NOMAD FOODS LTD (NOMD) Stock Fundamental Analysis
USA - NYSE:NOMD - VGG6564A1057 - Common Stock
13.36 USD
-0.31 (-2.27%)
13.62 USD
+0.26 (+1.95%)
Overall NOMD gets a fundamental rating of 5 out of 10. We evaluated NOMD against 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 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.
Each year in the past 5 years NOMD has been profitable.
Each year in the past 5 years NOMD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.52%, NOMD is in line with its industry, outperforming 59.55% of the companies in the same industry.
NOMD has a better Return On Equity (8.62%) than 64.04% of its industry peers.
With a decent Return On Invested Capital value of 6.78%, NOMD is doing good in the industry, outperforming 68.54% of the companies in the same industry.
NOMD had an Average Return On Invested Capital over the past 3 years of 6.34%. This is significantly below the industry average of 28.31%.
The 3 year average ROIC (6.34%) for NOMD is below the current ROIC(6.78%), indicating increased profibility in the last year.
| 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
NOMD's Profit Margin of 7.32% is fine compared to the rest of the industry. NOMD outperforms 79.78% of its industry peers.
In the last couple of years the Profit Margin of NOMD has grown nicely.
NOMD has a better Operating Margin (14.69%) than 83.15% of its industry peers.
NOMD's Operating Margin has been stable in the last couple of years.
NOMD has a Gross Margin of 29.86%. This is in the better half of the industry: NOMD outperforms 67.42% of its industry peers.
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.
The number of shares outstanding for NOMD has been reduced compared to 1 year ago.
The number of shares outstanding for NOMD has been reduced compared to 5 years ago.
NOMD has a worse debt/assets ratio than last year.
2.2 Solvency
NOMD has an Altman-Z score of 1.55. This is a bad value and indicates that NOMD is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.55, NOMD is in line with its industry, outperforming 40.45% of the companies in the same industry.
The Debt to FCF ratio of NOMD is 7.01, which is on the high side as it means it would take NOMD, 7.01 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NOMD (7.01) is better than 69.66% of its industry peers.
NOMD has a Debt/Equity ratio of 0.81. This is a neutral value indicating NOMD is somewhat dependend on debt financing.
NOMD has a worse Debt to Equity ratio (0.81) than 61.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 1.55 |
ROIC/WACC1.03
WACC6.57%
2.3 Liquidity
A Current Ratio of 1.06 indicates that NOMD should not have too much problems paying its short term obligations.
NOMD's Current ratio of 1.06 is on the low side compared to the rest of the industry. NOMD is outperformed by 74.16% of its industry peers.
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 has a worse Quick ratio (0.66) than 70.79% 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.
Looking at the last year, NOMD shows a small growth in Revenue. The Revenue has grown by 1.82% in the last year.
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)1.82%
Revenue growth 3Y5.95%
Revenue growth 5Y5.93%
Sales Q2Q%-0.82%
3.2 Future
Based on estimates for the next years, NOMD will show a small growth in Earnings Per Share. The EPS will grow by 4.60% on average per year.
Based on estimates for the next years, NOMD will show a small growth in Revenue. The Revenue will grow by 0.28% on average per year.
EPS Next Y-2.76%
EPS Next 2Y2.08%
EPS Next 3Y4.18%
EPS Next 5Y4.6%
Revenue Next Year-1.11%
Revenue Next 2Y0.46%
Revenue Next 3Y0.75%
Revenue Next 5Y0.28%
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 6.61, which indicates a rather cheap valuation of NOMD.
95.51% 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 27.38, NOMD is valued rather cheaply.
A Price/Forward Earnings ratio of 6.14 indicates a rather cheap valuation of NOMD.
100.00% of the companies in the same industry are more expensive than NOMD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NOMD to the average of the S&P500 Index (22.86), we can say NOMD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.61 | ||
| Fwd PE | 6.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOMD is valued a bit cheaper than 78.65% of the companies in the same industry.
NOMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NOMD is cheaper than 92.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.57 | ||
| EV/EBITDA | 6.42 |
4.3 Compensation for Growth
NOMD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.88
EPS Next 2Y2.08%
EPS Next 3Y4.18%
5. Dividend
5.1 Amount
NOMD has a Yearly Dividend Yield of 4.97%, which is a nice return.
The stock price of NOMD dropped by -21.60% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 5.08, NOMD pays a better dividend. On top of this NOMD pays more dividend than 85.39% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
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
40.92% of the earnings are spent on dividend by NOMD. This is a bit on the high side, but may be sustainable.
DP40.92%
EPS Next 2Y2.08%
EPS Next 3Y4.18%
13.36
-0.31 (-2.27%)
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 Cap2.01B
Analysts85
Price Target21.42 (60.33%)
Short Float %1.11%
Short Ratio1.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
Yearly Dividend0.66
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)-12.5%
PT rev (3m)-16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.61 | ||
| Fwd PE | 6.14 | ||
| P/S | 0.56 | ||
| P/FCF | 5.57 | ||
| P/OCF | 4.42 | ||
| P/B | 0.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.42 |
EPS(TTM)2.02
EY15.12%
EPS(NY)2.18
Fwd EY16.29%
FCF(TTM)2.4
FCFY17.94%
OCF(TTM)3.02
OCFY22.63%
SpS24.03
BVpS20.42
TBVpS-15.33
PEG (NY)N/A
PEG (5Y)0.88
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 | 1.55 |
F-Score7
WACC6.57%
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-2.76%
EPS Next 2Y2.08%
EPS Next 3Y4.18%
EPS Next 5Y4.6%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y5.95%
Revenue growth 5Y5.93%
Sales Q2Q%-0.82%
Revenue Next Year-1.11%
Revenue Next 2Y0.46%
Revenue Next 3Y0.75%
Revenue Next 5Y0.28%
EBIT growth 1Y13.34%
EBIT growth 3Y5.57%
EBIT growth 5Y6.2%
EBIT Next Year22.86%
EBIT Next 3Y9.48%
EBIT Next 5Y3.88%
FCF growth 1Y52.18%
FCF growth 3Y16.07%
FCF growth 5Y5.78%
OCF growth 1Y37.77%
OCF growth 3Y12.44%
OCF growth 5Y6.66%