SWX:NESN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with acceptable track record.


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


Market Performance


7 Day Return

-3.4%

NESN

-3.0%

CH Food

-0.6%

CH Market


1 Year Return

23.1%

NESN

18.2%

CH Food

10.7%

CH Market

Return vs Industry: NESN exceeded the Swiss Food industry which returned 18.2% over the past year.

Return vs Market: NESN exceeded the Swiss Market which returned 10.7% over the past year.


Shareholder returns

NESNIndustryMarket
7 Day-3.4%-3.0%-0.6%
30 Day-4.3%-3.2%-0.4%
90 Day0.3%-0.05%1.1%
1 Year26.4%23.1%24.1%18.2%16.6%10.7%
3 Year54.9%41.9%47.5%41.0%35.5%21.9%
5 Year72.0%48.2%60.1%50.5%36.8%15.3%

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?

9.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NESN (CHF102.5) is trading below our estimate of fair value (CHF113.72)

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 poor value based on its PE Ratio (32.8x) compared to the Food industry average (29.9x).

PE vs Market: NESN is poor value based on its PE Ratio (32.8x) compared to the Swiss market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: NESN is poor value based on its PEG Ratio (8.3x)


Price to Book Ratio

PB vs Industry: NESN is overvalued based on its PB Ratio (6x) compared to the CH Food industry average (2.7x).


Next Steps

Future Growth

How is Nestlé forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NESN's forecast earnings growth (4% per year) is above the savings rate (3.3%).

Earnings vs Market: NESN's earnings (4% per year) are forecast to grow slower than the Swiss market (10.4% per year).

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

Revenue vs Market: NESN's revenue (2.6% per year) is forecast to grow slower than the Swiss market (3.5% per year).

High Growth Revenue: NESN'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: NESN's Return on Equity is forecast to be high in 3 years time (34.7%)


Next Steps

Past Performance

How has Nestlé performed over the past 5 years?

-8.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NESN's earnings have declined by -8.4% per year over the past 5 years.

Accelerating Growth: NESN's earnings growth over the past year (14.8%) exceeds its 5-year average (-8.4% per year).

Earnings vs Industry: NESN earnings growth over the past year (14.8%) underperformed the Food industry 14.8%.


Return on Equity

High ROE: NESN's Return on Equity (18.7%) is considered low.


Return on Assets

ROA vs Industry: NESN has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: NESN has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Nestlé's financial position?


Financial Position Analysis

Short Term Liabilities: NESN's short term assets (CHF37.5B) do not cover its short term liabilities (CHF47.1B)

Long Term Liabilities: NESN's short term assets (37.5B) exceeds its long term liabilities (34.1B)


Debt to Equity History and Analysis

Debt Level: NESN's debt to equity ratio (77.6%) is considered high

Reducing Debt: NESN's debt to equity ratio has increased from 38.2% to 77.6% over the past 5 years.

Debt Coverage: NESN's debt is well covered by operating cash flow (40.7%).

Interest Coverage: NESN's interest payments on its debt are well covered by EBIT (20.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: NESN's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

2.39%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.9%markettop25%3.7%industryaverage2.3%forecastin3Years2.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NESN's dividend (2.39%) is higher than the bottom 25% of dividend payers in the Swiss market (1.92%).

High Dividend: NESN's dividend (2.39%) is low compared to the top 25% of dividend payers in the Swiss market (3.71%).

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: At its current payout ratio (78.5%), NESN's 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 (56.3% payout ratio).


Next Steps

Management

What is the CEO of Nestlé's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Mark Schneider (54yo)

2.8yrs

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 ($USD9.56M) is about average for companies of similar size in the Swiss market ($USD4.22M).

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


Management Age and Tenure

5.0yrs

Average Tenure

57yo

Average Age

Experienced Management: NESN's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

67yo

Average Age

Experienced Board: NESN's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Chris Johnson (58yo)

    Executive VP

    • Tenure: 8.8yrs
  • Mark Schneider (54yo)

    CEO, Member of Executive Board & Director

    • Tenure: 2.8yrs
    • Compensation: CHF9.47m
  • Marco Settembri (60yo)

    Executive VP

    • Tenure: 5.8yrs
  • Magdi Batato (60yo)

    Executive VP

    • Tenure: 4yrs
  • François-Xavier Roger (57yo)

    Executive VP

    • Tenure: 4.3yrs
  • Maurizio Patarnello (53yo)

    Deputy Executive VP & Member of Executive Board

    • Tenure: 0yrs
  • Laurent Freixe (57yo)

    Executive VP

    • Tenure: 0yrs
  • Patrice Bula (63yo)

    Executive VP

    • Tenure: 8.4yrs
  • Greg Behar (50yo)

    Member of Executive Board

    • Tenure: 0yrs
  • Stefan Palzer

    Executive VP

    • Tenure: 0yrs

Board Members

  • Henri René Marie de la Croix de Castries (65yo)

    Vice Chairman & Lead Independent Director

    • Tenure: 1.5yrs
    • Compensation: CHF714.69k
  • Peter Brabeck-Letmathe (75yo)

    Chairman Emeritus

    • Tenure: 2.5yrs
    • Compensation: CHF407.05k
  • Helmut Maucher (92yo)

    Honorary Chairman

    • Tenure: 19.4yrs
  • Eva Cheng (67yo)

    Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: CHF449.30k
  • Mark Schneider (54yo)

    CEO, Member of Executive Board & Director

    • Tenure: 2.8yrs
    • Compensation: CHF9.47m
  • Renato Fassbind (64yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: CHF622.75k
  • Beat Hess (70yo)

    Non-Executive Director

    • Tenure: 11.4yrs
    • Compensation: CHF622.75k
  • Paul Bulcke (65yo)

    Chairman of the Board

    • Tenure: 2.5yrs
    • Compensation: CHF3.49m
  • Ann Veneman (70yo)

    Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: CHF361.95k
  • Suresh Narayanan

    Chairman & MD of Nestle India

    • Tenure: 0yrs

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: CHF295.967b
  • Shares outstanding: 2.89b
  • Website: https://www.nestle.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NESRXTRA (XETRA Trading Platform)YesRegistered SharesDEEURJan 1975
NESNSEP (The Stock Exchange Prague Co. Ltd.)YesRegistered SharesCZCZKJan 1975
NESN NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNJan 1975
NESNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJan 1975
0QR4LSE (London Stock Exchange)YesRegistered SharesGBCHFJan 1975
NSRG.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJan 1975
NESRDB (Deutsche Boerse AG)YesRegistered SharesDEEURJan 1975
NESMXTRA (XETRA Trading Platform)SPON ADR EACH REPR 1 COM CHF0.10DEEURMar 1990
NESMDB (Deutsche Boerse AG)SPON ADR EACH REPR 1 COM CHF0.10DEEURMar 1990
NSRG.YOTCPK (Pink Sheets LLC)SPON ADR EACH REPR 1 COM CHF0.10USUSDMar 1990
NESNESWX (SIX Swiss Exchange)CHF0.10 (2ND BUYBACK LINE)CHCHFJul 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-Sahar ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 20:43
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.