B&G Foods (BGS) AI Stock Analysis

• Market Cap: $492.24M
• Dividend Yield: 12.22%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.16
• Revenue Growth: -6.30%
• EPS Growth: -258.92%
• Country: US
• Employees: 2,784
• Sector: Consumer Defensive
• Sector Strength: 94
• Industry: Packaged Foods
• EPS (TTM): -3.18
• Shares Outstanding: 79,138,245
• 10 Day Avg. Volume: 2,549,002
• 30 Day Avg. Volume: 2,345,845
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.29
• Price to Cash Flow (P/CF): 1.80
• P/FCF Ratio: 2.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.30
• Price Target Upside: 17.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

B&G Foods faces significant financial challenges, with declining revenues and high debt levels impacting its financial health. Technical analysis shows a neutral outlook, while valuation is pressured by negative profitability despite a high dividend yield. Earnings call reflected mixed sentiment, highlighting both strategic improvements and ongoing challenges, resulting in a moderate overall stock score.

Positive Factors

Currency Devaluation

The devaluation of the Mexican peso will provide a transaction cost benefit to B&G at some point when they ship frozen vegetables that were produced in Mexico when the peso was weak.

Division Performance

The Spice and Flavorings division performed well, up 5%.

Interest Expense

Interest expense is expected to decline by -5% to $150M from the benefits of refinancing.

Negative Factors

Earnings Guidance

B&G Foods missed 3Q expectations and lowered guidance for 4Q.

Leverage

Leverage increased to 6.9x in 3Q, up from 6.3x last quarter, nearing their debt covenant of 7x.

Organic Sales

Organic sales declined 4.4% with volume down 4.7%.

B&G Foods Business Overview & Revenue Model

Company Description

B&G Foods, Inc. (BGS) is a leading manufacturer and distributor of high-quality, shelf-stable and frozen foods across North America. The company operates in the packaged foods industry, offering a diverse portfolio of well-known brands such as Green Giant, Ortega, and Cream of Wheat. B&G Foods focuses on providing consumers with a wide range of products that include condiments, sauces, frozen vegetables, and snack foods, catering to various tastes and preferences.

How the Company Makes Money

B&G Foods generates revenue primarily through the sale of its packaged food products to a broad network of customers, including grocery stores, mass merchants, warehouse clubs, and food service distributors. The company's revenue model is based on leveraging its extensive brand portfolio to capture market share and drive sales volume. B&G Foods benefits from strategic pricing, product innovation, and marketing initiatives to enhance brand visibility and consumer demand. Significant partnerships with retailers, along with a robust distribution network, contribute to the company's earnings. Additionally, B&G Foods actively seeks growth opportunities through acquisitions of complementary brands and businesses that can expand its market presence and product offerings.

B&G Foods Financial Statement Overview

Summary

B&G Foods is facing financial challenges, with declining revenues and profitability pressures. The income statement reflects negative net profit margins, and the balance sheet indicates high leverage. Although cash flow remains positive, it is impacted by negative net income, necessitating strategic changes for improvement.

Income Statement

B&G Foods has faced declining revenue over the past few years, with a negative net profit margin of -13.00% in the most recent year, indicating ongoing profitability challenges. The negative EBIT and EBITDA margins further reflect operational struggles. The company needs strategic changes to improve its income statement performance.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, with total debt significantly exceeding stockholders' equity, posing financial risk. However, the equity ratio of 17.52% suggests some level of asset financing through equity, providing a degree of stability. Improvement in equity management is necessary for better financial health.

Cash Flow

Operating cash flow has decreased significantly, yet free cash flow remains positive, indicating some capacity to manage capital expenditures. The free cash flow to net income ratio is not favorable due to negative net income, suggesting cash flow management issues. Enhancing operational efficiency could improve cash flow reliability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
1.93B	2.06B	2.16B	2.06B	1.97B
	Gross Profit
421.95M	455.52M	409.62M	436.97M	481.74M
	EBIT
-177.28M	80.42M	98.63M	196.08M	276.44M
	EBITDA
-85.06M	172.58M	203.44M	297.40M	354.66M
	Net Income Common Stockholders
-251.25M	-66.20M	-11.37M	67.36M	131.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
50.58M	41.09M	45.44M	33.69M	52.18M
	Total Assets
2.99B	3.46B	3.84B	3.83B	3.77B
	Total Debt
62.01M	2.12B	2.46B	2.34B	2.37B
	Net Debt
11.43M	2.08B	2.41B	2.30B	2.32B
	Total Liabilities
2.47B	2.63B	2.97B	2.91B	2.94B
	Stockholders Equity
524.81M	835.46M	868.17M	920.25M	831.88M
Cash Flow		Free Cash Flow
103.65M	222.07M	-16.32M	50.30M	254.73M
	Operating Cash Flow
130.91M	247.76M	5.96M	93.88M	281.48M
	Investing Cash Flow
-27.68M	81.59M	-39.15M	-42.84M	-568.89M
	Financing Cash Flow
-92.96M	-333.69M	45.34M	-69.84M	327.95M

B&G Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BGS, the sentiment is Negative. The current price of 6.22 is below the 20-day moving average (MA) of 6.57, below the 50-day MA of 6.48, and below the 200-day MA of 7.13, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 38.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BGS.

B&G Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SENEA	71 Outperform	$574.70M	15.18	6.35%	―	4.01%	22.46%
NATR	70 Outperform	$222.73M	29.83	4.98%	―	2.03%	-47.76%
JJSF	64 Neutral	$2.58B	30.56	9.08%	2.29%	2.14%	5.38%
Sector *	63 Neutral	$20.84B	14.17	-16.36%	3.22%	1.30%	4.55%
BGS	55 Neutral	$492.24M	―	-36.94%	12.22%	-6.30%	-258.92%
HAIN	44 Neutral	$304.13M	―	-19.41%	―	-6.68%	-9.71%
NAII	35 Underperform	$18.29M	―	-9.27%	―	-8.60%	-83.14%

B&G Foods Corporate Events

B&G Foods Faces Net Loss Amidst Sales Decline

B&G Foods reported a decrease in net sales for the fourth quarter and full year of 2024, primarily due to the divestiture of the Green Giant U.S. shelf-stable product line and reduced unit volume. The company faced a significant net loss in the fourth quarter of 2024, driven by substantial non-cash impairment charges related to intangible trademark assets. Despite these challenges, B&G Foods’ adjusted net income showed a slight increase compared to the previous year, and the company anticipates a gradual improvement in financial performance in the latter half of fiscal 2025.