NESTLE SA-REG (1NESN.MI) Stock Fundamental Analysis
BIT:1NESN - Euronext Milan - CH0038863350 - Common Stock - Currency: EUR
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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | 2.8 |
ROIC/WACC2.97
WACC4.28%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.51 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 17.11 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.84 | ||
| EV/EBITDA | 13.29 |
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%
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 Rank | Sector 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%
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)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%