Associated British Foods
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
Rewards
Risk Analysis
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
| ABF | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | 0% | 0% |
| 30 Day | -5.8% | 0% | 0% |
| 90 Day | 1.9% | 0% | 0% |
| 1 Year | 36.2%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
1 week ago | Simply Wall St
Associated British Foods plc (LON:ABF) Insiders Have Been Selling3 weeks ago | Simply Wall St
Did You Miss Associated British Foods' (LON:ABF) -28% Share Price Gain?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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/05 18:15 |
| End of Day Share Price | 2021/05/05 00:00 |
| Earnings | 2021/02/27 |
| Annual Earnings | 2020/09/12 |
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.