Stock Analysis Report

Executive Summary

Flowers Foods, Inc. produces and markets bakery products in the United States.


Trading at 18.4% below its fair value

Earnings are forecast to grow 6.66% per year

Earnings grew by 4.2% over the past year

Pays a reliable dividend of 3.37%

Risk Analysis

Has a high level of debt

Dividend of 3.37% is not well covered by earnings

Snowflake Analysis

Adequate balance sheet average dividend payer.

Similar Companies

Mondelez International


Share Price & News

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

Latest Share Price and Events

Stable Share Price: FLO has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




US Food


US Market

1 Year Return




US Food


US Market

Return vs Industry: FLO underperformed the US Food industry which returned 10.2% over the past year.

Return vs Market: FLO underperformed the US Market which returned 20.1% over the past year.

Shareholder returns

7 Day0.6%0.1%0.9%
30 Day1.9%-0.7%1.4%
90 Day4.5%2.9%8.8%
1 Year12.4%8.6%13.1%10.1%22.5%20.0%
3 Year27.8%15.1%-0.3%-8.3%49.9%40.3%
5 Year21.2%2.4%42.8%26.2%73.2%54.1%

Price Volatility Vs. Market

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

Simply Wall St News


Is Flowers Foods undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: FLO ($22.52) is trading below our estimate of fair value ($27.59)

Significantly Below Fair Value: FLO is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: FLO is poor value based on its PE Ratio (29x) compared to the Food industry average (25.5x).

PE vs Market: FLO is poor value based on its PE Ratio (29x) compared to the US market (18.4x).

Price to Earnings Growth Ratio

PEG Ratio: FLO is poor value based on its PEG Ratio (4.4x)

Price to Book Ratio

PB vs Industry: FLO is overvalued based on its PB Ratio (3.8x) compared to the US Food industry average (2x).

Next Steps

Future Growth

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


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLO's forecast earnings growth (6.7% per year) is above the savings rate (1.7%).

Earnings vs Market: FLO's earnings (6.7% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: FLO's revenue (1.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: FLO's revenue (1.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FLO's Return on Equity is forecast to be low in 3 years time (17.7%).

Next Steps

Past Performance

How has Flowers Foods performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FLO has high quality earnings.

Growing Profit Margin: FLO's current net profit margins (4%) are lower than last year (4%).

Past Earnings Growth Analysis

Earnings Trend: FLO's earnings have declined by -2% per year over the past 5 years.

Accelerating Growth: FLO's earnings growth over the past year (4.2%) exceeds its 5-year average (-2% per year).

Earnings vs Industry: FLO earnings growth over the past year (4.2%) exceeded the Food industry -6.2%.

Return on Equity

High ROE: FLO's Return on Equity (13%) is considered low.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is Flowers Foods's financial position?

Financial Position Analysis

Short Term Liabilities: FLO's short term assets ($553.9M) exceed its short term liabilities ($528.1M).

Long Term Liabilities: FLO's short term assets ($553.9M) do not cover its long term liabilities ($1.4B).

Debt to Equity History and Analysis

Debt Level: FLO's debt to equity ratio (68.6%) is considered high.

Reducing Debt: FLO's debt to equity ratio has reduced from 69.5% to 68.6% over the past 5 years.

Debt Coverage: FLO's debt is well covered by operating cash flow (42.3%).

Interest Coverage: FLO's interest payments on its debt are well covered by EBIT (24.8x coverage).

Balance Sheet

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

Debt Coverage by Assets: FLO's debt is not covered by short term assets (assets are 0.6x debt).

Next Steps


What is Flowers Foods's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: FLO's dividend (3.37%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: FLO's dividend (3.37%) is low compared to the top 25% of dividend payers in the US market (3.69%).

Stability and Growth of Payments

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

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

Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (96.6%), FLO's dividend payments are not well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: FLO's dividends in 3 years are forecast to be covered by earnings (72.9% payout ratio).

Next Steps


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


Average management tenure


A. McMullian (49yo)




Mr. A. Ryals McMullian, Jr., is President and Chief Executive Officer of Flowers Foods, Inc. since May 23, 2019 and has been its Director since August 16, 2019. He served as Chief Operating Officer at Flow ...

Leadership Team

R. Kinsey
CFO & Chief Administrative Officer12.4yrsUS$754.44k0.16% $7.4m
Bradley Alexander
Chief Operating Officer0.8yrsUS$717.45k0.15% $7.2m
David Wheeler
Chief Sales Officer2.8yrsUS$573.76k0.028% $1.3m
A. McMullian
President0.8yrsno data0.36% $17.0m
Karyl Lauder
Senior VP & Chief Accounting Officer13.1yrsno data0.085% $4.0m
Mark Chaffin
Chief Information Officer0yrsno datano data
J. Rieck
Treasurer and VP of Investor Relations & Financial Analysis3.6yrsno datano data
Stephanie Tillman
Chief Legal Counsel0.08yrsno data0.0052% $246.3k
Mary Krier
Senior Vice President of Communications & Corporate Responsibility3.6yrsno datano data
Debo Mukherjee
Chief Marketing Officer2.3yrsno data0.0015% $71.9k


Average Tenure


Average Age

Experienced Management: FLO's management team is considered experienced (2.8 years average tenure).

Board Members

A. McMullian
President0.8yrsno data0.36% $17.0m
George Deese
Non-Executive Chairman of The Board5.2yrsUS$647.48k1.51% $72.2m
James Spear
Independent Director5.1yrsUS$252.50k0.037% $1.8m
David Singer
Independent Director10.1yrsUS$245.00k0.046% $2.2m
C. Wood
Independent Director18.9yrsUS$332.10k3.68% $175.1m
Melvin Stith
Independent Director15.6yrsUS$230.00k0.021% $1.0m
Benjamin Griswold
Presiding Director7.1yrsUS$260.00k0.16% $7.4m
Margaret Lewis
Independent Director5.8yrsUS$244.12k0.017% $822.1k
Rhonda Gass
Independent Director4.1yrsUS$244.67k0.0049% $234.8k


Average Tenure


Average Age

Experienced Board: FLO's board of directors are considered experienced (5.8 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.

Recent Insider Transactions

Ownership Breakdown

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

Top Shareholders

Company Information

Flowers Foods, Inc.'s company bio, employee growth, exchange listings and data sources

Key Information

  • Name: Flowers Foods, Inc.
  • Ticker: FLO
  • Exchange: NYSE
  • Founded: 1919
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$4.763b
  • Shares outstanding: 211.51m
  • Website: https://www.flowersfoods.com

Number of Employees


  • Flowers Foods, Inc.
  • 1919 Flowers Circle
  • Thomasville
  • Georgia
  • 31757
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLONYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2001
FWFDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2001


Flowers Foods, Inc. produces and markets bakery products in the United States. The company operates through two segments, Direct-Store-Delivery and Warehouse Delivery. The Direct-Store-Delivery segment produces and markets fresh breads, buns, rolls, tortillas, and snack cakes. This segment offers its products primarily under the Nature’s Own, Dave’s Killer Bread, Tastykake, Wonder, and Cobblestone Bread Company brand names. It operates 39 bakeries, as well as sells its products primarily through a network of independent distributors to retail and foodservice customers. The Warehouse Delivery segment produces snack cakes, frozen breads, and rolls for national retail, foodservice, vending, and co-pack customers through a network of warehouse channels. This segment markets its products under the Mrs. Freshley’s, Alpine Valley Bread, and European Bakers brands. It also sells products under franchised and licensed trademarks and trade names, such as Sunbeam, Bunny, and Sara Lee. The company was formerly known as Flowers Industries and changed its name to Flowers Foods, Inc. in 2001. Flowers Foods, Inc. was founded in 1919 and is headquartered in Thomasville, Georgia. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:40
End of Day Share Price2020/02/14 00:00
Annual Earnings2019/12/28

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.