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 23 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AD was profitable.
In the past year AD had a positive cash flow from operations.
AD had positive earnings in each of the past 5 years.
AD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AD (3.40%) is comparable to the rest of the industry.
AD's Return On Equity of 11.42% is fine compared to the rest of the industry. AD outperforms 60.87% of its industry peers.
The Return On Invested Capital of AD (6.01%) is comparable to the rest of the industry.
AD had an Average Return On Invested Capital over the past 3 years of 7.16%. This is below the industry average of 9.38%.
| 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
The Profit Margin of AD (1.98%) is better than 65.22% of its industry peers.
AD's Profit Margin has declined in the last couple of years.
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 has a Gross Margin of 26.64%. This is in the better half of the industry: AD outperforms 69.57% of its industry peers.
In the last couple of years the Gross Margin of AD has remained more or less at the same level.
| 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
AD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AD has less shares outstanding
Compared to 1 year ago, AD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.54 indicates that AD is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.54, AD is doing worse than 69.57% of the companies in the same industry.
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 73.91% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that AD has dependencies on debt financing.
The Debt to Equity ratio of AD (1.18) is worse than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.21
WACC4.97%
2.3 Liquidity
AD has a Current 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 Current ratio of 0.84. This is in the lower half of the industry: AD underperforms 60.87% 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 of 0.56. This is comparable to the rest of the industry: AD outperforms 52.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
AD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.38%.
The Earnings Per Share has been growing by 8.32% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.42% in the past year.
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)2.38%
EPS 3Y5.2%
EPS 5Y8.32%
EPS Q2Q%5.08%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y5.73%
Revenue growth 5Y6.16%
Sales Q2Q%7.12%
3.2 Future
The Earnings Per Share is expected to grow by 4.15% on average over the next years.
AD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.55% yearly.
EPS Next Y9.73%
EPS Next 2Y9.14%
EPS Next 3Y8.88%
EPS Next 5Y4.15%
Revenue Next Year4.74%
Revenue Next 2Y3.66%
Revenue Next 3Y3.44%
Revenue Next 5Y1.55%
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
AD is valuated correctly with a Price/Earnings ratio of 13.47.
AD's Price/Earnings ratio is a bit cheaper when compared to the industry. AD is cheaper than 65.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.69. AD is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.44, which indicates a very decent valuation of AD.
AD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AD is cheaper than 60.87% of the companies in the same industry.
AD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
AD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AD is cheaper than 69.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AD indicates a somewhat cheap valuation: AD is cheaper than 78.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.04 | ||
| EV/EBITDA | 6.58 |
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)1.38
PEG (5Y)1.62
EPS Next 2Y9.14%
EPS Next 3Y8.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.32%, AD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.10, AD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, AD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
5.2 History
The dividend of AD is nicely growing with an annual growth rate of 21.56%!
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 (7/24/2025, 5:36:15 PM)
34.74
+0.08 (+0.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners46.66%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap31.54B
Analysts73.85
Price Target37.96 (9.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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)-0.42%
PT rev (3m)2.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 11.44 | ||
| P/S | 0.35 | ||
| P/FCF | 8.04 | ||
| P/OCF | 5.07 | ||
| P/B | 2.04 | ||
| P/tB | 15.51 | ||
| EV/EBITDA | 6.58 |
EPS(TTM)2.58
EY7.43%
EPS(NY)3.04
Fwd EY8.74%
FCF(TTM)4.32
FCFY12.45%
OCF(TTM)6.86
OCFY19.73%
SpS98.43
BVpS17.02
TBVpS2.24
PEG (NY)1.38
PEG (5Y)1.62
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 | 2.54 |
F-Score5
WACC4.97%
ROIC/WACC1.21
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)2.38%
EPS 3Y5.2%
EPS 5Y8.32%
EPS Q2Q%5.08%
EPS Next Y9.73%
EPS Next 2Y9.14%
EPS Next 3Y8.88%
EPS Next 5Y4.15%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y5.73%
Revenue growth 5Y6.16%
Sales Q2Q%7.12%
Revenue Next Year4.74%
Revenue Next 2Y3.66%
Revenue Next 3Y3.44%
Revenue Next 5Y1.55%
EBIT growth 1Y-2.18%
EBIT growth 3Y-5.7%
EBIT growth 5Y0.9%
EBIT Next Year105.3%
EBIT Next 3Y29.65%
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%