Tech investors may turn their noses up at consumer staples companies as hopelessly low-growth and boring, but Flowers Foods (NYSE:FLO)
is a good example of what a prudently aggressive management team can
accomplish. In 2000, the company served about one-third of the country;
now that figure is up over 75% and the company has yet to focus on the
Midwest and Pacific Northwest regions.
Along the way, Flowers blend of organic and acquired growth, scale, and
operating leverage has produced nearly 9% compound revenue growth and
almost 15% free cash flow growth. That, in turn, has fueled one-year,
five-year, and 10-year stock appreciation of almost 70%, 100%, and 500%.
While I'm not calling for an end to Flowers gaining share or growing
its business, I do wonder if the shares aren't in need of a little rest,
as the valuation no longer seems quite so compelling at these levels.
Please continue reading here:
http://www.investopedia.com/stock-analysis/081413/scale-flowers-foods-has-built-new-future-itself-flo-cpb-k-mdlz.aspx
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