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1. Company Snapshot

1.a. Company Description

Nomad Foods Limited manufactures, markets, and distributes frozen food products in the United Kingdom, Italy, Germany, France, Sweden, Austria, Norway, Spain, and rest of Europe.The company offers fish products, including fish fingers, coated fish, and natural fish; vegetables, such as peas and spinach; and poultry and meat products comprising nuggets, grills, and burgers.It also provides meals products that include ready to cook noodles, pasta, lasagna, pancakes, and other ready-made meals; ice-creams; and other products, such as soups, pizzas, bakery goods, and meat substitutes.


The company sells its products to supermarkets and food retail chains directly or through distribution arrangements primarily under the Birds Eye, Iglo, Findus, Goodfella's, La Cocinera, Ledo, Frikom, San Marco, and Aunt Bessie's brands.Nomad Foods Limited is headquartered in Feltham, the United Kingdom.

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1.b. Last Insights on NOMD

Nomad Foods' recent performance was negatively impacted by declining revenue and profitability. The company's Q3 2025 revenue decreased 2.2% to €752 million, with organic revenue declining 1.6% and a volume decline of 0.5%. Adjusted EBITDA decreased 14.2% to €143 million, and adjusted EPS decreased 10.9% to €0.49. Additionally, Paradice Investment Management LLC exited its $20 million stake in the company, potentially signaling a loss of investor confidence. However, the company declared a 13% higher quarterly dividend and announced a refinancing of its senior secured term loans.

1.c. Company Highlights

2. Nomad Foods' Q3 2025 Earnings: A Resilient Performance

Nomad Foods reported a robust third-quarter 2025 earnings, with actual EPS coming in at $0.57, beating analyst estimates of $0.4702. Revenue growth was in line with expectations, and the company's EBITDA margin remained stable. The company's revenue growth management capabilities have improved, allowing for more surgical pricing approaches. The top-line growth is expected to be between -1.5% and -2% in Q4 2025. The company's sell-out trends have shown improvement, with year-to-date growth of 0.2% and last 3-month volume growth of 0.7%.

Publication Date: Nov -13

📋 Highlights
  • Medium-Term Efficiency Target:: EUR 200 million multi-year efficiency program on track, with savings driven by supply chain and overhead reductions, expected to offset inflation and support EBITDA growth by 2026.
  • Pricing Strategy in 2026:: Plans to implement pricing actions in Q1 2026, leveraging improved Revenue Growth Management (RGM) to balance price increases with market share momentum.
  • 2025 Guidance:: Top-line growth guidance revised to -1.5% to -2% for Q4, but year-to-date volume growth of 0.2% and 0.7% in last 3 months indicates improving sell-out trends.
  • Capital Allocation Priorities:: $150 million refinancing funds allocated to share repurchases, reflecting confidence in intrinsic value exceeding current market valuation.
  • Private Label Competition:: Emphasis on differentiating branded products through renovation, advertising, and pricing to counter private label pressure and maintain relevance.

Pricing Strategies and Cost-Saving Initiatives

The company discussed its pricing strategies, with CFO Ruben Baldew noting that while inflation is around single digits, they plan to take pricing actions in Q1 2026. The company aims to balance pricing with share momentum, leveraging its cost competitiveness program to offset inflation. The EUR 200 million multi-year efficiency target is on track, with savings primarily coming from supply chain and overheads. The company has already seen some savings in 2025 and expects further benefits in 2026.

Private Label Trends and Competitive Landscape

Jason English, Head of Investor Relations, noted that Nomad Foods must focus on delivering additional value compared to private label through renovation, A&P, and pricing. English emphasized that their job as branded players is to bring value, and if they don't, they risk losing relevance. The company is focusing on cost savings, particularly in its supply base and factory footprint, to offset inflation and supply chain impacts.

Valuation and Capital Allocation

With a P/E Ratio of 7.52 and an EV/EBITDA of 6.89, Nomad Foods appears to be undervalued. The company's Dividend Yield stands at 5.61%, making it an attractive option for income investors. The company prioritizes supporting the dividend and share repurchases, with the recent refinancing raising an extra $150 million, which will be used for buybacks. Analysts estimate next year's revenue growth at 2.0%, indicating a positive outlook for the company.

Outlook and Guidance

The implied fourth-quarter guidance assumes an acceleration on a 2-year basis. The company has a buffer against downside risk due to a relatively weak comparator in 2023. Recent sell-out growth has been positive, with a 0.2% increase in volume and 0.5% growth in the last 3 months. The company expects to deliver positive EBITDA growth in 2026, driven by its cost-saving initiatives and pricing actions.

3. NewsRoom

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Campbell & CO Investment Adviser LLC Trims Stake in Nomad Foods Limited $NOMD

Nov -18

Source: defenseworld.net

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2 Outstanding Dividend Stocks That Are Too Cheap to Ignore

Nov -15

Source: fool.com

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Acadian Asset Management LLC Has $4.85 Million Stock Holdings in Nomad Foods Limited $NOMD

Nov -14

Source: defenseworld.net

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Nomad Foods Limited (NOMD) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Nomad Foods (NOMD) Surpasses Q3 Earnings and Revenue Estimates

Nov -06

Source: zacks.com

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Nomad Foods Reports Third Quarter 2025 Financial Results

Nov -06

Source: prnewswire.com

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Nomad Foods Declares Quarterly Dividend

Oct -30

Source: prnewswire.com

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Nomad Foods Announces Pricing of Term Loans

Oct -30

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Frozen Foods

Expected Growth: 4.5%

Growing demand for convenient and nutritious meals, increasing popularity of online grocery shopping, and expanding product portfolios of Nomad Foods Limited's brands, such as Birds Eye, Findus, and Iglo, drive the frozen foods market growth.

7. Detailed Products

Frozen Foods

Nomad Foods offers a wide range of frozen foods, including vegetables, fruits, and prepared meals.

Birds Eye Frozen Peas

High-quality frozen peas, perfect for adding to a variety of dishes, from stir-fries to casseroles.

Iglo Frozen Fish

Sustainable and responsibly sourced frozen fish, available in a range of species and preparation methods.

Findus Frozen Meals

Delicious and convenient frozen meals, including pasta dishes, pizzas, and more.

La Cocinera Frozen Desserts

Artisanal frozen desserts, including ice cream, sorbet, and frozen yogurt.

8. Nomad Foods Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Nomad Foods Limited operates in the frozen food industry, where substitutes are available in the form of fresh food and other meal solutions. However, the convenience and affordability of frozen food make it a preferred choice for many consumers, reducing the threat of substitutes.

Bargaining Power Of Customers

Nomad Foods Limited sells its products to a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are widely available in retail stores, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Nomad Foods Limited relies on a network of suppliers for raw materials and ingredients. While the company has some bargaining power due to its size, suppliers may still have some negotiating power, particularly if they are the sole suppliers of certain ingredients.

Threat Of New Entrants

The frozen food industry has high barriers to entry, including significant capital requirements and regulatory hurdles. Additionally, Nomad Foods Limited has a strong brand presence and established distribution networks, making it difficult for new entrants to compete.

Intensity Of Rivalry

The frozen food industry is highly competitive, with many established players competing for market share. Nomad Foods Limited faces intense competition from other frozen food manufacturers, which can lead to pricing pressures and advertising wars.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 45.16%
Debt Cost 7.74%
Equity Weight 54.84%
Equity Cost 7.74%
WACC 7.74%
Leverage 82.35%

11. Quality Control: Nomad Foods Limited passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Nomad Foods

A-Score: 5.7/10

Value: 8.9

Growth: 7.4

Quality: 4.6

Yield: 5.6

Momentum: 1.0

Volatility: 6.7

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Lerøy Seafood

A-Score: 5.0/10

Value: 4.3

Growth: 4.7

Quality: 3.2

Yield: 6.9

Momentum: 4.0

Volatility: 7.0

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Emmi

A-Score: 4.8/10

Value: 4.7

Growth: 4.8

Quality: 4.8

Yield: 3.1

Momentum: 1.5

Volatility: 9.7

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Tate Lyle

A-Score: 3.9/10

Value: 3.4

Growth: 1.1

Quality: 4.0

Yield: 8.8

Momentum: 0.0

Volatility: 6.0

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Lotus Bakeries

A-Score: 3.8/10

Value: 0.7

Growth: 7.7

Quality: 6.7

Yield: 1.2

Momentum: 0.0

Volatility: 6.3

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Glanbia

A-Score: 3.5/10

Value: 4.2

Growth: 5.0

Quality: 4.5

Yield: 4.4

Momentum: 2.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.03$

Current Price

12.03$

Potential

-0.00%

Expected Cash-Flows