NESTLE SA-REG (NESR.DE) Stock Fundamental Analysis
FRA:NESR - Deutsche Boerse Ag - CH0038863350 - Common Stock - Currency: EUR
Overall NESR gets a fundamental rating of 4 out of 10. We evaluated NESR against 56 industry peers in the Food Products industry. While NESR belongs to the best of the industry regarding profitability, there are concerns on its financial health. NESR is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NESR was profitable.
In the past year NESR had a positive cash flow from operations.
In the past 5 years NESR has always been profitable.
Each year in the past 5 years NESR had a positive operating cash flow.
1.2 Ratios
NESR has a better Return On Assets (7.82%) than 82.14% of its industry peers.
Looking at the Return On Equity, with a value of 30.30%, NESR belongs to the top of the industry, outperforming 94.64% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.69%, NESR belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NESR is significantly above the industry average of 6.76%.
The 3 year average ROIC (12.64%) for NESR is below the current ROIC(12.69%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 11.91%, NESR belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of NESR has declined.
With an excellent Operating Margin value of 17.09%, NESR belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
NESR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 46.72%, NESR is in the better half of the industry, outperforming 66.07% of the companies in the same industry.
In the last couple of years the Gross Margin of NESR 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NESR is creating value.
Compared to 1 year ago, NESR has less shares outstanding
NESR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NESR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.94 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 (2.94) than 75.00% of its industry peers.
The Debt to FCF ratio of NESR is 5.93, which is a neutral value as it means it would take NESR, 5.93 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.93, NESR perfoms like the industry average, outperforming 51.79% of the companies in the same industry.
A Debt/Equity ratio of 1.44 is on the high side and indicates that NESR has dependencies on debt financing.
NESR has a Debt to Equity ratio of 1.44. This is amonst the worse of the industry: NESR underperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | 2.94 |
ROIC/WACC2.82
WACC4.5%
2.3 Liquidity
NESR has a Current Ratio of 0.82. This is a bad value and indicates that NESR is not financially healthy enough and could expect problems in meeting its short term obligations.
NESR's Current ratio of 0.82 is on the low side compared to the rest of the industry. NESR is outperformed by 83.93% of its industry peers.
A Quick Ratio of 0.51 indicates that NESR may have some problems paying its short term obligations.
NESR's Quick ratio of 0.51 is on the low side compared to the rest of the industry. NESR is outperformed by 76.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
NESR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.63%.
The Earnings Per Share has been growing slightly by 1.58% on average over the past years.
Looking at the last year, NESR shows a decrease in Revenue. The Revenue has decreased by -1.77% in the last year.
NESR 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
The Earnings Per Share is expected to grow by 3.77% 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 2.05% on average per year.
EPS Next Y-4.04%
EPS Next 2Y1.34%
EPS Next 3Y3.18%
EPS Next 5Y3.77%
Revenue Next Year0.51%
Revenue Next 2Y1.89%
Revenue Next 3Y2.43%
Revenue Next 5Y2.05%
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 18.32, which indicates a rather expensive current valuation of NESR.
NESR's Price/Earnings is on the same level as the industry average.
NESR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.95.
The Price/Forward Earnings ratio is 19.09, which indicates a rather expensive current valuation of NESR.
Based on the Price/Forward Earnings ratio, NESR is valued a bit more expensive than the industry average as 66.07% of the companies are valued more cheaply.
NESR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.32 | ||
| Fwd PE | 19.09 |
4.2 Price Multiples
71.43% of the companies in the same industry are cheaper than NESR, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as NESR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.01 | ||
| EV/EBITDA | 14.51 |
4.3 Compensation for Growth
NESR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)11.58
EPS Next 2Y1.34%
EPS Next 3Y3.18%
5. Dividend
5.1 Amount
NESR has a Yearly Dividend Yield of 3.50%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.25, NESR pays a bit more dividend than its industry peers.
NESR's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
5.2 History
The dividend of NESR 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 NESR. This is not a sustainable payout ratio.
The dividend of NESR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP71.81%
EPS Next 2Y1.34%
EPS Next 3Y3.18%
FRA:NESR (5/12/2025, 7:00:00 PM)
93.25
-0.74 (-0.79%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners40.68%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap240.26B
Analysts71.61
Price Target97.86 (4.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Yearly Dividend3.22
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)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.32 | ||
| Fwd PE | 19.09 | ||
| P/S | 2.46 | ||
| P/FCF | 21.01 | ||
| P/OCF | 13.5 | ||
| P/B | 6.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.51 |
EPS(TTM)5.09
EY5.46%
EPS(NY)4.89
Fwd EY5.24%
FCF(TTM)4.44
FCFY4.76%
OCF(TTM)6.91
OCFY7.41%
SpS37.84
BVpS14.88
TBVpS-5.77
PEG (NY)N/A
PEG (5Y)11.58
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 | 2.94 |
F-Score5
WACC4.5%
ROIC/WACC2.82
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 5Y3.77%
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 5Y2.05%
EBIT growth 1Y-1.35%
EBIT growth 3Y1.28%
EBIT growth 5Y-0.53%
EBIT Next Year23.17%
EBIT Next 3Y11.26%
EBIT Next 5Y7.55%
FCF growth 1Y10%
FCF growth 3Y7.92%
FCF growth 5Y-1.65%
OCF growth 1Y4.6%
OCF growth 3Y6.35%
OCF growth 5Y1.02%