KONINKLIJKE AHOLD DELHAIZE N (AD.AS) Stock Fundamental Analysis
AMS:AD - Euronext Amsterdam - NL0011794037 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to AD. AD was compared to 25 industry peers in the Consumer Staples Distribution & Retail industry. AD has a medium profitability rating, but doesn't score so well on its financial health evaluation. AD 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 AD was profitable.
AD had a positive operating cash flow in the past year.
In the past 5 years AD has always been profitable.
In the past 5 years AD always reported a positive cash flow from operatings.
1.2 Ratios
AD has a Return On Assets (3.40%) which is comparable to the rest of the industry.
AD has a Return On Equity (11.42%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.01%, AD perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AD is in line with the industry average of 9.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 11.42% | ||
| ROIC | 6.01% |
ROA(3y)4.19%
ROA(5y)4.18%
ROE(3y)13.55%
ROE(5y)13.65%
ROIC(3y)7.16%
ROIC(5y)7.13%
1.3 Margins
AD has a Profit Margin (1.98%) which is in line with its industry peers.
In the last couple of years the Profit Margin of AD has declined.
AD has a Operating Margin (3.12%) which is comparable to the rest of the industry.
AD's Operating Margin has declined in the last couple of years.
AD's Gross Margin of 26.64% is fine compared to the rest of the industry. AD outperforms 64.00% of its industry peers.
AD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.12% | ||
| PM (TTM) | 1.98% | ||
| GM | 26.64% |
OM growth 3Y-10.81%
OM growth 5Y-4.96%
PM growth 3Y-12.74%
PM growth 5Y-5.83%
GM growth 3Y-0.89%
GM growth 5Y-0.46%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AD is still creating some value.
AD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AD has been reduced compared to 5 years ago.
The debt/assets ratio for AD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.57 indicates that AD is not a great score, but indicates only limited risk for bankruptcy at the moment.
AD has a Altman-Z score of 2.57. This is in the lower half of the industry: AD underperforms 60.00% of its industry peers.
The Debt to FCF ratio of AD is 5.18, which is a neutral value as it means it would take AD, 5.18 years of fcf income to pay off all of its debts.
AD has a better Debt to FCF ratio (5.18) than 68.00% of its industry peers.
AD has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.18, AD is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.17
WACC5.16%
2.3 Liquidity
A Current Ratio of 0.84 indicates that AD may have some problems paying its short term obligations.
AD has a Current ratio of 0.84. This is in the lower half of the industry: AD underperforms 64.00% of its industry peers.
AD has a Quick Ratio of 0.84. This is a bad value and indicates that AD is not financially healthy enough and could expect problems in meeting its short term obligations.
AD has a Quick ratio (0.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.39% over the past year.
AD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.32% yearly.
AD shows a small growth in Revenue. In the last year, the Revenue has grown by 0.80%.
Measured over the past years, AD shows a small growth in Revenue. The Revenue has been growing by 6.16% on average per year.
EPS 1Y (TTM)0.39%
EPS 3Y5.2%
EPS 5Y8.32%
EPS Q2Q%-5.48%
Revenue 1Y (TTM)0.8%
Revenue growth 3Y5.73%
Revenue growth 5Y6.16%
Sales Q2Q%1.1%
3.2 Future
Based on estimates for the next years, AD will show a small growth in Earnings Per Share. The EPS will grow by 4.75% on average per year.
The Revenue is expected to grow by 1.58% on average over the next years.
EPS Next Y9.73%
EPS Next 2Y9.14%
EPS Next 3Y8.88%
EPS Next 5Y4.75%
Revenue Next Year5.75%
Revenue Next 2Y4.33%
Revenue Next 3Y3.02%
Revenue Next 5Y1.58%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.22, AD is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of AD is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.10, AD is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.96, AD is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as AD.
The average S&P500 Price/Forward Earnings ratio is at 20.74. AD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
AD's Enterprise Value to EBITDA ratio is in line with the industry average.
AD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AD is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.43 | ||
| EV/EBITDA | 6.82 |
4.3 Compensation for Growth
AD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.46
PEG (5Y)1.71
EPS Next 2Y9.14%
EPS Next 3Y8.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.24%, AD has a reasonable but not impressive dividend return.
AD's Dividend Yield is comparable with the industry average which is at 4.05.
Compared to an average S&P500 Dividend Yield of 2.43, AD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
On average, the dividend of AD grows each year by 21.56%, which is quite nice.
Dividend Growth(5Y)21.56%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
58.75% of the earnings are spent on dividend by AD. This is a bit on the high side, but may be sustainable.
AD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.75%
EPS Next 2Y9.14%
EPS Next 3Y8.88%
AMS:AD (5/5/2025, 7:00:00 PM)
36.26
+0.13 (+0.36%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners54.89%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap33.10B
Analysts75.56
Price Target36.69 (1.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend1.12
Dividend Growth(5Y)21.56%
DP58.75%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.24%
Min EPS beat(2)-2.49%
Max EPS beat(2)2%
EPS beat(4)2
Avg EPS beat(4)0.52%
Min EPS beat(4)-2.49%
Max EPS beat(4)2.98%
EPS beat(8)5
Avg EPS beat(8)1.28%
EPS beat(12)9
Avg EPS beat(12)4.21%
EPS beat(16)12
Avg EPS beat(16)4.9%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-2.66%
Max Revenue beat(2)2.39%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-2.66%
Max Revenue beat(4)2.39%
Revenue beat(8)2
Avg Revenue beat(8)-1.45%
Revenue beat(12)2
Avg Revenue beat(12)-1.38%
Revenue beat(16)5
Avg Revenue beat(16)-0.86%
PT rev (1m)-0.99%
PT rev (3m)5.71%
EPS NQ rev (1m)-3.65%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)-1.79%
EPS NY rev (3m)-2.26%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.17%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 12.96 | ||
| P/S | 0.37 | ||
| P/FCF | 8.43 | ||
| P/OCF | 5.32 | ||
| P/B | 2.14 | ||
| P/tB | 16.27 | ||
| EV/EBITDA | 6.82 |
EPS(TTM)2.55
EY7.03%
EPS(NY)2.8
Fwd EY7.72%
FCF(TTM)4.3
FCFY11.86%
OCF(TTM)6.82
OCFY18.8%
SpS97.88
BVpS16.93
TBVpS2.23
PEG (NY)1.46
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 11.42% | ||
| ROCE | 8.08% | ||
| ROIC | 6.01% | ||
| ROICexc | 7.3% | ||
| ROICexgc | 13.13% | ||
| OM | 3.12% | ||
| PM (TTM) | 1.98% | ||
| GM | 26.64% | ||
| FCFM | 4.39% |
ROA(3y)4.19%
ROA(5y)4.18%
ROE(3y)13.55%
ROE(5y)13.65%
ROIC(3y)7.16%
ROIC(5y)7.13%
ROICexc(3y)8.2%
ROICexc(5y)8.1%
ROICexgc(3y)14.53%
ROICexgc(5y)14.46%
ROCE(3y)9.39%
ROCE(5y)9.31%
ROICexcg growth 3Y-6.55%
ROICexcg growth 5Y-2.37%
ROICexc growth 3Y-6.86%
ROICexc growth 5Y-1.86%
OM growth 3Y-10.81%
OM growth 5Y-4.96%
PM growth 3Y-12.74%
PM growth 5Y-5.83%
GM growth 3Y-0.89%
GM growth 5Y-0.46%
F-Score5
Asset Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 5.18 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 62.03% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 12.1 | ||
| Cash Conversion | 95.9% | ||
| Profit Quality | 222.38% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.57 |
F-Score5
WACC5.16%
ROIC/WACC1.17
Cap/Depr(3y)64.41%
Cap/Depr(5y)72.49%
Cap/Sales(3y)2.73%
Cap/Sales(5y)2.97%
Profit Quality(3y)193.28%
Profit Quality(5y)196.29%
High Growth Momentum
Growth
EPS 1Y (TTM)0.39%
EPS 3Y5.2%
EPS 5Y8.32%
EPS Q2Q%-5.48%
EPS Next Y9.73%
EPS Next 2Y9.14%
EPS Next 3Y8.88%
EPS Next 5Y4.75%
Revenue 1Y (TTM)0.8%
Revenue growth 3Y5.73%
Revenue growth 5Y6.16%
Sales Q2Q%1.1%
Revenue Next Year5.75%
Revenue Next 2Y4.33%
Revenue Next 3Y3.02%
Revenue Next 5Y1.58%
EBIT growth 1Y-2.18%
EBIT growth 3Y-5.7%
EBIT growth 5Y0.9%
EBIT Next Year108.67%
EBIT Next 3Y29.79%
EBIT Next 5Y16.35%
FCF growth 1Y-2.65%
FCF growth 3Y8.22%
FCF growth 5Y3.97%
OCF growth 1Y-3.74%
OCF growth 3Y4.41%
OCF growth 5Y2.7%