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.

Snowflake

Fundamentals

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.9%

BGS

0.9%

US Food

0.5%

US Market


1 Year Return

-45.1%

BGS

2.3%

US Food

12.8%

US Market

Return vs Industry: BGS underperformed the US Food industry which returned 2.3% over the past year.

Return vs Market: BGS underperformed the US Market which returned 12.8% over the past year.


Shareholder returns

BGSIndustryMarket
7 Day-5.9%0.9%0.5%
30 Day-3.5%0.2%4.3%
90 Day-15.0%2.6%8.0%
1 Year-40.4%-45.1%5.3%2.3%15.3%12.8%
3 Year-52.2%-60.7%1.1%-6.7%48.3%38.7%
5 Year-25.0%-43.2%34.6%18.6%62.6%44.5%

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 ($16.22) is trading below our estimate of fair value ($41.55)

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 (6x) compared to the Food industry average (25x).

PE vs Market: BGS is good value based on its PE Ratio (6x) compared to the US market (18.2x).


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 (1.2x) compared to the US Food industry average (2.2x).


Next Steps

Future Growth

How is B&G Foods forecast to perform in the next 1 to 3 years based on estimates from 4 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 (0.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BGS's revenue (0.6% 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 large one-off items impacting its 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 (-17.5%).


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) exceeds 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?

11.71%

Current Dividend Yield


Upcoming Dividend Payment

Purchase B&G Foods before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company11.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years12.2%

Current dividend yield vs market & industry

Notable Dividend: BGS's dividend (11.71%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: BGS's dividend (11.71%) is in the top 25% of dividend payers in the US market (3.67%)


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 (114.6% payout ratio).


Next Steps

Management

What is the CEO of B&G Foods's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Ken Romanzi (59yo)

0.6yrs

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 ($USD1.47M) is below average for companies of similar size in the US market ($USD2.62M).

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


Management Age and Tenure

1.0yrs

Average Tenure

52yo

Average Age

Experienced Management: BGS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

9.1yrs

Average Tenure

65yo

Average Age

Experienced Board: BGS's board of directors are considered experienced (9.1 years average tenure).


Insider Trading

Insider Buying: BGS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$47,13019 Aug 19
DeAnn Brunts
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,483
Max PriceUS$18.98
BuyUS$29,56804 Mar 19
Kenneth Romanzi
EntityIndividual
Role
Chief Executive Officer
President
Shares1,200
Max PriceUS$24.64

Ownership Breakdown

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


Management Team

  • Ken Romanzi (59yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$1.47m
  • Erich Fritz (68yo)

    Executive VP & Chief Supply Chain Officer

    • Tenure: 0.7yrs
  • Scott Lerner (46yo)

    Executive VP

    • Tenure: 14.3yrs
    • Compensation: US$1.02m
  • Bill Herbes (64yo)

    Executive Vice President of Operations

    • Tenure: 10.3yrs
    • Compensation: US$708.57k
  • Bruce Wacha (47yo)

    CFO & Executive VP of Finance

    • Tenure: 2yrs
    • Compensation: US$952.38k
  • Michael Adasczik (45yo)

    VP of Finance & Chief Accounting Officer

    • Tenure: 1yrs
  • Eric Hart (52yo)

    Executive VP of Human Resources & Chief Human Resources Officer

    • Tenure: 4.8yrs
  • Jordan Greenberg (51yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 0.7yrs
  • Ellen Schum (53yo)

    Executive VP & Chief Customer Officer

    • Tenure: 0.7yrs

Board Members

  • Stephen Sherrill (66yo)

    Chairman

    • Tenure: 14.3yrs
    • Compensation: US$297.49k
  • Dave Wenner (70yo)

    Director

    • Tenure: 22.3yrs
    • Compensation: US$226.24k
  • Cheryl Palmer (61yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$242.49k
  • Chuck Marcy (69yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$232.49k
  • Alfred Poe (70yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$229.99k
  • Ken Romanzi (59yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$1.47m
  • Dennis Mullen (65yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$227.49k
  • DeAnn Brunts (57yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$237.49k
  • Rob Mills (46yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$259.98k

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$1.039b
  • 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 a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 00:03
End of Day Share Price2019/11/12 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.