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How Has B&G Foods Performed in 4Q15 and 2015?

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Price movement of B&G Foods

B&G Foods (BGS) has a market cap of $2.1 billion. BGS fell by 10.3% to close at $36.23 per share on February 26, 2016. The price movement on a weekly, monthly, and year-to-date (or YTD) basis is -3.2%, 3.5%, and 3.5%, respectively.

Currently, BGS is trading 1.4% below its 20-day moving average, 1.7% above its 50-day moving average, and 9.6% above its 200-day moving average.

The Guggenheim Multi-Asset Income ETF (CVY) invests 0.35% of its holdings in B&G Foods. The ETF tracks the Zacks Multi-Asset Income Index. The index aims to outperform the Dow Jones US Select Dividend Index using US stocks, ADRs, REITs, MLPs, CEFs, preferred stocks, and royalty trusts. The YTD price movement of CVY is -5.3% as of February 25, 2016.

The market caps of BGS’s competitors are as follows:

  • General Mills (GIS): $35.0 billion
  • Pinnacle Foods (PF): $5.1 billion
  • TreeHouse Foods (THS): $4.8 billion
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Performance of B&G Foods in fiscal 4Q15 and fiscal 2015

B&G Foods reported fiscal 4Q15 net sales of $342.3 million, a rise of 43.8% compared to net sales of $238.0 million in fiscal 4Q14. The company’s cost of goods sold as a percentage of net sales fell by 2.6%, and its operating income rose by 61.1% in fiscal 4Q15 compared to fiscal 4Q14.

Its net income and EPS (earnings per share) fell to $11.0 million and $0.19, respectively, in fiscal 4Q15, compared to $11.5 million and $0.21, respectively, in fiscal 4Q14.

Fiscal 2015 results

In fiscal 2015, BGS reported net sales of $966.4 million, a rise of 14.0% YoY (year-over-year). Its net income and EPS rose to $69.1 million and $1.22, respectively, in fiscal 2015, compared to $41.0 million and $0.76, respectively, in fiscal 2014. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $217.8 million in fiscal 2015, a rise of 12.2% compared to fiscal 2014.

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Its reported cash and cash equivalents and inventories of $5.2 million and $312.9 million, respectively, in fiscal 2015 compared to $1.5 million and $106.6 million, respectively, in fiscal 2014. Its current ratio and debt-to-equity ratio rose to 3.4x and 4.6x, respectively, in fiscal 2015 compared to 2.1x and 3.9x, respectively, in fiscal 2014.

The PE (price-to-earnings) and PBV (price-to-book value) ratios of B&G Foods are 29.0x and 4.5x, respectively, as of February 26, 2016.

Projections

The company has made the following projections for fiscal 2016:

  • net sales in the range of ~$1.38 billion to $1.42 billion
  • adjusted EBITDA in the range of ~$294.0 million to $304.0 million
  • adjusted EPS in the range of $1.98 to $2.09

In the next part, we’ll look at Foot Locker.

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