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.

Snowflake

Fundamentals

Undervalued with excellent balance sheet and pays a dividend.

Risks

  • FRoSTA is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-3.6%

DB:NLM

1.5%

DE Food

0.2%

DE Market


1 Year Return

-34.1%

DB:NLM

4.0%

DE Food

-10.0%

DE Market

NLM underperformed the Food industry which returned 4% over the past year.

NLM underperformed the Market in Germany which returned -10% over the past year.


Share holder returns

NLMIndustryMarket
7 Day-3.6%1.5%0.2%
30 Day-8.5%6.4%-3.3%
90 Day-2.7%3.3%-3.9%
1 Year-32.4%-34.1%5.6%4.0%-7.1%-10.0%
3 Year6.1%-0.9%-9.0%-14.5%11.3%1.7%
5 Year157.9%125.0%36.5%24.4%25.8%8.4%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

FRoSTA's share price is below the future cash flow value, and at a moderate discount (> 20%).

FRoSTA's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

FRoSTA is good value based on earnings compared to the DE Food industry average.

FRoSTA is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

FRoSTA is good value based on expected growth next year.


Price Based on Value of Assets

FRoSTA is overvalued based on assets compared to the DE Food industry average.


Next Steps

Future Growth

How is FRoSTA expected 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 Estimates


Future Annual Growth Analysis

FRoSTA's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).

FRoSTA's earnings are expected to grow significantly at over 20% yearly.

FRoSTA's revenue growth is expected to exceed the Germany market average.

FRoSTA's earnings growth is expected to exceed the Germany market average.

FRoSTA's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

FRoSTA is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has FRoSTA performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

FRoSTA's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

FRoSTA's 1-year earnings growth is negative, it can't be compared to the 5-year average.

FRoSTA's 1-year earnings growth is negative, it can't be compared to the DE Food industry average.


Return on Equity

FRoSTA has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

FRoSTA used its assets less efficiently than the DE Food industry average last year based on Return on Assets.


Return on Capital Employed

FRoSTA's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is FRoSTA's financial position?


Financial Position Analysis

FRoSTA is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

FRoSTA's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

FRoSTA's level of debt (31.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (29.2% vs 31.6% today).

Debt is well covered by operating cash flow (43.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 38.8x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

3.14%

Expected Dividend Yield


Dividend Yield and Payments Analysis

FRoSTA's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.52%).

FRoSTA's dividend is below the markets top 25% of dividend payers in Germany (4.2%).

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

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).


Next Steps

Management

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

9.6yrs

Average management tenure


CEO

Felix Ahlers (53yo)

9.6yrs

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

9.6yrs

Average Tenure

The average tenure for the FRoSTA management team is over 5 years, this suggests they are a seasoned and experienced team.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Felix Ahlers (53yo)

    Chairman of the Executive Board & CEO

    • Tenure: 9.6yrs
  • Maik Busse

    VP of Business Partnering & Administration and Member of Executive Board

    • Tenure: 2.3yrs
  • Hinnerk Ehlers

    VP of Marketing

    • Tenure: 9.6yrs

Board Members

  • Jürgen Schimmelpfennig

    Employee Representative Member of Supervisory Board

    • Tenure: 0.0yrs
  • Dirk Ahlers

    Chairman of the Supervisory Board

    • Tenure: 0.0yrs
  • Volker Kuhn

    Vice Chairman of Supervisory Board

    • Tenure: 1.2yrs

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: €371.234m
  • 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 Analysis2019/08/20 20:49
End of Day Share Price2019/08/20 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.