NYSE:FLO

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


Similar Companies

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

3.1%

FLO

4.0%

US Food

3.0%

US Market


1 Year Return

3.2%

FLO

5.7%

US Food

9.9%

US Market

Return vs Industry: FLO matched the US Food industry which returned 5.9% over the past year.

Return vs Market: FLO underperformed the US Market which returned 9.5% over the past year.


Shareholder returns

FLOIndustryMarket
7 Day3.1%4.0%3.0%
30 Day6.2%4.1%8.2%
90 Day3.1%2.8%0.4%
1 Year6.8%3.2%8.4%5.7%12.4%9.9%
3 Year40.3%26.3%-4.8%-12.8%31.0%22.3%
5 Year29.3%9.0%31.3%15.7%58.1%40.3%

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

Valuation

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

18.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FLO ($23.59) is trading below our estimate of fair value ($28.75)

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 (53.8x) compared to the Food industry average (20.9x).

PE vs Market: FLO is poor value based on its PE Ratio (53.8x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: FLO is poor value based on its PEG Ratio (3.2x)


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 6 analysts?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLO's forecast earnings growth (16.8% per year) is above the savings rate (2.2%).

Earnings vs Market: FLO's earnings (16.8% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: FLO's revenue (0.6% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: FLO'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: FLO's Return on Equity is forecast to be low in 3 years time (17.6%).


Next Steps

Past Performance

How has Flowers Foods performed over the past 5 years?

-4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLO has a large one-off loss of $174.6M impacting its April 18 2020 financial results.

Growing Profit Margin: FLO's current net profit margins (2.2%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: FLO's earnings have declined by -4.3% per year over the past 5 years.

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

Earnings vs Industry: FLO had negative earnings growth (-45.9%) over the past year, making it difficult to compare to the Food industry average (-1%).


Return on Equity

High ROE: FLO's Return on Equity (7%) is considered low.


Next Steps

Financial Health

How is Flowers Foods's financial position?


Financial Position Analysis

Short Term Liabilities: FLO's short term assets ($831.8M) exceed its short term liabilities ($504.9M).

Long Term Liabilities: FLO's short term assets ($831.8M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: FLO's debt to equity ratio (81.8%) is considered high.

Reducing Debt: FLO's debt to equity ratio has increased from 62.3% to 81.8% over the past 5 years.

Debt Coverage: FLO's debt is well covered by operating cash flow (34.9%).

Interest Coverage: FLO's interest payments on its debt are well covered by EBIT (28.7x coverage).


Balance Sheet


Next Steps

Dividend

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

3.39%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: FLO's dividend (3.39%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: FLO's dividend (3.39%) is low compared to the top 25% of dividend payers in the US market (4.52%).


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 (173.2%), 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 (71.1% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

A. McMullian (49yo)

1.08yrs

Tenure

US$3,665,917

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: A.'s total compensation ($USD3.67M) is below average for companies of similar size in the US market ($USD7.34M).

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


Leadership Team

NamePositionTenureCompensationOwnership
A. McMullian
President1.08yrsUS$3.67m0.38% $19.0m
R. Kinsey
CFO & Chief Accounting Officer12.75yrsUS$2.05m0.16% $7.8m
Bradley Alexander
Chief Operating Officer1.08yrsUS$1.86m0.15% $7.6m
David Wheeler
Chief Sales Officer3.08yrsUS$1.49m0.028% $1.4m
Mark Chaffin
Chief Information Officer0.33yrno datano data
J. Rieck
Treasurer and VP of Investor Relations & Financial Analysis3.92yrsno datano data
Stephanie Tillman
Chief Legal Counsel0.42yrno data0.0052% $258.0k
Mary Krier
Senior Vice President of Communications & Corporate Responsibility3.92yrsno datano data
Debo Mukherjee
Chief Marketing Officer2.67yrsno data0.0015% $75.4k
Tonja Taylor
Chief Human Resources Officer3.08yrsno data0.016% $800.6k

2.9yrs

Average Tenure

53.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
A. McMullian
President1.08yrsUS$3.67m0.38% $19.0m
George Deese
Independent Non-Executive Chairman of the Board5.5yrsUS$580.74k1.52% $75.7m
James Spear
Independent Director5.42yrsUS$252.50k0.037% $1.9m
C. Wood
Independent Director19.25yrsUS$300.99k3.68% $183.5m
Melvin Stith
Independent Director15.92yrsUS$230.00k0.021% $1.1m
Benjamin Griswold
Independent Presiding Director7.42yrsUS$262.92k0.16% $7.9m
Margaret Lewis
Independent Director6.08yrsUS$245.92k0.021% $1.0m
Rhonda Gass
Independent Director4.42yrsUS$248.54k0.0050% $248.1k

5.8yrs

Average Tenure

68.5yo

Average Age

Experienced Board: FLO's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FLO insiders have only sold shares 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$4.991b
  • Shares outstanding: 211.57m
  • Website: https://www.flowersfoods.com

Number of Employees


Location

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

Listings

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

Biography

Flowers Foods, Inc. produces and markets packaged bakery products in the United States. It offers fresh breads, buns, rolls, snack cakes, and tortillas, as well as frozen breads and rolls under the Nature’s Own, Dave’s Killer Bread, Wonder, Canyon Bakehouse, Mrs. Freshley’s, Tastykake, Alpine Valley, Aunt Hattie’s, Bunny, Butternut, Butterkrust, Captain John Derst, Country Kitchen, Evangeline Maid, Home Pride, Merita, Sara Lee (California), and Sunbeam brand names. The company distributes its products through a direct-store-delivery distribution and a warehouse delivery system, as well as operates 46 bakeries comprising 44 owned and 2 leased. Its customers include mass merchandisers, supermarkets and other retailers, convenience stores, national and regional restaurants, quick-serve chains, retail in-store bakeries, foodservice distributors, food wholesalers, institutions, dollar stores, and vending companies. 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 Analysis2020/06/01 02:36
End of Day Share Price2020/05/29 00:00
Earnings2020/04/18
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.