NESTLE SA-REG (1NESN.MI) Stock Fundamental Analysis
BIT:1NESN - Euronext Milan - CH0038863350 - Common Stock - Currency: EUR
1NESN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 57 industry peers in the Food Products industry. 1NESN has an excellent profitability rating, but there are concerns on its financial health. 1NESN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1NESN had positive earnings in the past year.
1NESN had a positive operating cash flow in the past year.
Each year in the past 5 years 1NESN has been profitable.
1NESN had a positive operating cash flow in each of the past 5 years.
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.
1NESN has a Return On Equity of 30.30%. This is amongst the best in the industry. 1NESN outperforms 92.98% of its industry peers.
With an excellent Return On Invested Capital value of 12.69%, 1NESN belongs to the best of the industry, outperforming 92.98% of the companies in the same industry.
1NESN had an Average Return On Invested Capital over the past 3 years of 12.64%. This is significantly above the industry average of 7.62%.
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
With an excellent Profit Margin value of 11.91%, 1NESN belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
1NESN's Profit Margin has declined in the last couple of years.
1NESN has a Operating Margin of 17.09%. This is amongst the best in the industry. 1NESN outperforms 89.47% of its industry peers.
1NESN's Operating Margin has been stable in the last couple of years.
1NESN has a Gross Margin of 46.72%. This is in the better half of the industry: 1NESN outperforms 64.91% of its industry peers.
In the last couple of years the Gross Margin of 1NESN has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1NESN is creating value.
Compared to 1 year ago, 1NESN has less shares outstanding
The number of shares outstanding for 1NESN has been reduced compared to 5 years ago.
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.
With a decent Altman-Z score value of 2.80, 1NESN is doing good in the industry, outperforming 75.44% of the companies in the same industry.
1NESN has a debt to FCF ratio of 5.93. This is a neutral value as 1NESN would need 5.93 years to pay back of all of its debts.
The Debt to FCF ratio of 1NESN (5.93) is comparable to the rest of the industry.
1NESN has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
1NESN has a worse Debt to Equity ratio (1.44) 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.
1NESN's Current ratio of 0.82 is on the low side compared to the rest of the industry. 1NESN is outperformed by 84.21% of its industry peers.
A Quick Ratio of 0.51 indicates that 1NESN may have some problems paying its short term obligations.
With a Quick ratio value of 0.51, 1NESN is not doing good in the industry: 75.44% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing slightly by 1.58% on average over the past years.
Looking at the last year, 1NESN shows a decrease in Revenue. The Revenue has decreased by -1.77% in the last 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
Based on estimates for the next years, 1NESN will show a small growth in Earnings Per Share. The EPS will grow by 4.59% on average per year.
Based on estimates for the next years, 1NESN will show a small growth in Revenue. The Revenue will grow by 2.33% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 16.41 indicates a correct valuation of 1NESN.
1NESN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of 1NESN to the average of the S&P500 Index (28.05), we can say 1NESN is valued slightly cheaper.
1NESN is valuated rather expensively with a Price/Forward Earnings ratio of 17.11.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1NESN is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.67, 1NESN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 17.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1NESN indicates a slightly more expensive valuation: 1NESN is more expensive than 66.67% of the companies listed in the same industry.
1NESN's Price/Free Cash Flow is on the same level as the industry average.
| 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.
1NESN's Dividend Yield is rather good when compared to the industry average which is at 3.38. 1NESN pays more dividend than 80.70% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, 1NESN pays a better dividend.
| 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%