- The company's revenues have been growing in recent years; however, the growth is primarily due to acquisitions, which also restrain potential growth in asset turnover and increase operating expenses.
- TWNK combines a low net profit margin and a low asset turnover, while shareholders are losing a significant part of the value.
- The main driver of the company's growth is the Voortman Cookies business and the healthy snacks market, but all potential drivers are already priced in.
- The company is trading at a fair price. We are neutral on Hostess Brands.
For further details see:
Hostess Brands: Potential Drivers Are Priced In