NESTLE SA-REG (NESR.DE) Stock Fundamental Analysis
FRA:NESR - Deutsche Boerse Ag - CH0038863350 - Common Stock - Currency: EUR
NESR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 59 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 has a valuation in line with the averages, but it does not seem to be growing. Finally NESR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NESR had positive earnings in the past year.
NESR had a positive operating cash flow in the past year.
Each year in the past 5 years NESR has been profitable.
In the past 5 years NESR always reported a positive cash flow from operatings.
1.2 Ratios
NESR's Return On Assets of 7.92% is amongst the best of the industry. NESR outperforms 83.05% of its industry peers.
NESR has a better Return On Equity (35.75%) than 96.61% of its industry peers.
The Return On Invested Capital of NESR (14.08%) is better than 98.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NESR is significantly above the industry average of 6.58%.
The 3 year average ROIC (12.64%) for NESR is below the current ROIC(14.08%), indicating increased profibility in the last year.
| 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
NESR has a better Profit Margin (11.38%) than 84.75% of its industry peers.
In the last couple of years the Profit Margin of NESR has declined.
NESR's Operating Margin of 16.53% is amongst the best of the industry. NESR outperforms 89.83% 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 66.10% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NESR is creating value.
NESR has less shares outstanding than it did 1 year ago.
NESR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NESR is higher compared to a year ago.
2.2 Solvency
NESR has an Altman-Z score of 2.75. This is not the best score and indicates that NESR is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of NESR (2.75) is better than 71.19% of its industry peers.
The Debt to FCF ratio of NESR is 7.31, which is on the high side as it means it would take NESR, 7.31 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.31, NESR perfoms like the industry average, outperforming 42.37% 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.
NESR's Debt to Equity ratio of 1.63 is on the low side compared to the rest of the industry. NESR is outperformed by 88.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 7.31 | ||
| Altman-Z | 2.75 |
ROIC/WACC3.23
WACC4.36%
2.3 Liquidity
A Current Ratio of 0.71 indicates that NESR may have some problems paying its short term obligations.
The Current ratio of NESR (0.71) is worse than 83.05% of its industry peers.
A Quick Ratio of 0.41 indicates that NESR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.41, NESR is doing worse than 81.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
NESR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.73%.
NESR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.58% yearly.
The Revenue has decreased by -1.32% in the past year.
Measured over the past years, NESR shows a decrease in Revenue. The Revenue has been decreasing by -0.26% on average per year.
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
NESR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.47% yearly.
Based on estimates for the next years, NESR will show a small growth in Revenue. The Revenue will grow by 2.00% on average per year.
EPS Next Y-4.04%
EPS Next 2Y1.34%
EPS Next 3Y3.18%
EPS Next 5Y5.47%
Revenue Next Year-1.11%
Revenue Next 2Y0.74%
Revenue Next 3Y1.61%
Revenue Next 5Y2%
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
The Price/Earnings ratio is 16.40, which indicates a correct valuation of NESR.
The rest of the industry has a similar Price/Earnings ratio as NESR.
Compared to an average S&P500 Price/Earnings ratio of 26.76, NESR is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.52 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 rather cheap valuation when compared to the S&P500 average which is at 34.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.4 | ||
| Fwd PE | 15.52 |
4.2 Price Multiples
67.80% of the companies in the same industry are cheaper than NESR, based on the Enterprise Value to EBITDA ratio.
NESR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.84 | ||
| EV/EBITDA | 13.74 |
4.3 Compensation for Growth
The excellent profitability rating of NESR 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
NESR has a Yearly Dividend Yield of 4.23%, which is a nice return.
NESR's Dividend Yield is a higher than the industry average which is at 3.36.
Compared to an average S&P500 Dividend Yield of 2.36, NESR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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
76.17% of the earnings are spent on dividend by NESR. This is not a sustainable payout ratio.
NESR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP76.17%
EPS Next 2Y1.34%
EPS Next 3Y3.18%
FRA:NESR (8/21/2025, 7:00:00 PM)
80.87
-0.09 (-0.11%)
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 Cap208.36B
Analysts72
Price Target94.25 (16.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
Yearly Dividend3.2
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)-2.68%
PT rev (3m)-3.69%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.61%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.4 | ||
| Fwd PE | 15.52 | ||
| P/S | 2.16 | ||
| P/FCF | 21.84 | ||
| P/OCF | 13.44 | ||
| P/B | 6.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.74 |
EPS(TTM)4.93
EY6.1%
EPS(NY)5.21
Fwd EY6.44%
FCF(TTM)3.7
FCFY4.58%
OCF(TTM)6.02
OCFY7.44%
SpS37.37
BVpS11.9
TBVpS-6.73
PEG (NY)N/A
PEG (5Y)10.37
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 | 2.75 |
F-Score6
WACC4.36%
ROIC/WACC3.23
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-4.04%
EPS Next 2Y1.34%
EPS Next 3Y3.18%
EPS Next 5Y5.47%
Revenue 1Y (TTM)-1.32%
Revenue growth 3Y1.61%
Revenue growth 5Y-0.26%
Sales Q2Q%-1.81%
Revenue Next Year-1.11%
Revenue Next 2Y0.74%
Revenue Next 3Y1.61%
Revenue Next 5Y2%
EBIT growth 1Y-5.41%
EBIT growth 3Y1.28%
EBIT growth 5Y-0.53%
EBIT Next Year20.28%
EBIT Next 3Y10.36%
EBIT Next 5Y8.22%
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%