Nestlé
Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The last earnings update was 9 days ago. More info.
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NESN Share Price and Events
7 Day Returns
1 Year Returns
NESN Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Nestlé (NESN) | 2.1% | 7.3% | 7.4% | 20% | 29.1% | 36.5% |
| CH Food | 2.9% | 8.3% | 7.1% | 9% | 8.6% | 39.5% |
| CH Market | 1.1% | 4.2% | 5.4% | 0.4% | 13.8% | 9.8% |
1 Year Return vs Industry and Market
- NESN outperformed the Food industry which returned 9% over the past year.
- NESN outperformed the Market in Switzerland which returned 0.4% over the past year.
Value
Is Nestlé undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Nestlé
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Nestlé.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 20 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.7% |
| Perpetual Growth Rate | 10-Year CH Government Bond Rate | 3.3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year CH Govt Bond Rate | 3.3% |
| Equity Risk Premium | S&P Global | 6.7% |
| Food Unlevered Beta | Simply Wall St/ S&P Global | 0.39 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.386 (1 + (1- 18%) (15.04%)) |
0.434 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.28% + (0.8 * 6.73%) |
8.66% |
Discounted Cash Flow Calculation for SWX:NESN using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Nestlé is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (CHF, Millions) | 11,217.99 | 12,523.12 | 12,959.31 | 12,230.50 | 12,207.93 |
| Source | Analyst x15 | Analyst x14 | Analyst x10 | Analyst x2 | Est @ -0.18% |
|
Present Value Discounted (@ 8.66%) |
10,324.41 | 10,607.50 | 10,102.59 | 8,774.96 | 8,061.09 |
| Present value of next 5 years cash flows | CHF47,870.55 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= CHF12,207.93 × (1 + 3.28%) ÷ (8.66% – 3.28%) |
CHF234,344.63 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= CHF234,344.63 ÷ (1 + 8.66%)5 |
CHF154,741.37 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= CHF47,870.55 + CHF154,741.37 |
CHF202,611.92 |
| Equity Value per Share (CHF) |
= Total value / Shares Outstanding
= CHF202,611.92 / 2,974.48 |
CHF68.12 |
| Calculation | Result | |
|---|---|---|
| Value per share (CHF) | From above. | CHF68.12 |
| Current discount | Discount to share price of
CHF90.94
= -1 x (CHF90.94 - CHF68.12) / CHF68.12 |
-33.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Nestlé is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Nestlé's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Nestlé's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in CHF | CHF3.36 |
| SWX:NESN Share Price ** | SWX (2019-02-22) in CHF | CHF90.94 |
| Switzerland Food Industry PE Ratio | Median Figure of 8 Publicly-Listed Food Companies | 21.44x |
| Switzerland Market PE Ratio | Median Figure of 177 Publicly-Listed Companies | 17.9x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Nestlé.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = SWX:NESN Share Price ÷ EPS (both in CHF) = 90.94 ÷ 3.36 |
27.04x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Nestlé is overvalued based on earnings compared to the CH Food industry average.
- Nestlé is overvalued based on earnings compared to the Switzerland market.
Price based on expected Growth
Does
Nestlé's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 27.04x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts |
8.9%per year |
| Switzerland Food Industry PEG Ratio | Median Figure of 7 Publicly-Listed Food Companies | 3.07x |
| Switzerland Market PEG Ratio | Median Figure of 124 Publicly-Listed Companies | 1.86x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 27.04x ÷ 8.9% |
3.04x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Nestlé is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Nestlé's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in CHF | CHF19.29 |
| SWX:NESN Share Price * | SWX (2019-02-22) in CHF | CHF90.94 |
| Switzerland Food Industry PB Ratio | Median Figure of 9 Publicly-Listed Food Companies | 1.64x |
| Switzerland Market PB Ratio | Median Figure of 207 Publicly-Listed Companies | 1.67x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = SWX:NESN Share Price ÷ Book Value per Share (both in CHF) = 90.94 ÷ 19.29 |
4.72x |
* Primary Listing of Nestlé.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Nestlé is overvalued based on assets compared to the CH Food industry average.
Value checks
We assess Nestlé's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Food industry average (and greater than 0)? (1 check) Nestlé has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Nestlé expected to perform in the next 1 to 3 years based on estimates from 20 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Nestlé's earnings growth is expected to exceed the low risk savings rate of 3.3%.
Growth vs Market Checks
- Nestlé's earnings growth is expected to exceed the Switzerland market average.
- Nestlé's revenue growth is expected to exceed the Switzerland market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| SWX:NESN Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts | 8.9% |
| SWX:NESN Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts | 3.6% |
| Switzerland Food Industry Earnings Growth Rate | Market Cap Weighted Average | 9% |
| Switzerland Food Industry Revenue Growth Rate | Market Cap Weighted Average | 3.7% |
| Switzerland Market Earnings Growth Rate | Market Cap Weighted Average | 8.3% |
| Switzerland Market Revenue Growth Rate | Market Cap Weighted Average | 3.6% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
| Date (Data in CHF Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 109,618 | 19,155 | 2 | |
| 2022-12-31 | 106,826 | 17,929 | 14,091 | 4 |
| 2021-12-31 | 102,800 | 17,707 | 13,650 | 17 |
| 2020-12-31 | 99,122 | 16,848 | 12,722 | 19 |
| 2019-12-31 | 95,410 | 15,676 | 11,635 | 20 |
| Date (Data in CHF Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 91,750 | 15,398 | 10,135 |
| 2018-09-30 | 91,328 | 15,306 | 9,110 |
| 2018-06-30 | 91,104 | 14,501 | 8,111 |
| 2018-03-31 | 90,613 | 13,994 | 7,647 |
| 2017-12-31 | 89,922 | 14,199 | 7,156 |
| 2017-09-30 | 89,750 | 14,152 | 8,242 |
| 2017-06-30 | 89,577 | 14,104 | 9,328 |
| 2017-03-31 | 89,682 | 14,843 | 8,930 |
| 2016-12-31 | 89,786 | 15,582 | 8,531 |
| 2016-09-30 | 89,599 | 15,438 | 8,590 |
| 2016-06-30 | 89,411 | 15,293 | 8,649 |
| 2016-03-31 | 89,247 | 14,798 | 8,858 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
All data from Nestlé Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CHF Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | 4.69 | 4.87 | 4.50 | 2.00 |
| 2021-12-31 | 4.76 | 5.16 | 4.20 | 12.00 |
| 2020-12-31 | 4.40 | 4.85 | 3.89 | 15.00 |
| 2019-12-31 | 3.93 | 4.43 | 3.42 | 16.00 |
| Date (Data in CHF Millions) | EPS * |
|---|---|
| 2018-12-31 | 3.36 |
| 2018-09-30 | 3.00 |
| 2018-06-30 | 2.65 |
| 2018-03-31 | 2.49 |
| 2017-12-31 | 2.31 |
| 2017-09-30 | 2.66 |
| 2017-06-30 | 3.01 |
| 2017-03-31 | 2.89 |
| 2016-12-31 | 2.76 |
| 2016-09-30 | 2.78 |
| 2016-06-30 | 2.79 |
| 2016-03-31 | 2.85 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Nestlé's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Switzerland market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Switzerland market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Nestlé has a total score of 4/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Nestlé performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Nestlé's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
- Nestlé's 1-year earnings growth exceeds its 5-year average (41.6% vs -7.9%)
- Nestlé's earnings growth has exceeded the CH Food industry average in the past year (41.6% vs 4.7%).
Earnings and Revenue History
All data from Nestlé Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CHF Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 91,750.00 | 10,135.00 | 28,623.00 | 1,687.00 |
| 2018-09-30 | 91,327.50 | 9,109.50 | 28,449.50 | 1,696.50 |
| 2018-06-30 | 91,104.00 | 8,111.00 | 29,180.00 | 1,691.00 |
| 2018-03-31 | 90,612.50 | 7,647.00 | 29,063.00 | 1,707.50 |
| 2017-12-31 | 89,922.00 | 7,156.00 | 28,042.00 | 1,739.00 |
| 2017-09-30 | 89,749.50 | 8,242.00 | 28,528.00 | 1,741.00 |
| 2017-06-30 | 89,577.00 | 9,328.00 | 29,014.00 | 1,743.00 |
| 2017-03-31 | 89,681.50 | 8,929.50 | 29,373.00 | 1,739.50 |
| 2016-12-31 | 89,786.00 | 8,531.00 | 29,732.00 | 1,736.00 |
| 2016-09-30 | 89,598.50 | 8,590.00 | 29,546.50 | 1,728.50 |
| 2016-06-30 | 89,411.00 | 8,649.00 | 29,361.00 | 1,721.00 |
| 2016-03-31 | 89,247.00 | 8,857.50 | 29,090.50 | 1,699.50 |
| 2015-12-31 | 89,083.00 | 9,066.00 | 28,820.00 | 1,678.00 |
| 2015-09-30 | 90,419.50 | 11,702.50 | 28,704.00 | 1,684.00 |
| 2015-06-30 | 91,756.00 | 14,339.00 | 28,588.00 | 1,690.00 |
| 2015-03-31 | 91,810.50 | 14,397.50 | 28,325.00 | 1,659.00 |
| 2014-12-31 | 91,865.00 | 14,456.00 | 28,062.00 | 1,628.00 |
| 2014-09-30 | 91,015.50 | 11,992.50 | 27,725.00 | 1,577.50 |
| 2014-06-30 | 90,166.00 | 9,529.00 | 27,388.00 | 1,527.00 |
| 2014-03-31 | 91,269.50 | 9,772.00 | 27,751.50 | 1,515.00 |
| 2013-12-31 | 92,373.00 | 10,015.00 | 28,115.00 | 1,503.00 |
| 2013-09-30 | 92,305.50 | 10,213.00 | 28,202.50 | 1,472.00 |
| 2013-06-30 | 92,238.00 | 10,411.00 | 28,290.00 | 1,441.00 |
| 2013-03-31 | 91,084.50 | 10,319.50 | 27,792.50 | 1,427.00 |
| 2012-12-31 | 89,931.00 | 10,228.00 | 27,295.00 | 1,413.00 |
| 2012-09-30 | 87,805.00 | 9,974.50 | 26,317.00 | 1,414.00 |
| 2012-06-30 | 85,679.00 | 9,721.00 | 25,339.00 | 1,415.00 |
| 2012-03-31 | 84,724.50 | 9,604.00 | 25,168.00 | 1,419.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Nestlé has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Nestlé used its assets more efficiently than the CH Food industry average last year based on Return on Assets.
- Nestlé has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Nestlé's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Nestlé has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Nestlé's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Nestlé's finances.
The net worth of a company is the difference between its assets and liabilities.
- Nestlé's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Nestlé's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Nestlé Company Filings, last reported 1 month ago.
| Date (Data in CHF Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 58,403.00 | 40,684.00 | 10,301.00 |
| 2018-09-30 | 58,403.00 | 40,684.00 | 10,301.00 |
| 2018-06-30 | 57,555.00 | 35,603.00 | 6,717.00 |
| 2018-03-31 | 57,555.00 | 35,603.00 | 6,717.00 |
| 2017-12-31 | 62,229.00 | 30,115.00 | 8,593.00 |
| 2017-09-30 | 62,229.00 | 30,115.00 | 8,593.00 |
| 2017-06-30 | 61,810.00 | 24,987.00 | 4,993.00 |
| 2017-03-31 | 61,810.00 | 24,987.00 | 4,993.00 |
| 2016-12-31 | 65,981.00 | 24,087.00 | 9,394.00 |
| 2016-09-30 | 65,981.00 | 24,087.00 | 9,394.00 |
| 2016-06-30 | 58,054.00 | 25,893.00 | 5,076.00 |
| 2016-03-31 | 58,054.00 | 25,893.00 | 5,076.00 |
| 2015-12-31 | 63,986.00 | 22,045.00 | 5,884.00 |
| 2015-09-30 | 63,986.00 | 22,045.00 | 5,884.00 |
| 2015-06-30 | 62,861.00 | 22,820.00 | 4,731.00 |
| 2015-03-31 | 62,861.00 | 22,820.00 | 4,731.00 |
| 2014-12-31 | 71,884.00 | 21,693.00 | 8,967.00 |
| 2014-09-30 | 71,884.00 | 21,693.00 | 8,967.00 |
| 2014-06-30 | 60,397.00 | 23,378.00 | 3,765.00 |
| 2014-03-31 | 60,397.00 | 23,378.00 | 3,765.00 |
| 2013-12-31 | 64,139.00 | 22,007.00 | 7,152.00 |
| 2013-09-30 | 64,139.00 | 22,007.00 | 7,152.00 |
| 2013-06-30 | 63,610.00 | 28,597.00 | 6,376.00 |
| 2013-03-31 | 63,610.00 | 28,597.00 | 6,376.00 |
| 2012-12-31 | 62,664.00 | 27,673.00 | 9,788.00 |
| 2012-09-30 | 62,664.00 | 27,673.00 | 9,788.00 |
| 2012-06-30 | 57,662.00 | 24,834.00 | 9,821.00 |
| 2012-03-31 | 57,662.00 | 24,834.00 | 9,821.00 |
- Nestlé's level of debt (69.7%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (34.4% vs 69.7% today).
- Debt is well covered by operating cash flow (37.8%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 25.3x coverage).
Financial health checks
We assess Nestlé's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Nestlé has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Nestlé's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
CHF2,000 of
Nestlé
shares you are expected to receive
CHF54
in your first year as a dividend.
Dividend Amount
- Nestlé's pays a higher dividend yield than the bottom 25% of dividend payers in Switzerland (1.84%).
- Nestlé's dividend is below the markets top 25% of dividend payers in Switzerland (3.72%).
Upcoming dividend payment
Purchase Nestlé on or before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
| Switzerland Food Industry Average Dividend Yield | Market Cap Weighted Average of 8 Stocks | 2.5% |
| Switzerland Market Average Dividend Yield | Market Cap Weighted Average of 161 Stocks | 3.1% |
| Switzerland Minimum Threshold Dividend Yield | 10th Percentile | 1.3% |
| Switzerland Bottom 25% Dividend Yield | 25th Percentile | 1.8% |
| Switzerland Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in CHF) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 3.88 | 1.00 |
| 2022-12-31 | 3.16 | 3.00 |
| 2021-12-31 | 3.02 | 18.00 |
| 2020-12-31 | 2.79 | 23.00 |
| 2019-12-31 | 2.61 | 23.00 |
| Date (Data in CHF) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-14 | 2.450 | 2.723 |
| 2018-02-15 | 2.350 | 2.950 |
| 2017-02-16 | 2.300 | 2.841 |
| 2016-02-18 | 2.250 | 3.064 |
| 2015-02-19 | 2.200 | 3.012 |
| 2014-05-21 | 2.150 | 3.071 |
| 2014-02-13 | 2.150 | 3.207 |
| 2014-01-15 | 2.150 | 3.217 |
| 2013-04-11 | 2.050 | 3.205 |
| 2012-02-17 | 1.950 | 3.276 |
| 2012-01-16 | 1.950 | 3.635 |
| 2011-05-11 | 1.850 | 3.604 |
| 2011-02-17 | 1.850 | 3.520 |
| 2010-03-01 | 1.600 | 3.008 |
| 2010-02-19 | 1.600 | 3.015 |
| 2010-01-15 | 1.600 | 3.187 |
| 2009-02-24 | 1.400 | 3.293 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Nestlé's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.4x coverage).
- Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
Income/ dividend checks
We assess Nestlé's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Nestlé afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Nestlé has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| AGE | 52 |
| TENURE AS CEO | 2.1 years |
CEO Bio
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 at Nestlé S.A. He has been the Chief Executive Officer and President at Fresenius Management Se at Fresenius SE & Co KGaA since 2003. Dr. Schneider served as the Chairman of the Management Board of Fresenius Management Se, the General Partner of Fresenius SE & Co KGaA from May 28, 2003 to June 30, 2016 and served as its Member of Management Board of Fresenius Management Se until June 30, 2016. He served as the Chairman of the Managing Board of Fresenius AG since April 8, 2005. Dr. Schneider served as the Chairman of the Management Board at Fresenius Kabi AG. He served as the Chief Executive Officer of Fresenius AG at Fresenius Medical Care AG & Co. KGAA since September 4, 2003. He served as the Chief Financial Officer of Fresenius Medical Care AG from November 2001 to March 2003. Dr. Schneider served as Group Finance Director of Gehe UK PLC in Great Britain that is part of the Haniel Group, where he served for twelve years. He held several senior executive and financial positions since 1989 with Gehes majority shareholder, Franz Haniel & Cie. GmbH, Duisburg. He served as the Chairman of Management Board at Fresenius SE since May 28, 2003. Dr. Schneider serves as the Chairman of the Supervisory Board at EUFETS GmbH and Fresenius Kabi AG. He serves as the Chairman of the Supervisory Board at Eufets AG and HELIOS Kliniken GmbH. Dr. Schneider has been Chairman of The Supervisory Board of Management Ag- General Partner of Fresenius Medical Care AG & Co. KGAA., since April 2005. He served as the Chairman of Supervisory Board of Fresenius Medical Care Management AG at Fresenius Medical Care Holdings Inc. since April 15, 2005 until June 30, 2016 and served as its Member of Supervisory Board until June 30, 2016. Dr. Schneider served as the Chairman of Supervisory Board of Fmc Management at Fresenius Medical Care AG & Co. KGAA since May 15, 2005 to January 28, 2011. He has been a Director of DuPont do Brasil S.A. since October 2014. Dr. Schneider served as a Director of E. I. du Pont de Nemours and Company since October 22, 2014 until May 24, 2017. He serves as Member of Advisory Board of Nestlé Health Science S.A. He served as a Member of Supervisory Board at Fresenius Kabi EspaÑa S.A. He served as a Director of Fresenius Kabi Pharmaceuticals Holding, Inc. from September 2008 to February 2011. Dr. Schneider served as Member of Supervisory Board at Fresenius Medical Care AG & Co. KGAA since May 2004. He served as a Member of the Supervisory Board of Fresenius SE. Dr. Schneider holds a Degree in Finance and Accounting and a Ph.D. in Economics from the University of St. Gallen and an MBA from Harvard University.
CEO Compensation
- Insufficient data for Mark to compare compensation growth.
- Insufficient data for Mark to establish whether their remuneration is reasonable compared to companies of similar size in Switzerland.
Management Team Tenure
Average tenure and age of the Nestlé management team in years:
- The tenure for the Nestlé management team is about average.
Management Team
Mark Schneider
CEO, Member of Executive Board & Director
52
2.1 yrs
François-Xavier Roger
CFO, Executive VP of Finance & Control and Member of Executive Board
56
3.6 yrs
Chris Johnson
CEO of Zone Asia
57
8.1 yrs
David Frick
SVP of Corporate Governance
53
Laurent Freixe
Executive VP
56
Patrice Bula
Executive VP - Strategic Business Units
62
7.8 yrs
Marco Settembri
Executive VP
59
5.2 yrs
Greg Behar
Member of Executive Board
49
Magdi Batato
Executive VP
59
3.3 yrs
Maurizio Patarnello
Head of Nestlé Waters
52
Board of Directors Tenure
Average tenure and age of the Nestlé board of directors in years:
- The tenure for the Nestlé board of directors is about average.
Board of Directors
Paul Bulcke
Chairman
64
1.8 yrs
Mark Schneider
CEO, Member of Executive Board & Director
52
1.8 yrs
Henri R. M. de la Croix de Castries
Vice Chairman & Lead Independent Director
CHF382K
64
0.8 yrs
Helmut Maucher
Honorary Chairman
91
18.8 yrs
Peter Brabeck-Letmathe
Chairman Emeritus
CHF5M
74
1.8 yrs
Suresh Narayanan
Chairman & MD of Nestle India
Beat Hess
Non-Executive Director
CHF623K
69
10.8 yrs
Renato Fassbind
Non-Executive Director
CHF623K
63
4.1 yrs
Jean-Pierre Roth
Non-Executive Director
CHF353K
72
9.1 yrs
Ann Veneman
Non-Executive Director
CHF334K
69
7.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (CHF) | Value (CHF) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess Nestlé's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Nestlé has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
With A -13% Earnings Drop, Is Nestlé S.A.'s (VTX:NESN) A Concern?
After looking at Nestlé S.A.'s (VTX:NESN) latest earnings announcement (30 June 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … NESN's trailing twelve-month earnings (from 30 June 2018) of CHF8.1b has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -7.9%, indicating the rate at which NESN is growing has slowed down
Simply Wall St - – Full articleDespite Its High P/E Ratio, Is Nestlé SA (VTX:NESN) Still Undervalued?
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll show how you can use Nestlé SA's (VTX:NESN) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWhat Are Analysts Saying About Nestlé SA's (VTX:NESN) Future?
Since Nestlé SA (VTX:NESN) released its earnings in June 2018,. … the consensus outlook from analysts appear fairly confident, … with earnings expected to grow by 42% in the upcoming year
Simply Wall St - – Full articleHow Much Of Nestlé SA (VTX:NESN) Do Institutions Own?
Generally speaking, as a company grows, institutions will increase their ownership. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Our analysis of the ownership of the company, below, shows that.
Simply Wall St - – Full articleNestlé SA (VTX:NESN): The Yield That Matters The Most
Nestlé generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … What remains after this expenditure, is known as its free cash flow, or FCF, for short. … There are two methods I will use to evaluate the quality of Nestlé’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability
Simply Wall St - – Full articleNestlé SA (VTX:NESN): Why Return On Capital Employed Is Important
This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … To understand Nestlé’s capital returns we will look at a useful metric called return on capital employed. … This will tell us if the company is growing your capital and placing you in good stead to sell your shares at a profit
Simply Wall St - – Full articleCalculating The Fair Value Of Nestlé SA (VTX:NESN)
by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model
Simply Wall St - – Full articleHow Has Nestlé SA's (VTX:NESN) Earnings Fared Against The Long Term Trend
After looking at Nestlé SA's (VTX:NESN) latest earnings announcement (31 December 2017), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. … NESN's trailing twelve-month earnings (from 31 December 2017) of CHF7.18b has
Simply Wall St - – Full articleIs It Time To Sell Nestlé SA (VTX:NESN) Based Off Its PE Ratio?
and want to better understand how you can grow your money by investing in Nestlé SA (VTX:NESN). … Nestlé SA (VTX:NESN) trades with a trailing P/E of 32.4x, which is higher than the industry average of 22.1x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind
Simply Wall St - – Full articleAt CHF074.66, Is Nestlé SA (SWX:NESN) A Buy?
Today we're going to take a look at the well-established Nestlé SA (SWX:NESN). … Let’s take a look at Nestlé’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change … According to my valuation model, Nestlé seems to be fairly priced at around
Simply Wall St - – Full articleCompany Info
Map
Description
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. The company was founded in 1866 and is headquartered in Vevey, Switzerland.
Details
| Name: | Nestlé S.A. |
| NESN | |
| Exchange: | SWX |
| Founded: | 1866 |
| CHF270,499,164,547 | |
| 2,974,479,487 | |
| Website: | http://www.nestle.com |
| Address: |
Nestlé S.A. Avenue Nestlé 55, Vevey, Vaud, 1800, Switzerland |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| SWX | NESN | Registered Shares | SIX Swiss Exchange | CH | CHF | 06. Jan 1975 | |
| OTCPK | NSRG.F | Registered Shares | Pink Sheets LLC | US | USD | 06. Jan 1975 | |
| DB | NESR | Registered Shares | Deutsche Boerse AG | DE | EUR | 06. Jan 1975 | |
| XTRA | NESR | Registered Shares | XETRA Trading Platform | DE | EUR | 06. Jan 1975 | |
| LSE | 0QR4 | Registered Shares | London Stock Exchange | GB | CHF | 06. Jan 1975 | |
| BIT | NESN | Registered Shares | Borsa Italiana | IT | EUR | 06. Jan 1975 | |
| SEP | NESN | Registered Shares | The Stock Exchange Prague Co. Ltd. | CZ | CZK | 06. Jan 1975 | |
| BMV | NESN N | Registered Shares | Bolsa Mexicana de Valores | MX | MXN | 06. Jan 1975 | |
| BATS-CHIXE | NESNZ | Registered Shares | BATS 'Chi-X Europe' | GB | CHF | 06. Jan 1975 | |
| OTCPK | NSRG.Y | SPONSORED ADR | Pink Sheets LLC | US | USD | 16. Mar 1990 | |
| DB | NESM | SPONSORED ADR | Deutsche Boerse AG | DE | EUR | 16. Mar 1990 | |
| XTRA | NESM | SPONSORED ADR | XETRA Trading Platform | DE | EUR | 16. Mar 1990 | |
| LSE | 0RR6 | CHF0.10 (2ND BUYBACK LINE) | London Stock Exchange | GB | CHF | 04. Jul 2017 | |
| SWX | NESNE | CHF0.10 (2ND BUYBACK LINE) | SIX Swiss Exchange | CH | CHF | 04. Jul 2017 |
Number of employees
Current staff
Industry
| Packaged Foods and Meats | |
| Food, Beverage & Tobacco |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/02/23 21:00 |
| End of day share price update: | 2019/02/22 00:00 |
| Last estimates confirmation: | 2019/02/22 |
| Last earnings filing: | 2019/02/14 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
