BME:EBRO

Stock Analysis Report

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Market Cap

€2.7b

Last Updated

2021/06/14 18:15 UTC

Data Sources

Company Financials +

Executive Summary

Ebro Foods, S.A. produces and sells food products in Spain, rest of Europe, the United States, Canada, and internationally. More Details


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EBRO is less volatile than 75% of Spanish stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: EBRO's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-0.2%

EBRO

-0.1%

ES Food

0.9%

ES Market


1 Year Return

-3.4%

EBRO

11.0%

ES Food

24.0%

ES Market

Return vs Industry: EBRO underperformed the Spanish Food industry which returned 11% over the past year.

Return vs Market: EBRO underperformed the Spanish Market which returned 24% over the past year.


Shareholder returns

EBROIndustryMarket
7 Day-0.2%-0.1%0.9%
30 Day-0.7%0.06%0.5%
90 Day2.0%0.8%5.3%
1 Year7.2%-3.4%13.9%11.0%29.3%24.0%
3 Year-3.2%-17.0%2.6%-8.3%6.4%-3.5%
5 Year5.0%-13.9%57.9%30.2%36.2%15.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EBRO (€17.44) is trading below our estimate of fair value (€39.99)

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


Price To Earnings Ratio

PE vs Industry: EBRO's PE Ratio (20.4x) is in line with the European Food industry average.

PE vs Market: EBRO is good value based on its PE Ratio (20.4x) compared to the Spanish market (23.1x).


Price to Earnings Growth Ratio

PEG Ratio: EBRO is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: EBRO's PB Ratio (1.4x) is in line with the ES Food industry average.


Future Growth

How is Ebro Foods forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBRO's forecast earnings growth (9.1% per year) is above the savings rate (1%).

Earnings vs Market: EBRO's earnings (9.1% per year) are forecast to grow slower than the Spanish market (21.6% per year).

High Growth Earnings: EBRO's earnings are forecast to grow, but not significantly.

Revenue vs Market: EBRO's revenue (1.9% per year) is forecast to grow slower than the Spanish market (7.2% per year).

High Growth Revenue: EBRO's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EBRO's Return on Equity is forecast to be low in 3 years time (8.8%).


Past Performance

How has Ebro Foods performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EBRO has a large one-off loss of €60.9M impacting its March 31 2021 financial results.

Growing Profit Margin: EBRO's current net profit margins (4.7%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: EBRO's earnings have declined by 6.3% per year over the past 5 years.

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

Earnings vs Industry: EBRO had negative earnings growth (-3.6%) over the past year, making it difficult to compare to the Food industry average (11.3%).


Return on Equity

High ROE: EBRO's Return on Equity (7.5%) is considered low.


Financial Health

How is Ebro Foods's financial position?


Financial Position Analysis

Short Term Liabilities: EBRO's short term assets (€1.5B) exceed its short term liabilities (€1.2B).

Long Term Liabilities: EBRO's short term assets (€1.5B) exceed its long term liabilities (€895.2M).


Debt to Equity History and Analysis

Debt Level: EBRO's debt to equity ratio (45.5%) is considered high.

Reducing Debt: EBRO's debt to equity ratio has increased from 28.4% to 45.5% over the past 5 years.

Debt Coverage: EBRO's debt is well covered by operating cash flow (41.5%).

Interest Coverage: EBRO's interest payments on its debt are well covered by EBIT (31.9x coverage).


Balance Sheet


Dividend

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

3.27%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 14 2021Ex Dividend DateJun 28 2021Dividend Pay DateJun 30 20212 days from Ex DividendBuy in the next 13 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: EBRO's dividend (3.27%) is higher than the bottom 25% of dividend payers in the Spanish market (1.58%).

High Dividend: EBRO's dividend (3.27%) is low compared to the top 25% of dividend payers in the Spanish market (4.77%).


Stability and Growth of Payments

Stable Dividend: EBRO's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.6%), EBRO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EBRO's dividends in 3 years are forecast to be covered by earnings (65.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.4yrs

Average management tenure


CEO

Antonio Hernández Callejas

no data

Tenure

€3,047,000

Compensation

Mr. Antonio Hernández Callejas serves as the Chief Executive Officer of Ebro Foods SA (formerly Ebro Foods, S.A. (formerly known as Ebro Puleva SA)), parent company of Riviana Foods Inc. Mr. Callejas has e...


CEO Compensation Analysis

Compensation vs Market: Antonio's total compensation ($USD3.69M) is above average for companies of similar size in the Spanish market ($USD1.52M).

Compensation vs Earnings: Antonio's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: EBRO's management team is seasoned and experienced (9.4 years average tenure).


Board Members

Experienced Board: EBRO's board of directors are considered experienced (7.7 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

Ebro Foods, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ebro Foods, S.A.
  • Ticker: EBRO
  • Exchange: BME
  • Founded: 1998
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €2.683b
  • Shares outstanding: 153.87m
  • Website: https://www.ebrofoods.es

Number of Employees


Location

  • Ebro Foods, S.A.
  • Paseo de la Castellana, nº20
  • planta 3ª
  • Madrid
  • Madrid
  • 28046
  • Spain

Listings


Biography

Ebro Foods, S.A. produces and sells food products in Spain, rest of Europe, the United States, Canada, and internationally. It operates through Rice Business and Pasta Business segments. It produces and di...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 18:15
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.