NasdaqCM:TWNK

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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


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

0.8%

TWNK

-0.3%

US Food

1.8%

US Market


1 Year Return

1.0%

TWNK

5.4%

US Food

20.4%

US Market

Return vs Industry: TWNK underperformed the US Food industry which returned 5.4% over the past year.

Return vs Market: TWNK underperformed the US Market which returned 20.4% over the past year.


Shareholder returns

TWNKIndustryMarket
7 Day0.8%-0.3%1.8%
30 Day4.5%0.5%6.0%
90 Day8.5%-0.8%6.8%
1 Year1.0%1.0%7.9%5.4%23.2%20.4%
3 Year2.5%2.5%8.4%-0.3%47.4%37.6%
5 Year40.7%40.7%20.0%4.0%91.9%70.8%

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

Valuation

Is Hostess Brands undervalued compared to its fair value and its price relative to the market?

29.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TWNK ($13.79) is trading below our estimate of fair value ($19.44)

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 (27.1x) compared to the US Food industry average (26x).

PE vs Market: TWNK is poor value based on its PE Ratio (27.1x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: TWNK is poor value based on its PEG Ratio (2.4x)


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 (2.1x).


Next Steps

Future Growth

How is Hostess Brands forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TWNK's forecast earnings growth (11.5% per year) is above the savings rate (2.2%).

Earnings vs Market: TWNK's earnings (11.5% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: TWNK's revenue (2.7% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: TWNK's revenue (2.7% 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 (7.1%).


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 -6.3%.


Return on Equity

High ROE: TWNK's Return on Equity (4.2%) is considered low.


Next Steps

  • Explore strong past performing companies in the Food, Beverage & Tobacco industry.

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?

2.7yrs

Average management tenure


CEO

Andy Callahan (54 yo)

2.5yrs

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 ($USD4.53M) is about average for companies of similar size in the US market ($USD4.16M).

Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Callahan
President2.5yrsUS$4.53m0.040%
$ 714.7k
Andrew Jacobs
Executive VP & COO2.92yrsUS$2.18m0.061%
$ 1.1m
Michael Cramer
Executive VP4yrsUS$856.92k0.044%
$ 774.4k
Jolyn Sebree
Senior VP4yrsUS$997.68k0.019%
$ 337.4k
Brian Purcell
Executive VP & CFO0.83yrno datano data
Robert Weber
Senior VP & Chief HR Officer1.17yrsno datano data
Darryl Riley
Senior Vice President of Quality4.67yrsno data0.017%
$ 307.3k
John Kalal
Senior Vice President of Bakery Operations & Supply Chain1.92yrsno data0.0016%
$ 28.9k

2.7yrs

Average Tenure

53yo

Average Age

Experienced Management: TWNK's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Callahan
President2.5yrsUS$4.53m0.040%
$ 714.7k
Craig Steeneck
Independent Director4yrsUS$209.57k0.033%
$ 579.8k
C. Metropoulos
Director4yrsUS$476.92kno data
Gretchen Crist
Independent Director2.58yrsUS$175.07k0.012%
$ 211.2k
Laurence Bodner
Independent Director4yrsUS$189.57k0.014%
$ 239.9k
Jerry Kaminski
Independent Chairman of the Board0.083yrUS$178.57k0.019%
$ 332.6k
Rachel Cullen
Independent Director0.58yrno data0.00079%
$ 14.0k
Ioannis Skoufalos
Independent Director0.83yrno data0.0020%
$ 35.6k

2.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: TWNK's board of directors are not considered experienced ( 2.6 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$1.772b
  • Market Cap: US$1.740b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TWNKNasdaqCM (Nasdaq Capital Market)YesClass A Common StockUSUSDOct 2015
H1BDB (Deutsche Boerse AG)YesClass A Common StockDEEUROct 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 00:43
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.