Home Sectors Consumer Defensive Valuation Now: B&G Foods (NYSE: BGS)

Valuation Now: B&G Foods (NYSE: BGS)


B&G Foods is part of the consumer packaged goods industry and is part of the consumer defensive sector. The company CEO is Kenneth G. Romanzi. B&G Foods Inc processes and sells packaged food products in the United States. Through its brands such as Ac’cent, B&G, B&M and Baker’s Joy it sells vegetables, canned meats, spices and other packaged food products.

Previous Intraday Trading Performance:

The BGS stock showed a previous change of -0.87% with an open at 23.30 and a close of 22.77. It reached an intraday high of 23.30 and a low of 22.67.

SeekingAlpha:  B&G Foods Would See Significant Cost Increase If Trump Imposes Mexico Tariff


The stock has a market cap of $1.5b with 65.3m shares outstanding, of which the float is 63.4m shares. Trading volume reached 450,016 shares compared to its average volume of 1,256,091 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, B&G Foods shares returned -1.51% and in the past 30 trading days it returned -10.81%. Over three months, it changed -1.89%. In one year it has changed -19.19% and within that year its 52-week high was 33.50 and its 52-week low was 21.10. BGS stock is 7.91% above its 52 Week Low.

Our calculations show a 200 day moving average of 26.16 and a 50 day moving average of 23.32. Currently BGS stock is trading -12.96% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  B&G Foods Would See Significant Cost Increase If Trump Imposes Mexico Tariff


The last annual fiscal EPS for the company was reported at 2.6 that ended on 31st of December 2018, which according to the previous close, that is a PE of 8.76. Based on 2 analyst estimates, the consensus EPS for the next quarter is 0.50. The TTM EPS is 1.84, which comes to a TTM PE of 12.38. Historically, the PE high was 50.30 and the PE low was 6.70. If the stock reached its PE low, that would represent a price of 12.32, which is a decrease of -45.88%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 05/02/2019): 0.26
4thQtr of 2018 (Reported on 02/26/2019): 1.70
3rdQtr of 2018 (Reported on 10/30/2018): 0.48
2ndQtr of 2018 (Reported on 08/02/2018): 0.12
1stQtr of 2018 (Reported on 05/03/2018): 0.31

The dividend per share is currently 1.90, which is a dividend yield of 8.34%. BGS stock may not have enough earnings to cover future dividends and still be able to invest in the business, therefore the dividend may be cut in the future.

Base on our calculations, the intrinsic value per share is 32.08, which means it is possibly undervalued and has a margin of safety of 29.01%.

Indicators to Watch:

Short-interest was 24,916,579, which was 38.14% of shares outstanding. The short-interest ratio or days-to-cover ratio was 17.07. This stock has a high level of short interest and may fall in value in the near term.

The current calculated beta is 0.58.

SeekingAlpha:  Merger Arbitrage Mondays – February 4, 2019

Fundamental Indicators:

Based on last reported financials, the company’s return on assets is 5.44%, profit margin is 10.07%, price-to-sales is 0.89 and price-to-book is 1.71.

Company Scores:

All scores are out of six:
 4  :Valuation Score
 2  :Past Performance Score
 2  :Financial Strength Score
 0  :Future Growth Score
 5  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.