HOSTESS BRANDS INC (TWNK)
US44109J1060 - Common Stock
Overall TWNK gets a fundamental rating of 5 out of 10. We evaluated TWNK against 92 industry peers in the Food Products industry. TWNK scores excellent on profitability, but there are some minor concerns on its financial health. TWNK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TWNK had positive earnings in the past year.
TWNK had a positive operating cash flow in the past year.
In the past 5 years TWNK has always been profitable.
Each year in the past 5 years TWNK had a positive operating cash flow.
1.2 Ratios
TWNK has a better Return On Assets (4.83%) than 63.44% of its industry peers.
The Return On Equity of TWNK (9.18%) is better than 64.52% of its industry peers.
TWNK has a better Return On Invested Capital (5.38%) than 63.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TWNK is below the industry average of 7.56%.
The last Return On Invested Capital (5.38%) for TWNK is above the 3 year average (4.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 9.18% | ||
| ROIC | 5.38% |
ROA(3y)3.36%
ROA(5y)2.84%
ROE(3y)6.69%
ROE(5y)5.91%
ROIC(3y)4.37%
ROIC(5y)3.94%
1.3 Margins
With an excellent Profit Margin value of 12.28%, TWNK belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
TWNK's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 16.91%, TWNK belongs to the best of the industry, outperforming 94.62% of the companies in the same industry.
In the last couple of years the Operating Margin of TWNK has declined.
With an excellent Gross Margin value of 34.99%, TWNK belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
In the last couple of years the Gross Margin of TWNK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.91% | ||
| PM (TTM) | 12.28% | ||
| GM | 34.99% |
OM growth 3Y3.8%
OM growth 5Y-7.44%
PM growth 3Y20.25%
PM growth 5Y-15.96%
GM growth 3Y1.25%
GM growth 5Y-4.03%
2. Health
2.1 Basic Checks
TWNK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TWNK has been reduced compared to 1 year ago.
Compared to 5 years ago, TWNK has more shares outstanding
Compared to 1 year ago, TWNK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.54 indicates that TWNK is not a great score, but indicates only limited risk for bankruptcy at the moment.
TWNK has a Altman-Z score (2.54) which is in line with its industry peers.
The Debt to FCF ratio of TWNK is 9.63, which is on the high side as it means it would take TWNK, 9.63 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 9.63, TWNK is doing good in the industry, outperforming 63.44% of the companies in the same industry.
TWNK has a Debt/Equity ratio of 0.53. This is a neutral value indicating TWNK is somewhat dependend on debt financing.
TWNK has a Debt to Equity ratio of 0.53. This is comparable to the rest of the industry: TWNK outperforms 48.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 9.63 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.68
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.80 indicates that TWNK should not have too much problems paying its short term obligations.
TWNK has a Current ratio of 1.80. This is comparable to the rest of the industry: TWNK outperforms 54.84% of its industry peers.
TWNK has a Quick Ratio of 1.47. This is a normal value and indicates that TWNK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.47, TWNK is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.47% over the past year.
TWNK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.36% yearly.
TWNK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.00%.
The Revenue has been growing by 11.84% on average over the past years. This is quite good.
EPS 1Y (TTM)9.47%
EPS 3Y17.37%
EPS 5Y7.36%
EPS growth Q2Q27.27%
Revenue 1Y (TTM)10%
Revenue growth 3Y14.38%
Revenue growth 5Y11.84%
Revenue growth Q2Q3.49%
3.2 Future
The Earnings Per Share is expected to grow by 8.80% on average over the next years. This is quite good.
TWNK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.32% yearly.
EPS Next Y18%
EPS Next 2Y13.51%
EPS Next 3Y11.36%
EPS Next 5Y8.8%
Revenue Next Year5.6%
Revenue Next 2Y5.07%
Revenue Next 3Y4.87%
Revenue Next 5Y4.32%
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 32.02 indicates a quite expensive valuation of TWNK.
TWNK's Price/Earnings ratio is in line with the industry average.
TWNK's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.20.
TWNK is valuated quite expensively with a Price/Forward Earnings ratio of 26.64.
The rest of the industry has a similar Price/Forward Earnings ratio as TWNK.
TWNK is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 26.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TWNK is on the same level as its industry peers.
TWNK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.86 | ||
| EV/EBITDA | 17.97 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TWNK may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)4.35
EPS Next 2Y13.51%
EPS Next 3Y11.36%
5. Dividend
5.1 Amount
No dividends for TWNK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HOSTESS BRANDS INC
NASDAQ:TWNK (11/6/2023, 7:00:01 PM)
After market: 33.34 +0.04 (+0.12%)33.3
-0.05 (-0.15%)
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 Cap4.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 26.64 | ||
| 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)1.78
PEG (5Y)4.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 9.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.91% | ||
| PM (TTM) | 12.28% | ||
| GM | 34.99% | ||
| 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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.47 | ||
| 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)9.47%
EPS 3Y17.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10%
Revenue growth 3Y14.38%
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