| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 2/6 |
| Dividends | 0/6 |
TWNK Stock Overview
Hostess Brands, Inc., a packaged food company, develops, manufactures, markets, sells, and distributes snack products in the United States.
Hostess Brands Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$19.41 |
| 52 Week High | US$20.80 |
| 52 Week Low | US$13.88 |
| Beta | 0.73 |
| 1 Month Change | -2.12% |
| 3 Month Change | 3.41% |
| 1 Year Change | 37.95% |
| 3 Year Change | 72.53% |
| 5 Year Change | 33.22% |
| Change since IPO | 98.06% |
Recent News & Updates
Is Hostess Brands, Inc. (NASDAQ:TWNK) Trading At A 36% Discount?
How far off is Hostess Brands, Inc. ( NASDAQ:TWNK ) from its intrinsic value? Using the most recent financial data...
These 4 Measures Indicate That Hostess Brands (NASDAQ:TWNK) Is Using Debt Reasonably Well
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Hostess Brands, Inc. (NASDAQ:TWNK) Shares Could Be 41% Below Their Intrinsic Value Estimate
Today we will run through one way of estimating the intrinsic value of Hostess Brands, Inc. ( NASDAQ:TWNK ) by taking...
Shareholder Returns
| TWNK | US Food | US Market | |
|---|---|---|---|
| 7D | -4.3% | -2.0% | -6.1% |
| 1Y | 38.0% | 12.5% | 4.2% |
Return vs Industry: TWNK exceeded the US Food industry which returned 13.1% over the past year.
Return vs Market: TWNK exceeded the US Market which returned 6.6% over the past year.
Price Volatility
| TWNK volatility | |
|---|---|
| TWNK Average Weekly Movement | 3.1% |
| Food Industry Average Movement | 5.2% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.6% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: TWNK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: TWNK's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1919 | 3,000 | Andy Callahan | https://www.hostessbrands.com |
Hostess Brands, Inc., a packaged food company, develops, manufactures, markets, sells, and distributes snack products in the United States. The company provides a range of snack cakes, donuts, sweet rolls, breakfast pastries, cookies, snack pies, sweet baked goods, wafers, bread and buns, frozen retail products, danishes, honey buns, coffee cakes, and sugar-free products. It offers its products under the Hostess, Dolly Madison, Cloverhill, Big Texas, Voortman, CupCakes, Twinkies, Donettes, Ding Dongs, Zingers, HoHos, and Big Texas brands.
Hostess Brands Fundamentals Summary
| TWNK fundamental statistics | |
|---|---|
| Market Cap | US$2.69b |
| Earnings (TTM) | US$81.35m |
| Revenue (TTM) | US$1.10b |
33.0x
P/E Ratio2.4x
P/S RatioIs TWNK overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TWNK income statement (TTM) | |
|---|---|
| Revenue | US$1.10b |
| Cost of Revenue | US$698.64m |
| Gross Profit | US$402.28m |
| Expenses | US$320.94m |
| Earnings | US$81.35m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.59 |
| Gross Margin | 36.54% |
| Net Profit Margin | 7.39% |
| Debt/Equity Ratio | 65.3% |
How did TWNK perform over the long term?
See historical performance and comparisonValuation
Is Hostess Brands undervalued compared to its fair value and its price relative to the market?
42.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TWNK ($19.41) is trading below our estimate of fair value ($34.02)
Significantly Below Fair Value: TWNK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TWNK is poor value based on its PE Ratio (33x) compared to the US Food industry average (21.7x).
PE vs Market: TWNK is poor value based on its PE Ratio (33x) compared to the US market (16.7x).
Price to Earnings Growth Ratio
PEG Ratio: TWNK is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: TWNK is good value based on its PB Ratio (1.6x) compared to the US Food industry average (2.4x).
Future Growth
How is Hostess Brands forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
9.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TWNK's forecast earnings growth (9.4% per year) is above the savings rate (2%).
Earnings vs Market: TWNK's earnings (9.4% per year) are forecast to grow slower than the US market (13.1% per year).
High Growth Earnings: TWNK's earnings are forecast to grow, but not significantly.
Revenue vs Market: TWNK's revenue (3.5% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: TWNK's revenue (3.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TWNK's Return on Equity is forecast to be low in 3 years time (7.6%).
Past Performance
How has Hostess Brands performed over the past 5 years?
-4.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TWNK has a large one-off loss of $30.7M impacting its September 30 2021 financial results.
Growing Profit Margin: TWNK's current net profit margins (7.4%) are higher than last year (7.1%).
Past Earnings Growth Analysis
Earnings Trend: TWNK's earnings have declined by 4.3% per year over the past 5 years.
Accelerating Growth: TWNK's earnings growth over the past year (17.9%) exceeds its 5-year average (-4.3% per year).
Earnings vs Industry: TWNK earnings growth over the past year (17.9%) underperformed the Food industry 18.7%.
Return on Equity
High ROE: TWNK's Return on Equity (4.9%) is considered low.
Financial Health
How is Hostess Brands's financial position?
Financial Position Analysis
Short Term Liabilities: TWNK's short term assets ($441.7M) exceed its short term liabilities ($198.3M).
Long Term Liabilities: TWNK's short term assets ($441.7M) do not cover its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: TWNK's net debt to equity ratio (51.7%) is considered high.
Reducing Debt: TWNK's debt to equity ratio has increased from 60.5% to 65.3% over the past 5 years.
Debt Coverage: TWNK's debt is not well covered by operating cash flow (18.2%).
Interest Coverage: TWNK's interest payments on its debt are well covered by EBIT (5.5x coverage).
Balance Sheet
Dividend
What is Hostess Brands's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TWNK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate TWNK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if TWNK's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TWNK's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TWNK's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.7yrs
Average management tenure
CEO
Andy Callahan (55 yo)
3.67yrs
Tenure
US$4,678,670
Compensation
Mr. Andrew P. Callahan, also known as Andy, has been a Director of Hostess Brands, Inc. since April 2018 and has been its President and Chief Executive Officer since May 07, 2018. He serves as President an...
CEO Compensation Analysis
Compensation vs Market: Andy's total compensation ($USD4.68M) is about average for companies of similar size in the US market ($USD5.23M).
Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: TWNK's management team is considered experienced (3.7 years average tenure).
Board Members
Experienced Board: TWNK's board of directors are considered experienced (3.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.6%.
Top Shareholders
Company Information
Hostess Brands, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Hostess Brands, Inc.
- Ticker: TWNK
- Exchange: NasdaqCM
- Founded: 1919
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Implied Market Cap: US$2.686b
- Shares outstanding: 138.38m
- Website: https://www.hostessbrands.com
Number of Employees
Location
- Hostess Brands, Inc.
- 7905 Quivira Road
- Lenexa
- Kansas
- 66215
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 23:55 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.