B&G Foods: A High Dividend Play With Some 'Warts'
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B&G Foods has seen its stock drop over 80% since 2016 due to stagnant EBITDA and increasing debt, leading to brand divestitures. The company's FY24 financial forecast has been revised downward three times, with significant declines in net sales and EBITDA. Despite a high dividend yield of 10.4%, the company's high debt and low margins make it a risky investment.
December 20, 2024 | 2:30 pm
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B&G Foods' stock has dropped over 80% since 2016 due to stagnant EBITDA and rising debt, leading to brand divestitures. The FY24 forecast has been revised downward three times, with significant declines in net sales and EBITDA. Despite a high dividend yield of 10.4%, the company's high debt and low margins make it a risky investment.
The significant drop in stock price, repeated downward revisions of financial forecasts, and high debt levels indicate financial instability. Despite the attractive dividend yield, these factors make B&G Foods a risky investment, likely leading to further stock price declines.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100