Market Cap
CHF315.8b
Last Updated
2021/07/31 17:11 UTC
Data Sources
Company Financials +
Executive Summary
Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. More Details
Rewards
Risk Analysis
Snowflake Analysis
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
Stable Share Price: NESN is less volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 1% a week.
Volatility Over Time: NESN's weekly volatility (1%) has been stable over the past year.
Market Performance
7 Day Return
-0.7%
NESN
-0.3%
CH Food
-0.05%
CH Market
1 Year Return
6.2%
NESN
8.7%
CH Food
23.2%
CH Market
Return vs Industry: NESN underperformed the Swiss Food industry which returned 8.7% over the past year.
Return vs Market: NESN underperformed the Swiss Market which returned 23.2% over the past year.
Shareholder returns
| NESN | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.7% | -0.3% | -0.05% |
| 30 Day | -0.7% | 0.2% | 1.5% |
| 90 Day | 5.4% | 6.4% | 9.8% |
| 1 Year | 9.0%6.2% | 11.3%8.7% | 26.6%23.2% |
| 3 Year | 52.4%41.0% | 48.2%33.0% | 41.5%26.0% |
| 5 Year | 68.9%47.0% | 63.1%29.3% | 70.1%39.3% |
Long-Term 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
1 day ago | Simply Wall St
Here's Why Nestlé (VTX:NESN) Can Manage Its Debt Responsibly1 month ago | Simply Wall St
Returns On Capital At Nestlé (VTX:NESN) Have Stalled2 months ago | Simply Wall St
Shareholders Of Nestlé (VTX:NESN) Must Be Happy With Their 75% ReturnValuation
Is Nestlé undervalued compared to its fair value and its price relative to the market?
20.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NESN (CHF114.8) is trading below our estimate of fair value (CHF143.46)
Significantly Below Fair Value: NESN is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: NESN's PE Ratio (26.3x) is in line with the Swiss Food industry average.
PE vs Market: NESN is poor value based on its PE Ratio (26.3x) compared to the Swiss market (22.7x).
Price to Earnings Growth Ratio
PEG Ratio: NESN is poor value based on its PEG Ratio (5.8x)
Price to Book Ratio
PB vs Industry: NESN is overvalued based on its PB Ratio (7.1x) compared to the CH Food industry average (4.7x).
Future Growth
How is Nestlé forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
4.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NESN's forecast earnings growth (4.6% per year) is above the savings rate (-0.3%).
Earnings vs Market: NESN's earnings (4.6% per year) are forecast to grow slower than the Swiss market (11.3% per year).
High Growth Earnings: NESN's earnings are forecast to grow, but not significantly.
Revenue vs Market: NESN's revenue (4.4% per year) is forecast to grow slower than the Swiss market (5.2% per year).
High Growth Revenue: NESN's revenue (4.4% 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 (31.3%)
Past Performance
How has Nestlé performed over the past 5 years?
10.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NESN has high quality earnings.
Growing Profit Margin: NESN's current net profit margins (14.4%) are lower than last year (15.3%).
Past Earnings Growth Analysis
Earnings Trend: NESN's earnings have grown by 10.8% per year over the past 5 years.
Accelerating Growth: NESN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NESN had negative earnings growth (-9.1%) over the past year, making it difficult to compare to the Food industry average (-9.1%).
Return on Equity
High ROE: NESN's Return on Equity (26.7%) is considered high.
Financial Health
How is Nestlé's financial position?
Financial Position Analysis
Short Term Liabilities: NESN's short term assets (CHF31.0B) do not cover its short term liabilities (CHF38.6B).
Long Term Liabilities: NESN's short term assets (CHF31.0B) do not cover its long term liabilities (CHF42.0B).
Debt to Equity History and Analysis
Debt Level: NESN's debt to equity ratio (90.8%) is considered high.
Reducing Debt: NESN's debt to equity ratio has increased from 45.9% to 90.8% over the past 5 years.
Debt Coverage: NESN's debt is well covered by operating cash flow (35.3%).
Interest Coverage: NESN's interest payments on its debt are well covered by EBIT (20.1x coverage).
Balance Sheet
Dividend
What is Nestlé current dividend yield, its reliability and sustainability?
2.40%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NESN's dividend (2.4%) is higher than the bottom 25% of dividend payers in the Swiss market (1.42%).
High Dividend: NESN's dividend (2.4%) is low compared to the top 25% of dividend payers in the Swiss market (3.53%).
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 (63.1%), 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 (61.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.1yrs
Average management tenure
CEO
Mark Schneider (56 yo)
4.5yrs
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: Insufficient data to establish whether Mark's total compensation is reasonable compared to companies of similar size in the Swiss market.
Compensation vs Earnings: Mark's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: NESN's management team is seasoned and experienced (5.1 years average tenure).
Board Members
Experienced Board: NESN's board of directors are considered experienced (4.2 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: CHF315.752b
- Shares outstanding: 2.75b
- Website: https://www.nestle.com
Number of Employees
Location
- Nestlé S.A.
- Avenue Nestlé 55
- Vevey
- Vaud
- 1800
- Switzerland
Listings
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/31 17:11 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.