Associated British Foods
Market Cap
UK£17.6b
Last Updated
2019/10/17 20:38 UTC
Data Sources
Company Financials +
Executive Summary
Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide.
Snowflake
Fundamentals
Flawless balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Associated British Foods's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
6.1%
ABF
4.8%
GB Food
1.7%
GB Market
1 Year Return
-3.8%
ABF
-3.3%
GB Food
2.9%
GB Market
Return vs Industry: ABF matched the UK Food industry which returned -3.3% over the past year.
Return vs Market: ABF underperformed the UK Market which returned 2.9% over the past year.
Shareholder returns
| ABF | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.1% | 4.8% | 1.7% |
| 30 Day | -3.5% | -2.8% | -0.7% |
| 90 Day | -4.7% | -2.7% | -1.8% |
| 1 Year | -1.9%-3.8% | -0.8%-3.3% | 8.0%2.9% |
| 3 Year | -7.3%-11.6% | -2.4%-9.6% | 18.2%3.8% |
| 5 Year | -12.5%-18.4% | 1.7%-8.4% | 35.6%6.1% |
Price Volatility Vs. Market
How volatile is Associated British Foods's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
A Look At The Intrinsic Value Of Associated British Foods plc (LON:ABF)2 weeks ago | Simply Wall St
Should We Worry About Associated British Foods plc's (LON:ABF) P/E Ratio?3 weeks ago | Simply Wall St
Have Insiders Been Buying Associated British Foods plc (LON:ABF) Shares This Year?Valuation
Is Associated British Foods undervalued compared to its fair value and its price relative to the market?
1.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: ABF (£22.34) is trading below our estimate of fair value (£22.67)
Significantly Undervalued: ABF is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ABF is poor value based on its PE Ratio (19.3x) compared to the Food industry average (17x).
PE vs Market: ABF is poor value based on its PE Ratio (19.3x) compared to the UK market (16.7x).
Price to Earnings Growth Ratio
Low PEG Ratio: ABF is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: ABF is overvalued based on its PB Ratio (1.9x) compared to the GB Food industry average (1.2x).
Next Steps
Future Growth
How is Associated British Foods forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
9.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ABF's forecast earnings growth (9.4% per year) is above the savings rate (1.2%).
Earnings vs Market: ABF's earnings (9.4% per year) are forecast to grow slower than the UK market (12.9% per year).
High Growth Earnings: ABF's earnings are forecast to grow, but not significantly.
Revenue vs Market: ABF's revenue (4% per year) is forecast to grow faster than the UK market (3.9% per year).
High Growth Revenue: ABF's revenue (4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: ABF's Return on Equity is forecast to be low in 3 years time (11.2%).
Next Steps
Past Performance
How has Associated British Foods performed over the past 5 years?
12.4%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: ABF's earnings have grown by 12.4% per year over the past 5 years.
Accelerating Growth: ABF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ABF had negative earnings growth (-12.3%) over the past year, making it difficult to compare to the Food industry average (4.5%).
Return on Equity
High ROE: ABF's Return on Equity (10.1%) is considered low.
Return on Assets
ROA vs Industry: ABF has a higher Return on Assets than the Food industry average last year.
Return on Capital Employed
ROCE Improving: ABF has not improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Associated British Foods's financial position?
Financial Position Analysis
Short Term Liabilities: ABF's short term assets (£5.1B) exceeds its short term liabilities (£3.0B)
Long Term Liabilities: ABF's short term assets (5.1B) exceeds its long term liabilities (1.1B)
Debt to Equity History and Analysis
Debt Level: ABF's debt to equity ratio (8.4%) is considered satisfactory
Reducing Debt: ABF's debt to equity ratio has reduced from 17.6% to 8.4% over the past 5 years.
Debt Coverage: ABF's debt is well covered by operating cash flow (199.6%).
Interest Coverage: ABF's interest payments on its debt are well covered by EBIT (40.2x coverage).
Balance Sheet
Inventory Level: ABF has a high level of physical assets or inventory.
Debt Coverage by Assets: ABF's debt is covered by short term assets (assets are 6.566450x debt).
Next Steps
Dividend
What is Associated British Foods's current dividend yield, its reliability and sustainability?
2.03%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: ABF's dividend (2.03%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).
High Dividend: ABF's dividend (2.03%) is low compared to the top 25% of dividend payers in the UK market (5.41%).
Stable Dividend: ABF's dividends per share have been stable in the past 10 years.
Growing Dividend: ABF's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (39.2%), ABF's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ABF's dividends in 3 years are forecast to be well covered by earnings (34.1% payout ratio).
Next Steps
Management
What is the CEO of Associated British Foods's salary, the management and board of directors tenure and is there insider trading?
14.1yrs
Average management tenure
CEO
George Weston (55yo)
14.5yrs
Tenure
UK£3,826,000
Compensation
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 ...
CEO Compensation Analysis
Compensation vs. Market: George's total compensation ($USD4.92M) is about average for companies of similar size in the UK market ($USD4.63M).
Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.
Management Age and Tenure
14.1yrs
Average Tenure
56.5yo
Average Age
Experienced Management: ABF's management team is seasoned and experienced (14.1 years average tenure).
Board Age and Tenure
3.5yrs
Average Tenure
62yo
Average Age
Experienced Board: ABF's board of directors are considered experienced (3.5 years average tenure).
Insider Trading
Insider Buying: ABF insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Lead Director Senior Independent Director |
| Shares | 2,223 |
| Max Price | UK£22.36 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 3,000 |
| Max Price | UK£22.50 |
Ownership Breakdown
Management Team
John Bason (61yo)
Finance Director & Executive Director
- Tenure: 0yrs
- Compensation: UK£2.71m
Paul Marchant
Chief Executive Officer of Primark/Penneys
- Tenure: 9.9yrs
George Weston (55yo)
CEO & Executive Director
- Tenure: 14.5yrs
- Compensation: UK£3.83m
Paul Lister (55yo)
Company Secretary
- Tenure: 0yrs
Flic Howard-Allen (58yo)
Head of External Affairs
- Tenure: 0yrs
Des Pullen
Group Human Resources Director
- Tenure: 13.8yrs
Julie Withnall
Group Head of Reward
- Tenure: 0yrs
Board Members
John Bason (61yo)
Finance Director & Executive Director
- Tenure: 0yrs
- Compensation: UK£2.71m
Michael George McLintock (57yo)
Independent Chairman
- Tenure: 1.5yrs
- Compensation: UK£209.00k
George Weston (55yo)
CEO & Executive Director
- Tenure: 14.5yrs
- Compensation: UK£3.83m
Wolfhart Hauser (70yo)
Independent Non-Executive Director
- Tenure: 4.8yrs
- Compensation: UK£74.00k
Graham Allan (64yo)
Independent Non-Executive Director
- Tenure: 1.1yrs
- Compensation: UK£2.00k
Arthur Ryan
Chairman of Primark/Penneys
- Tenure: 0yrs
Richard Reid (63yo)
Independent Non-Executive Director
- Tenure: 3.5yrs
- Compensation: UK£95.00k
Linda Cairnie (65yo)
Senior Independent Director
- Tenure: 0.8yrs
- Compensation: UK£83.00k
Emma Adamo (56yo)
Non-Executive Director
- Tenure: 7.8yrs
- Compensation: UK£74.00k
Company Information
Associated British Foods plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Associated British Foods plc
- Ticker: ABF
- Exchange: LSE
- Founded: 1935
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: UK£17.593b
- Shares outstanding: 787.52m
- Website: https://www.abf.co.uk
Number of Employees
Location
- Associated British Foods plc
- Weston Centre
- 10 Grosvenor Street
- London
- Greater London
- W1K 4QY
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ASBF.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1980 |
| ABF | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1980 |
| AFO1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1980 |
| ABFL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1980 |
| ASBF.Y | OTCPK (Pink Sheets LLC) | ADR EACH CNV INTO 1 ORD GBP0.0568 | US | USD | Jun 1992 | |
| AFO2 | DB (Deutsche Boerse AG) | ADR EACH CNV INTO 1 ORD GBP0.0568 | DE | EUR | Jun 1992 |
Biography
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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/17 20:38 |
| End of Day Share Price | 2019/10/17 00:00 |
| Earnings | 2019/03/02 |
| Annual Earnings | 2018/09/15 |
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.