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 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 has a expensive valuation and it also scores bad on growth.
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's Return On Assets of 7.82% is amongst the best of the industry. NESR outperforms 83.93% of its industry peers.
NESR's Return On Equity of 30.30% is amongst the best of the industry. NESR outperforms 94.64% of its industry peers.
NESR's Return On Invested Capital of 12.69% is amongst the best of the industry. NESR outperforms 96.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NESR is significantly above the industry average of 6.33%.
The last Return On Invested Capital (12.69%) for NESR is above the 3 year average (12.64%), which is a sign of increasing profitability.
| 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
The Profit Margin of NESR (11.91%) is better than 87.50% of its industry peers.
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 92.86% of the companies in the same industry.
In the last couple of years the Operating Margin of NESR has remained more or less at the same level.
NESR has a better Gross Margin (46.72%) than 64.29% of its industry peers.
NESR's Gross Margin has been stable in the last couple of years.
| 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
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.
NESR has a worse debt/assets ratio than last year.
2.2 Solvency
NESR has an Altman-Z score of 2.91. 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 (2.91) is better than 76.79% of its industry peers.
NESR has a debt to FCF ratio of 5.93. This is a neutral value as NESR would need 5.93 years to pay back of all of its debts.
NESR has a Debt to FCF ratio (5.93) which is comparable to the rest of the industry.
NESR has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
NESR has a worse Debt to Equity ratio (1.44) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | 2.91 |
ROIC/WACC2.9
WACC4.37%
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 has a Current ratio of 0.82. This is amonst the worse of the industry: NESR underperforms 83.93% of its industry peers.
A Quick Ratio of 0.51 indicates that NESR may have some problems paying its short term obligations.
The Quick ratio of NESR (0.51) is worse than 75.00% 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%.
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 -1.77% 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
Based on estimates for the next years, NESR will show a small growth in Earnings Per Share. The EPS will grow by 4.92% on average per year.
The Revenue is expected to grow by 2.66% on average over the next years.
EPS Next Y-4.04%
EPS Next 2Y1.34%
EPS Next 3Y3.18%
EPS Next 5Y4.92%
Revenue Next Year0.51%
Revenue Next 2Y1.89%
Revenue Next 3Y2.43%
Revenue Next 5Y2.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.99, the valuation of NESR can be described as rather expensive.
NESR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.31, NESR is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.75 indicates a rather expensive valuation of NESR.
NESR's Price/Forward Earnings is on the same level as the industry average.
NESR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 18.75 |
4.2 Price Multiples
67.86% 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 | 20.64 | ||
| EV/EBITDA | 14.26 |
4.3 Compensation for Growth
The excellent profitability rating of NESR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)11.37
EPS Next 2Y1.34%
EPS Next 3Y3.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.50%, NESR has a reasonable but not impressive dividend return.
NESR's Dividend Yield is a higher than the industry average which is at 3.17.
NESR's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| 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 Years0
Div Non Decr Years0
5.3 Sustainability
NESR pays out 71.81% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NESR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.81%
EPS Next 2Y1.34%
EPS Next 3Y3.18%
FRA:NESR (6/13/2025, 7:00:00 PM)
91.03
+0.3 (+0.33%)
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 Cap234.54B
Analysts71.61
Price Target97.2 (6.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Yearly Dividend3.21
Dividend Growth(5Y)4.03%
DP71.81%
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 18.75 | ||
| P/S | 2.42 | ||
| P/FCF | 20.64 | ||
| P/OCF | 13.26 | ||
| P/B | 6.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.26 |
EPS(TTM)5.06
EY5.56%
EPS(NY)4.86
Fwd EY5.33%
FCF(TTM)4.41
FCFY4.84%
OCF(TTM)6.87
OCFY7.54%
SpS37.61
BVpS14.79
TBVpS-5.73
PEG (NY)N/A
PEG (5Y)11.37
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 | 2.91 |
F-Score5
WACC4.37%
ROIC/WACC2.9
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 5Y4.92%
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 5Y2.66%
EBIT growth 1Y-1.35%
EBIT growth 3Y1.28%
EBIT growth 5Y-0.53%
EBIT Next Year20.28%
EBIT Next 3Y10.36%
EBIT Next 5Y8.69%
FCF growth 1Y10%
FCF growth 3Y7.92%
FCF growth 5Y-1.65%
OCF growth 1Y4.6%
OCF growth 3Y6.35%
OCF growth 5Y1.02%