Flowers Foods Intrinsic Stock Value – Flowers Foods Reports In-line Non-GAAP EPS, Revenue Misses by $20M
May 19, 2023
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Despite this miss, Non-GAAP earnings per share (EPS) came in at $0.38, in line with analyst expectations. Flowers Foods ($NYSE:FLO) is a leading producer of packaged bakery products in the United States. It markets its products under a variety of brands which include Nature’s Own, Whitewheat, Dave’s Killer Bread, Wonder, and Tastykake, among others. It operates several bakeries across the country and has a portfolio of products that range from breads to rolls and breakfast pastries. In addition to retail sales, Flowers Foods also serves the foodservice industry with a range of products. The company’s third quarter earnings report showed a mixed bag of results.
While Non-GAAP EPS was in line with analyst expectations at $0.38, revenue fell short by $20M. Flowers Foods had a successful quarter despite missing revenue expectations. Going forward, the company will be looking to continue its growth trajectory and capitalize on the growing demand for its products in both the retail and foodservice industries.
Earnings
FLOWERS FOODS recently released its earning report for FY2022 Q4, reporting a total revenue of 1082.67M USD and net income of 48.6M USD as of December 31 2022. This marks a 10.1% increase in total revenue and a 23.6% increase in net income compared to the same period last year. Over the last three years, FLOWERS FOODS has seen a steady growth in total revenue, with the total revenue reaching from 1023.04M USD to 1082.67M USD. However, the reported revenue still missed expectations by $20M USD.
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 |
| 4.81k | 228.39 | 4.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Flowers Foods. More…
| Operations | Investing | Financing |
| 360.89 | -151.09 | -222.17 |
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 |
| 3.31k | 1.87k | 6.84 |
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 |
| 5.2% | 7.7% | 6.8% |
| FCF Margin | ROE | ROA |
| 4.0% | 14.2% | 6.2% |
Share Price
On Thursday, Flowers Foods reported non-GAAP earnings per share that were in-line with expectations. However, the company’s revenue missed the mark by $20 million. Despite this, Flowers Foods stock opened at $28.5 and closed at $28.8, up by 0.8% from its previous closing price of $28.6. This suggests that investors are confident in the company’s future growth prospects, despite the recent earnings miss. Live Quote…
Analysis – Flowers Foods Intrinsic Stock Value
At GoodWhale, we conducted an analysis of FLOWERS FOODS‘ financials and found that the intrinsic value of a share of the company is around $27.2. This figure was calculated using our proprietary Valuation Line. Currently, FLOWERS FOODS stock is traded at $28.8, making it slightly overvalued by 6.0%. More…
Peers
Flowers Foods Inc is one of the leading producers of packaged bakery products in the United States. The company’s principal competitors are J&J Snack Foods Corp, MamaMancini’s Holdings Inc, and Bridgford Foods Corp.
– J&J Snack Foods Corp ($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 (FLO) released their non-GAAP earnings per share (EPS) of $0.38, which was in-line with analyst expectations. Revenue of $1.53B, however, fell short of estimates by $20M. Analysts remain cautious in their outlook for the company, as weaker consumer spending and the potential for higher input costs could pressure margins going forward. Investors should closely monitor the company’s ability to pass on higher input costs to their customers, as well as its strategies to attract new customers or retain existing ones.
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