(281)-719-8904 KenFaulkenberry@AAAMP.com

Flowers Foods (FLO) Dividend Analyzer Analysis

by | Dividend Contenders, Dividend Stock Analysis

Flowers Foods Dividend

(updated 5/26/2017)

The Flowers Foods dividend has been paid continuously since 2002 and increased for 15 consecutive years;
qualifying the company as a Dividend Contender.

Price: $18.54
Current Dividend: $0.64

Dividend Yield: 3.5%
Cash Dividend Payout Ratio: 64%

Market Capitalization: 3.9 B
Enterprise Value: 4.8 B

Flowers Foods Logo

Description

Sector: Consumer Defensive
Industry: Packaged Foods

Flowers Foods Inc is the second largest producer and marketer of packaged bakery foods in North America. It consists of two business segments direct-store-delivery and warehouse delivery. Its brands include Nature’s Own, Whitewheat, Wonder Bread, Cobblestone Bread Co., among others.

Dividend Analyzer Checklist

(updated February 2017)

Dividend Safety Score (14/33 points)

Dividend Per Share (ttm): $0.61
Dividend Payout Ratio (ttm): 70%
Dividend Per Share (10 Year Growth): 17.5%
Cash From Operations (CFO) Per Share (ttm): $1.56
CFO Dividend Coverage (CFO / DPS): 2.5 (2/6 points)
Free Cash Flow (FCF) Per Share (ttm): $1.10
FCF Dividend Coverage (FCF / DPS): 1.8 (3/6 points)
Net Financial Debt: $984 M
Total Assets: $2810 M
Net Financial Debt / Total Assets: 35% (4/12 points)
Net Financial Debt to EBITDA (ttm): 219%
Total Liabilities to Assets Ratio (Qtr.): 58%
Piotroski Score (1-9) (TTM): (5/9 points)

Profitability & Growth Score (28/33 points)

Revenue (10 Year Growth) *CAGR > 4.14%: 8.2% (4/4 points)
EPS Basic Cont. Operations (10 Year Growth) CAGR > 4.14%: 11.5% (4/4 points)
Cash From Operations (10 Year Growth) CAGR > 4.14%: 11.0% (6/6 points)
Operating Earnings Yield (ttm): 7.2% (3/7 points)
Net Income (ttm): $183 M
Gross Profit (ttm): $1885 M
Total Assets: $2810 M
Gross Profitability Ratio = GP / Total Assets: 67% (11/12 points)
Cash Return On Invested Capital (CROIC)(tttm): 11%
Return on Invested Capital (ROIC): 8%
Return on Invested Capital (ROIC) (5 Year Median): 10%
Return on Invested Capital (ROIC) (10 Year Median): 13%

Valuation Score (21/34 points)

Free Cash Flow Yield (ttm): 6.0% (6/9 points)
EV to EBIT (ttm): 12.7 (6/9 points)
EV to EBITDA (ttm): 8.8 (6/9 points)
PE10: 28.0 (3/7 points)
Price to Sales Ratio (ttm): 1.1
Price to Book Value (ttm): 3.4
Price to Earnings Ratio (P/E) (ttm): 22.7

TOTAL POINTS – (63/100) (50 is an average score)

*Compound Annual Growth Rate (CAGR)
**A Compound Annual Growth Rate of 4.14% = a 50% gain over 10 years.

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Flowers Foods Nature's Own

Conclusion

(updated February 2017)

Flowers Foods is ranked #37 (out of 257) overall and #9 (out of 33) in the Consumer Defensive Sector by the Dividend Analyzer.

The small problem with FLO is it’s lower than average dividend safety score. However, those who are willing to take a little extra risk in exchange for a high yield may want to consider adding it to their portfolio.

My friend Ben Reynolds at Sure Dividend is positive on the stock. He had it ranked #1 according to his 8 Rules of Dividend Investing during part of 2016. If you are interested in this stock I suggest you read the Flowers Foods post on Sure Dividend.

Flowers Foods Bakery

Portfolio Position Disclosures:
DVB Foundation Portfolio: None
DVB Dividend Growth: None
DVB High Income: None
Arbor Asset Allocation Model Portfolio (AAAMP): None

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Disclaimer: While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.
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