Flowers Foods Intrinsic Value Calculation – Flowers Foods Shares Plummet After Mixed Earnings and Light Guidance for Full Year

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Flowers Foods Intrinsic Value Calculation – Flowers Foods ($NYSE:FLO), Inc. is a leading producer of packaged bakery foods in the United States. It is headquartered in Thomasville, Georgia and produces a variety of well-known brands, including Nature’s Own, Wonder, and Tastykake. On Thursday, the company released its fourth quarter results which came in mixed with adjusted diluted earnings per share of $0.23 in line with analysts expectations. The company also provided a subdued outlook for the full year, which led to the stock plummeting in after-hours trading.

The company attributed the decrease in net income to an increase in interest expenses and higher income tax provision. The company’s financial results were further impacted by increased competition from private label and branded baked goods, which resulted in a decrease in overall sales volumes and lower average selling prices. Despite these challenges, management remains confident that the company will continue to sustain its strong performance and remain competitive in the current market environment.

Price History

Unfortunately the news coverage was mostly positive, as the numbers did not meet expectations and the outlook for the full year was light. The stock opened on Thursday at $27.5 and closed at $27.3, down by 0.5% from its prior closing price of 27.5. The decline in revenue and earnings were primarily attributed to increased costs associated with the pandemic, including an increase in fuel costs, increased wages for employees and higher expenses for sanitation supplies. Investors are now looking ahead to determine if the company’s performance will improve in the coming quarters. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Flowers Foods. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Flowers Foods. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Flowers Foods. More…

Key Ratios Snapshot

Some of the financial key ratios for Flowers Foods are shown below. More…

Analysis – Flowers Foods Intrinsic Value Calculation

GoodWhale conducted an analysis of FLOWERS FOODS‘s fundamentals, and based on this analysis, our proprietary Valuation Line determined that the fair value of a FLOWERS FOODS share is around $26.4. Currently, the stock is being traded at a price of $27.3, making it slightly overvalued by 3.6%. GoodWhale considers a variety of factors in our fundamental analysis, such as financial performance, industry growth, competitive landscape, and potential risks associated with the company. These are all weighed against each other to determine the fair value of a company’s stock. For FLOWERS FOODS, our Valuation Line calculated a fair value of around $26.4, based on our analysis. However, the current market price of FLOWERS FOODS stock is $27.3, which is slightly higher than the fair value. This suggests that the stock is slightly overvalued, by 3.6%. Investors should consider this when deciding whether to purchase the stock. While it may be an attractive investment at the moment, it could be an even better investment if the stock dips below its fair value at some point in the future. 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

Flowers Foods Inc. (NYSE: FLO) recently released their earnings report and accompanying guidance for the full year, which resulted in a sharp drop in the company’s share price. The company reported mixed financial results, including a decrease in total sales from the previous year and a slightly lower than expected adjusted net income. Furthermore, the guidance for the full year was lower than expected, leading to disappointment from investors.

Despite this, analysts remain generally positive on the stock, with some believing that this is an opportunity to buy into a quality name at a discounted price. Investors should remain aware of the risks posed by Flowers Foods as they continue to navigate the uncertain economic conditions.