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Market Cap

UK£18.1b

Last Updated

2021/05/05 18:15 UTC

Data Sources

Company Financials +

Executive Summary

Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


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

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

Volatility Over Time: ABF's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

ABF

0%

GB Food

0%

GB Market


1 Year Return

36.2%

ABF

0%

GB Food

0%

GB Market

Return vs Industry: ABF exceeded the UK Food industry which returned 29.6% over the past year.

Return vs Market: ABF exceeded the UK Market which returned 25% over the past year.


Shareholder returns

ABFIndustryMarket
7 Day0.5%0%0%
30 Day-5.8%0%0%
90 Day1.9%0%0%
1 Year36.2%36.2%0%0%0%0%
3 Year-12.4%-15.7%0%0%0%0%
5 Year-20.5%-25.6%0%0%0%0%

Long-Term 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

Valuation

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

24.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABF (£23.1) is trading below our estimate of fair value (£30.72)

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


Price To Earnings Ratio

PE vs Industry: ABF is poor value based on its PE Ratio (45.7x) compared to the GB Food industry average (16.5x).

PE vs Market: ABF is poor value based on its PE Ratio (45.7x) compared to the UK market (25.5x).


Price to Earnings Growth Ratio

PEG Ratio: ABF is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: ABF is overvalued based on its PB Ratio (1.9x) compared to the GB Food industry average (1.5x).


Future Growth

How is Associated British Foods forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

40.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABF's forecast earnings growth (40.4% per year) is above the savings rate (0.9%).

Earnings vs Market: ABF's earnings (40.4% per year) are forecast to grow faster than the UK market (17.9% per year).

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

Revenue vs Market: ABF's revenue (8.6% per year) is forecast to grow faster than the UK market (5.4% per year).

High Growth Revenue: ABF's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABF's Return on Equity is forecast to be low in 3 years time (11.2%).


Past Performance

How has Associated British Foods performed over the past 5 years?

-13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABF has a large one-off gain of £142.0M impacting its February 27 2021 financial results.

Growing Profit Margin: ABF's current net profit margins (3.2%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: ABF's earnings have declined by 13.3% 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 (-43.4%) over the past year, making it difficult to compare to the Food industry average (13.2%).


Return on Equity

High ROE: ABF's Return on Equity (4.3%) is considered low.


Financial Health

How is Associated British Foods's financial position?


Financial Position Analysis

Short Term Liabilities: ABF's short term assets (£5.3B) exceed its short term liabilities (£2.7B).

Long Term Liabilities: ABF's short term assets (£5.3B) exceed its long term liabilities (£3.9B).


Debt to Equity History and Analysis

Debt Level: ABF's debt to equity ratio (4.6%) is considered satisfactory.

Reducing Debt: ABF's debt to equity ratio has reduced from 14.2% to 4.6% over the past 5 years.

Debt Coverage: ABF's debt is well covered by operating cash flow (177.5%).

Interest Coverage: ABF's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet


Dividend

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

0.54%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 06 2021Ex Dividend DateJun 03 2021Dividend Pay DateJul 09 202136 days from Ex DividendBuy in the next 28 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ABF's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.36%).

High Dividend: ABF's dividend (0.54%) is low compared to the top 25% of dividend payers in the UK market (4.09%).


Stability and Growth of Payments

Stable Dividend: ABF is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: ABF is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ABF is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ABF's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

16.1yrs

Average management tenure


CEO

George Weston (56 yo)

16.08yrs

Tenure

UK£1,138,000

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 ($USD1.58M) is below average for companies of similar size in the UK market ($USD3.59M).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ABF's management team is seasoned and experienced (16.1 years average tenure).


Board Members

Experienced Board: ABF's board of directors are considered experienced (4.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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£18.091b
  • Shares outstanding: 790.00m
  • 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


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/05 18:15
End of Day Share Price2021/05/05 00:00
Earnings2021/02/27
Annual Earnings2020/09/12


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.