Operating Margin

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Price: 11.215 USD 1.22% Market Closed

Market Cap: $2.4B

6.9%

Declining

by 0.1%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

6.9%

Operating Income

$356.5m

Revenue

$5.1B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

6.9%

Operating Income

$356.5m

Revenue

$5.1B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Flowers Foods Inc NYSE:FLO	2.3B USD	Loading...
JP	G	Goyo Foods Industry Co Ltd TSE:2230	53.2T JPY	Loading...
CH		Nestle SA SIX:NESN	185.6B CHF	Loading...
US		Mondelez International Inc NASDAQ:MDLZ	74.6B USD	Loading...
FR		Danone SA PAR:BN	42.5B EUR	Loading...
US		Hershey Co NYSE:HSY	39.3B USD	Loading...
CN		Muyuan Foods Co Ltd SZSE:002714	258.8B CNY	Loading...
CH		Chocoladefabriken Lindt & Spruengli AG SIX:LISN	26.4B CHF	Loading...
US	K	Kellanova XMUN:KEL	24.7B EUR	Loading...
CN		Foshan Haitian Flavouring and Food Co Ltd SSE:603288	208.8B CNY	Loading...
US		Kellogg Co NYSE:K	29B USD	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Flowers Foods Inc
Glance View

Economic Moat

None

Market Cap

2.4B USD

Industry

Food Products

Amid the textured landscape of America's food production industry, Flowers Foods Inc. has carved a distinctive niche. Founded in 1919 and headquartered in Thomasville, Georgia, the company has grown from a regional family-owned bakery to a prominent player on the national stage. Flowers Foods operates primarily in the realm of packaged baked goods, renowned for its popular brands such as Nature’s Own, Wonder Bread, and Dave’s Killer Bread. Through strategic acquisitions and brand innovation, Flowers Foods has steadily expanded its market presence, enabling shelves across the United States to feature its diverse range of products. This strategic focus allows them to reach multiple consumer demographics, from health-conscious individuals to those drawn to classic, nostalgic bread products. At the heart of Flowers Foods' operations is an efficient production and distribution network that plays a pivotal role in its profitability. The company operates more than 40 bakeries, each with the capacity to produce millions of loaves, rolls, and snack cakes annually. By leveraging this expansive infrastructure, Flowers Foods optimizes its supply chain, combining scale and agility to ensure consistent product availability. Revenue flows primarily from wholesale distribution to grocery chains and foodservice accounts, augmented by direct-store delivery (DSD), which offers higher efficiency and lower logistics costs. This operational model not only secures deep penetration in established markets but also allows the company to respond swiftly to shifting consumer preferences, thereby securing its role as a mainstay in American households and continuing its history of financial growth.

View FLO Analysis

FLO Intrinsic Value

Undervaluation 49%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Flowers Foods Inc
NYSE:FLO

Peer Comparison

Market Distribution

Other Profitability Ratios

Flowers Foods Inc
Glance View

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Flowers Foods Inc NYSE:FLO