Hostess Brands, Inc.
Hostess Brands, Inc. Fundamental Analysis
Hostess Brands, Inc. (TWNK) shows weak financial fundamentals with a PE ratio of 27.74, profit margin of 12.09%, and ROE of 9.34%. The company generates $1.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TWNK's fundamental strength across five key dimensions:
Efficiency Score
WeakTWNK struggles to generate sufficient returns from assets.
Valuation Score
ModerateTWNK shows balanced valuation metrics.
Growth Score
ModerateTWNK shows steady but slowing expansion.
Financial Health Score
ExcellentTWNK maintains a strong and stable balance sheet.
Profitability Score
WeakTWNK struggles to sustain strong margins.
Key Financial Metrics
Is TWNK Expensive or Cheap?
P/E Ratio
TWNK trades at 27.74 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TWNK's PEG of 0.28 indicates potential undervaluation.
Price to Book
The market values Hostess Brands, Inc. at 2.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.27 times EBITDA. This signals the market has high growth expectations.
How Well Does TWNK Make Money?
Net Profit Margin
For every $100 in sales, Hostess Brands, Inc. keeps $12.09 as profit after all expenses.
Operating Margin
Core operations generate 16.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.34 in profit for every $100 of shareholder equity.
ROA
Hostess Brands, Inc. generates $4.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hostess Brands, Inc. produces operating cash flow of $241.70M, showing steady but balanced cash generation.
Free Cash Flow
Hostess Brands, Inc. produces free cash flow of $114.93M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.87 in free cash annually.
FCF Yield
TWNK converts 2.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How TWNK Stacks Against Its Sector Peers
| Metric | TWNK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.74 | 23.25 | Worse (Expensive) |
| ROE | 9.34% | 1240.00% | Weak |
| Net Margin | 12.09% | -9728.00% (disorted) | Strong |
| Debt/Equity | 0.56 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.64 | 2.54 | Neutral |
| ROA | 4.70% | -203388.00% (disorted) | Weak |
TWNK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hostess Brands, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility