Flowers Foods Inc. Common Stock (FLO)
StalwartFairStock Score: 42/100 — MIXED
Key Financials
| Current Price | $7.18 |
| Market Cap | $1.8B |
| P/E Ratio | 20.51 |
| ROE | 5.36% |
| Dividend Yield | 6.68% |
| Sector | Consumer Defensive |
Strengths
- Generates $221 million in annual free cash flow (12.0% yield on market cap)
- Attractive 11.3% dividend yield providing steady income returns
- Established organization with 10,300 employees providing operational scale
Concerns
- Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
- Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
AI Analysis
Flowers Foods Inc. Common Stock is a micro-cap consumer defensive company valued at $1.8 billion. Revenue stands at $5.3 billion, though the company is currently unprofitable. From a quality standpoint, Flowers shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and modest 6% ROE. On valuation, the stock is reasonably priced at 21.9x earnings, with trades above its Graham Number with a negative 16% margin. Growth dynamics show revenue growing at 11.0% and profit growth of -255.5%. The 11.3% dividend yield adds an income component for patient holders. Our composite FairStock Score of 42/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $221 million in annual free cash flow (12.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
Without a clear path to profitability, continued cash burn forces either dilutive equity raises or debt accumulation that destroys shareholder value. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer