B&G Foods manufactures, sells, and distributes shelf-stable food and household products in the United States, Canada, and Puerto Rico. The company was founded in 1996 and is based in Parsippany, New Jersey.
BGS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for B&G Foods Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that B&G Foods Inc ranked in the 5th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of B&G Foods Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 45. Notably, its equity weight is greater than merely 15.57% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
The company's compound free cash flow growth rate over the past 5.54 years comes in at -0.28%; that's greater than only 6.39% of US stocks we're applying DCF forecasting to.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BREW, LND, ARCE, FMX, and HAIN can be thought of as valuation peers to BGS, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
I published an article in late October of 2019, titled "B&G Foods Nears 12% Dividend Yield - Are Investors Getting Spooked?", as I was preparing for an onslaught of neighborhood kids yelling "Trick-or-Treat". Halloween was a scary time for B&G investors. Eight months later it's a far different situation for...
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