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B&G Foods, Inc. (NYSE:BGS): Commentary On Fundamentals

Michael Canly

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B&G Foods, Inc. (NYSE:BGS) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of BGS, it is a highly-regarded dividend-paying company with a an impressive track record of performance, trading at a discount. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on B&G Foods here.

Undervalued established dividend payer

BGS delivered a bottom-line expansion of 88% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did BGS outperformed its past performance, its growth also exceeded the Food industry expansion, which generated a 24% earnings growth. This paints a buoyant picture for the company. BGS is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if BGS’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, BGS’s share price is trading below the group’s average. This supports the theory that BGS is potentially underpriced.

NYSE:BGS Income Statement Export February 5th 19

For those seeking income streams from their portfolio, BGS is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 7.4%, making it one of the best dividend companies in the market.

NYSE:BGS Historical Dividend Yield February 5th 19

Next Steps:

For B&G Foods, I’ve put together three fundamental factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for BGS’s future growth? Take a look at our free research report of analyst consensus for BGS’s outlook.
  2. Financial Health: Are BGS’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BGS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.