Hostess Brands
Market Cap
US$1.8b
Last Updated
2021/01/24 00:34 UTC
Data Sources
Company Financials +
Executive Summary
Hostess Brands, Inc., a packaged food company, develops, manufactures, markets, sells, and distributes fresh sweet baked goods in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Fair value with acceptable track record.
Similar Companies
Share Price & News
How has Hostess Brands's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
Market Performance
7 Day Return
2.4%
TWNK
0.3%
US Food
2.3%
US Market
1 Year Return
-0.1%
TWNK
2.0%
US Food
23.8%
US Market
Return vs Industry: TWNK underperformed the US Food industry which returned 2% over the past year.
Return vs Market: TWNK underperformed the US Market which returned 23.7% over the past year.
Shareholder returns
| TWNK | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | 0.3% | 2.3% |
| 30 Day | -0.4% | -1.1% | 4.8% |
| 90 Day | 6.6% | 0.4% | 14.5% |
| 1 Year | -0.1%-0.1% | 4.6%2.0% | 26.6%23.8% |
| 3 Year | -2.2%-2.2% | 4.5%-4.3% | 45.0%35.4% |
| 5 Year | 45.5%45.5% | 19.1%2.8% | 126.2%101.0% |
Long-Term Price Volatility Vs. Market
How volatile is Hostess Brands's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
An Intrinsic Calculation For Hostess Brands, Inc. (NASDAQ:TWNK) Suggests It's 38% Undervalued3 weeks ago | Simply Wall St
Hostess Brands, Inc. (NASDAQ:TWNK) Stock Is Going Strong But Fundamentals Look Uncertain: What Lies Ahead ?1 month ago | Simply Wall St
How Is Hostess Brands' (NASDAQ:TWNK) CEO Compensated?Valuation
Is Hostess Brands undervalued compared to its fair value and its price relative to the market?
36.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TWNK ($14.07) is trading below our estimate of fair value ($22.29)
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 (27.6x) compared to the US Food industry average (23.9x).
PE vs Market: TWNK is poor value based on its PE Ratio (27.6x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: TWNK is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: TWNK is good value based on its PB Ratio (1.1x) compared to the US Food industry average (2.2x).
Next Steps
Future Growth
How is Hostess Brands forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
12.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TWNK's forecast earnings growth (12.7% per year) is above the savings rate (2%).
Earnings vs Market: TWNK's earnings (12.7% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: TWNK's earnings are forecast to grow, but not significantly.
Revenue vs Market: TWNK's revenue (3% per year) is forecast to grow slower than the US market (10.6% per year).
High Growth Revenue: TWNK's revenue (3% 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 (6.7%).
Next Steps
Past Performance
How has Hostess Brands performed over the past 5 years?
-3.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TWNK has a large one-off loss of $22.3M impacting its September 30 2020 financial results.
Growing Profit Margin: TWNK's current net profit margins (6.4%) are higher than last year (5.9%).
Past Earnings Growth Analysis
Earnings Trend: TWNK's earnings have declined by 3% per year over the past 5 years.
Accelerating Growth: TWNK's earnings growth over the past year (17.8%) exceeds its 5-year average (-3% per year).
Earnings vs Industry: TWNK earnings growth over the past year (17.8%) exceeded the Food industry -0.3%.
Return on Equity
High ROE: TWNK's Return on Equity (4.2%) is considered low.
Next Steps
Financial Health
How is Hostess Brands's financial position?
Financial Position Analysis
Short Term Liabilities: TWNK's short term assets ($357.1M) exceed its short term liabilities ($196.4M).
Long Term Liabilities: TWNK's short term assets ($357.1M) do not cover its long term liabilities ($1.5B).
Debt to Equity History and Analysis
Debt Level: TWNK's debt to equity ratio (69.1%) is considered high.
Reducing Debt: Insufficient data to determine if TWNK's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: TWNK's debt is not well covered by operating cash flow (13%).
Interest Coverage: TWNK's interest payments on its debt are well covered by EBIT (3.5x coverage).
Balance Sheet
Next Steps
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?
2.9yrs
Average management tenure
CEO
Andy Callahan (54 yo)
2.67yrs
Tenure
US$4,530,700
Compensation
Mr. Andrew P. Callahan, also known as Andy, has been a Director of Hostess Brands, Inc. since April 2018. He is also its President and CEO since May 07, 2018. He served as the President of North American F...
CEO Compensation Analysis
Compensation vs Market: Andy's total compensation ($USD4.53M) is about average for companies of similar size in the US market ($USD3.86M).
Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.67yrs | US$4.53m | 0.060% $ 1.1m | |
| Executive VP & COO | 3.08yrs | US$2.18m | 0.066% $ 1.2m | |
| Executive VP | 4.17yrs | US$856.92k | 0.045% $ 826.2k | |
| Senior VP | 4.17yrs | US$997.68k | 0.021% $ 384.4k | |
| Executive VP & CFO | 1yr | no data | no data | |
| Senior VP & Chief HR Officer | 1.33yrs | no data | no data | |
| Senior Vice President of Quality | 4.83yrs | no data | 0.019% $ 340.8k | |
| Senior Vice President of Bakery Operations & Supply Chain | 2.08yrs | no data | 0.0025% $ 46.4k |
2.9yrs
Average Tenure
53yo
Average Age
Experienced Management: TWNK's management team is considered experienced (2.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.67yrs | US$4.53m | 0.060% $ 1.1m | |
| Independent Director | 4.17yrs | US$209.57k | 0.033% $ 602.1k | |
| Independent Director | 2.75yrs | US$175.07k | 0.012% $ 219.3k | |
| Independent Director | 4.17yrs | US$189.57k | 0.014% $ 249.1k | |
| Independent Chairman of the Board | 0.25yr | US$178.57k | 0.019% $ 345.4k | |
| Independent Director | 0.75yr | no data | 0.00079% $ 14.5k | |
| Independent Director | 1yr | no data | 0.0020% $ 37.0k |
2.8yrs
Average Tenure
61yo
Average Age
Experienced Board: TWNK's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Hostess Brands, Inc.'s company bio, 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$1.840b
- Market Cap: US$1.776b
- Shares outstanding: 130.78m
- Website: https://www.hostessbrands.com
Number of Employees
Location
- Hostess Brands, Inc.
- 7905 Quivira Road
- Lenexa
- Kansas
- 66215
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TWNK | NasdaqCM (Nasdaq Capital Market) | Yes | Class A Common Stock | US | USD | Oct 2015 |
| H1B | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Oct 2015 |
Biography
Hostess Brands, Inc., a packaged food company, develops, manufactures, markets, sells, and distributes fresh sweet baked goods in the United States. It primarily offer a range of snack cakes, donuts, sweet...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/24 00:34 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.