NESTLE SA-REG (NESR.DE) Stock Fundamental Analysis
Europe - FRA:NESR - CH0038863350 - Common Stock
79.52 EUR
-0.12 (-0.15%)
Taking everything into account, NESR scores 5 out of 10 in our fundamental rating. NESR was compared to 58 industry peers in the Food Products industry. NESR scores excellent on profitability, but there are concerns on its financial health. NESR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year NESR was profitable.
NESR had a positive operating cash flow in the past year.
NESR had positive earnings in each of the past 5 years.
In the past 5 years NESR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.92%, NESR is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
Looking at the Return On Equity, with a value of 35.75%, NESR belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
NESR's Return On Invested Capital of 14.08% is amongst the best of the industry. NESR outperforms 94.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NESR is significantly above the industry average of 7.47%.
The last Return On Invested Capital (14.08%) for NESR is above the 3 year average (12.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.92% | ||
| ROE | 35.75% | ||
| ROIC | 14.08% |
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
The Profit Margin of NESR (11.38%) is better than 81.03% of its industry peers.
NESR's Profit Margin has declined in the last couple of years.
NESR has a Operating Margin of 16.53%. This is amongst the best in the industry. NESR outperforms 89.66% of its industry peers.
NESR's Operating Margin has been stable in the last couple of years.
NESR has a Gross Margin of 46.44%. This is in the better half of the industry: NESR outperforms 65.52% of its industry peers.
NESR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.53% | ||
| PM (TTM) | 11.38% | ||
| GM | 46.44% |
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), NESR is creating value.
NESR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NESR has been reduced compared to 5 years ago.
The debt/assets ratio for NESR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.72 indicates that NESR is not a great score, but indicates only limited risk for bankruptcy at the moment.
NESR has a better Altman-Z score (2.72) than 68.97% of its industry peers.
NESR has a debt to FCF ratio of 7.31. This is a slightly negative value and a sign of low solvency as NESR would need 7.31 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.31, NESR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
NESR has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.63, NESR is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 7.31 | ||
| Altman-Z | 2.72 |
ROIC/WACC3.24
WACC4.35%
2.3 Liquidity
A Current Ratio of 0.71 indicates that NESR may have some problems paying its short term obligations.
NESR's Current ratio of 0.71 is on the low side compared to the rest of the industry. NESR is outperformed by 87.93% of its industry peers.
A Quick Ratio of 0.41 indicates that NESR may have some problems paying its short term obligations.
NESR has a Quick ratio of 0.41. This is amonst the worse of the industry: NESR underperforms 84.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The earnings per share for NESR have decreased by -2.73% in the last year.
Measured over the past 5 years, NESR shows a small growth in Earnings Per Share. The EPS has been growing by 1.58% on average per year.
Looking at the last year, NESR shows a decrease in Revenue. The Revenue has decreased by -1.32% in the last year.
The Revenue has been decreasing by -0.26% on average over the past years.
EPS 1Y (TTM)-2.73%
EPS 3Y2.57%
EPS 5Y1.58%
EPS Q2Q%-5.42%
Revenue 1Y (TTM)-1.32%
Revenue growth 3Y1.61%
Revenue growth 5Y-0.26%
Sales Q2Q%-1.81%
3.2 Future
The Earnings Per Share is expected to grow by 3.33% on average over the next years.
Based on estimates for the next years, NESR will show a small growth in Revenue. The Revenue will grow by 2.14% on average per year.
EPS Next Y-7.79%
EPS Next 2Y-1.38%
EPS Next 3Y1.33%
EPS Next 5Y3.33%
Revenue Next Year-1.65%
Revenue Next 2Y0.1%
Revenue Next 3Y1.22%
Revenue Next 5Y2.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.00, NESR is valued correctly.
NESR's Price/Earnings ratio is in line with the industry average.
NESR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
The Price/Forward Earnings ratio is 16.01, which indicates a correct valuation of NESR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NESR is on the same level as its industry peers.
NESR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 16.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NESR is valued a bit more expensive than the industry average as 65.52% of the companies are valued more cheaply.
NESR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.34 | ||
| EV/EBITDA | 13.49 |
4.3 Compensation for Growth
The excellent profitability rating of NESR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)10.11
EPS Next 2Y-1.38%
EPS Next 3Y1.33%
5. Dividend
5.1 Amount
NESR has a Yearly Dividend Yield of 4.09%, which is a nice return.
NESR's Dividend Yield is a higher than the industry average which is at 3.35.
NESR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
5.2 History
The dividend of NESR has a limited annual growth rate of 4.03%.
Dividend Growth(5Y)4.03%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NESR pays out 76.17% of its income as dividend. This is not a sustainable payout ratio.
NESR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP76.17%
EPS Next 2Y-1.38%
EPS Next 3Y1.33%
FRA:NESR (10/3/2025, 7:00:00 PM)
79.52
-0.12 (-0.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners43.76%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap204.88B
Analysts73.33
Price Target92.98 (16.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
Yearly Dividend3.22
Dividend Growth(5Y)4.03%
DP76.17%
Div Incr Years0
Div Non Decr Years0
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)-0.91%
PT rev (3m)-3.99%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-3.91%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 16.01 | ||
| P/S | 2.11 | ||
| P/FCF | 21.34 | ||
| P/OCF | 13.13 | ||
| P/B | 6.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.49 |
EPS(TTM)4.97
EY6.25%
EPS(NY)4.97
Fwd EY6.24%
FCF(TTM)3.73
FCFY4.69%
OCF(TTM)6.06
OCFY7.62%
SpS37.61
BVpS11.97
TBVpS-6.77
PEG (NY)N/A
PEG (5Y)10.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.92% | ||
| ROE | 35.75% | ||
| ROCE | 17.96% | ||
| ROIC | 14.08% | ||
| ROICexc | 15.08% | ||
| ROICexgc | 35.92% | ||
| OM | 16.53% | ||
| PM (TTM) | 11.38% | ||
| GM | 46.44% | ||
| FCFM | 9.91% |
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-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 7.31 | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 155.03% | ||
| Cap/Sales | 6.19% | ||
| Interest Coverage | 9.05 | ||
| Cash Conversion | 78.46% | ||
| Profit Quality | 87.05% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 2.72 |
F-Score6
WACC4.35%
ROIC/WACC3.24
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)-2.73%
EPS 3Y2.57%
EPS 5Y1.58%
EPS Q2Q%-5.42%
EPS Next Y-7.79%
EPS Next 2Y-1.38%
EPS Next 3Y1.33%
EPS Next 5Y3.33%
Revenue 1Y (TTM)-1.32%
Revenue growth 3Y1.61%
Revenue growth 5Y-0.26%
Sales Q2Q%-1.81%
Revenue Next Year-1.65%
Revenue Next 2Y0.1%
Revenue Next 3Y1.22%
Revenue Next 5Y2.14%
EBIT growth 1Y-5.41%
EBIT growth 3Y1.28%
EBIT growth 5Y-0.53%
EBIT Next Year17.39%
EBIT Next 3Y8.89%
EBIT Next 5Y7.25%
FCF growth 1Y13.98%
FCF growth 3Y7.92%
FCF growth 5Y-1.65%
OCF growth 1Y6.3%
OCF growth 3Y6.35%
OCF growth 5Y1.02%