Flowers Foods has roughly 185.87
M in cash with 344.61
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.88.
Our investment recommendation module complements current
analysts and expert consensus on Flowers Foods. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time.
Investing in Flowers Foods, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Flowers Foods along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Flowers Foods' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Flowers Foods. Your research has to be compared to or analyzed against Flowers Foods' peers to derive any actionable benefits. When done correctly, Flowers Foods' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Flowers Foods.
How important is Flowers Foods's Liquidity
Flowers Foods
financial leverage refers to using borrowed capital as a funding source to finance Flowers Foods ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Flowers Foods financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Flowers Foods' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Flowers Foods' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Flowers Foods's total debt and its cash.
Flowers Foods Gross Profit
Flowers Foods Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Flowers Foods previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Flowers Foods Gross Profit growth over the last 10 years. Please check Flowers Foods'
gross profit and other
fundamental indicators for more details.
Flowers Foods Correlation with Peers
Investors in Flowers can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Flowers Foods. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Flowers Foods and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Flowers is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Flowers for more details
An Additional Perspective On Flowers Foods
Flowers Foods secures Sharpe Ratio (or Efficiency) of -0.12, which denotes the company had -0.12% of return per unit of risk over the last 3 months. Macroaxis standpoint towards predicting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Flowers Foods exposes twenty-eight different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to confirm Flowers Foods
mean deviation of 1.27, and Coefficient Of Variation of
(1,381) to check the risk estimate we provide.
How will Flowers institutional investors react to the next slide?
The standard deviation is down to 1.73 as of today. Flowers Foods exhibits very low volatility with skewness of -1.0 and kurtosis of 2.14. However, we advise investors to further study Flowers Foods technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Flowers Foods' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Flowers Foods' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Flowers Foods Implied Volatility
Flowers Foods' implied volatility exposes the market's sentiment of Flowers Foods stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Flowers Foods' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Flowers Foods stock will not fluctuate a lot when Flowers Foods' options are near their expiration.
Our Bottom Line On Flowers Foods
Whereas some other firms in the packaged foods industry are either recovering or due for a correction, Flowers may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither buy new shares of Flowers nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Flowers Foods.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Flowers Foods. Please refer to our
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