B&G Foods (BGS) AI Stock Analysis

• Market Cap: $329.62M
• Dividend Yield: 18.23%
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: -6.91%
• EPS Growth: -83.51%
• Country: US
• Employees: 2,846
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.04
• Shares Outstanding: 80,003,746
• 10 Day Avg. Volume: 2,233,234
• 30 Day Avg. Volume: 2,608,498
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 5.40
• Enterprise Value/Market Cap: 7.08
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 5.86
• Enterprise Value/Ebitda: -42.04
• 1Y Price Target: $3.88
• Price Target Upside: -6.95% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 48 Neutral
• Price Target: $4.50 ▲(7.91% Upside)

B&G Foods is currently facing financial difficulties, with declining revenue and profitability, high leverage, and negative returns on equity. Despite these challenges, there are some positive signals from the earnings call, indicating strategic efforts to improve financial stability and profitability. Technical analysis shows mixed signals, and while the valuation is concerning due to a negative P/E ratio, the high dividend yield may attract some investors. Overall, the stock score reflects the significant financial risks balanced by potential strategic improvements.

Positive Factors

Portfolio Restructuring

Strategic divestitures help streamline the portfolio, focusing resources on core brands, potentially improving operational efficiency and profitability.

Cash Flow Management

Effective cash flow management and debt reduction enhance financial stability, providing more flexibility for future investments and growth.

Frozen Vegetables Business Improvement

Profitability in the frozen vegetables segment indicates successful cost management and productivity improvements, strengthening the company's market position.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Declining Revenue

Continued revenue decline reflects challenges in maintaining market share and demand, which could impact long-term growth and profitability.

Negative Profitability

Negative profitability indicates operational challenges and cost control issues, which may hinder the company's ability to generate sustainable earnings.

B&G Foods Business Overview & Revenue Model

Company Description

B&G Foods, Inc. manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada, and Puerto Rico. The company's products include frozen and canned vegetables, vegetables, canola and other cooking oils, vegetable shortening, cooking sprays, oatmeal and other hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrups, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, baking powder and soda, corn starch, cookies and crackers, nut clusters, and other specialty products. It markets its products under various brands, including Ac'cent, B&G, B&M, Back to Nature, Baker's Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary's, Clabber Girl, Cream of Rice, Cream of Wheat, Crisco, Dash, Davis, Devonsheer, Don Pepino, Durkee, Emeril's, Grandma's Molasses, Green Giant, Joan of Arc, Las Palmas, Le Sueur, MacDonald's, Mama Mary's, Maple Grove Farms of Vermont, McCann's, Molly McButter, New York Flatbreads, New York Style, Old London, Ortega, Polaner, Red Devil, Regina, Rumford, Sa-són, Sclafani, Spice Islands, Spring Tree, Sugar Twin, Tone's, Trappey's, TrueNorth, Underwood, Vermont Maid, Victoria, and Weber and Wright's. The company also sells, markets, and distributes household products under the Static Guard brand. It sells and distributes its products directly, as well as through a network of independent brokers and distributors to supermarket chains, foodservice outlets, mass merchants, warehouse clubs, non-food outlets, and specialty distributors. The company was formerly known as B&G Foods Holdings Corp. and changed its name to B&G Foods, Inc. in October 2004. B&G Foods, Inc. was founded in 1822 and is headquartered in Parsippany, New Jersey.

How the Company Makes Money

B&G Foods generates revenue primarily through the sale of its food products across retail, foodservice, and industrial channels. The company operates a revenue model that includes selling its products to grocery stores, wholesalers, and foodservice operators. Key revenue streams include branded products, private label offerings, and partnerships with major retailers, which enhance market reach and brand visibility. Additionally, B&G Foods often capitalizes on strategic acquisitions to expand its product lines and customer base, contributing to its overall earnings. Seasonal promotions, product innovations, and effective marketing strategies further bolster sales and profitability.

B&G Foods Financial Statement Overview

Summary

B&G Foods is facing significant financial challenges, with declining revenue and profitability, high leverage, and negative returns on equity. While there is some improvement in cash flow generation, the overall financial health of the company is concerning. The company needs to address its leverage and profitability issues to improve its financial standing.

Income Statement

B&G Foods has experienced declining revenue with a negative growth rate of -1.07% TTM. The company is facing profitability challenges, as indicated by negative net profit and EBIT margins. The gross profit margin has slightly decreased over time, reflecting cost pressures. Overall, the income statement shows a concerning trend of declining revenue and profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.06 TTM, indicating significant leverage. Return on equity is negative, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is low, suggesting limited financial stability. The balance sheet highlights potential risks due to high leverage and negative returns.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 5.30% TTM, indicating some improvement in cash generation. However, the operating cash flow to net income ratio is below 1, suggesting that operating cash flow is not fully covering net income. The free cash flow to net income ratio is relatively strong, indicating efficient cash conversion despite profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	1.86B	1.93B	2.06B	2.16B	1.66B	1.70B
Gross Profit	398.10M	421.95M	455.52M	409.62M	383.12M	349.50M
EBITDA	-55.52M	-85.06M	172.58M	203.44M	273.95M	384.25M
Net Income	-223.89M	-251.25M	-66.20M	-11.37M	76.39M	172.44M
Balance Sheet
Total Assets	2.94B	2.99B	3.46B	3.84B	3.23B	3.05B
Cash, Cash Equivalents and Short-Term Investments	54.08M	50.58M	41.09M	45.44M	11.31M	11.65M
Total Debt	2.04B	2.08B	2.12B	2.46B	1.92B	1.64B
Total Liabilities	2.44B	2.47B	2.63B	2.97B	2.42B	2.15B
Stockholders Equity	501.43M	524.81M	835.46M	868.17M	812.54M	900.05M
Cash Flow
Free Cash Flow	124.80M	103.65M	222.07M	-16.32M	4.15M	167.83M
Operating Cash Flow	155.07M	130.91M	247.76M	5.96M	46.50M	209.46M
Investing Cash Flow	-19.46M	-27.68M	81.59M	-39.15M	-124.74M	347.59M
Financing Cash Flow	-122.19M	-92.96M	-333.69M	45.34M	77.71M	-753.33M

B&G Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.17
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BGS, the sentiment is Negative. The current price of 4.17 is below the 20-day moving average (MA) of 4.33, below the 50-day MA of 4.25, and below the 200-day MA of 4.96, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.15 is Neutral, neither overbought nor oversold. The STOCH value of 16.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BGS.

B&G Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JJSF	68 Neutral	$1.83B	21.92	8.79%	3.34%	0.50%	-4.46%
CPB	67 Neutral	$9.05B	15.14	15.64%	5.23%	6.40%	6.17%
THS	66 Neutral	$998.39M	50.52	1.34%	―	-1.52%	―
CAG	64 Neutral	$8.89B	10.48	9.65%	7.53%	-4.11%	72.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SJM	49 Neutral	$11.18B	22.22	-21.32%	4.28%	2.54%	-293.39%
BGS	48 Neutral	$329.62M	―	-35.36%	18.23%	-6.91%	-83.51%