NOMAD FOODS LTD (NOMD) Stock Fundamental Analysis
USA - NYSE:NOMD - VGG6564A1057 - Common Stock
12.14 USD
-0.35 (-2.8%)
12.19 USD
+0.05 (+0.41%)
Overall NOMD gets a fundamental rating of 5 out of 10. We evaluated NOMD against 87 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 cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
NOMD had positive earnings in the past year.
In the past year NOMD had a positive cash flow from operations.
In the past 5 years NOMD has always been profitable.
In the past 5 years NOMD always reported a positive cash flow from operatings.
1.2 Ratios
NOMD has a Return On Assets (3.32%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.25%, NOMD is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
NOMD has a better Return On Invested Capital (6.67%) than 71.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOMD is significantly below the industry average of 28.35%.
The 3 year average ROIC (6.34%) for NOMD is below the current ROIC(6.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 8.25% | ||
| ROIC | 6.67% |
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
The Profit Margin of NOMD (6.89%) is better than 79.31% of its industry peers.
In the last couple of years the Profit Margin of NOMD has grown nicely.
NOMD's Operating Margin of 14.36% is amongst the best of the industry. NOMD outperforms 82.76% 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 29.06%, NOMD is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
In the last couple of years the Gross Margin of NOMD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.36% | ||
| PM (TTM) | 6.89% | ||
| GM | 29.06% |
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
Compared to 5 years ago, NOMD has less shares outstanding
NOMD has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that NOMD is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.51, NOMD is not doing good in the industry: 60.92% of the companies in the same industry are doing better.
The Debt to FCF ratio of NOMD is 5.73, which is a neutral value as it means it would take NOMD, 5.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.73, NOMD is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
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 63.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.73 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.03
WACC6.46%
2.3 Liquidity
A Current Ratio of 1.02 indicates that NOMD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.02, NOMD is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
A Quick Ratio of 0.63 indicates that NOMD may have some problems paying its short term obligations.
The Quick ratio of NOMD (0.63) is worse than 71.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.63 |
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 0.29%.
Measured over the past years, NOMD shows a small growth in Revenue. The Revenue has been growing by 5.93% on average per year.
EPS 1Y (TTM)10.26%
EPS 3Y4.72%
EPS 5Y7.5%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y5.95%
Revenue growth 5Y5.93%
Sales Q2Q%-0.82%
3.2 Future
The Earnings Per Share is expected to grow by 2.88% on average over the next years.
The Revenue is expected to decrease by -0.18% on average over the next years.
EPS Next Y-4.69%
EPS Next 2Y0.99%
EPS Next 3Y2.88%
EPS Next 5Y2.88%
Revenue Next Year-1.33%
Revenue Next 2Y0.47%
Revenue Next 3Y0.6%
Revenue Next 5Y-0.18%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.10, which indicates a rather cheap valuation of NOMD.
Based on the Price/Earnings ratio, NOMD is valued cheaper than 94.25% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.02. NOMD is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 5.78, the valuation of NOMD can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOMD indicates a rather cheap valuation: NOMD is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, NOMD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.1 | ||
| Fwd PE | 5.78 |
4.2 Price Multiples
NOMD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NOMD is cheaper than 80.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NOMD is valued cheaper than 93.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.3 | ||
| EV/EBITDA | 6.3 |
4.3 Compensation for Growth
The decent profitability rating of NOMD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y0.99%
EPS Next 3Y2.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.44%, NOMD is a good candidate for dividend investing.
In the last 3 months the price of NOMD has falen by -30.83%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.10, NOMD pays a better dividend. On top of this NOMD pays more dividend than 86.21% of the companies listed in the same industry.
NOMD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.44% |
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
43.74% of the earnings are spent on dividend by NOMD. This is a bit on the high side, but may be sustainable.
DP43.74%
EPS Next 2Y0.99%
EPS Next 3Y2.88%
12.14
-0.35 (-2.8%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners79.19%
Inst Owner Change0.55%
Ins Owners18.99%
Ins Owner ChangeN/A
Market Cap1.82B
Analysts85
Price Target20.74 (70.84%)
Short Float %0.9%
Short Ratio0.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.44% |
Yearly Dividend0.65
Dividend Growth(5Y)N/A
DP43.74%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.03%
Min EPS beat(2)-0.88%
Max EPS beat(2)2.93%
EPS beat(4)3
Avg EPS beat(4)4.46%
Min EPS beat(4)-0.88%
Max EPS beat(4)9.72%
EPS beat(8)6
Avg EPS beat(8)3.79%
EPS beat(12)9
Avg EPS beat(12)5.81%
EPS beat(16)12
Avg EPS beat(16)5.47%
Revenue beat(2)0
Avg Revenue beat(2)-3.36%
Min Revenue beat(2)-3.85%
Max Revenue beat(2)-2.86%
Revenue beat(4)0
Avg Revenue beat(4)-2.86%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)-1.31%
Revenue beat(8)0
Avg Revenue beat(8)-2.56%
Revenue beat(12)2
Avg Revenue beat(12)-1.63%
Revenue beat(16)3
Avg Revenue beat(16)-1.59%
PT rev (1m)-3.17%
PT rev (3m)-18.67%
EPS NQ rev (1m)-5.68%
EPS NQ rev (3m)-23.53%
EPS NY rev (1m)-1.98%
EPS NY rev (3m)-9.44%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-3.95%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.1 | ||
| Fwd PE | 5.78 | ||
| P/S | 0.51 | ||
| P/FCF | 4.3 | ||
| P/OCF | 3.55 | ||
| P/B | 0.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.3 |
EPS(TTM)1.99
EY16.39%
EPS(NY)2.1
Fwd EY17.3%
FCF(TTM)2.82
FCFY23.26%
OCF(TTM)3.42
OCFY28.18%
SpS23.64
BVpS19.74
TBVpS-15.52
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 8.25% | ||
| ROCE | 8.46% | ||
| ROIC | 6.67% | ||
| ROICexc | 7.03% | ||
| ROICexgc | 94.63% | ||
| OM | 14.36% | ||
| PM (TTM) | 6.89% | ||
| GM | 29.06% | ||
| FCFM | 11.95% |
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-Score8
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.73 | ||
| Debt/EBITDA | 3.83 | ||
| Cap/Depr | 76.81% | ||
| Cap/Sales | 2.52% | ||
| Interest Coverage | 4.28 | ||
| Cash Conversion | 82.02% | ||
| Profit Quality | 173.43% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.51 |
F-Score8
WACC6.46%
ROIC/WACC1.03
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-4.69%
EPS Next 2Y0.99%
EPS Next 3Y2.88%
EPS Next 5Y2.88%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y5.95%
Revenue growth 5Y5.93%
Sales Q2Q%-0.82%
Revenue Next Year-1.33%
Revenue Next 2Y0.47%
Revenue Next 3Y0.6%
Revenue Next 5Y-0.18%
EBIT growth 1Y8.57%
EBIT growth 3Y5.57%
EBIT growth 5Y6.2%
EBIT Next Year15.44%
EBIT Next 3Y6.07%
EBIT Next 5Y3.13%
FCF growth 1Y25.57%
FCF growth 3Y16.07%
FCF growth 5Y5.78%
OCF growth 1Y17.76%
OCF growth 3Y12.44%
OCF growth 5Y6.66%