DB:FWF

Stock Analysis Report

Executive Summary

Flowers Foods, Inc. produces and markets bakery products in the United States.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Flowers Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.4%

FWF

-5.9%

DE Food

4.1%

DE Market


1 Year Return

19.9%

FWF

-6.3%

DE Food

2.4%

DE Market

Return vs Industry: FWF exceeded the German Food industry which returned -6.3% over the past year.

Return vs Market: FWF exceeded the German Market which returned 2.4% over the past year.


Shareholder returns

FWFIndustryMarket
7 Day-4.4%-5.9%4.1%
30 Day-3.8%-8.3%1.7%
90 Day-6.5%-5.7%3.7%
1 Year24.2%19.9%-4.7%-6.3%5.6%2.4%
3 Year54.9%39.2%-22.6%-27.4%19.2%8.9%
5 Yearn/a33.6%22.0%43.2%23.7%

Price Volatility Vs. Market

How volatile is Flowers Foods's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Flowers Foods undervalued compared to its fair value and its price relative to the market?

22.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: FWF (€19.5) is trading below our estimate of fair value (€25.14)

Significantly Undervalued: FWF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FWF is poor value based on its PE Ratio (25.8x) compared to the Food industry average (21.9x).

PE vs Market: FWF is poor value based on its PE Ratio (25.8x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: FWF is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: FWF is overvalued based on its PB Ratio (3.6x) compared to the DE Food industry average (1.8x).


Next Steps

Future Growth

How is Flowers Foods forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FWF's forecast earnings growth (6% per year) is above the savings rate (0.2%).

Earnings vs Market: FWF's earnings (6% per year) are forecast to grow slower than the German market (12.9% per year).

High Growth Earnings: FWF's earnings are forecast to grow, but not significantly.

Revenue vs Market: FWF's revenue (1.3% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: FWF's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if FWF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Flowers Foods performed over the past 5 years?

-3.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FWF's earnings have declined by -3% per year over the past 5 years.

Accelerating Growth: FWF's earnings growth over the past year (26.7%) exceeds its 5-year average (-3% per year).

Earnings vs Industry: FWF earnings growth over the past year (26.7%) exceeded the Food industry 14.4%.


Return on Equity

High ROE: FWF's Return on Equity (13.9%) is considered low.


Return on Assets

ROA vs Industry: FWF has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: FWF's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Flowers Foods's financial position?


Financial Position Analysis

Short Term Liabilities: FWF's short term assets ($569.5M) exceeds its short term liabilities ($494.9M)

Long Term Liabilities: FWF's short term assets (569.5M) do not cover its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: FWF's debt to equity ratio (69.8%) is considered high

Reducing Debt: FWF's debt to equity ratio has reduced from 73.6% to 69.8% over the past 5 years.

Debt Coverage: FWF's debt is well covered by operating cash flow (39.4%).

Interest Coverage: FWF's interest payments on its debt are well covered by EBIT (27.7x coverage).


Balance Sheet

Inventory Level: FWF has a high level of physical assets or inventory.

Debt Coverage by Assets: FWF's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Flowers Foods's current dividend yield, its reliability and sustainability?

3.47%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FWF's dividend (3.47%) is higher than the bottom 25% of dividend payers in the German market (1.45%).

High Dividend: FWF's dividend (3.47%) is low compared to the top 25% of dividend payers in the German market (3.78%).

Stable Dividend: FWF's dividends per share have been stable in the past 10 years.

Growing Dividend: FWF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86%), FWF's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FWF's dividends in 3 years are forecast to be covered by earnings (73.8% payout ratio).


Next Steps

Management

What is the CEO of Flowers Foods's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

A. McMullian (49yo)

0.4yrs

Tenure

0

Mr. A. Ryals McMullian, Jr., is President and Chief Executive Officer of Flowers Foods, Inc. since May, 2019 and has been its Director since August 16, 2019. He served as Chief Operating Officer at Flowers ...


Management Age and Tenure

2.4yrs

Average Tenure

59yo

Average Age

Experienced Management: FWF's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

65yo

Average Age

Experienced Board: FWF's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$27,70318 Mar 19
Debo Mukherjee
EntityIndividual
Shares1,550
Max PriceUS$17.87

Ownership Breakdown


Management Team

  • Stephen Avera (63yo)

    Chief Legal Counsel

    • Tenure: 2.4yrs
    • Compensation: US$613.90k
  • Allen Shiver (63yo)

    Non-Executive Special Advisor

    • Tenure: 0.4yrs
    • Compensation: US$1.41m
  • R. Kinsey (58yo)

    CFO & Chief Administrative Officer

    • Tenure: 12.1yrs
    • Compensation: US$754.44k
  • Karyl Lauder (63yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 12.8yrs
  • Bradley Alexander (60yo)

    Chief Operating Officer

    • Tenure: 0.4yrs
    • Compensation: US$717.45k
  • A. McMullian (49yo)

    President

    • Tenure: 0.4yrs
  • Stephanie Tillman (48yo)

    VP of Compliance & Assistant General Counsel

    • Tenure: 8.8yrs
  • David Wheeler (56yo)

    Chief Sales Officer

    • Tenure: 2.4yrs
    • Compensation: US$573.76k
  • J. Rieck

    Treasurer & VP of Investor Relations & Financial Analysis

    • Tenure: 3.3yrs
  • Harish Ramani

    Senior VP & Chief Information Officer

    • Tenure: 2.1yrs

Board Members

  • George Deese (73yo)

    Non-Executive Chairman of The Board

    • Tenure: 4.8yrs
    • Compensation: US$647.48k
  • Jim Spear (64yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$252.50k
  • Dave Singer (63yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$245.00k
  • C. Wood (75yo)

    Independent Director

    • Tenure: 18.6yrs
    • Compensation: US$332.10k
  • Mel Stith (72yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$230.00k
  • Ben Griswold (78yo)

    Presiding Director

    • Tenure: 6.8yrs
    • Compensation: US$260.00k
  • Margaret Lewis (65yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$244.12k
  • A. McMullian (49yo)

    President

    • Tenure: 0.4yrs
  • Rhonda Gass (55yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$244.67k

Company Information

Flowers Foods, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Flowers Foods, Inc.
  • Ticker: FWF
  • Exchange: DB
  • Founded: 1919
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$4.590b
  • Listing Market Cap: US$4.127b
  • Shares outstanding: 211.51m
  • Website: https://www.flowersfoods.com

Number of Employees


Location

  • Flowers Foods, Inc.
  • 1919 Flowers Circle
  • Thomasville
  • Georgia
  • 31757
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLONYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2001
FWFDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2001

Biography

Flowers Foods, Inc. produces and markets bakery products in the United States. The company operates through two segments, Direct-Store-Delivery and Warehouse Delivery. The Direct-Store-Delivery segment pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 21:36
End of Day Share Price2019/10/17 00:00
Earnings2019/07/13
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.