B&G Foods, Inc. (BGS) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

B&G Foods's EV/EBITDA of 18.0 is above its 5-year median of 16.8.

P/B below the industry

B&G Foods's price-to-book of 0.84 is below the Food and Kindred Products median of 1.73.

Trading below fair value

The share price of $3.67 is below our fair value estimate of $14.01.

Margin of safety over 20%

The price is 73.8% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -5.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -2.7% over the last twelve months; the Food and Kindred Products median is 1.4%.

Guidance raised

B&G Foods raised its Full Year Fiscal 2026 Net sales outlook on May 12, 2026.

Gross margin improving

Gross margin was 21.8% over the last twelve months, against 21.4% a year earlier.

Return on equity under 15%

Return on equity was -20.4% over the last twelve months and averaged -9.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 2.2%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

B&G Foods's return on equity of -20.4% is below the Food and Kindred Products median of -15.0%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -4.7% over the last twelve months, against a 5-year average of -3.2%.

Net margin below the industry

B&G Foods's net margin of -4.7% is below the Food and Kindred Products median of -4.1%.

High debt

Debt is 575% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 281% five years ago to 575%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 6.1% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.84 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.15; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

B&G Foods paid dividends worth 15.5% of the share price over the last twelve months.

Yield above Treasuries

The 15.5% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; B&G Foods yields 15.5%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 53.8% of free cash flow.