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Nestlé

SWX:NESN
Snowflake Description

Established dividend payer with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NESN
SWX
CHF270B
Market Cap
  1. Home
  2. CH
  3. Food, Beverage & Tobacco
Company description

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
2.1%
SWX:NESN
2.9%
CH Food
1.1%
CH Market
1 Year Returns
20%
SWX:NESN
9%
CH Food
0.4%
CH Market
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.
Price Volatility
NESN
Industry
5yr Volatility vs Market

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.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nestlé.

SWX:NESN Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for SWX:NESN
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.

SWX:NESN DCF 1st Stage: Next 5 year cash flow forecast
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
SWX:NESN DCF 2nd Stage: Terminal Value
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
SWX:NESN Total Equity Value
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
SWX:NESN Discount to Share Price
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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
SWX:NESN PE (Price to Earnings) Ratio Data Sources
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.

SWX:NESN PE (Price to Earnings) Ratio Calculation
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?
Raw Data
SWX:NESN PEG (Price to Earnings to Growth) Ratio Data Sources
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 .

SWX:NESN PEG (Price to Earnings to Growth) Ratio Calculation
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?
Raw Data
SWX:NESN PB (Price to Book) Ratio Data Sources
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
SWX:NESN PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess Nestlé's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. 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!
Annual Growth Rate
8.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nestlé expected to grow at an attractive rate?
  • 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
Raw Data
SWX:NESN Future Growth Rates Data Sources
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
Raw Data
SWX:NESN Analysts Growth Expectations Data Sources
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 numbers in CHF Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SWX:NESN Future Estimates Data
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
SWX:NESN Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Nestlé's earnings are expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
  • Nestlé's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SWX:NESN 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.

SWX:NESN Future Estimates Data
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
SWX:NESN Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Nestlé is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Nestlé's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Switzerland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Switzerland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Nestlé's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Nestlé's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nestlé Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:NESN Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Nestlé's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Nestlé's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Nestlé Company Filings, last reported 1 month ago.

SWX:NESN Past Debt and Equity Data
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).
X
Financial health checks
We assess Nestlé's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nestlé has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
2.69%
Current annual income from Nestlé dividends. Estimated to be 3.1% next year.
If you bought CHF2,000 of Nestlé shares you are expected to receive CHF54 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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.
Raw Data
SWX:NESN Annualized Past and Future Dividends
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.

SWX:NESN Future Dividends Estimate Data
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
SWX:NESN Past Annualized Dividends Data
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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Nestlé's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Schneider
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:

4.4
Average Tenure
56
Average Age
  • The tenure for the Nestlé management team is about average.
Management Team

Mark Schneider

TITLE
CEO, Member of Executive Board & Director
AGE
52
TENURE
2.1 yrs

François-Xavier Roger

TITLE
CFO, Executive VP of Finance & Control and Member of Executive Board
AGE
56
TENURE
3.6 yrs

Chris Johnson

TITLE
CEO of Zone Asia
AGE
57
TENURE
8.1 yrs

David Frick

TITLE
SVP of Corporate Governance
AGE
53

Laurent Freixe

TITLE
Executive VP
AGE
56

Patrice Bula

TITLE
Executive VP - Strategic Business Units
AGE
62
TENURE
7.8 yrs

Marco Settembri

TITLE
Executive VP
AGE
59
TENURE
5.2 yrs

Greg Behar

TITLE
Member of Executive Board
AGE
49

Magdi Batato

TITLE
Executive VP
AGE
59
TENURE
3.3 yrs

Maurizio Patarnello

TITLE
Head of Nestlé Waters
AGE
52
Board of Directors Tenure

Average tenure and age of the Nestlé board of directors in years:

4.1
Average Tenure
69
Average Age
  • The tenure for the Nestlé board of directors is about average.
Board of Directors

Paul Bulcke

TITLE
Chairman
AGE
64
TENURE
1.8 yrs

Mark Schneider

TITLE
CEO, Member of Executive Board & Director
AGE
52
TENURE
1.8 yrs

Henri R. M. de la Croix de Castries

TITLE
Vice Chairman & Lead Independent Director
COMPENSATION
CHF382K
AGE
64
TENURE
0.8 yrs

Helmut Maucher

TITLE
Honorary Chairman
AGE
91
TENURE
18.8 yrs

Peter Brabeck-Letmathe

TITLE
Chairman Emeritus
COMPENSATION
CHF5M
AGE
74
TENURE
1.8 yrs

Suresh Narayanan

TITLE
Chairman & MD of Nestle India

Beat Hess

TITLE
Non-Executive Director
COMPENSATION
CHF623K
AGE
69
TENURE
10.8 yrs

Renato Fassbind

TITLE
Non-Executive Director
COMPENSATION
CHF623K
AGE
63
TENURE
4.1 yrs

Jean-Pierre Roth

TITLE
Non-Executive Director
COMPENSATION
CHF353K
AGE
72
TENURE
9.1 yrs

Ann Veneman

TITLE
Non-Executive Director
COMPENSATION
CHF334K
AGE
69
TENURE
7.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CHF) Value (CHF)
X
Management checks
We assess Nestlé's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Despite 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 -

What 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 -

How 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 -

Nestlé 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 -

Nestlé 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 -

Calculating 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 -

How 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 -

Is 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 -

At 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 -

Company 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
Staff numbers
308,000
Nestlé employees.
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.