NYSE:BGS

Stock Analysis Report

Executive Summary

B&G Foods, Inc. manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods in the United States, Canada, and Puerto Rico.

Rewards

Trading at 69.8% below its fair value

Pays a high and reliable dividend of 13.76%

Risk Analysis

Earnings are forecast to decline by an average of -5.3% per year for the next 3 years

Interest payments are not well covered by earnings

Dividend of 13.76% is not well covered by earnings

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BGS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.9%

BGS

-0.7%

US Food

0.06%

US Market


1 Year Return

-48.8%

BGS

8.8%

US Food

19.4%

US Market

Return vs Industry: BGS underperformed the US Food industry which returned 8.8% over the past year.

Return vs Market: BGS underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

BGSIndustryMarket
7 Day-0.9%-0.7%0.06%
30 Day-11.9%-1.1%1.1%
90 Day-14.0%3.4%8.9%
1 Year-43.8%-48.8%11.8%8.8%21.9%19.4%
3 Year-64.2%-71.0%-1.6%-9.5%48.9%39.3%
5 Year-35.1%-51.6%41.8%25.2%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is B&G Foods undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BGS ($13.81) is trading below our estimate of fair value ($45.79)

Significantly Below Fair Value: BGS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BGS is good value based on its PE Ratio (5.1x) compared to the Food industry average (25.3x).

PE vs Market: BGS is good value based on its PE Ratio (5.1x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: BGS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BGS is good value based on its PB Ratio (1x) compared to the US Food industry average (2x).


Next Steps

Future Growth

How is B&G Foods forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BGS's earnings are forecast to decline over the next 3 years (-5.3% per year).

Earnings vs Market: BGS's earnings are forecast to decline over the next 3 years (-5.3% per year).

High Growth Earnings: BGS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BGS's revenue (0.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BGS's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has B&G Foods performed over the past 5 years?

28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BGS has a large one-off gain of $90.3M impacting its September 28 2019 financial results.

Growing Profit Margin: BGS's current net profit margins (10.8%) are lower than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: BGS's earnings have grown significantly by 28.7% per year over the past 5 years.

Accelerating Growth: BGS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BGS had negative earnings growth (-6.5%) over the past year, making it difficult to compare to the Food industry average (-6.2%).


Return on Equity

High ROE: Whilst BGS's Return on Equity (21.11%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is B&G Foods's financial position?


Financial Position Analysis

Short Term Liabilities: BGS's short term assets ($1.0B) exceed its short term liabilities ($289.5M).

Long Term Liabilities: BGS's short term assets ($1.0B) do not cover its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: BGS's debt to equity ratio (253%) is considered high.

Reducing Debt: BGS's debt to equity ratio has reduced from 296.1% to 253% over the past 5 years.

Debt Coverage: BGS's debt is not well covered by operating cash flow (3.4%).

Interest Coverage: BGS's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: BGS's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is B&G Foods's current dividend yield, its reliability and sustainability?

13.76%

Current Dividend Yield


Dividend Yield vs Market

company13.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years14.4%

Current dividend yield vs market & industry

Notable Dividend: BGS's dividend (13.76%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: BGS's dividend (13.76%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.8%), BGS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BGS's dividends in 3 years are not forecast to be well covered by earnings (121.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Ken Romanzi (59yo)

0.8yrs

Tenure

US$1,470,843

Compensation

Mr. Kenneth G. Romanzi, also known as Ken, serves as President, Chief Executive Officer and Director at B&G Foods, Inc. since April 6, 2019. He served as an Executive Vice President and Chief Operating Off ...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD1.47M) is below average for companies of similar size in the US market ($USD2.50M).

Compensation vs Earnings: Insufficient data to compare Ken's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Romanzi
President0.8yrsUS$1.47m0.052% $453.0k
Bruce Wacha
CFO & Executive VP of Finance2.3yrsUS$952.38k0.0027% $23.4k
Scott Lerner
Executive VP14.6yrsUS$1.02m0.12% $1.0m
Michael Adasczik
VP of Finance & Chief Accounting Officer1.3yrsno datano data
Eric Hart
Executive VP of Human Resources & Chief Human Resources Officer5yrsno data0.014% $123.4k
Erich Fritz
Executive VP & Chief Supply Chain Officer0.9yrsno datano data
Jordan Greenberg
Executive VP & Chief Commercial Officer0.9yrsno data0.017% $150.6k
Ellen Schum
Executive VP & Chief Customer Officer0.9yrsno data0.000020% $174.5

1.1yrs

Average Tenure

51.5yo

Average Age

Experienced Management: BGS's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kenneth Romanzi
President0.8yrsUS$1.47m0.052% $453.0k
Stephen Sherrill
Chairman14.5yrsUS$297.49k0.19% $1.6m
David Wenner
Director22.5yrsUS$226.24k1.12% $9.8m
Cheryl Palmer
Independent Director9.3yrsUS$242.49k0.029% $253.0k
Charles Marcy
Independent Director9.3yrsUS$232.49k0.076% $666.8k
Alfred Poe
Independent Director23.1yrsUS$229.99k0.051% $448.2k
Dennis Mullen
Independent Director13.9yrsUS$227.49k0.064% $559.7k
DeAnn Brunts
Independent Director4.8yrsUS$237.49k0.035% $303.4k
Robert Mills
Independent Director1.9yrsUS$259.98k0.017% $151.1k

9.3yrs

Average Tenure

65yo

Average Age

Experienced Board: BGS's board of directors are considered experienced (9.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

B&G Foods, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: B&G Foods, Inc.
  • Ticker: BGS
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$872.288m
  • Shares outstanding: 64.04m
  • Website: https://www.bgfoods.com

Number of Employees


Location

  • B&G Foods, Inc.
  • Four Gatehall Drive
  • Parsippany
  • New Jersey
  • 7054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BGSNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2007
DHRDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2007

Biography

B&G Foods, Inc. manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods in the United States, Canada, and Puerto Rico. Its products include frozen and canned vegetables, oatmeal and hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegars, maple syrups, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, puffed corn and rice snacks, cookies and crackers, nut clusters, and other specialty products. The company markets its products under various brands, including Ac’cent, B&G, B&M, Back to Nature, Baker’s Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary’s, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Durkee, Emeril’s, Grandma’s Molasses, Green Giant, JJ Flats, Joan of Arc, Las Palmas, Le Sueur, MacDonald’s, Mama Mary’s, Maple Grove Farms of Vermont, Molly McButter, Mrs. Dash, New York Flatbreads, New York Style, Old London, Ortega, Polaner, Red Devil, Regina, Sa-són, Sclafani, Smart Puffs, SnackWell’s, Spice Islands, Spring Tree, Sugar Twin, Tone’s, Trappey’s, TrueNorth, Underwood, Vermont Maid, Victoria, Weber, and Wright’s. It also sells, markets, and distributes household products under the Static Guard brand. B&G Foods, Inc. sells and distributes its products directly, as well as through a network of independent brokers and distributors to supermarket chains, food service outlets, mass merchants, warehouse clubs, non-food outlets, and specialty distributors. The company was formerly known as B&G Foods Holdings Corp. and changed its name to B&G Foods, Inc. in October 2004. B&G Foods, Inc. was founded in 1996 and is headquartered in Parsippany, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:37
End of Day Share Price2020/02/18 00:00
Earnings2019/09/28
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.