DB:NLM

Stock Analysis Report

Executive Summary

FRoSTA Aktiengesellschaft, together with its subsidiaries, develops, produces, and markets frozen food products in Germany and rest of Europe.

Rewards

Trading at 41% below its fair value

Earnings are forecast to grow 35.79% per year

Pays a high and reliable dividend of 2.76%

Risk Analysis

Profit margins (2.4%) are lower than last year (5%)



Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has FRoSTA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NLM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

10.5%

NLM

1.8%

DE Food

1.0%

DE Market


1 Year Return

-15.9%

NLM

11.7%

DE Food

14.2%

DE Market

Return vs Industry: NLM underperformed the German Food industry which returned 11.7% over the past year.

Return vs Market: NLM underperformed the German Market which returned 14.2% over the past year.


Shareholder returns

NLMIndustryMarket
7 Day10.5%1.8%1.0%
30 Day5.5%2.7%0.04%
90 Day6.4%0.6%6.0%
1 Year-13.7%-15.9%13.7%11.7%17.8%14.2%
3 Year6.2%-0.9%-11.8%-17.3%19.2%8.7%
5 Year151.8%119.7%36.2%24.3%36.0%17.5%

Price Volatility Vs. Market

How volatile is FRoSTA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FRoSTA undervalued compared to its fair value and its price relative to the market?

41.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NLM (€58) is trading below our estimate of fair value (€98.31)

Significantly Below Fair Value: NLM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NLM is good value based on its PE Ratio (19.8x) compared to the Food industry average (21.9x).

PE vs Market: NLM is good value based on its PE Ratio (19.8x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: NLM is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: NLM is overvalued based on its PB Ratio (2.3x) compared to the DE Food industry average (1.9x).


Next Steps

Future Growth

How is FRoSTA forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

35.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NLM's forecast earnings growth (35.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: NLM's earnings (35.8% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NLM's revenue (5.3% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: NLM's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NLM's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has FRoSTA performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NLM has high quality earnings.

Growing Profit Margin: NLM's current net profit margins (2.4%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: NLM's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: NLM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NLM had negative earnings growth (-49.8%) over the past year, making it difficult to compare to the Food industry average (8.3%).


Return on Equity

High ROE: NLM's Return on Equity (7.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FRoSTA's financial position?


Financial Position Analysis

Short Term Liabilities: NLM's short term assets (€179.2M) exceed its short term liabilities (€125.6M).

Long Term Liabilities: NLM's short term assets (€179.2M) exceed its long term liabilities (€25.9M).


Debt to Equity History and Analysis

Debt Level: NLM's debt to equity ratio (31.6%) is considered satisfactory.

Reducing Debt: NLM's debt to equity ratio has increased from 29.2% to 31.6% over the past 5 years.

Debt Coverage: NLM's debt is well covered by operating cash flow (43.4%).

Interest Coverage: NLM's interest payments on its debt are well covered by EBIT (38.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: NLM's debt is covered by short term assets (assets are 3.5x debt).


Next Steps

Dividend

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

2.76%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.3%markettop25%3.6%industryaverage1.5%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: NLM's dividend (2.76%) is higher than the bottom 25% of dividend payers in the German market (1.33%).

High Dividend: NLM's dividend (2.76%) is low compared to the top 25% of dividend payers in the German market (3.58%).


Stability and Growth of Payments

Stable Dividend: NLM's dividends per share have been stable in the past 10 years.

Growing Dividend: NLM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.5%), NLM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NLM's dividends in 3 years are forecast to be well covered by earnings (47.7% payout ratio).


Next Steps

Management

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

9.9yrs

Average management tenure


CEO

Felix Ahlers (53yo)

9.9yrs

Tenure

0

Mr. Felix Ahlers has been the Chairman of Executive Board at Frosta AG since January 1, 2010 and has been its Member of Managing Board since October 11, 2003. Mr. Ahlers serves as the Chief Executive Offic ...


Management Age and Tenure

9.9yrs

Average Tenure

Experienced Management: NLM's management team is seasoned and experienced (9.9 years average tenure).


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Felix Ahlers (53yo)

    Chairman of the Executive Board & CEO

    • Tenure: 9.9yrs
  • Maik Busse

    VP of Business Partnering & Administration and Member of Executive Board

    • Tenure: 2.7yrs
  • Hinnerk Ehlers

    VP of Marketing

    • Tenure: 9.9yrs

Board Members

  • Jürgen Schimmelpfennig

    Employee Representative Member of Supervisory Board

    • Tenure: 0yrs
  • Dirk Ahlers

    Chairman of the Supervisory Board

    • Tenure: 0yrs
  • Volker Kuhn

    Vice Chairman of Supervisory Board

    • Tenure: 1.5yrs

Company Information

FRoSTA Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FRoSTA Aktiengesellschaft
  • Ticker: NLM
  • Exchange: DB
  • Founded: 1905
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €384.857m
  • Shares outstanding: 6.81m
  • Website: https://www.frosta-ag.com

Number of Employees


Location

  • FRoSTA Aktiengesellschaft
  • Am Lunedeich 116
  • Bremerhaven
  • Bremen
  • 27572
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NLMDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

FRoSTA Aktiengesellschaft, together with its subsidiaries, develops, produces, and markets frozen food products in Germany and rest of Europe. The company offers readymade meals; vegetable mixtures; and fi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 20:51
End of Day Share Price2019/12/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.