Flowers Foods Intrinsic Value Calculation – FLOWERS FOODS Reports Strong Q2 Earnings for FY2023 on June 30th
August 16, 2023
☀️Earnings Overview
On June 30, 2023, FLOWERS FOODS ($NYSE:FLO) released their second quarter earnings results for fiscal year 2023. Total revenue was reported to be USD 1228.0 million, a decrease of 14.5% from the same quarter of the prior year. Net income for the quarter was USD 63.8 million, a decrease of 25.5% year-over-year.
Market Price
On June 30th, FLOWERS FOODS reported strong second quarter earnings for FY2023. On Friday, the company’s stock opened at $25.5 and closed at $25.8, up by 4.2% from the previous closing price of 24.8. This jump in the stock price is likely due to the strong earnings report that included higher net sales and net income than expected. This was driven by higher net sales and improved operating expenses.
The company also reported that its subsidiaries, which include Mrs. Smith’s pies, Nature’s Own bread, and Cobblestone Mill, all contributed to the strong second quarter earnings. The company’s stock price responded positively to the news, jumping 4.2% from the previous closing price. With the strong performance from its subsidiaries, the company looks well-positioned to continue its growth into the upcoming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Flowers Foods. More…
| Total Revenues | Net Income | Net Margin |
| 5k | 223.59 | 4.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Flowers Foods. More…
| Operations | Investing | Financing |
| 305.96 | -396.35 | -52.05 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Flowers Foods. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.51k | 2.04k | 6.83 |
Key Ratios Snapshot
Some of the financial key ratios for Flowers Foods are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.5% | 3.4% | 6.5% |
| FCF Margin | ROE | ROA |
| 3.3% | 14.1% | 5.8% |
Analysis – Flowers Foods Intrinsic Value Calculation
At GoodWhale, we analyzed FLOWERS FOODS‘ financials and found that the company’s intrinsic value of a share is around $28.1. This value was determined using our proprietary Valuation Line, which relies on accurate and up-to-date financial information. The current market price for FLOWERS FOODS stock is $25.8, meaning that it is undervalued by 8.1%. This indicates that, at present, the stock is a good buy for investors who are looking for an undervalued asset. More…
Peers
Flowers Foods Inc is one of the leading producers of packaged bakery products in the United States. The company’s principal competitors are J&J Snack Foods Corp, MamaMancini’s Holdings Inc, and Bridgford Foods Corp.
– J&J Snack Foods Corp ($NASDAQ:JJSF)
J&J Snack Foods Corp is a publicly traded company with a market capitalization of $2.66 billion as of March 2022. The company manufactures and markets snack foods and beverages. Its products include ice cream, frozen desserts, cookies, crackers, pretzels, and other snacks. J&J Snack Foods Corp has a return on equity of 5.74%.
J&J Snack Foods Corp was founded in 1971 and is headquartered in Pennsauken, New Jersey. The company operates through three segments: Food Service, Retail, and International. The Food Service segment provides products to foodservice customers, including restaurants, schools, and other institutions. The Retail segment sells products to retail grocery and mass merchandiser customers. The International segment consists of sales to customers located outside of the United States.
– MamaMancini’s Holdings Inc ($NASDAQ:MMMB)
MamaMancini’s Holdings Inc is a food company that specializes in the production of Italian-style foods, such as meatballs, sausages, and pasta sauce. The company has a market cap of $39.22 million and a return on equity of -14.63%. MamaMancini’s Holdings Inc is a publicly traded company on the Nasdaq Stock Market under the ticker symbol “MMMB.”
– Bridgford Foods Corp ($NASDAQ:BRID)
Bridgford Foods Corporation is a food company that specializes in the manufacture and sale of frozen and refrigerated food products. The company has a market capitalization of 115.55 million as of 2022 and a return on equity of 46.05%. Bridgford Foods Corporation’s products include breads, rolls, biscuits, snacks, and other frozen and refrigerated foods. The company operates in the United States and Canada.
Summary
Investors are taking a close look at Flowers Foods‘ Q2 2023 earnings report, released on June 30th. Total revenue declined 14.5% year-on-year to USD 1228 million, while net income dropped by 25.5% to USD 63.8 million. Despite this, the stock price rose on the day of the announcement, indicating that investors have faith in the company’s ability to recover from the losses. Going forward, investors should be monitoring key metrics such as revenue growth, profitability, and cash flow in order to gauge Flowers Foods’ financial health.
