Koninklijke Ahold Delhaize (WBAG:AD) - Share price, News & Analysis

AD fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	5/6
Financial Health	3/6
Dividends	4/6

AD Stock Overview

Koninklijke Ahold Delhaize N.V. operates retail food stores and e-commerce primarily in the United States and Europe.

Rewards

Trading at 61.6% below our estimate of its fair value

Earnings are forecast to grow 3.01% per year

Earnings grew by 72.1% over the past year

Risk Analysis

Unstable dividend track record

Koninklijke Ahold Delhaize Competitors

Costco Wholesale

NasdaqGS:COST

US$184.6b

CVS Health

NYSE:CVS

US$124.5b

Target

NYSE:TGT

US$72.0b

Industria de Diseño Textil

BME:ITX

€63.6b

Price History & Performance

Summary of all time highs, changes and price drops for Koninklijke Ahold Delhaize
Historical stock prices
Current Share Price	€25.00
52 Week High	€31.20
52 Week Low	€23.66
Beta	0.18
1 Month Change	-18.22%
3 Month Change	-13.91%
1 Year Change	3.61%
3 Year Change	22.25%
5 Year Change	n/a
Change since IPO	55.62%

Shareholder Returns

	AD	AT Consumer Retailing	AT Market
7D	-6.9%	-5.8%	2.9%
1Y	3.6%	-15.6%	-3.2%

Return vs Industry: AD exceeded the Austrian Consumer Retailing industry which returned -15.6% over the past year.

Return vs Market: AD exceeded the Austrian Market which returned -3.2% over the past year.

Price Volatility

Is AD's price volatile compared to industry and market?
AD volatility
AD Average Weekly Movement	4.6%
Consumer Retailing Industry Average Movement	6.1%
Market Average Movement	5.6%
10% most volatile stocks in AT Market	8.7%
10% least volatile stocks in AT Market	2.7%

Stable Share Price: AD is not significantly more volatile than the rest of Austrian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AD's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1887	413,000	Frans W. Muller	https://www.aholddelhaize.com

Koninklijke Ahold Delhaize N.V. operates retail food stores and e-commerce primarily in the United States and Europe. Its store formats include supermarkets, convenience stores, drugstores, and hypermarkets. It also subleases its stores to franchisees.

Koninklijke Ahold Delhaize Fundamentals Summary

How do Koninklijke Ahold Delhaize's earnings and revenue compare to its market cap?
AD fundamental statistics
Market Cap	€24.92b
Earnings (TTM)	€2.24b
Revenue (TTM)	€77.11b

11.1x

P/E Ratio

0.3x

P/S Ratio

Is AD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AD income statement (TTM)
Revenue	€77.11b
Cost of Revenue	€56.13b
Gross Profit	€20.98b
Other Expenses	€18.74b
Earnings	€2.24b

Last Reported Earnings

Apr 03, 2022

Next Earnings Date

Aug 10, 2022

Earnings per share (EPS)	2.25
Gross Margin	27.21%
Net Profit Margin	2.91%
Debt/Equity Ratio	47.5%

How did AD perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

43%

Payout Ratio

Valuation

Is Koninklijke Ahold Delhaize undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AD (€25) is trading below our estimate of fair value (€65.12)

Significantly Below Fair Value: AD is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: AD is good value based on its PE Ratio (11.1x) compared to the European Consumer Retailing industry average (14.7x).

PE vs Market: AD is good value based on its PE Ratio (11.1x) compared to the Austrian market (12.3x).

Price to Earnings Growth Ratio

PEG Ratio: AD is poor value based on its PEG Ratio (3.7x)

Price to Book Ratio

PB vs Industry: AD is good value based on its PB Ratio (1.7x) compared to the XE Consumer Retailing industry average (1.9x).

Future Growth

How is Koninklijke Ahold Delhaize forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

3.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AD's forecast earnings growth (3% per year) is above the savings rate (0.2%).

Earnings vs Market: AD's earnings (3% per year) are forecast to grow slower than the Austrian market (5.4% per year).

High Growth Earnings: AD's earnings are forecast to grow, but not significantly.

Revenue vs Market: AD's revenue (2.6% per year) is forecast to grow faster than the Austrian market (1.6% per year).

High Growth Revenue: AD's revenue (2.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AD's Return on Equity is forecast to be low in 3 years time (15.2%).

Past Performance

How has Koninklijke Ahold Delhaize performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

4.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AD has high quality earnings.

Growing Profit Margin: AD's current net profit margins (2.9%) are higher than last year (1.7%).

Past Earnings Growth Analysis

Earnings Trend: AD's earnings have grown by 4.9% per year over the past 5 years.

Accelerating Growth: AD's earnings growth over the past year (72.1%) exceeds its 5-year average (4.9% per year).

Earnings vs Industry: AD earnings growth over the past year (72.1%) exceeded the Consumer Retailing industry 24.7%.

Return on Equity

High ROE: AD's Return on Equity (15.6%) is considered low.

Financial Health

How is Koninklijke Ahold Delhaize's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AD's short term assets (€10.7B) do not cover its short term liabilities (€14.8B).

Long Term Liabilities: AD's short term assets (€10.7B) do not cover its long term liabilities (€18.2B).

Debt to Equity History and Analysis

Debt Level: AD's net debt to equity ratio (21.4%) is considered satisfactory.

Reducing Debt: AD's debt to equity ratio has increased from 32.2% to 47.5% over the past 5 years.

Debt Coverage: AD's debt is well covered by operating cash flow (77.1%).

Interest Coverage: AD's interest payments on its debt are well covered by EBIT (6.8x coverage).

Balance Sheet

Dividend

What is Koninklijke Ahold Delhaize current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AD's dividend (3.81%) is higher than the bottom 25% of dividend payers in the Austrian market (1.6%).

High Dividend: AD's dividend (3.81%) is low compared to the top 25% of dividend payers in the Austrian market (4.49%).

Stability and Growth of Payments

Stable Dividend: AD's dividend payments have been volatile in the past 10 years.

Growing Dividend: AD's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.2%), AD's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (33.3%), AD's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure

CEO

Frans W. Muller (60 yo)

5.83yrs

Tenure

€5,718,000

Compensation

Mr. Frans W. H. Muller has been the Chief Executive Officer and President of Koninklijke Ahold Delhaize N.V. since July 1, 2018 and its Member of Management Board since July 24, 2016. He served as Interim...

CEO Compensation Analysis

Compensation vs Market: Frans W.'s total compensation ($USD6.03M) is above average for companies of similar size in the Austrian market ($USD3.98M).

Compensation vs Earnings: Frans W.'s compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: AD's management team is considered experienced (5 years average tenure).

Board Members

Experienced Board: AD's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: AD insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/04/03
Annual Earnings	2022/01/02