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Associated British Foods

DB:AFO1
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AFO1
DB
£18B
Market Cap
  1. Home
  2. DE
  3. Food, Beverage & Tobacco
Company description

Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide. The last earnings update was 104 days ago. More info.


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AFO1 Share Price and Events
7 Day Returns
-1.8%
DB:AFO1
-2.3%
DE Food
2.9%
DE Market
1 Year Returns
-14.6%
DB:AFO1
-11.2%
DE Food
-12.1%
DE Market
AFO1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Associated British Foods (AFO1) -1.8% -2.1% -7.1% -14.6% -38.2% -28.4%
DE Food -2.3% -4.9% -1.6% -11.2% 9.4% -5%
DE Market 2.9% 0.8% 0.2% -12.1% 11.8% 4.9%
1 Year Return vs Industry and Market
  • AFO1 underperformed the Food industry which returned -11.2% over the past year.
  • AFO1 underperformed the Market in Germany which returned -12.1% over the past year.
Price Volatility
AFO1
Industry
5yr Volatility vs Market

Value

 Is Associated British Foods 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 Associated British Foods 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

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

DB:AFO1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

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 DB:AFO1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 9.8%
Food Unlevered Beta Simply Wall St/ S&P Global 0.5
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.501 (1 + (1- 19%) (4.26%))
0.519
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)
= 0.23% + (0.8 * 9.77%)
8.05%

Discounted Cash Flow Calculation for DB:AFO1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Associated British Foods 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.

DB:AFO1 DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (GBP, Millions) 824.64 873.73 968.13 1,027.00 1,112.00
Source Analyst x11 Analyst x11 Analyst x9 Analyst x1 Analyst x1
Present Value
Discounted (@ 8.05%)
763.23 748.45 767.56 753.60 755.21
Present value of next 5 years cash flows £3,788.06
DB:AFO1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= £1,112.00 × (1 + 0.23%) ÷ (8.05% – 0.23%)
£14,256.75
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= £14,256.75 ÷ (1 + 8.05%)5
£9,682.44
DB:AFO1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= £3,788.06 + £9,682.44
£13,470.50
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £13,470.50 / 787.52
£19.02
DB:AFO1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:AFO1 represents 1.11216x of LSE:ABF
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.11216x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 17.10 x 1.11216
€19.02
Value per share (EUR) From above. €19.02
Current discount Discount to share price of €25.78
= -1 x (€25.78 - €19.02) / €19.02
-35.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Associated British Foods 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 Associated British Foods's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Associated British Foods's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:AFO1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-15) in GBP £1.27
LSE:ABF Share Price ** LSE (2019-02-18) in GBP £23.18
Germany Food Industry PE Ratio Median Figure of 6 Publicly-Listed Food Companies 24.47x
Germany Market PE Ratio Median Figure of 420 Publicly-Listed Companies 18.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Associated British Foods.

DB:AFO1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:ABF Share Price ÷ EPS (both in GBP)

= 23.18 ÷ 1.27

18.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Associated British Foods is good value based on earnings compared to the DE Food industry average.
  • Associated British Foods is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Associated British Foods's expected growth come at a high price?
Raw Data
DB:AFO1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
6.6%per year
Europe Food Industry PEG Ratio Median Figure of 72 Publicly-Listed Food Companies 1.67x
Germany Market PEG Ratio Median Figure of 277 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

DB:AFO1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.18x ÷ 6.6%

2.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Associated British Foods is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Associated British Foods's assets?
Raw Data
DB:AFO1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-15) in GBP £11.67
LSE:ABF Share Price * LSE (2019-02-18) in GBP £23.18
Germany Food Industry PB Ratio Median Figure of 8 Publicly-Listed Food Companies 2.08x
Germany Market PB Ratio Median Figure of 566 Publicly-Listed Companies 1.79x
DB:AFO1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:ABF Share Price ÷ Book Value per Share (both in GBP)

= 23.18 ÷ 11.67

1.99x

* Primary Listing of Associated British Foods.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Associated British Foods is good value based on assets compared to the DE Food industry average.
X
Value checks
We assess Associated British Foods'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. Associated British Foods has a total score of 2/6, 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 Associated British Foods expected to perform in the next 1 to 3 years based on estimates from 19 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
6.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Associated British Foods expected to grow at an attractive rate?
  • Associated British Foods's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Associated British Foods's earnings growth is positive but not above the Germany market average.
  • Associated British Foods's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:AFO1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:AFO1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 6.6%
DB:AFO1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 3.6%
Germany Food Industry Earnings Growth Rate Market Cap Weighted Average 40.4%
Europe Food Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 9.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*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
DB:AFO1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:AFO1 Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 18,504 1,901 1,288 3
2022-09-30 17,808 2,425 1,235 3
2021-09-30 17,420 1,920 1,269 17
2020-09-30 16,672 1,811 1,180 19
2019-09-30 15,877 1,636 1,064 18
2018-09-30 15,682 1,433 1,027 18
DB:AFO1 Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-09-15 15,574 1,430 1,007
2018-06-15 15,529 1,376 1,025
2018-03-03 15,483 1,321 1,043
2017-12-03 15,420 1,481 1,121
2017-09-16 15,357 1,641 1,198
2016-09-17 13,399 1,310 818
2016-02-27 12,669 1,352 740
2015-11-27 12,735 1,264 634

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Associated British Foods's earnings are expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).
  • Associated British Foods'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
DB:AFO1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Associated British Foods Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:AFO1 Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30 1.63 1.63 1.63 1.00
2022-09-30 1.56 1.56 1.56 1.00
2021-09-30 1.62 1.72 1.50 8.00
2020-09-30 1.49 1.57 1.44 11.00
2019-09-30 1.34 1.40 1.31 11.00
2018-09-30 1.30 1.43 1.21 9.00
DB:AFO1 Past Financials Data
Date (Data in GBP Millions) EPS *
2018-09-15 1.27
2018-06-15 1.30
2018-03-03 1.32
2017-12-03 1.42
2017-09-16 1.52
2016-09-17 1.03
2016-02-27 0.94
2015-11-27 0.80

*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.
  • Associated British Foods is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Associated British Foods'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 Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe 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.
Associated British Foods has a total score of 1/6, 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 Associated British Foods 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 Associated British Foods'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.
  • Associated British Foods's year on year earnings growth rate has been positive over the past 5 years.
  • Associated British Foods's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Associated British Foods's 1-year earnings growth is negative, it can't be compared to the DE Food industry average.
Earnings and Revenue History
Associated British Foods'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 Associated British Foods Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:AFO1 Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-15 15,574.00 1,007.00 2,297.00
2018-06-15 15,528.50 1,025.00 2,321.00
2018-03-03 15,483.00 1,043.00 2,345.00
2017-12-03 15,420.00 1,120.50 2,345.00
2017-09-16 15,357.00 1,198.00 2,345.00
2016-09-17 13,399.00 818.00 2,106.00
2016-02-27 12,669.00 740.00 2,040.00
2015-11-27 12,734.50 634.00 2,040.00
2015-09-12 12,800.00 528.00 2,040.00
2015-06-12 12,892.50 548.00 2,056.00
2015-02-28 12,985.00 564.00 2,072.00
2014-11-30 12,964.00 663.00 2,072.00
2014-09-13 12,943.00 762.00 2,072.00
2014-06-13 13,065.50 692.00 2,109.50
2014-03-01 13,188.00 622.00 2,147.00
2013-12-01 13,251.50 603.50 2,147.00
2013-09-14 13,315.00 585.00 2,147.00
2012-09-15 12,252.00 555.00 2,005.00

*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.
  • Associated British Foods has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Associated British Foods used its assets more efficiently than the DE Food industry average last year based on Return on Assets.
  • Associated British Foods's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Associated British Foods'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.
Associated British Foods has a total score of 2/6, 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 Associated British Foods'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 Associated British Foods's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Associated British Foods is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Associated British Foods's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Associated British Foods'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 6.8x 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 Associated British Foods Company Filings, last reported 5 months ago.

DB:AFO1 Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-15 9,296.00 778.00 1,392.00
2018-06-15 9,296.00 778.00 1,392.00
2018-03-03 8,858.00 764.00 887.00
2017-12-03 8,858.00 764.00 887.00
2017-09-16 8,412.00 877.00 1,550.00
2016-09-17 7,122.00 885.00 555.00
2016-02-27 6,992.00 1,004.00 583.00
2015-11-27 6,992.00 1,004.00 583.00
2015-09-12 6,511.00 896.00 702.00
2015-06-12 6,551.00 896.00 702.00
2015-02-28 6,492.00 1,084.00 283.00
2014-11-30 6,492.00 1,084.00 283.00
2014-09-13 6,753.00 965.00 519.00
2014-06-13 6,753.00 965.00 519.00
2014-03-01 6,362.00 1,138.00 311.00
2013-12-01 6,362.00 1,138.00 311.00
2013-09-14 6,519.00 1,166.00 362.00
2012-09-15 6,221.00 1,452.00 391.00
  • Associated British Foods's level of debt (8.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (17.9% vs 8.4% today).
  • Debt is well covered by operating cash flow (183.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 36.8x coverage).
X
Financial health checks
We assess Associated British Foods'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. Associated British Foods has a total score of 6/6, 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 Associated British Foods'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
1.94%
Current annual income from Associated British Foods dividends. Estimated to be 2.22% next year.
If you bought €2,000 of Associated British Foods shares you are expected to receive €39 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?
  • Associated British Foods's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.53%).
  • Associated British Foods's dividend is below the markets top 25% of dividend payers in Germany (3.96%).
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
DB:AFO1 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 19 Analyst Estimates (S&P Global) See Below
Germany Food Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 332 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:AFO1 Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-09-30 0.56 2.00
2022-09-30 0.54 2.00
2021-09-30 0.55 18.00
2020-09-30 0.52 20.00
2019-09-30 0.47 20.00
2018-09-30 0.44 18.00
DB:AFO1 Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-11-06 0.450 1.945
2018-04-17 0.414 1.665
2017-11-07 0.410 1.496
2017-04-19 0.378 1.235
2016-12-09 0.368 1.418
2015-11-03 0.350 1.181
2014-11-04 0.340 1.105
2014-04-23 0.324 1.140
2013-11-05 0.320 1.230
2013-04-23 0.294 1.549
2012-11-06 0.285 1.715
2011-11-08 0.248 2.033
2010-11-09 0.238 2.238
2010-04-20 0.217 2.124
2009-11-11 0.210 2.370
2009-11-03 0.210 2.569
2009-04-21 0.204 2.596
2009-02-19 0.203 3.163

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 Associated British Foods's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).
X
Income/ dividend checks
We assess Associated British Foods's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - 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 Associated British Foods afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Associated British Foods 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 Associated British Foods'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
George Weston
COMPENSATION £3,826,000
AGE 54
TENURE AS CEO 13.8 years
CEO Bio

Mr. George Garfield Weston has been the Chief Executive Officer of Associated British Foods plc since April 1, 2005. Mr. Weston has been the Chief Executive officer of Weston Foods Ltd., a holding Company of Associated British Foods plc since March 31, 2003. He served as the Chief Executive and Managing Director of Allied Bakeries. He served as the Chief Executive Officer of Associated British Foods' Food Operations Australasia since March 31, 2003. He served as the Chief Executive Officer of Food Operations at Associated British Foods Plc since February 28, 2003. He served as the Chief Executive Officer of George Weston Foods Ltd. since March 31, 2003. He first joined Associated British Foods in 1988 as Manager of its flour milling Operations in Melbourne, Australia. He served as Managing Director of Westmill Foods, after which he worked for the group Finance Director until taking up his position at Allied Bakeries from 1992 to 1998. He joined the group in Australia and ran George Weston Foods milling operations in Victoria from 1989 to 1990. He worked in Australia for a number of years in the 1980's, first with Gartrell White and then Weston Milling. He served as Deputy Chairman of Associated British Foods plc from May 2000 to April 01, 2005. He has been an Executive Director at Associated British Foods plc since April 19, 1999. He served as a Director of Wittington Investments Limited. He serves as a Trustee of Garfield Weston Foundation. He is a PPE graduate from Oxford University and has an MBA from Harvard Business School.

CEO Compensation
  • George's compensation has been consistent with company performance over the past year.
  • George's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Associated British Foods management team in years:

13.5
Average Tenure
55.5
Average Age
  • The average tenure for the Associated British Foods management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

George Weston

TITLE
CEO & Executive Director
COMPENSATION
£4M
AGE
54
TENURE
13.8 yrs

John Bason

TITLE
Finance Director & Executive Director
COMPENSATION
£3M
AGE
60
TENURE
19.8 yrs

Des Pullen

TITLE
Group Human Resources Director
TENURE
13.1 yrs

Flic Howard-Allen

TITLE
Head of External Affairs
AGE
57

Julie Withnall

TITLE
Group Head of Reward

Paul Lister

TITLE
Company Secretary
AGE
54

Paul Marchant

TITLE
Chief Executive Officer of Primark/Penneys
TENURE
9.3 yrs
Board of Directors Tenure

Average tenure and age of the Associated British Foods board of directors in years:

2.8
Average Tenure
61
Average Age
  • The average tenure for the Associated British Foods board of directors is less than 3 years, this suggests a new board.
Board of Directors

Michael Alexander McLintock

TITLE
Chairman
COMPENSATION
£209K
AGE
56
TENURE
0.8 yrs

George Weston

TITLE
CEO & Executive Director
COMPENSATION
£4M
AGE
54
TENURE
19.8 yrs

John Bason

TITLE
Finance Director & Executive Director
COMPENSATION
£3M
AGE
60

Arthur Ryan

TITLE
Chairman of Primark/Penneys

Linda Cairnie

TITLE
Senior Independent Director
COMPENSATION
£83K
AGE
64
TENURE
0.2 yrs

Richard Reid

TITLE
Independent Non-Executive Director
COMPENSATION
£95K
AGE
62
TENURE
2.8 yrs

Emma Adamo

TITLE
Non-Executive Director
COMPENSATION
£74K
AGE
55
TENURE
7.2 yrs

Wolfhart Hauser

TITLE
Independent Non-Executive Director
COMPENSATION
£74K
AGE
69
TENURE
4.1 yrs

Graham Allan

TITLE
Independent Non-Executive Director
COMPENSATION
£2K
AGE
63
TENURE
0.4 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 (€) Value (€)
30. May 18 Sell John Bason Individual 29. May 18 29. May 18 -30,000 €31.01 €-930,444
18. Apr 18 Buy Michael Alexander McLintock Individual 18. Apr 18 18. Apr 18 7,500 €30.89 €231,664
27. Feb 18 Buy Michael Alexander McLintock Individual 27. Feb 18 27. Feb 18 7,500 €30.83 €231,195
X
Management checks
We assess Associated British Foods'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. Associated British Foods 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

Company Info

Map
Description

Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide. It operates through five segments: Grocery, Sugar, Agriculture, Ingredients, and Retail. The Grocery segment manufactures and sells grocery products, including hot beverages, sugar and sweeteners, vegetable oils, balsamic vinegars, bread and baked goods, cereals, ethnic foods, and meat products to retail, wholesale, and foodservice businesses. The Sugar segment is involved in growing, processing, and sale of sugar beet and sugar cane to industrial users. The Agriculture segment manufactures and sells animal feeds; and provides other products and services for the agriculture sector. The Ingredients segment manufactures bakers’ yeast, bakery ingredients, enzymes, lipids, yeast extracts, and cereal specialties. The Retail segment is involved in buying and merchandising clothing and accessories through the Primark and Penneys retail chains, which offer womenswear, lingerie, children’s wear, menswear, footwear, accessories, hosiery, beauty, and homeware. The company was founded in 1935 and is headquartered in London, the United Kingdom. Associated British Foods plc is a subsidiary of Wittington Investments Limited.

Details
Name: Associated British Foods plc
AFO1
Exchange: DB
Founded: 1935
£20,868,578,558
787,519,235
Website: http://www.abf.co.uk
Address: Associated British Foods plc
Weston Centre,
10 Grosvenor Street,
London,
Greater London, W1K 4QY,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE ABF Ordinary Shares London Stock Exchange GB GBP 02. Jan 1980
OTCPK ASBF.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1980
DB AFO1 Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1980
BATS-CHIXE ABFL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1980
OTCPK ASBF.Y ADR EACH CNV INTO 1 ORD GBP0.0568 Pink Sheets LLC US USD 26. Jun 1992
DB AFO2 ADR EACH CNV INTO 1 ORD GBP0.0568 Deutsche Boerse AG DE EUR 26. Jun 1992
Number of employees
Current staff
Staff numbers
137,000
Associated British Foods employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/18 22:28
End of day share price update: 2019/02/18 00:00
Last estimates confirmation: 2019/02/15
Last earnings filing: 2018/11/06
Last earnings reported: 2018/09/15
Last annual earnings reported: 2018/09/15


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.