NasdaqCM:TWNK

Stock Analysis Report

Executive Summary

Hostess Brands, Inc., a packaged food company, develops, manufactures, markets, sells, and distributes fresh sweet baked goods in the United States.

Snowflake

Fundamentals

Fair value with imperfect balance sheet.


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


Market Performance


7 Day Return

-1.3%

TWNK

0.09%

US Food

-0.6%

US Market


1 Year Return

20.3%

TWNK

1.4%

US Food

0.7%

US Market

TWNK outperformed the Food industry which returned 1.4% over the past year.

TWNK outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

TWNKIndustryMarket
7 Day-1.3%0.09%-0.6%
30 Day1.7%1.4%2.9%
90 Day-1.5%2.7%1.3%
1 Year20.3%20.3%4.4%1.4%2.9%0.7%
3 Year30.3%30.3%-1.4%-10.0%44.6%35.2%
5 Yearn/a46.5%29.1%61.9%44.2%

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

1 month ago | Simply Wall St

Have Insiders Been Selling Hostess Brands, Inc. (NASDAQ:TWNK) Shares?

Valuation

Is Hostess Brands undervalued based on future cash flows and its price relative to the stock market?

41%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Hostess Brands's share price is below the future cash flow value, and at a moderate discount (> 20%).

Hostess Brands's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Hostess Brands is overvalued based on earnings compared to the US Food industry average.

Hostess Brands is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Hostess Brands is poor value based on expected growth next year.


Price Based on Value of Assets

Hostess Brands is good value based on assets compared to the US Food industry average.


Next Steps

Future Growth

How is Hostess Brands expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hostess Brands's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

Hostess Brands's earnings are expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).

Hostess Brands's revenue growth is positive but not above the United States of America market average.

Hostess Brands's earnings growth is positive but not above the United States of America market average.

Hostess Brands's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Hostess Brands is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Hostess Brands performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hostess Brands's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Hostess Brands's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Hostess Brands's 1-year earnings growth is negative, it can't be compared to the US Food industry average.


Return on Equity

Hostess Brands has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hostess Brands used its assets less efficiently than the US Food industry average last year based on Return on Assets.


Return on Capital Employed

Hostess Brands's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hostess Brands's financial position?


Financial Position Analysis

Hostess Brands is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Hostess Brands's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Hostess Brands's level of debt (62.5%) compared to net worth is high (greater than 40%).

Unable to establish if Hostess Brands's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (13.9%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

What is Hostess Brands's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Hostess Brands's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Hostess Brands's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Hostess Brands has not reported any payouts.

Unable to verify if Hostess Brands's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Hostess Brands has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Hostess Brands's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Andy Callahan (53yo)

1.3yrs

Tenure

US$4,062,154

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

Andy's remuneration is about average for companies of similar size in United States of America.

Insufficient data for Andy to compare compensation growth.


Management Age and Tenure

1.8yrs

Average Tenure

51yo

Average Age

The average tenure for the Hostess Brands management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

61yo

Average Age

The average tenure for the Hostess Brands board of directors is less than 3 years, this suggests a new board.


Insider Trading

Hostess Brands individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$6,375,60016 Aug 19
C. Metropoulos
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares455,400
Max PriceUS$14.00
SellUS$13,474,60816 Aug 19
CDM Hostess Class C, LLC
EntityCompany
Shares962,472
Max PriceUS$14.00
SellUS$148,149,79216 Aug 19
Hostess CDM Co-Invest, LLC
EntityCompany
Shares10,582,128
Max PriceUS$14.00
SellUS$24,414,53317 May 19
C. Metropoulos
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares1,834,300
Max PriceUS$13.31
SellUS$82,065,46717 May 19
Hostess CDM Co-Invest, LLC
EntityCompany
Shares6,165,700
Max PriceUS$13.31

Ownership Breakdown


Management Team

  • Michael Cramer (66yo)

    Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$360.67k
  • Andy Jacobs (51yo)

    Executive VP & COO

    • Tenure: 1.8yrs
    • Compensation: US$440.98k
  • Tom Peterson (46yo)

    Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$361.99k
  • Andy Callahan (53yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$4.06m
  • Chad Lusk (40yo)

    Senior VP & Chief Marketing Officer

    • Tenure: 0.4yrs
  • Jerrold Williams (46yo)

    Senior VP & Chief HR Officer

    • Tenure: 0.6yrs
  • Jolyn Sebree (47yo)

    Senior VP

    • Tenure: 6.4yrs
    • Compensation: US$356.42k
  • Darryl Riley (59yo)

    Senior Vice President of Quality

    • Tenure: 3.5yrs
  • John Kalal (56yo)

    Senior Vice President of Bakery Operations & Supply Chain

    • Tenure: 0.8yrs

Board Members

  • Craig Steeneck (61yo)

    Lead Independent Director

    • Tenure: 0.7yrs
    • Compensation: US$181.66k
  • C. Metropoulos (73yo)

    Non-Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: US$364.00k
  • Neil DeFeo (73yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$176.42k
  • Gretchen Crist (51yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$162.02k
  • Larry Bodner (56yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$184.92k
  • Jerry Kaminski (62yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$175.74k
  • Andy Callahan (53yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$4.06m

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$1.831b
  • Market Cap: US$1.536b
  • Shares outstanding: 130.32m
  • Website: https://www.hostessbrands.com

Number of Employees


Location

  • Hostess Brands, Inc.
  • 1 East Armour Boulevard
  • Kansas City
  • Missouri
  • 64111
  • 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 Analysis2019/09/22 00:29
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.