02-15-2016, 08:57 AM
Is anyone a current shareholder or planning on starting a position? It appears to be one of the few consumer staples that are fairly valued today after its selloff last week.
FLO is the #2 breadmaker in the US and they own a lot of recognizable brands. Their financials are reasonable, although revenue and EPS growth has slowed. Their debt has also increased over the past couple of years, primarily due to acquisitions.
It appears most of their growth comes from acquisitions. I think their recent entry into the organic bread space through acquisitions of Dave's Killer Bread and Alpine is a smart move.
FLO currently yields 3.7% and the 10 year dividend growth rate is 14%. The dividend seems well covered by FCF.
My primary concern is the slowdown of revenue and EPS growth over the last couple of years. I still need to read the last couple of earnings call transcripts on SA to see if there are any insights on if this slowdown is a temporary setback or is indicative of longer term issues.
FLO is the #2 breadmaker in the US and they own a lot of recognizable brands. Their financials are reasonable, although revenue and EPS growth has slowed. Their debt has also increased over the past couple of years, primarily due to acquisitions.
It appears most of their growth comes from acquisitions. I think their recent entry into the organic bread space through acquisitions of Dave's Killer Bread and Alpine is a smart move.
FLO currently yields 3.7% and the 10 year dividend growth rate is 14%. The dividend seems well covered by FCF.
My primary concern is the slowdown of revenue and EPS growth over the last couple of years. I still need to read the last couple of earnings call transcripts on SA to see if there are any insights on if this slowdown is a temporary setback or is indicative of longer term issues.