B&G Foods, Inc. (NYSE: BGS)

Sector: Consumer Defensive Industry: Packaged Foods CIK: 0001278027
Market Cap 200.97 Mn
P/B 0.89
P/E 11.52
P/S 0.40
ROIC (Qtr) -5.65
Div Yield % 17.16
Rev 1y % (Qtr) -4.72
Total Debt (Qtr) 2.07 Bn
Debt/Equity (Qtr) 4.40
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About

B&G Foods, Inc., a prominent player in the food industry, is recognized by its stock symbol BGS on the New York Stock Exchange. The company has built a reputation over 130 years for providing high-quality, shelf-stable and frozen food and household products across the United States, Canada, and Puerto Rico. B&G Foods boasts an extensive portfolio of well-known brands, such as Green Giant, Ortega, Cream of Wheat, and Crisco, to name a few. B&G Foods' primary business activities revolve around the production and distribution of a wide range of products,...

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Investment thesis

Bull case

  • Healthy cash reserves of 60.91M provide 3.11x coverage of short-term debt 19.58M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 1.17B provide robust 16.62x coverage of other current liabilities 70.29M, indicating strong asset backing.
  • Retained earnings of 464.97M provide strong 6.62x coverage of other current liabilities 70.29M, indicating earnings quality.
  • Retained earnings of 464.97M represent substantial 0.99x of equity 470.74M, indicating strong internal capital generation.
  • Tangible assets of 1.17B provide robust 4.58x coverage of current liabilities 254.88M, showing strong asset backing.

Bear case

  • With cash reserves of 60.91M against inventory of 485.98M, the 0.13 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 86.30M provides thin coverage of dividend payments of (60.44M) with a -1.43 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 124.70M provides weak coverage of capital expenditures of (38.40M), with a -3.25 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (183.23M) show weak coverage of depreciation charges of 86.98M, with a -2.11 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 86.30M provides minimal -1.04x coverage of tax expenses of (83.22M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Packaged Foods
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KHC Kraft Heinz Co 28.20 Bn -4.82 1.13 21.22 Bn
2 GIS General Mills Inc 26.99 Bn 20.72 1.54 13.73 Bn
3 JBS Jbs N.V. 17.81 Bn 10.08 0.23 23.92 Bn
4 MKC Mccormick & Co Inc 16.10 Bn 44.21 3.77 4.00 Bn
5 HRL Hormel Foods Corp /De/ 12.37 Bn 18.03 1.34 2.86 Bn
6 SJM J M SMUCKER Co 11.08 Bn 19.60 1.97 7.91 Bn
7 PPC Pilgrims Pride Corp 10.32 Bn 9.54 0.56 3.29 Bn
8 MICC Magnum Ice Cream Co N.V. 9.71 Bn 28.17 1.04 4.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.21 1.47
EV to Cash from Ops. EV/CFO 9.75 29.75
EV to Debt EV to Debt 0.30 27.85
EV to EBIT EV/EBIT 7.85 86.88
EV to EBITDA EV/EBITDA 5.95 -156.20
EV to Free Cash Flow [EV/FCF] EV/FCF 11.75 -5.67
EV to Market Cap EV to Market Cap 3.05 1.15
EV to Revenue EV/Rev 1.22 7.32
Price to Book Value [P/B] P/B 0.89 8.48
Price to Earnings [P/E] P/E 11.52 14.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -4.14 4.58
Dividend Payout Ratio % Div Payout % (Qtr) -24.10 3.76
Dividend per Basic Share Div per Share (Qtr) 0.76 0.65
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 48.75 22.76
Interest Coverage Int. cover (Qtr) -1.22 6.64
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 37.71 -118.07
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 11.36 43.48
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.66
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -237.66 -48.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -148.12 -152.35
EBIT Growth (1y) % EBIT 1y % (Qtr) -246.43 -50.79
EBT Growth (1y) % EBT 1y % (Qtr) -914.61 -54.94
EPS Growth (1y) % EPS 1y % (Qtr) -887.50 -28.10
FCF Growth (1y) % FCF 1y % (Qtr) -26.88 7.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -7.86 439.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.63 1.01
Cash Payout Ratio Cash Payout (Qtr) 1.26 0.12
Cash Ratio Cash Ratio (Qtr) 0.24 0.86
Current Ratio Curr Ratio (Qtr) 3.21 2.60
Debt to Equity Ratio Debt/Equity (Qtr) 4.40 2.21
Interest Cover Ratio Int Coverage (Qtr) -1.22 6.64
Times Interest Earned Times Interest Earned (Qtr) -1.22 6.64
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -5.20 -919.13
EBIT Margin % EBIT Margin % (Qtr) -9.95 -1,474.87
EBT Margin % EBT Margin % (Qtr) -18.13 -1,537.76
Gross Margin % Gross Margin % (Qtr) 21.40 26.98
Net Profit Margin % Net Margin % (Qtr) -13.60 -1,538.60