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NESTLE SA-REG (1NESN.MI) Stock Fundamental Analysis

BIT:1NESN - Euronext Milan - CH0038863350 - Common Stock - Currency: EUR

84  -1 (-1.18%)

Fundamental Rating

5

Overall 1NESN gets a fundamental rating of 5 out of 10. We evaluated 1NESN against 55 industry peers in the Food Products industry. While 1NESN has a great profitability rating, there are quite some concerns on its financial health. 1NESN has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year 1NESN was profitable.
1NESN had a positive operating cash flow in the past year.
Each year in the past 5 years 1NESN has been profitable.
In the past 5 years 1NESN always reported a positive cash flow from operatings.
1NESN.MI Yearly Net Income VS EBIT VS OCF VS FCF1NESN.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

1.2 Ratios

With an excellent Return On Assets value of 7.82%, 1NESN belongs to the best of the industry, outperforming 80.70% of the companies in the same industry.
The Return On Equity of 1NESN (30.30%) is better than 92.98% of its industry peers.
1NESN's Return On Invested Capital of 12.69% is amongst the best of the industry. 1NESN outperforms 92.98% of its industry peers.
1NESN had an Average Return On Invested Capital over the past 3 years of 12.64%. This is significantly above the industry average of 6.56%.
The last Return On Invested Capital (12.69%) for 1NESN is above the 3 year average (12.64%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.82%
ROE 30.3%
ROIC 12.69%
ROA(3y)7.84%
ROA(5y)9.11%
ROE(3y)27.92%
ROE(5y)28.47%
ROIC(3y)12.64%
ROIC(5y)12.37%
1NESN.MI Yearly ROA, ROE, ROIC1NESN.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

1NESN's Profit Margin of 11.91% is amongst the best of the industry. 1NESN outperforms 84.21% of its industry peers.
1NESN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.09%, 1NESN belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
In the last couple of years the Operating Margin of 1NESN has remained more or less at the same level.
1NESN has a better Gross Margin (46.72%) than 64.91% of its industry peers.
1NESN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 17.09%
PM (TTM) 11.91%
GM 46.72%
OM growth 3Y-0.33%
OM growth 5Y-0.27%
PM growth 3Y-15.02%
PM growth 5Y-2.64%
GM growth 3Y-0.75%
GM growth 5Y-1.19%
1NESN.MI Yearly Profit, Operating, Gross Margins1NESN.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1NESN is creating value.
1NESN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1NESN has less shares outstanding
1NESN has a worse debt/assets ratio than last year.
1NESN.MI Yearly Shares Outstanding1NESN.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
1NESN.MI Yearly Total Debt VS Total Assets1NESN.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

1NESN has an Altman-Z score of 2.80. This is not the best score and indicates that 1NESN is in the grey zone with still only limited risk for bankruptcy at the moment.
1NESN has a Altman-Z score of 2.80. This is in the better half of the industry: 1NESN outperforms 75.44% of its industry peers.
The Debt to FCF ratio of 1NESN is 5.93, which is a neutral value as it means it would take 1NESN, 5.93 years of fcf income to pay off all of its debts.
1NESN has a Debt to FCF ratio of 5.93. This is comparable to the rest of the industry: 1NESN outperforms 56.14% of its industry peers.
1NESN has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of 1NESN (1.44) is worse than 85.96% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.44
Debt/FCF 5.93
Altman-Z 2.8
ROIC/WACC2.97
WACC4.28%
1NESN.MI Yearly LT Debt VS Equity VS FCF1NESN.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.3 Liquidity

A Current Ratio of 0.82 indicates that 1NESN may have some problems paying its short term obligations.
With a Current ratio value of 0.82, 1NESN is not doing good in the industry: 84.21% of the companies in the same industry are doing better.
1NESN has a Quick Ratio of 0.82. This is a bad value and indicates that 1NESN is not financially healthy enough and could expect problems in meeting its short term obligations.
1NESN has a Quick ratio of 0.51. This is in the lower half of the industry: 1NESN underperforms 75.44% of its industry peers.
Industry RankSector Rank
Current Ratio 0.82
Quick Ratio 0.51
1NESN.MI Yearly Current Assets VS Current Liabilites1NESN.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

3

3. Growth

3.1 Past

The earnings per share for 1NESN have decreased by -0.63% in the last year.
1NESN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.58% yearly.
The Revenue has decreased by -1.77% in the past year.
1NESN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.26% yearly.
EPS 1Y (TTM)-0.63%
EPS 3Y2.57%
EPS 5Y1.58%
EPS Q2Q%0%
Revenue 1Y (TTM)-1.77%
Revenue growth 3Y1.61%
Revenue growth 5Y-0.26%
Sales Q2Q%-0.85%

3.2 Future

1NESN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.59% yearly.
The Revenue is expected to grow by 2.33% on average over the next years.
EPS Next Y-4.04%
EPS Next 2Y1.34%
EPS Next 3Y3.18%
EPS Next 5Y4.59%
Revenue Next Year0.51%
Revenue Next 2Y1.89%
Revenue Next 3Y2.43%
Revenue Next 5Y2.33%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
1NESN.MI Yearly Revenue VS Estimates1NESN.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B 100B
1NESN.MI Yearly EPS VS Estimates1NESN.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4 5

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 16.41, which indicates a correct valuation of 1NESN.
1NESN's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of 1NESN to the average of the S&P500 Index (27.35), we can say 1NESN is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.11, which indicates a rather expensive current valuation of 1NESN.
1NESN's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.54, 1NESN is valued rather cheaply.
Industry RankSector Rank
PE 16.41
Fwd PE 17.11
1NESN.MI Price Earnings VS Forward Price Earnings1NESN.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, 1NESN is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1NESN is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 18.84
EV/EBITDA 13.29
1NESN.MI Per share data1NESN.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

The excellent profitability rating of 1NESN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)10.37
EPS Next 2Y1.34%
EPS Next 3Y3.18%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.97%, 1NESN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.28, 1NESN pays a better dividend. On top of this 1NESN pays more dividend than 80.70% of the companies listed in the same industry.
1NESN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
Industry RankSector Rank
Dividend Yield 3.97%

5.2 History

The dividend of 1NESN has a limited annual growth rate of 4.03%.
Dividend Growth(5Y)4.03%
Div Incr YearsN/A
Div Non Decr YearsN/A

5.3 Sustainability

71.81% of the earnings are spent on dividend by 1NESN. This is not a sustainable payout ratio.
The dividend of 1NESN is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP71.81%
EPS Next 2Y1.34%
EPS Next 3Y3.18%
1NESN.MI Yearly Income VS Free CF VS Dividend1NESN.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B
1NESN.MI Dividend Payout.1NESN.MI Dividend Payout, showing the Payout Ratio.1NESN.MI Dividend Payout.PayoutRetained Earnings

NESTLE SA-REG

BIT:1NESN (7/7/2025, 7:00:00 PM)

84

-1 (-1.18%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)04-24 2025-04-24
Earnings (Next)07-24 2025-07-24
Inst Owners38.66%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap216.43B
Analysts71.61
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.97%
Yearly Dividend3.23
Dividend Growth(5Y)4.03%
DP71.81%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 16.41
Fwd PE 17.11
P/S 2.21
P/FCF 18.84
P/OCF 12.1
P/B 5.62
P/tB N/A
EV/EBITDA 13.29
EPS(TTM)5.12
EY6.1%
EPS(NY)4.91
Fwd EY5.84%
FCF(TTM)4.46
FCFY5.31%
OCF(TTM)6.94
OCFY8.26%
SpS38.03
BVpS14.95
TBVpS-5.8
PEG (NY)N/A
PEG (5Y)10.37
Profitability
Industry RankSector Rank
ROA 7.82%
ROE 30.3%
ROCE 16.2%
ROIC 12.69%
ROICexc 13.82%
ROICexgc 31.63%
OM 17.09%
PM (TTM) 11.91%
GM 46.72%
FCFM 11.73%
ROA(3y)7.84%
ROA(5y)9.11%
ROE(3y)27.92%
ROE(5y)28.47%
ROIC(3y)12.64%
ROIC(5y)12.37%
ROICexc(3y)13.58%
ROICexc(5y)13.56%
ROICexgc(3y)29.96%
ROICexgc(5y)31.29%
ROCE(3y)16.72%
ROCE(5y)16.46%
ROICexcg growth 3Y-4.61%
ROICexcg growth 5Y-3.41%
ROICexc growth 3Y-0.09%
ROICexc growth 5Y-2.54%
OM growth 3Y-0.33%
OM growth 5Y-0.27%
PM growth 3Y-15.02%
PM growth 5Y-2.64%
GM growth 3Y-0.75%
GM growth 5Y-1.19%
F-Score5
Asset Turnover0.66
Health
Industry RankSector Rank
Debt/Equity 1.44
Debt/FCF 5.93
Debt/EBITDA 2.69
Cap/Depr 166.47%
Cap/Sales 6.53%
Interest Coverage 10.14
Cash Conversion 86.87%
Profit Quality 98.42%
Current Ratio 0.82
Quick Ratio 0.51
Altman-Z 2.8
F-Score5
WACC4.28%
ROIC/WACC2.97
Cap/Depr(3y)165.75%
Cap/Depr(5y)155.69%
Cap/Sales(3y)6.29%
Cap/Sales(5y)6.04%
Profit Quality(3y)85.3%
Profit Quality(5y)77.64%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.63%
EPS 3Y2.57%
EPS 5Y1.58%
EPS Q2Q%0%
EPS Next Y-4.04%
EPS Next 2Y1.34%
EPS Next 3Y3.18%
EPS Next 5Y4.59%
Revenue 1Y (TTM)-1.77%
Revenue growth 3Y1.61%
Revenue growth 5Y-0.26%
Sales Q2Q%-0.85%
Revenue Next Year0.51%
Revenue Next 2Y1.89%
Revenue Next 3Y2.43%
Revenue Next 5Y2.33%
EBIT growth 1Y-1.35%
EBIT growth 3Y1.28%
EBIT growth 5Y-0.53%
EBIT Next Year20.28%
EBIT Next 3Y10.36%
EBIT Next 5Y8.34%
FCF growth 1Y10%
FCF growth 3Y7.92%
FCF growth 5Y-1.65%
OCF growth 1Y4.6%
OCF growth 3Y6.35%
OCF growth 5Y1.02%