Current Analysis: Flowers Foods

Person Holding Blue and Clear Ballpoint Pen

Image Source: Pexels

Flowers Foods Inc (FLO) is an American company producing bakery food for retail and food service across the United States.

The product portfolio includes fresh breads, buns, rolls, snack cakes, and tortillas. The company distributes to supermarkets, convenience stores, and restaurants.

The key brands are Nature's Own, Whitewheat, Cobblestone Bread, Wonder, Dave's Killer Bread, Canyon Bakehouse, Mrs. Freshley's, and Tastykake.

Flowers Foods operates 47 bakeries around the US and is headquartered in Thomasville, GA.

Three key data points gauge Flowers Floods or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

FLO Price

Over the past year, Flowers's share price fell  25.2% from $29.28 to $21.90 as of Wednesday’s market close.

If Flowers Foods shares trade in the range of $20.00 to $30.00 this next year, its recent $21.90 share price might rise to $23.50 by next year. Of course, Flowers's price could drop about the same $1.60 estimated amount or more.

My annual upside estimate of $1.60 however, is $0.33 below the median of one-year price targets from 6 analysts tracking Flowers Foods.

FLO Dividend

Flowers Foods Inc. has paid generally annually increasing Quarterly dividends since December 13, 2002. FLO’s most recent declared Quarterly dividend, of $0.23 will be paid December 15th to shareholders on record as of November 30th.  The forward-looking $0.92 annual dividend yields 4.20% at Wednesday’s $21.90 share price.

FLO Returns

To put it all together, add the annual dividend of  $0.92 to the price upside of $1.60 to find a $2.52 gross gain.

At Wednesday’s $21.90 share price, a little over $1000 would buy 46 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.22 per share.

Subtracting that likely $0.22 brokerage cost from the $2.52 estimated gross gain per share produces a net gain of $2.30 X 46 shares = $105.80 for a 10.5% estimated net gain.

You might choose to pounce on Flowers Foods Inc. FLO is a long-time American Baking company. Furthermore, the estimated $42.00 dividend income from $1k invested is almost 2 times greater than Wednesday’s Flowers Foods Inc $21.90 single share price.

The exact track of Flowers Foods Inc's ongoing future prices and dividends are yet to be known.

Remember the true value of any stock is best realized through personal ownership of shares.


More By This Author:

Current Analysis: Imperial Brands
Current Analysis: Kraft Heinz (KHC)
Current Analysis: Vector Group

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.