Associated British Foods
Market Cap
UK£20.8b
Last Updated
2020/02/21 20:53 UTC
Data Sources
Company Financials +
Executive Summary
Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide.
Rewards
Risk Analysis
No risks detected for ABF from our risk checks.
Snowflake Analysis
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
Stable Share Price: ABF has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.2%
ABF
-2.2%
GB Food
0.2%
GB Market
1 Year Return
11.7%
ABF
8.1%
GB Food
6.4%
GB Market
Return vs Industry: ABF exceeded the UK Food industry which returned 9.5% over the past year.
Return vs Market: ABF exceeded the UK Market which returned 7.1% over the past year.
Shareholder returns
| ABF | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.2% | -2.2% | 0.2% |
| 30 Day | -3.3% | -1.9% | -1.4% |
| 90 Day | 2.5% | 3.9% | 3.8% |
| 1 Year | 13.8%11.7% | 10.8%8.1% | 11.9%6.4% |
| 3 Year | 4.2%-1.1% | 7.2%0.2% | 18.6%3.8% |
| 5 Year | -10.8%-17.3% | 1.8%-8.2% | 34.8%4.0% |
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
3 days ago | Simply Wall St
Associated British Foods plc (LON:ABF): Should The Recent Earnings Drop Worry You?2 weeks ago | Simply Wall St
Associated British Foods plc (LON:ABF) Insiders Increased Their Holdings3 weeks ago | Simply Wall St
How Much Did Associated British Foods plc's (LON:ABF) CEO Pocket Last Year?Valuation
Is Associated British Foods undervalued compared to its fair value and its price relative to the market?
21.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ABF (£25.83) is trading below our estimate of fair value (£32.68)
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 (23.2x) compared to the Food industry average (16.9x).
PE vs Market: ABF is poor value based on its PE Ratio (23.2x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: ABF is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: ABF is overvalued based on its PB Ratio (2.2x) 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 21 analysts?
12.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ABF's forecast earnings growth (12.5% per year) is above the savings rate (0.5%).
Earnings vs Market: ABF's earnings (12.5% per year) are forecast to grow slower than the UK market (13% per year).
High Growth Earnings: ABF's earnings are forecast to grow, but not significantly.
Revenue vs Market: ABF's revenue (3.8% per year) is forecast to grow faster than the UK market (3.5% per year).
High Growth Revenue: ABF's revenue (3.8% 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 (11.7%).
Next Steps
Past Performance
How has Associated British Foods performed over the past 5 years?
10.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ABF has high quality earnings.
Growing Profit Margin: ABF's current net profit margins (5.5%) are lower than last year (6.5%).
Past Earnings Growth Analysis
Earnings Trend: ABF's earnings have grown by 10.4% 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 (-12.8%) over the past year, making it difficult to compare to the Food industry average (8.5%).
Return on Equity
High ROE: ABF's Return on Equity (9.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Associated British Foods's financial position?
Financial Position Analysis
Short Term Liabilities: ABF's short term assets (£5.6B) exceed its short term liabilities (£3.1B).
Long Term Liabilities: ABF's short term assets (£5.6B) exceed its long term liabilities (£1.1B).
Debt to Equity History and Analysis
Debt Level: ABF's debt to equity ratio (6%) is considered satisfactory.
Reducing Debt: ABF's debt to equity ratio has reduced from 14.2% to 6% over the past 5 years.
Debt Coverage: ABF's debt is well covered by operating cash flow (262.9%).
Interest Coverage: ABF's interest payments on its debt are well covered by EBIT (49.1x 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 9.7x debt).
Next Steps
Dividend
What is Associated British Foods's current dividend yield, its reliability and sustainability?
1.79%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: ABF's dividend (1.79%) is higher than the bottom 25% of dividend payers in the UK market (1.79%).
High Dividend: ABF's dividend (1.79%) is low compared to the top 25% of dividend payers in the UK market (5.09%).
Stability and Growth of Payments
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 (41.7%), 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 (34.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
14.5yrs
Average management tenure
CEO
George Weston (55yo)
14.8yrs
Tenure
UK£4,146,000
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 ($USD5.38M) is about average for companies of similar size in the UK market ($USD4.68M).
Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 14.8yrs | UK£4.15m | 0.46% £96.0m | |
| Finance Director & Executive Director | 0yrs | UK£2.83m | 0.023% £4.8m | |
| Group Human Resources Director | 14.1yrs | no data | no data | |
| Head of External Affairs | 0yrs | no data | no data | |
| Group Head of Reward | 0yrs | no data | no data | |
| Company Secretary | 0yrs | no data | no data | |
| Chief Executive Officer of Primark/Penneys | 10.3yrs | no data | no data |
14.5yrs
Average Tenure
56.5yo
Average Age
Experienced Management: ABF's management team is seasoned and experienced (14.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 14.8yrs | UK£4.15m | 0.46% £96.0m | |
| Finance Director & Executive Director | 0yrs | UK£2.83m | 0.023% £4.8m | |
| Independent Chairman | 1.8yrs | UK£409.00k | 0.0019% £394.8k | |
| Independent Non-Executive Director | 5.1yrs | UK£74.00k | 0.00050% £103.9k | |
| Independent Non-Executive Director | 1.4yrs | UK£74.00k | 0.00038% £79.0k | |
| Independent Non-Executive Director | 3.8yrs | UK£111.00k | 0.00042% £87.3k | |
| Senior Independent Director | 1.2yrs | UK£111.00k | 0.00066% £137.1k | |
| Non-Executive Director | 8.2yrs | UK£74.00k | 0.064% £13.3m |
3.8yrs
Average Tenure
62yo
Average Age
Experienced Board: ABF's board of directors are considered experienced (3.8 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£20.779b
- Shares outstanding: 788.89m
- 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 |
| ABF | SWX (SIX Swiss Exchange) | Yes | Ordinary Shares | CH | CHF | Jan 1980 |
| ASBF.Y | OTCPK (Pink Sheets LLC) | ADR NEW | US | USD | Jun 1992 | |
| AFO2 | DB (Deutsche Boerse AG) | ADR NEW | 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 segment manufactures and sells grocery products, including hot beverages, sugar and sweeteners, vegetable oils, balsamic vinegars, bread and baked goods, cereals, ethnic foods, and meat products to retail, wholesale, and foodservice businesses. The Sugar segment is involved in growing, processing, and sale of sugar beet and sugar cane to industrial users. The Agriculture segment manufactures and sells animal feeds; and provides other products and services for the agriculture sector. The Ingredients segment manufactures bakers’ yeast, bakery ingredients, enzymes, lipids, yeast extracts, and cereal specialties. The Retail segment is involved in buying and merchandising clothing and accessories through the Primark and Penneys retail chains, which offer womenswear, lingerie, children’s wear, menswear, footwear, accessories, hosiery, beauty, and homeware. The company was founded in 1935 and is headquartered in London, the United Kingdom. Associated British Foods plc is a subsidiary of Wittington Investments Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/21 20:53 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/14 |
| Annual Earnings | 2019/09/14 |
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.