0.51%
5.07%
-4.54%
-11.28%
-20.55%
-33.93%
-26.96%
AI Spotlight on NESN
Company Description
Nestlé S.A., together with its subsidiaries, operates as a food and beverage company.The company operates through Zone Europe, Middle East and North Africa; Zone Americas; and Zone Asia, Oceania and sub-Saharan Africa segments.It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Nestle L'atelier, Nestle Toll House, Milkybar, Smarties, Quality Street, Aero, Garoto, Orion, and Cailler brands.
The company also provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, Hot Pockets, Stouffer's, Thomy, Jacks, TombStone, Herta, Buitoni, DiGiorno, and Lean Cuisine brands; dairy products under the Carnation, Nido, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands.In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Sjora, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Peptamen, Resource, Optifast, and Nutren Junior brands; ice cream products under the Dreyer's, Mövenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands.The company was founded in 1866 and is headquartered in Vevey, Switzerland.
Market Data
| Last Price | 78.68 |
| Change Percentage | 0.51% |
| Open | 78.38 |
| Previous Close | 78.28 |
| Market Cap ( Millions) | 202274 |
| Volume | 3934522 |
| Year High | 100.56 |
| Year Low | 72.82 |
| M A 50 | 75.14 |
| M A 200 | 85.69 |
Financial Ratios
| FCF Yield | 5.48% |
| Dividend Yield | 3.81% |
| ROE | 32.67% |
| Debt / Equity | 200.47% |
| Net Debt / EBIDTA | 334.72% |
| Price To Book | 6.26 |
| Price Earnings Ratio | 18.35 |
| Price To FCF | 18.24 |
| Price To sales | 2.2 |
| EV / EBITDA | 14.45 |
News
- Jan -29 - Nestlé to invest $1bn to expand Mexico production
- Jan -29 - Nestlé to stop selling vegan KitKat
- Jan -29 - Nestle expands US manufacturing footprint with new $675m Arizona site
- Jan -29 - Nestle to invest $1 billion in Mexico over three years, president says
- Jan -28 - Tussling over targets: corporates’ ESG changes spark debate
- Jan -23 - Nestlé reveals investment in AI at Australian KitKat factory
- Jan -16 - The Weekly Sip: Nescafé bets big on cold coffee | Curaleaf cracks open THC seltzer
- Jan -13 - Nestlé S.A. (NSRGY) Slid on a Softer Global Consumer Demand
- Jan -02 - GLP-1 drug use cuts grocery spending by 6%, study finds
- Dec -27 - ASML Holding N.V. (ASML) Fell Due to Investors’ Concerns
- Dec -23 - The top 24 news stories on Just Food in 2024
- Dec -23 - The top 24 news stories on Just Drinks in 2024
- Dec -22 - Is Nestlé S.A. (NSRGY) the Best Cookies and Crackers Stock to Buy Now?
- Dec -20 - Nestle stock is too cheap, says major investor
- Dec -20 - Nestle Investor Says Stock Too Cheap After Worst Year on Record
- Dec -18 - Nestlé’s GLP-1 push takes in protein shots
- Dec -18 - Nestlé‘s launches drink that suppresses hunger, promotes GLP-1 production
- Dec -18 - Nestlé launches drink that suppresses hunger, promotes GLP-1 production
- Dec -18 - ‘Hunger-killing’ protein drinks to battle Ozempic-style jabs
- Dec -17 - Nestlé ‘should cease production at France water site’, says report
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Powdered and Liquid Beverages
Expected Growth : 2.8 %
What the company do ?
Powdered and Liquid Beverages from Nestlé S.A. includes coffee, tea, and chocolate beverages, such as Nescafé, Nespresso, and Milo, offering a range of hot and cold drinks.
Why we expect these perspectives ?
Nestlé's Powdered and Liquid Beverages segment growth of 2.8% is driven by increasing demand for convenient and healthy beverages, particularly in emerging markets. Strong brand recognition, innovative product offerings, and strategic partnerships also contribute to growth. Additionally, the segment benefits from Nestlé's commitment to sustainability and digitalization, enhancing customer engagement and operational efficiency.
Segment n°2 -> PetCare
Expected Growth : 3.2 %
What the company do ?
PetCare from Nestlé S.A. is a global leading manufacturer of pet food and treats, offering a range of brands including Purina, Friskies, and Beneful.
Why we expect these perspectives ?
PetCare's 3.2% growth is driven by increasing pet humanization, premiumization, and e-commerce adoption. Rising demand for natural and organic pet food, expansion in emerging markets, and strategic acquisitions also contribute to growth. Furthermore, Nestlé's strong brand portfolio, including Purina and Friskies, and investments in digital marketing and innovation support the segment's growth momentum.
Segment n°3 -> Nutrition and Health Science
Expected Growth : 3.5 %
What the company do ?
Nutrition and Health Science from Nestlé S.A. is a research-based segment that develops and applies scientific knowledge to improve human health and well-being through nutrition.
Why we expect these perspectives ?
Nestlé S.A.'s Nutrition and Health Science segment growth of 3.5% is driven by increasing consumer demand for personalized nutrition, rising awareness of preventative healthcare, and growing popularity of e-commerce channels. Additionally, the segment benefits from Nestlé's research and development in nutritional science, strategic acquisitions, and expansion into emerging markets.
Segment n°4 -> Prepared Dishes and Cooking Aids
Expected Growth : 2.5 %
What the company do ?
Prepared Dishes and Cooking Aids from Nestlé S.A. offer a range of convenient, easy-to-prepare meals and cooking solutions for busy lifestyles.
Why we expect these perspectives ?
Nestlé's Prepared Dishes and Cooking Aids segment growth of 2.5% is driven by increasing demand for convenient meal solutions, rising popularity of e-commerce channels, and strategic product innovations catering to health-conscious consumers. Additionally, expanding distribution networks and effective marketing campaigns contribute to the segment's growth.
Segment n°5 -> Milk Products and Ice Cream
Expected Growth : 2.2 %
What the company do ?
Nestlé S.A.'s Milk Products and Ice Cream segment offers a range of milk-based products, including ice cream, yogurt, and milkshakes, under brands like Nesquik and Mövenpick.
Why we expect these perspectives ?
Nestlé S.A.'s Milk Products and Ice Cream segment growth of 2.2% is driven by increasing demand for premium and organic products, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, such as vegan and low-sugar offerings, has contributed to the growth.
Segment n°6 -> Confectionery
Expected Growth : 2.9 %
What the company do ?
Nestlé Confectionery is a segment of Nestlé S.A. that produces and distributes a wide range of chocolate, sweets, and baked goods globally.
Why we expect these perspectives ?
Nestlé's confectionery segment growth of 2.9% is driven by increasing demand for premium and healthier products, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, digital marketing, and e-commerce platforms has contributed to the growth. Furthermore, the segment has benefited from the trend towards indulgence and comfort food during the pandemic.
Segment n°7 -> Water
Expected Growth : 3.1 %
What the company do ?
Nestle Water is a brand of bottled water owned by Nestle S.A., sourced from natural springs and underground sources, offering a healthy and refreshing beverage option.
Why we expect these perspectives ?
Nestlé's water segment growth of 3.1% is driven by increasing consumer demand for healthy beverages, premiumization of bottled water, and expansion in emerging markets. Additionally, the company's focus on sustainability and eco-friendly packaging resonates with environmentally conscious consumers, contributing to the segment's growth.
Nestlé S.A. Products
| Product Range | What is it ? |
|---|---|
| Coffee and Beverages | Nestlé offers a wide range of coffee and beverages, including Nescafé, Nespresso, and Dolce Gusto. |
| Milk Products and Ice Cream | Nestlé's milk products and ice cream include brands like Nido, Carnation, and Häagen-Dazs. |
| Nutrition and Health Science | Nestlé's nutrition and health science products include infant nutrition, healthcare nutrition, and performance nutrition. |
| Confectionery | Nestlé's confectionery products include brands like KitKat, Crunch, and Quality Street. |
| Culinary and Frozen Foods | Nestlé's culinary and frozen foods include brands like Stouffer's, Lean Cuisine, and Hot Pockets. |
| Purina PetCare | Nestlé's Purina PetCare products include pet food and treats for dogs, cats, and other pets. |
| Water and Beverages | Nestlé's water and beverages include brands like Nestlé Waters, Poland Spring, and Acqua Panna. |
Nestlé S.A.'s Porter Forces
Threat Of Substitutes
Nestlé S.A. operates in a industry with moderate threat of substitutes. While there are some substitutes available, they are not a significant threat to the company's market share.
Bargaining Power Of Customers
Nestlé S.A. has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand portfolio and wide distribution network make it difficult for customers to negotiate prices.
Bargaining Power Of Suppliers
Nestlé S.A. has a large number of suppliers, which reduces the bargaining power of individual suppliers. However, some suppliers, such as dairy farmers, may have some bargaining power due to the importance of their products to the company's operations.
Threat Of New Entrants
The food and beverage industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to compete with established companies like Nestlé S.A.
Intensity Of Rivalry
The food and beverage industry is highly competitive, with many established companies competing for market share. Nestlé S.A. faces intense competition from companies like Unilever, PepsiCo, and Kraft Heinz.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 60.72% |
| Debt Cost | 3.95% |
| Equity Weight | 39.28% |
| Equity Cost | 5.41% |
| WACC | 4.52% |
| Leverage | 154.55% |
Nestlé S.A. : Quality Control
Nestlé S.A. passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| ABF.L | Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide. It operates through five segments: Grocery, Sugar, Agriculture, Ingredients, and Retail. The Grocery segment manufactures and … |
| AAK.ST | AAK AB (publ.) develops and sells plant-based oils and fats worldwide. It offers food ingredients for the bakery, dairy, foodservice, and special nutrition industries; chocolate and confectionery, including cocoa butter … |
| KHC | The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally. Its products include condiments and … |
| BN.PA | Danone S.A. operates in the food and beverage industry in Europe, Noram, Latin America, the Asia Pacific, Africa, and the Middle East. The company operates through three segments: Essential Dairy … |
| CCEP.L | Coca-Cola Europacific Partners PLC, together with its subsidiaries, produces, distributes, and sells a range of non-alcoholic ready to drink beverages. The company offers flavours, mixers, and energy drinks; soft drinks, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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AAK
A-Score
1-Year Total Return ->
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Kraft Heinz
A-Score
1-Year Total Return ->
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Danone
A-Score
1-Year Total Return ->
4
ABF
A-Score
1-Year Total Return ->
5
Coca-Cola Europacific Partners
A-Score
1-Year Total Return ->
6
