BGS - B&G Foods: Valuation Now Starting To Become Attractive For Bottom-Feeders
2024-07-02 11:06:00 ET
Summary
- B&G Foods shares have dropped 35% in value over the past year, underperforming the S&P500 by a significant margin.
- Technical indicators suggest shares may be nearing a multi-year bottom, with potential for growth if divestitures are made in underperforming business units.
- Despite ongoing profitability challenges, B&G Foods assets and sales are trading well below historic averages, presenting a potential long-term value opportunity at the right moment.
Intro
We wrote about B&G Foods , Inc. ( BGS ) in June of last year when we stated that all long-term associated investments should be off the table. Ongoing profitability woes, a sustained pattern of lower lows on the technical chart & growing interest expense were all clear risk factors at the time of writing our most recent commentary close to 13 months ago. Despite the dividend being kept over this period, shares have still lost approximately 35% in value after dividend proceeds have been allocated. Not only is this a significant negative return, but also a sizable opportunity cost, considering the S&P500 returned north of +27% over the same period....
B&G Foods: Valuation Now Starting To Become Attractive For Bottom-Feeders