BGS Stock Overview
B&G Foods, Inc. manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada, and Puerto Rico.
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B&G Foods Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$23.99|
|52 Week High||US$34.27|
|52 Week Low||US$21.05|
|1 Month Change||7.72%|
|3 Month Change||-10.52%|
|1 Year Change||-22.34%|
|3 Year Change||16.51%|
|5 Year Change||-28.39%|
|Change since IPO||80.92%|
Recent News & Updates
B&G Foods: Leverage Concerns, This Time For Real
B&G is seeing already high leverage ratios increase amidst inflationary pressures, impacting margins. Worse, higher interest rates will result in higher financing costs down the road as well. I am quite cautious here, as the company is simply too aggressive for my taste. Shares of B&G Foods (BGS) have seen a pullback in recent times amidst concerns about raging cost inflation, and hence likely pressured results in the near to medium term. My last take on B&G dates back to the summer of 2021, as I concluded that B&G was a continued leverage story. The company was struggling with declining base/organic sales declines ahead of the pandemic, as the outbreak of the Covid-19 virus was actually a life savior. With the company using the increased earnings power to reduce leverage, I was leaning cautious. Former Take B&G is an interesting smaller to medium-sized food player, as B&G combines high leverage ratios with a high dividend yield, quite a stubborn strategy if you ask me. This comes as management has M&A ambitions, a dividend commitment and growth ambitions, as there were many capital allocation goals of management which can not all be fulfilled at once. Ahead of the pandemic, B&G was a near $1.7 billion business which generated some $300 million in EBITDA, as a $1.9 billion net debt load translated into a >6 times leverage ratio. At the same time, earnings power of around $1.75 per share worked down to very low valuation at high single digits. Yet, with a dividend of $1.90 per share only increasing leverage, while base sales were under pressure, I feared that management would only act too late. Following the outbreak of the pandemic, the company saw a boom in sales with first quarter sales in 2020 being up 9%, as second quarter sales rose as much as 38%. Moreover, earnings power improved spectacularly and leverage came down, with management quickly using the improved position to announce a $550 million deal for baking products business Crisco in October. While third quarter sales growth slowed down 22%, and sales only increasing 8% in the fourth quarter, it still was a great year. After all, sales nearly came in at $2 billion, EBITDA came in 20% higher than guided for as well at $360 million, as adjusted earnings rose to $2.26 per share. The issue is that the Crisco deal resulted in net debt of nearly $2.3 billion, as leverage ratios of 6.3 were the same as the start of the year. This is certainly the case as the company guided for 2021 sales at $2.05-$2.10 billion, which implies an expectation of organic sales declines, if we factor in the Crisco deal. With shares trading at $33, or 15 times adjusted earnings, I was still quite cautious on B&G. Higher interest rates and a normalization of Covid-19 could likely ignite concerns on the high debt load, albeit that more sensible capital allocation practices might reveal upside as well. What Happened? Interestingly enough, B&G actually announced a 7.5 million at-the-money equity program in August 2021, which does not mean that shares are offered (right away). In March of this year, the 2021 results revealed the impact of weaker pandemic trends as full year sales rose 5% to $2.05 billion, but excluding Crisco sales fell some 8% compared to 2020. Moreover, adjusted earnings of $1.88 per share fell 17% as adjusted EBITDA was down a percent to $358 million. Amidst these softening trends, I am happy to hear that the company sold 3.7 million shares for combined proceeds of around $112 million in the second half of 2021. For 2022, the company guided for a modest increase in sales to $2.10 billion, up some 2%, with adjusted EBITDA seen at a midpoint of $363 million. The equity issuance made that net debt stood at $2.20 billion, still working down to a roughly 6 times leverage ratio. In May, B&G posted first quarter results and while the company hiked the full year sales guidance by $20 million to $2.12 billion. The EBITDA guidance was cut by $10 million to $353 million amidst inflationary pressures, as adjusted earnings are seen at $1.70 per share. Net debt is stable at $2.24 billion, pushing up leverage to 6.3 times EBITDA. One of the few benefits of such a high leverage situation is that a deal might actually reduce leverage, which is very ironic. In May, the company announced the acquisition of the frozen vegetable manufacturing operations from Growers Express. While no financial details were announced, the deal took place at low multiples as leverage is actually seen down in an immaterial fashion following the deal.
B&G Foods (NYSE:BGS) Has No Shortage Of Debt
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...
B&G Foods (NYSE:BGS) Has Affirmed Its Dividend Of US$0.47
The board of B&G Foods, Inc. ( NYSE:BGS ) has announced that it will pay a dividend of US$0.47 per share on the 1st of...
|BGS||US Food||US Market|
Return vs Industry: BGS underperformed the US Food industry which returned -0.1% over the past year.
Return vs Market: BGS underperformed the US Market which returned -19.1% over the past year.
|BGS Average Weekly Movement||6.3%|
|Food Industry Average Movement||6.8%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.9%|
|10% least volatile stocks in US Market||3.3%|
Stable Share Price: BGS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: BGS's weekly volatility (6%) has been stable over the past year.
About the Company
B&G Foods, Inc. manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada, and Puerto Rico. The company’s products include frozen and canned vegetables, vegetables, canola and other cooking oils, vegetable shortening, cooking sprays, oatmeal and other hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrups, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, baking powder and soda, corn starch, cookies and crackers, nut clusters, and other specialty products. It 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, Clabber Girl, Cream of Rice, Cream of Wheat, Crisco, Dash, Davis, Devonsheer, Don Pepino, Durkee, Emeril’s, Grandma’s Molasses, Green Giant, Joan of Arc, Las Palmas, Le Sueur, MacDonald’s, Mama Mary’s, Maple Grove Farms of Vermont, McCann’s, Molly McButter, New York Flatbreads, New York Style, Old London, Ortega, Polaner, Red Devil, Regina, Rumford, Sa-són, Sclafani, Spice Islands, Spring Tree, Sugar Twin, Tone’s, Trappey’s, TrueNorth, Underwood, Vermont Maid, Victoria, and Weber and Wright’s.
B&G Foods Fundamentals Summary
|BGS fundamental statistics|
Is BGS overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|BGS income statement (TTM)|
|Cost of Revenue||US$1.65b|
Last Reported Earnings
Apr 02, 2022
Next Earnings Date
|Earnings per share (EPS)||0.93|
|Net Profit Margin||3.08%|
How did BGS perform over the long term?See historical performance and comparison
7.9%Current Dividend Yield
Is BGS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for BGS?
Other financial metrics that can be useful for relative valuation.
|What is BGS's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does BGS's PE Ratio compare to its peers?
|BGS PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
IBA Industrias Bachoco. de
UTZ Utz Brands
TR Tootsie Roll Industries
CALM Cal-Maine Foods
BGS B&G Foods
Price-To-Earnings vs Peers: BGS is good value based on its Price-To-Earnings Ratio (25.8x) compared to the peer average (55.6x).
Price to Earnings Ratio vs Industry
How does BGS's PE Ratio compare vs other companies in the US Food Industry?
Price-To-Earnings vs Industry: BGS is expensive based on its Price-To-Earnings Ratio (25.8x) compared to the US Food industry average (17.7x)
Price to Earnings Ratio vs Fair Ratio
What is BGS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||25.8x|
|Fair PE Ratio||20.6x|
Price-To-Earnings vs Fair Ratio: BGS is expensive based on its Price-To-Earnings Ratio (25.8x) compared to the estimated Fair Price-To-Earnings Ratio (20.6x).
Share Price vs Fair Value
What is the Fair Price of BGS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: BGS ($23.99) is trading below our estimate of fair value ($62.92)
Significantly Below Fair Value: BGS is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: BGS is poor value based on its PEG Ratio (2x)
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How is B&G Foods forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BGS's forecast earnings growth (12.7% per year) is above the savings rate (1.9%).
Earnings vs Market: BGS's earnings (12.7% per year) are forecast to grow slower than the US market (12.8% per year).
High Growth Earnings: BGS's earnings are forecast to grow, but not significantly.
Revenue vs Market: BGS's revenue (1.4% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: BGS's revenue (1.4% 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
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How has B&G Foods performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BGS has a large one-off loss of $26.0M impacting its April 2 2022 financial results.
Growing Profit Margin: BGS's current net profit margins (3.1%) are lower than last year (6.5%).
Past Earnings Growth Analysis
Earnings Trend: BGS's earnings have declined by 11.8% 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 (-51%) over the past year, making it difficult to compare to the Food industry average (15.2%).
Return on Equity
High ROE: BGS's Return on Equity (7%) is considered low.
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How is B&G Foods's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: BGS's short term assets ($859.9M) exceed its short term liabilities ($248.3M).
Long Term Liabilities: BGS's short term assets ($859.9M) do not cover its long term liabilities ($2.7B).
Debt to Equity History and Analysis
Debt Level: BGS's net debt to equity ratio (245.1%) is considered high.
Reducing Debt: BGS's debt to equity ratio has increased from 223.9% to 249.6% over the past 5 years.
Debt Coverage: BGS's debt is not well covered by operating cash flow (4.1%).
Interest Coverage: BGS's interest payments on its debt are not well covered by EBIT (2x coverage).
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What is B&G Foods's current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BGS's dividend (7.92%) is higher than the bottom 25% of dividend payers in the US market (1.6%).
High Dividend: BGS's dividend (7.92%) is in the top 25% of dividend payers in the US market (4.24%)
Stability and Growth of Payments
Stable Dividend: BGS's dividends per share have been stable in the past 10 years.
Growing Dividend: BGS's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (195.8%), BGS's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (241.6%), BGS's dividend payments are not well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Casey Keller (60 yo)
Mr. Kenneth Charles Keller, Jr., also known as Casey, has been President, Chief Executive Officer and Director at B&G Foods, Inc. since June 14, 2021. Mr. Keller serves as a Member of Advisory Council of W...
CEO Compensation Analysis
Compensation vs Market: Casey's total compensation ($USD6.04M) is about average for companies of similar size in the US market ($USD5.53M).
Compensation vs Earnings: Insufficient data to compare Casey's compensation with company performance.
Experienced Management: BGS's management team is considered experienced (3.5 years average tenure).
Experienced Board: BGS's board of directors are seasoned and experienced ( 11.8 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.
B&G Foods, Inc.'s employee growth, exchange listings and data sources
- Name: B&G Foods, Inc.
- Ticker: BGS
- Exchange: NYSE
- Founded: 1822
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Implied Market Cap: US$1.653b
- Shares outstanding: 68.88m
- Website: https://www.bgfoods.com
Number of Employees
- B&G Foods, Inc.
- Four Gatehall Drive
- New Jersey
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/07/05 00:00|
|End of Day Share Price||2022/07/05 00:00|
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.