SWX:NESN

Stock Analysis Report

Executive Summary

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company.


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Nestlé's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NESN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

NESN

1.2%

CH Food

-0.2%

CH Market


1 Year Return

19.9%

NESN

20.0%

CH Food

16.2%

CH Market

Return vs Industry: NESN matched the Swiss Food industry which returned 20% over the past year.

Return vs Market: NESN exceeded the Swiss Market which returned 16.2% over the past year.


Shareholder returns

NESNIndustryMarket
7 Day1.4%1.2%-0.2%
30 Day0.6%0.7%2.1%
90 Day5.7%6.2%7.0%
1 Year23.0%19.9%22.9%20.0%21.8%16.2%
3 Year59.7%46.3%53.9%29.2%40.6%23.4%
5 Year70.0%46.5%60.0%49.1%44.9%21.9%

Price Volatility Vs. Market

How volatile is Nestlé's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nestlé undervalued compared to its fair value and its price relative to the market?

10.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NESN (CHF109.02) is trading below our estimate of fair value (CHF122.19)

Significantly Below Fair Value: NESN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NESN is good value based on its PE Ratio (25.3x) compared to the Food industry average (27.5x).

PE vs Market: NESN is poor value based on its PE Ratio (25.3x) compared to the Swiss market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: NESN is poor value based on its PEG Ratio (10.3x)


Price to Book Ratio

PB vs Industry: NESN is overvalued based on its PB Ratio (6x) compared to the CH Food industry average (3x).


Next Steps

Future Growth

How is Nestlé forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NESN's forecast earnings growth (2.5% per year) is above the savings rate (-0.6%).

Earnings vs Market: NESN's earnings (2.5% per year) are forecast to grow slower than the Swiss market (10.6% per year).

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

Revenue vs Market: NESN's revenue (2.2% per year) is forecast to grow slower than the Swiss market (3.3% per year).

High Growth Revenue: NESN's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NESN's Return on Equity is forecast to be high in 3 years time (30.9%)


Next Steps

Past Performance

How has Nestlé performed over the past 5 years?

-5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NESN has high quality earnings.

Growing Profit Margin: NESN's current net profit margins (13.6%) are higher than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: NESN's earnings have declined by -5.5% per year over the past 5 years.

Accelerating Growth: NESN's earnings growth over the past year (24.4%) exceeds its 5-year average (-5.5% per year).

Earnings vs Industry: NESN earnings growth over the past year (24.4%) exceeded the Food industry 5.8%.


Return on Equity

High ROE: NESN's Return on Equity (24.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nestlé's financial position?


Financial Position Analysis

Short Term Liabilities: NESN's short term assets (CHF35.7B) do not cover its short term liabilities (CHF41.6B).

Long Term Liabilities: NESN's short term assets (CHF35.7B) exceed its long term liabilities (CHF33.5B).


Debt to Equity History and Analysis

Debt Level: NESN's debt to equity ratio (64.5%) is considered high.

Reducing Debt: NESN's debt to equity ratio has increased from 29.9% to 64.5% over the past 5 years.

Debt Coverage: NESN's debt is well covered by operating cash flow (46.5%).

Interest Coverage: NESN's interest payments on its debt are well covered by EBIT (18.4x coverage).


Balance Sheet

Inventory Level: NESN has a high level of physical assets or inventory.

Debt Coverage by Assets: NESN's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Nestlé's current dividend yield, its reliability and sustainability?

2.48%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Nestlé before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.5%marketbottom25%1.7%markettop25%3.4%industryaverage2.3%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: NESN's dividend (2.48%) is higher than the bottom 25% of dividend payers in the Swiss market (1.74%).

High Dividend: NESN's dividend (2.48%) is low compared to the top 25% of dividend payers in the Swiss market (3.38%).


Stability and Growth of Payments

Stable Dividend: NESN's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.7%), NESN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NESN's dividends in 3 years are forecast to be covered by earnings (58.9% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Mark Schneider (54yo)

3.1yrs

Tenure

CHF9,468,558

Compensation

Dr. Ulf Mark Schneider, also known as Mark, has been the Chief Executive Officer of Nestlé S.A. since January 1, 2017 and has been its Director since April 6, 2017. He serves as Member of Executive Board a ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD9.68M) is above average for companies of similar size in the Swiss market ($USD4.35M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ulf Schneider
CEO, Member of Executive Board & Director3.1yrsCHF9.47m0.010% CHF32.8m
François-Xavier Roger
Executive VP4.6yrsno data0.0022% CHF6.8m
Chris Johnson
Executive VP9.1yrsno data0.0039% CHF12.1m
Laurent Freixe
Executive VP0yrsno data0.0018% CHF5.5m
Patrice Bula
Executive VP8.8yrsno data0.0075% CHF23.4m
Marco Settembri
Executive VP6.2yrsno data0.0021% CHF6.5m
Grégory Behar
Member of Executive Board0yrsno data0.00041% CHF1.3m
Magdi Batato
Executive VP4.3yrsno data0.00083% CHF2.6m
Stefan Palzer
Executive VP0yrsno data0.00021% CHF659.4k
Béatrice Guillaume-Grabisch
Executive VP0yrsno data0.00041% CHF1.3m

5.4yrs

Average Tenure

57yo

Average Age

Experienced Management: NESN's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ulf Schneider
CEO, Member of Executive Board & Director3.1yrsCHF9.47m0.010% CHF32.8m
Henri René Marie de la Croix de Castries
Vice Chairman & Lead Independent Director1.8yrsCHF714.69k0.00096% CHF3.0m
Peter Brabeck-Letmathe
Chairman Emeritus2.8yrsCHF407.05kno data
Helmut Maucher
Honorary Chairman19.8yrsno datano data
Li Kam Fun Cheng
Non-Executive Director6.8yrsCHF449.30k0.00063% CHF2.0m
Renato Fassbind
Non-Executive Director5.1yrsCHF622.75k0.0011% CHF3.3m
Beat Hess
Non-Executive Director11.8yrsCHF622.75k0.0017% CHF5.3m
Paul Bulcke
Chairman of the Board2.8yrsCHF3.49m0.049% CHF155.0m
Ann Veneman
Non-Executive Director8.8yrsCHF361.95k0.00073% CHF2.3m
Suresh Narayanan
Chairman & MD of Nestle India0yrsno datano data

5.1yrs

Average Tenure

67yo

Average Age

Experienced Board: NESN's board of directors are considered experienced (5.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Nestlé S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nestlé S.A.
  • Ticker: NESN
  • Exchange: SWX
  • Founded: 1866
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CHF313.983b
  • Shares outstanding: 2.88b
  • Website: https://www.nestle.com

Number of Employees


Location

  • Nestlé S.A.
  • Avenue Nestlé 55
  • Vevey
  • Vaud
  • 1800
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NSRG.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJan 1975
NESNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJan 1975
0QR4LSE (London Stock Exchange)YesRegistered SharesGBCHFJan 1975
NESRXTRA (XETRA Trading Platform)YesRegistered SharesDEEURJan 1975
NESRDB (Deutsche Boerse AG)YesRegistered SharesDEEURJan 1975
NESN NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNJan 1975
NESNSEP (The Stock Exchange Prague Co. Ltd.)YesRegistered SharesCZCZKJan 1975
NSRG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 1990
NESMDB (Deutsche Boerse AG)SPONSORED ADRDEEURMar 1990
NESMXTRA (XETRA Trading Platform)SPONSORED ADRDEEURMar 1990
NESNESWX (SIX Swiss Exchange)CHF0.10 (2ND BUYBACK LINE)CHCHFJul 2017
0RR6LSE (London Stock Exchange)CHF0.10 (2ND BUYBACK LINE)GBCHFJul 2017

Biography

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; Zone Asia, Oceania and sub-Saharan Africa; and Nestlé Waters segments. It offers baby foods under the Cerelac, Gerber, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Poland Spring, 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 original, Nespresso, Nescafé Dolce Gusto, Nescafé, Nescafé Original 3 in 1, Coffee-Mate, Nescafé Gold, and Nescafé Cappuccino brands; culinary, chilled, and frozen foods under the Maggi, Hot Pockets, Stouffer's, Thomy, Jacks, TombStone, Buitoni, DiGiorno, and Lean Cuisine brands; dairy products under the Carnation, Nido, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, 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, 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, Chef Michael’s, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. Further, it provides Starbucks Creamers. The company was founded in 1866 and is headquartered in Vevey, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 20:58
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.