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/FLO
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Flowers Foods Inc

Flowers Foods Inc

FLO
$8.49USD↓-1.85%-0.16 today

MARKET CAP

1.8B

P/E (TTM)

8.2x

FWD P/E

10.1x

DAY RANGE

$8 – $9

52W RANGE

$7
$17

AI Summary

Stalk
Buy NowHigh

In Stage 2, FLO has established a clear HH/HL advance confirmed by a Momentum Breakout and Lockout Rally, driving price above the 9EMA, 20EMA, and 50DMA with supportive volume. Short‐term indicators and trend dynamics favor immediate participation, while the long‐term downtrend persists as a structural anchor. Execution aims to capture continuation above the recent flattened resistance zone, with shallow pullbacks into rising EMAs offering optimal engagement.

  • ↑11% dividend yield vs. 3% industry average; 71% cash-flow payout
  • ↑Relaunch of Nature’s Own and new health-focused products expand market share
  • ↓287% earnings payout ratio suggests dividend sustainability issues
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The case for & against

Bull & Bear analysis

Bearish

Flowers Foods, Inc. (NYSE: FLO) operates in the baked goods sector, focusing primarily on baked goods such as bread, rolls, and snack cakes under well-known brands like Nature's Own and Dave's Killer Bread. The company is positioned as a leader in the packaged food industry, with a significant share of the market. As consumer preferences continue to shift towards healthier and more value-oriented options, Flowers Foods is navigating a transformative landscape while leveraging its branding and innovation capabilities to meet evolving consumer demand.

Bull says

  • ↑11% dividend yield vs. 3% industry average; 71% cash-flow payout
  • ↑Relaunch of Nature’s Own and new health-focused products expand market share
  • ↑Supply-chain optimization and disciplined capex aim to restore margins
  • ↑Management sees bakery demand normalizing as economic conditions improve
  • ↑High earnings yield and strong liquidity underpin valuation case
  • ↑Focused capital allocation supports long-term free cash-flow growth

Bear says

  • ↓287% earnings payout ratio suggests dividend sustainability issues
  • ↓Revenue fell 5% year-over-year; gross margin slipped to 28% from 29%
  • ↓Stock down 54% in past year; analysts trimmed price targets 7.5%
  • ↓Elevated debt leverage heightens risk if sales and cash flow lag
  • ↓Weak profitability factors, growth momentum, and negative analyst revisions
  • ↓Intense competition and shifting consumer preferences threaten market share

Investment themes with FLO

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 05-22-2026neutral

Transcript signals

Bull points

  • we did hold unit share in a category that faced greater than expected declines. Those results in an uncertain economic environment do highlight the importance of our portfolio strategy and the strength of our brands.
  • To mitigate this category weakness, we're continuing to invest in on-trend innovation and targeting significant opportunities in faster-growing categories and adjacencies.
  • I remain confident that the initiatives we have in place now will enable us to enhance shareholder value and grow in line with our long-term financial targets.

Bear points

  • there has been continued weakness in overall food service sales, and we're experiencing that just like everyone else.
  • units, total units and private label are still down, just not as much as the category was down, thus the pickup and unit share.
  • So, obviously, that's going to impact the gross margin line tariffs, obviously impact the input costs. So, that's primarily gross margin. You know, we're doing some things from a cost-saving perspective. perspective, primarily in SDNA to try to offset some of the and mitigate some of the impact of the top line challenge as well as the tariffs. So I'd say that the majority of that we would expect to see flow through the gross margin line versus the SDNA.
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