NOMAD FOODS LTD (NOMD) Stock Fundamental Analysis
NYSE:NOMD - VGG6564A1057 - Common Stock
15.54 USD
+0.15 (+0.97%)
15.54 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NOMD. NOMD was compared to 89 industry peers in the Food Products industry. While NOMD has a great profitability rating, there are quite some concerns on its financial health. NOMD is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NOMD was profitable.
NOMD had a positive operating cash flow in the past year.
In the past 5 years NOMD has always been profitable.
NOMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NOMD has a better Return On Assets (3.52%) than 61.80% of its industry peers.
NOMD's Return On Equity of 8.62% is fine compared to the rest of the industry. NOMD outperforms 62.92% of its industry peers.
NOMD has a better Return On Invested Capital (6.78%) than 67.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOMD is significantly below the industry average of 27.81%.
The last Return On Invested Capital (6.78%) for NOMD is above the 3 year average (6.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 8.62% | ||
| ROIC | 6.78% |
ROA(3y)3.49%
ROA(5y)3.49%
ROE(3y)8.52%
ROE(5y)8.8%
ROIC(3y)6.34%
ROIC(5y)6.26%
1.3 Margins
Looking at the Profit Margin, with a value of 7.32%, NOMD is in the better half of the industry, outperforming 79.78% of the companies in the same industry.
In the last couple of years the Profit Margin of NOMD has grown nicely.
The Operating Margin of NOMD (14.69%) is better than 83.15% of its industry peers.
NOMD's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 29.86%, NOMD is in the better half of the industry, outperforming 67.42% of the companies in the same industry.
NOMD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.69% | ||
| PM (TTM) | 7.32% | ||
| GM | 29.86% |
OM growth 3Y-0.36%
OM growth 5Y0.25%
PM growth 3Y1.8%
PM growth 5Y2.03%
GM growth 3Y1.22%
GM growth 5Y-0.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NOMD is creating some value.
Compared to 1 year ago, NOMD has less shares outstanding
The number of shares outstanding for NOMD has been reduced compared to 5 years ago.
The debt/assets ratio for NOMD is higher compared to a year ago.
2.2 Solvency
NOMD has an Altman-Z score of 1.59. This is a bad value and indicates that NOMD is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.59, NOMD is not doing good in the industry: 60.67% of the companies in the same industry are doing better.
NOMD has a debt to FCF ratio of 7.01. This is a slightly negative value and a sign of low solvency as NOMD would need 7.01 years to pay back of all of its debts.
The Debt to FCF ratio of NOMD (7.01) is better than 68.54% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that NOMD is somewhat dependend on debt financing.
NOMD has a Debt to Equity ratio of 0.81. This is in the lower half of the industry: NOMD underperforms 61.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 1.59 |
ROIC/WACC1
WACC6.76%
2.3 Liquidity
NOMD has a Current Ratio of 1.06. This is a normal value and indicates that NOMD is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.06, NOMD is not doing good in the industry: 73.03% of the companies in the same industry are doing better.
NOMD has a Quick Ratio of 1.06. This is a bad value and indicates that NOMD is not financially healthy enough and could expect problems in meeting its short term obligations.
NOMD's Quick ratio of 0.66 is on the low side compared to the rest of the industry. NOMD is outperformed by 69.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
NOMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.26%, which is quite good.
NOMD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.50% yearly.
NOMD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.82%.
NOMD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.93% yearly.
EPS 1Y (TTM)10.26%
EPS 3Y4.72%
EPS 5Y7.5%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y5.95%
Revenue growth 5Y5.93%
Sales Q2Q%-0.82%
3.2 Future
NOMD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.58% yearly.
NOMD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.25% yearly.
EPS Next Y-2.76%
EPS Next 2Y2.08%
EPS Next 3Y4.18%
EPS Next 5Y4.58%
Revenue Next Year-1.11%
Revenue Next 2Y0.55%
Revenue Next 3Y0.86%
Revenue Next 5Y0.25%
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 decreasing.
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
The Price/Earnings ratio is 7.73, which indicates a rather cheap valuation of NOMD.
88.76% of the companies in the same industry are more expensive than NOMD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.08, NOMD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.19, the valuation of NOMD can be described as very cheap.
NOMD's Price/Forward Earnings ratio is rather cheap when compared to the industry. NOMD is cheaper than 98.88% of the companies in the same industry.
NOMD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 7.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOMD is valued a bit cheaper than 77.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NOMD is valued cheaply inside the industry as 91.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.53 | ||
| EV/EBITDA | 6.96 |
4.3 Compensation for Growth
The decent profitability rating of NOMD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.03
EPS Next 2Y2.08%
EPS Next 3Y4.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.42%, NOMD is a good candidate for dividend investing.
NOMD's Dividend Yield is rather good when compared to the industry average which is at 4.78. NOMD pays more dividend than 82.02% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, NOMD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
5.2 History
NOMD does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NOMD pays out 40.92% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.92%
EPS Next 2Y2.08%
EPS Next 3Y4.18%
15.54
+0.15 (+0.97%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners78.46%
Inst Owner Change-1.12%
Ins Owners18.7%
Ins Owner ChangeN/A
Market Cap2.33B
Analysts85
Price Target21.42 (37.84%)
Short Float %1.28%
Short Ratio1.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
Yearly Dividend0.65
Dividend Growth(5Y)N/A
DP40.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.42%
Min EPS beat(2)-0.88%
Max EPS beat(2)9.72%
EPS beat(4)3
Avg EPS beat(4)4.67%
Min EPS beat(4)-0.88%
Max EPS beat(4)9.72%
EPS beat(8)6
Avg EPS beat(8)4.25%
EPS beat(12)8
Avg EPS beat(12)5%
EPS beat(16)12
Avg EPS beat(16)6.76%
Revenue beat(2)0
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-2.86%
Max Revenue beat(2)-1.31%
Revenue beat(4)0
Avg Revenue beat(4)-2.63%
Min Revenue beat(4)-3.41%
Max Revenue beat(4)-1.31%
Revenue beat(8)0
Avg Revenue beat(8)-2.25%
Revenue beat(12)3
Avg Revenue beat(12)-1.29%
Revenue beat(16)3
Avg Revenue beat(16)-1.44%
PT rev (1m)-14.29%
PT rev (3m)-16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.06%
EPS NY rev (1m)-7.6%
EPS NY rev (3m)-7.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)-1.63%
Revenue NY rev (3m)-1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 7.19 | ||
| P/S | 0.65 | ||
| P/FCF | 6.53 | ||
| P/OCF | 5.17 | ||
| P/B | 0.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.96 |
EPS(TTM)2.01
EY12.93%
EPS(NY)2.16
Fwd EY13.91%
FCF(TTM)2.38
FCFY15.32%
OCF(TTM)3
OCFY19.32%
SpS23.87
BVpS20.29
TBVpS-15.23
PEG (NY)N/A
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 8.62% | ||
| ROCE | 8.6% | ||
| ROIC | 6.78% | ||
| ROICexc | 7.24% | ||
| ROICexgc | 103.11% | ||
| OM | 14.69% | ||
| PM (TTM) | 7.32% | ||
| GM | 29.86% | ||
| FCFM | 9.97% |
ROA(3y)3.49%
ROA(5y)3.49%
ROE(3y)8.52%
ROE(5y)8.8%
ROIC(3y)6.34%
ROIC(5y)6.26%
ROICexc(3y)6.84%
ROICexc(5y)6.75%
ROICexgc(3y)87.11%
ROICexgc(5y)98.01%
ROCE(3y)8.05%
ROCE(5y)7.95%
ROICexcg growth 3Y12.56%
ROICexcg growth 5Y3.41%
ROICexc growth 3Y5.89%
ROICexc growth 5Y3.1%
OM growth 3Y-0.36%
OM growth 5Y0.25%
PM growth 3Y1.8%
PM growth 5Y2.03%
GM growth 3Y1.22%
GM growth 5Y-0.28%
F-Score7
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.01 | ||
| Debt/EBITDA | 3.86 | ||
| Cap/Depr | 82% | ||
| Cap/Sales | 2.61% | ||
| Interest Coverage | 5.03 | ||
| Cash Conversion | 70.4% | ||
| Profit Quality | 136.17% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 1.59 |
F-Score7
WACC6.76%
ROIC/WACC1
Cap/Depr(3y)86.29%
Cap/Depr(5y)91.27%
Cap/Sales(3y)2.66%
Cap/Sales(5y)2.67%
Profit Quality(3y)142.37%
Profit Quality(5y)145.89%
High Growth Momentum
Growth
EPS 1Y (TTM)10.26%
EPS 3Y4.72%
EPS 5Y7.5%
EPS Q2Q%-9.09%
EPS Next Y-2.76%
EPS Next 2Y2.08%
EPS Next 3Y4.18%
EPS Next 5Y4.58%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y5.95%
Revenue growth 5Y5.93%
Sales Q2Q%-0.82%
Revenue Next Year-1.11%
Revenue Next 2Y0.55%
Revenue Next 3Y0.86%
Revenue Next 5Y0.25%
EBIT growth 1Y13.34%
EBIT growth 3Y5.57%
EBIT growth 5Y6.2%
EBIT Next Year22.86%
EBIT Next 3Y9.48%
EBIT Next 5Y3.85%
FCF growth 1Y52.18%
FCF growth 3Y16.07%
FCF growth 5Y5.78%
OCF growth 1Y37.77%
OCF growth 3Y12.44%
OCF growth 5Y6.66%