Hostess Brands, Inc. (TWNK) has been posting strong revenue growth in the past few quarters, with a clear runway for further growth in the coming quarters. However, the company is still highly leveraged at 4.5x, and current cash flows and valuation levels make me hesitant to recommend a Buy for the stock.
Revenue Growth
Source: Data from Seeking Alpha PREMIUM
Over the past several quarters, the company has been posting mid-to-high single-digit growth, with Q2 2019 breaking the double-digit barrier and coming in at 11.7% over the prior period. On a YTD basis,