B&G Foods (BGS) AI Stock Analysis

• Market Cap: $499.36M
• Dividend Yield: 16.1%
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.16
• Revenue Growth: -7.06%
• EPS Growth: -83.82%
• Country: US
• Employees: 2,784
• Sector: Consumer Defensive
• Sector Strength: 82
• Industry: Packaged Foods
• EPS (TTM): 0.04
• Shares Outstanding: 79,138,245
• 10 Day Avg. Volume: 1,617,932
• 30 Day Avg. Volume: 2,088,446
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 5.18
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.13
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.83
• Price Target Upside: 30.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

B&G Foods is currently experiencing significant financial and operational challenges, reflected in declining revenues and high leverage. While technical indicators suggest potential for recovery, negative valuation metrics and recent earnings call insights underscore the stock's risk. Corporate events confirm ongoing struggles, further emphasizing the need for strategic improvements to stabilize performance. The stock remains a high-risk, speculative investment with potential contingent on effective management actions.

Positive Factors

Currency Impact

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.

Interest Expense

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

Sales Trends

Management was encouraged to see that sales trends improved sequentially during the quarter.

Negative Factors

Market Concern

The stock's sharp pullback suggests concerns on whether deleveraging via divestments will be enough to make a difference.

Sales and Profit

BGS reported a disappointing 1Q sales and profit miss from weaker consumption and retail de-loading.

Sales Outlook

They lowered FY25 sales outlook by -2% and EBITDA by -3% to reflect a slower path to stabilization.

B&G Foods Business Overview & Revenue Model

Company Description

B&G Foods, Inc. manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada, and Puerto Rico. The company's products include frozen and canned vegetables, vegetables, canola and other cooking oils, vegetable shortening, cooking sprays, oatmeal and other hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrups, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, baking powder and soda, corn starch, cookies and crackers, nut clusters, and other specialty products. It markets its products under various brands, including Ac'cent, B&G, B&M, Back to Nature, Baker's Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary's, Clabber Girl, Cream of Rice, Cream of Wheat, Crisco, Dash, Davis, Devonsheer, Don Pepino, Durkee, Emeril's, Grandma's Molasses, Green Giant, Joan of Arc, Las Palmas, Le Sueur, MacDonald's, Mama Mary's, Maple Grove Farms of Vermont, McCann's, Molly McButter, New York Flatbreads, New York Style, Old London, Ortega, Polaner, Red Devil, Regina, Rumford, Sa-són, Sclafani, Spice Islands, Spring Tree, Sugar Twin, Tone's, Trappey's, TrueNorth, Underwood, Vermont Maid, Victoria, and Weber and Wright's. The company also sells, markets, and distributes household products under the Static Guard brand. It sells and distributes its products directly, as well as through a network of independent brokers and distributors to supermarket chains, foodservice outlets, mass merchants, warehouse clubs, non-food outlets, and specialty distributors. The company was formerly known as B&G Foods Holdings Corp. and changed its name to B&G Foods, Inc. in October 2004. B&G Foods, Inc. was founded in 1822 and is headquartered in Parsippany, New Jersey.

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: 4.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 4.48 is below the 20-day moving average (MA) of 6.39, below the 50-day MA of 6.60, and below the 200-day MA of 7.04, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 21.85 is Positive, neither overbought nor oversold. The STOCH value of 7.72 is Positive, 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	$618.22M	16.20	6.35%	―	4.01%	22.46%
NATR	67 Neutral	$230.86M	30.94	6.42%	―	2.00%	-37.09%
JJSF	65 Neutral	$2.26B	33.87	8.20%	2.70%	0.49%	-12.32%
Sector *	64 Neutral	$8.87B	14.81	5.05%	174.26%	3.56%	3.68%
BGS	46 Neutral	$499.36M	―	-32.48%	16.10%	-7.06%	-83.82%
HAIN	42 Neutral	$249.98M	―	-31.95%	―	-8.50%	-186.18%
NAII	37 Underperform	$16.74M	―	-9.27%	―	-8.60%	-83.14%

B&G Foods Corporate Events

B&G Foods Reports Q1 2025 Sales Decline

B&G Foods reported a challenging first quarter of 2025, with net sales decreasing by 10.5% to $425.4 million compared to the same period in 2024. The decline was attributed to reduced volumes, lower net pricing, and foreign currency impacts. Despite these challenges, the company saw a slight net income of $0.8 million, a significant improvement from the net loss in the previous year. The company has revised its full-year fiscal 2025 guidance, focusing on cost reduction, portfolio reshaping, and strategic acquisitions to improve future growth and margins.

Spark’s Take on BGS Stock

According to Spark, TipRanks’ AI Analyst, BGS is a Neutral.

B&G Foods’ overall stock score reflects financial instability, marked by declining revenues and high debt levels. While technical indicators show some potential for upward momentum, valuation concerns persist due to negative earnings. The recent earnings call highlighted both positive margin improvements and significant challenges like impairment charges. Overall, the stock remains a high-risk investment with potential for recovery contingent on strategic improvements.

To see Spark’s full report on BGS stock, click here.

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.