1.45%
-5.21%
-15.83%
-22.21%
-18.94%
-0.57%
-26.45%
AI Spotlight on ABF
Company Description
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 sells grocery products, including hot beverages, sugar and sweeteners, vegetable oils, balsamic vinegars, bread and baked goods, cereals, ethnic foods, and meat products to retail, wholesale, and foodservice businesses.
The Sugar segment is involved in growing, processing, and selling sugar beet and sugar cane to industrial users.The Agriculture segment manufactures and sells animal feeds; and provides other products and services for the agriculture sector.The Ingredients segment manufactures bakers' yeast, bakery ingredients, enzymes, lipids, yeast extracts, and cereal specialties.
The Retail segment is involved in buying and merchandising clothing and accessories through the Primark and Penneys retail chains, which offer womenswear, menswear, children's wear, footwear, accessories, homeware, and skincare products.The company was founded in 1935 and is headquartered in London, the United Kingdom.Associated British Foods plc is a subsidiary of Wittington Investments Limited.
Market Data
| Last Price | 1930 |
| Change Percentage | 1.45% |
| Open | 1904 |
| Previous Close | 1902.5 |
| Market Cap ( Millions) | 13977 |
| Volume | 705859 |
| Year High | 2765 |
| Year Low | 1862 |
| M A 50 | 2073.62 |
| M A 200 | 2354.83 |
Financial Ratios
| FCF Yield | 12.68% |
| Dividend Yield | 3.26% |
| ROE | 13.07% |
| Debt / Equity | 32.88% |
| Net Debt / EBIDTA | 86.01% |
| Price To Book | 1.28 |
| Price Earnings Ratio | 9.87 |
| Price To FCF | 7.89 |
| Price To sales | 0.7 |
| EV / EBITDA | 5.96 |
News
- Jan -24 - Associated British Foods reports 2.2% decline in 16-week group revenue
- Jan -23 - Factories suffer fastest slump in orders since Covid hit
- Jan -23 - Is Now An Opportune Moment To Examine Associated British Foods plc (LON:ABF)?
- Jan -23 - Primark cuts sales targets due to weak UK shopper demand
- Jan -07 - Associated British Foods And 2 Other Leading UK Dividend Stocks
- Dec -23 - Is Weakness In Associated British Foods plc (LON:ABF) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects?
- Dec -23 - Top trending global stocks of 2024
- Dec -09 - Top UK Dividend Stocks To Consider In December 2024
- Dec -06 - Associated British Foods' (LON:ABF) Shareholders Will Receive A Bigger Dividend Than Last Year
- Nov -08 - Top 3 UK Dividend Stocks For November 2024
- Nov -08 - Associated British Foods' (LON:ABF) Dividend Will Be Increased To £0.693
- Nov -06 - Primark reports increase in sales and profit for 2024
- Nov -05 - Primark, Asos See Positive Signs Ahead
- Nov -05 - Primark boss says weight of Budget tax rises ‘falling on high street’
- Nov -05 - Primark Owner AB Foods Profit Rises Ahead of Expectations
- Sep -25 - Associated British Foods (LSE:ABF) Appoints Loraine Woodhouse, Reports 57.2% Earnings Growth and Digital Gains
- Sep -13 - Earnings grew faster than the 7.5% CAGR delivered to Associated British Foods (LON:ABF) shareholders over the last three years
- Sep -06 - ABF buys Australia bakery business The Artisanal Group
- Sep -05 - AB Foods shares slip as group says "challenging" weather hit Primark sales
- Sep -05 - Primark Owner AB Foods Says Bad Weather Hurt Summer Sales
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Retail
Expected Growth : 4.5 %
What the company do ?
Associated British Foods plc's Retail segment includes Primark, a leading fast-fashion retailer operating in Europe and North America, offering trendy clothing at affordable prices.
Why we expect these perspectives ?
Associated British Foods plc's Retail segment growth of 4.5% is driven by increasing consumer spending, expansion of Primark stores in Europe and the US, and a strong online presence. Additionally, the company's focus on offering high-quality products at affordable prices, effective supply chain management, and strategic marketing initiatives contribute to its growth momentum.
Segment n°2 -> Grocery
Expected Growth : 4.8 %
What the company do ?
Associated British Foods plc's Grocery segment includes brands like Kingsmill bread, Twinings tea, and Ovaltine, offering a range of food products to consumers.
Why we expect these perspectives ?
Associated British Foods plc's Grocery segment growth of 4.8% is driven by increasing demand for premium and healthy food options, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, product diversification, and cost savings initiatives have contributed to the growth.
Segment n°3 -> Sugar
Expected Growth : 3.2 %
What the company do ?
Sugar from Associated British Foods plc refers to the sugar production business of the company, which is a leading global sugar producer and supplier.
Why we expect these perspectives ?
Associated British Foods plc's sugar segment growth of 3.2% is driven by increasing demand for low-calorie sweeteners, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on sustainability and reducing carbon footprint is attracting environmentally conscious consumers, contributing to the growth.
Segment n°4 -> Ingredients
Expected Growth : 4.2 %
What the company do ?
Associated British Foods plc's ingredients segment includes sugar, yeast, and bakery ingredients, as well as specialty ingredients for food, pharmaceutical, and industrial applications.
Why we expect these perspectives ?
Associated British Foods plc's 4.2% growth in Ingredients segment is driven by increasing demand for specialty ingredients, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, particularly in sugar reduction and plant-based products, has contributed to growth. Furthermore, cost savings initiatives and operational efficiencies have also supported the segment's growth.
Segment n°5 -> Agriculture
Expected Growth : 3.8 %
What the company do ?
Agriculture segment of Associated British Foods plc provides inputs and services to farmers, manufacturers, and suppliers, including sugar beet, animal feed, and biofuels.
Why we expect these perspectives ?
Associated British Foods plc's Agriculture segment growth of 3.8% is driven by increasing demand for high-quality animal feed, expansion into emerging markets, and strategic acquisitions. Additionally, investments in research and development have improved crop yields and disease resistance, further boosting growth.
Associated British Foods Plc Products
| Product Range | What is it ? |
|---|---|
| Allied Bakeries | Manufacturer of bread and bakery products, including Kingsmill bread and Sunblest bread |
| AB Sugar | Producer of sugar for industrial and consumer markets |
| AB Agri | Provider of animal feed and nutrition products |
| Primark | Retailer of clothing, homeware, and accessories |
| AB Mauri | Supplier of yeast and bakery ingredients |
| ABF Ingredients | Manufacturer of specialty ingredients for food and non-food applications |
| Ovaltine | Manufacturer of Ovaltine malted milk drink |
Associated British Foods plc's Porter Forces
Threat Of Substitutes
Associated British Foods plc has a moderate threat of substitutes due to the presence of alternative products in the market, such as organic and specialty food products.
Bargaining Power Of Customers
The bargaining power of customers is low due to the company's strong brand presence and diversified product portfolio, making it difficult for customers to negotiate prices.
Bargaining Power Of Suppliers
The bargaining power of suppliers is moderate due to the company's dependence on a few large suppliers for raw materials, but the company's scale and diversification mitigate this risk.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the food manufacturing industry, including significant capital requirements and regulatory hurdles.
Intensity Of Rivalry
The intensity of rivalry is high due to the competitive nature of the food manufacturing industry, with many established players competing for market share.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 7.48% |
| Debt Cost | 4.43% |
| Equity Weight | 92.52% |
| Equity Cost | 9.05% |
| WACC | 8.71% |
| Leverage | 8.09% |
Associated British Foods plc : Quality Control
Associated British Foods plc passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| LOUP.PA | L.D.C. S.A. produces, processes, markets, and sells poultry and processed products in France and internationally. It is involved in hatching, rearing, breeding, and slaughtering of pork, beef, rabbit, veal, and … |
| CWK.L | Cranswick plc manufactures and supplies food products to grocery retailers, food service sector, and other food producers in the United Kingdom, Continental Europe, and internationally. The company offers fresh pork, … |
| NESN.SW | 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 … |
| IMB.L | Imperial Brands PLC, together with its subsidiaries, manufactures, imports, markets, and sells tobacco and tobacco-related products in Europe, Americas, Africa, Asia, and Australasia. It offers a range of cigarettes, fine … |
| 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 … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Imperial Brands
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1-Year Total Return ->
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Cranswick
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
Nestle
A-Score
1-Year Total Return ->
6
