Flowers Foods (FLO) AI Stock Analysis

• Market Cap: $3.34B
• Dividend Yield: 6.11%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 14.7
• Beta (1Y): >-0.01
• Revenue Growth: -1.02%
• EPS Growth: 81.53%
• Country: US
• Employees: 10,200
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Packaged Foods
• EPS (TTM): 0.35
• Shares Outstanding: 211,138,380
• 10 Day Avg. Volume: 2,375,669
• 30 Day Avg. Volume: 2,547,984
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 2.38
• Enterprise Value/Ebitda: 11.76
• 1Y Price Target: $18.00
• Price Target Upside: 11.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $17.50 ▲(8.70% Upside)

The overall score of 71 reflects a solid financial performance and attractive valuation. While there are challenges in the core categories and economic uncertainties, strategic initiatives and a strong dividend yield offer potential upside. Technical indicators suggest caution with bearish trends.

Positive Factors

Brand Strategy

Management's approach in creating smaller loaves to help consumers stay within budget and expanding the DKB brand into new formats is appreciated.

Margins

Adjusted gross margins expanded driven by improved input costs and optimization of the non-retail business.

Market Position

The company is well positioned with its portfolio of healthier brands for the continued decline of the white bread segment.

Negative Factors

Competitive Pressure

The likelihood exists that competitors start to step up their own activities, leading to incremental brand support needs for FLO.

Sales Growth

It is tough to get excited about another year of tepid sales growth.

White Bread Segment

White bread remains a large part of the overall business, and at least low single-digit top line growth is necessary to gain investor attention.

Flowers Foods Business Overview & Revenue Model

Company Description

Flowers Foods, Inc. produces and markets packaged bakery products in the United States. It offers fresh breads, buns, rolls, snack cakes, and tortillas, as well as frozen breads and rolls under the Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, Mrs. Freshley's, and Tastykake brand names. The company distributes its products through a direct-store-delivery distribution and a warehouse delivery system, as well as operates 46 bakeries comprising 44 owned and two leased. Its customers include mass merchandisers, supermarkets and other retailers, convenience stores, national and regional restaurants, quick-serve chains, retail in-store bakeries, foodservice distributors, food wholesalers, institutions, dollar stores, and vending companies. The company was formerly known as Flowers Industries and changed its name to Flowers Foods, Inc. in 2001. Flowers Foods, Inc. was founded in 1919 and is headquartered in Thomasville, Georgia.

How the Company Makes Money

Flowers Foods generates revenue primarily through the sale of its various bakery products. The company maintains a vast distribution network that allows it to supply its products to a wide range of retail and foodservice customers, including supermarkets, convenience stores, restaurants, and institutions. A significant portion of its revenue comes from branded retail sales, with brands like Nature's Own and Dave's Killer Bread enjoying strong consumer loyalty. Additionally, Flowers Foods benefits from its direct-store-delivery (DSD) model, optimizing distribution and ensuring product freshness. The company also engages in strategic acquisitions to expand its brand portfolio and market reach, contributing to its revenue streams. Key revenue streams include branded product sales, private label sales, and partnerships with large retail chains, which enhance its market presence and drive earnings.

Flowers Foods Financial Statement Overview

Summary

Flowers Foods presents a solid financial profile with stable income and strong cash flow, supported by a balanced balance sheet. While there is a slight dip in revenue and operational margins, the company maintains effective leverage management and cash flow generation.

Income Statement

Flowers Foods shows stable revenue with a slight decline in the latest TTM. The gross profit margin remains strong at 49.65%, and the net profit margin is healthy at 4.49% for the TTM. However, both EBIT and EBITDA margins have slightly decreased, indicating potential pressure on operating efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 1.51, indicating a balanced approach to leverage. The return on equity is reasonable at 16.11%, showing effective use of shareholder funds. However, the equity ratio stands at a moderate 32.72%, suggesting a need for careful management of liabilities.

Cash Flow

The company demonstrates strong cash flow management with a free cash flow growth of 13.61% over the previous year. The operating cash flow to net income ratio is robust at 1.94, while the free cash flow to net income ratio of 1.40 indicates efficient cash conversion. Overall, cash flow metrics are a strong point for Flowers Foods.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.10B	5.09B	4.81B	4.33B	4.39B
Gross Profit	2.53B	2.46B	2.30B	2.16B	2.19B
EBITDA	525.65M	345.80M	469.96M	438.99M	380.74M
Net Income	248.12M	123.42M	228.39M	206.19M	152.32M
Balance Sheet
Total Assets	3.40B	3.43B	3.31B	3.25B	3.32B
Cash, Cash Equivalents and Short-Term Investments	5.00M	22.53M	165.13M	185.87M	307.48M
Total Debt	1.36B	1.35B	1.19B	1.21B	1.32B
Total Liabilities	1.99B	2.08B	1.87B	1.84B	1.95B
Stockholders Equity	1.41B	1.35B	1.44B	1.41B	1.37B
Cash Flow
Free Cash Flow	280.58M	220.28M	191.82M	133.76M	356.54M
Operating Cash Flow	412.66M	349.35M	360.89M	344.61M	454.46M
Investing Cash Flow	-172.67M	-403.81M	-151.09M	-191.44M	-73.99M
Financing Cash Flow	-257.52M	-88.15M	-222.17M	-274.78M	-84.04M

Flowers Foods Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLO, the sentiment is Neutral. The current price of 16.1 is above the 20-day moving average (MA) of 15.86, below the 50-day MA of 16.11, and below the 200-day MA of 18.51, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.79 is Neutral, neither overbought nor oversold. The STOCH value of 46.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FLO.

Flowers Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MZTI	77 Outperform	$4.92B	29.17	17.73%	2.12%	0.69%	27.48%
SMPL	75 Outperform	$3.02B	20.99	8.22%	―	14.22%	-1.81%
FLO	71 Outperform	$3.34B	14.73	16.34%	6.11%	-1.02%	81.53%
Sector *	68 Neutral	¥216.30B	20.87	8.19%	2.25%	4.81%	0.40%
JJSF	68 Neutral	$0.00	26.87	8.79%	2.73%	0.49%	-12.32%
NOMD	68 Neutral	$0.00	11.30	8.59%	3.83%	-0.24%	26.74%
THS	61 Neutral	$1.00B	50.68	1.34%	―	-1.52%	―

Flowers Foods Corporate Events

Flowers Foods Holds Annual Shareholders Meeting

On May 22, 2025, Flowers Foods, Inc. held its Annual Meeting of Shareholders where all 11 director-nominees were elected for one-year terms. The shareholders approved the executive compensation and ratified the appointment of PricewaterhouseCoopers LLP as the independent public accounting firm. However, a shareholder proposal to adopt a policy for an independent board chair was not approved.

The most recent analyst rating on (FLO) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Flowers Foods stock, see the FLO Stock Forecast page.