating, which may justify a higher PE ratio.
FLO's earnings are expected to decrease with -5.05% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.2
EPS Next 2Y-8.18%
EPS Next 3Y-5.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.39%, FLO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.61, FLO pays a better dividend. On top of this FLO pays more dividend than 88.89% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.39% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.46%
Div Incr Years22
Div Non Decr Years22
5.3 Sustainability
89.56% of the earnings are spent on dividend by FLO. 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-8.18%
EPS Next 3Y-5.05%
15.04
+0.13 (+0.87%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners80.73%
Inst Owner Change2.52%
Ins Owners2.34%
Ins Owner Change0.15%
Market Cap3.18B
Analysts52
Price Target16.83 (11.9%)
Short Float %9.39%
Short Ratio6.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.39% |
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)-12%
PT rev (3m)-19.51%
EPS NQ rev (1m)-2.04%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)-3.9%
EPS NY rev (3m)-7.88%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 13.94 | ||
| P/S | 0.62 | ||
| P/FCF | 9.96 | ||
| P/OCF | 7.17 | ||
| P/B | 2.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.1 |
EPS(TTM)1.2
EY7.98%
EPS(NY)1.08
Fwd EY7.18%
FCF(TTM)1.51
FCFY10.04%
OCF(TTM)2.1
OCFY13.96%
SpS24.06
BVpS6.7
TBVpS-3.67
PEG (NY)N/A
PEG (5Y)2.2
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 | 2.47 |
F-Score7
WACC7.31%
ROIC/WACC1.07
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)-1.64%
EPS 3Y1.34%
EPS 5Y5.7%
EPS Q2Q%-16.67%
EPS Next Y-15.91%
EPS Next 2Y-8.18%
EPS Next 3Y-5.05%
EPS Next 5Y-1.15%
Revenue 1Y (TTM)0.25%
Revenue growth 3Y5.63%
Revenue growth 5Y4.35%
Sales Q2Q%1.46%
Revenue Next Year2.94%
Revenue Next 2Y1.54%
Revenue Next 3Y0.99%
Revenue Next 5Y1.42%
EBIT growth 1Y12.07%
EBIT growth 3Y2%
EBIT growth 5Y8.76%
EBIT Next Year47.38%
EBIT Next 3Y14.54%
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%