B&G Foods Experiences Dramatic Decline in Stock Price: Can They Turn it Around?

Photo of author
Written By Faith Boluwatife

B&G Foods, Inc. (NYSE: BGS) has been a staple in the American food industry for over a century, producing and distributing a diverse array of shelf-stable and frozen food products across the US, Puerto Rico, and Canada.

Despite boasting a broad portfolio with over 50 brands, the company has faced significant challenges recently, reflected in a sharp decline in its stock price over the last three years.

Financial Struggles and Market Performance

B&G Foods experienced a dramatic 64.30% decline in stock value over the past three years, underperforming the S&P 500 by 85.67%. This downturn is largely attributed to its weak financial health, characterized by consistent net losses and a burdensome debt load.

Credit: DepositPhotos

Revenue and Profitability Trends

The company’s financial performance has been concerning, with a compounded annual growth rate (CAGR) showing declines across key financial metrics.

Revenue growth slowed significantly, with a decrease of 2.3% year-over-year last reported, highlighting persistent challenges in achieving profitable growth.

Furthermore, B&G Foods’ EBITDA and normalized net income have also suffered, compounding investor worries about the company’s financial stability.

Debt and Liquidity Concerns

B&G Foods is grappling with a high debt-to-equity ratio of 2.54, well above the generally recommended leverage ratio of 1.

This high leverage poses a significant risk, particularly with a weak interest coverage ratio of 1.6, indicating potential difficulties in meeting interest obligations.

The company’s liquidity situation has worsened over the years, with current assets covering a mere 0.39 times the long-term liabilities, underscoring the precariousness of its financial position.

Strategic Initiatives and Outlook

In response to these challenges, B&G Foods has initiated several strategic measures aimed at stabilizing its operations.

One notable action is the divestiture of its Green Giant US shelf-stable vegetable product line to Seneca Foods Corporation.

This move is part of a broader strategy to streamline its product offerings, focusing on more profitable and growth-oriented segments while reducing product cannibalization within its portfolio.

Focus on Debt Reduction

The proceeds from the sale are expected to contribute to debt reduction, a critical step towards improving the company’s financial health.

Reducing debt will not only ease the financial burden but also enhance B&G Foods’ ability to invest in and grow its remaining core brands.

Market Position and Competitive Landscape

Despite its vast product diversity, B&G Foods faces intense competition in the food industry, which may impede its ability to secure significant market share in certain segments.

The ongoing efforts to streamline its product range and focus on core areas are expected to improve its competitive stance and operational efficiency.

Stock Valuation and Investor Sentiment

Given the current challenges and the strategic measures being implemented, my neutral stance on B&G Foods reflects both caution and recognition of the company’s potential for recovery.

Credit: DepositPhotos

The stock’s valuation, with a significant decline over the past years, suggests that while risk exists, there may also be undervalued potential if the company’s turnaround strategies begin to bear fruit.

Future Prospects

Investors are advised to maintain patience and monitor the company’s progress closely.

Key indicators of a potential positive shift would include consistent positive net income, effective debt management, and successful execution of its strategic divestitures and operational focus.

Investors should look for signs of successful implementation of these strategies and improved financial metrics before considering more substantial engagements with the stock.


You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of SmallCapStocks.com (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov; the Financial Industry Regulatory Authority (the "FINRA") at www.FINRA.org, and relevant State Securities Administrator website and the OTC Markets website at www.otcmarkets.com. The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at www.sec.gov/consumer/cyberfr.htm, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: www.SmallCapStocks.com/Disclaimer and www.SmallCapStocks.com/Privacy-Policy

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.