| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 4/6 |
| Past Performance | 3/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
ABF Stock Overview
Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide.
Associated British Foods Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£20.42 |
| 52 Week High | UK£25.28 |
| 52 Week Low | UK£17.19 |
| Beta | 1.12 |
| 1 Month Change | 0.54% |
| 3 Month Change | 18.24% |
| 1 Year Change | -9.41% |
| 3 Year Change | -14.17% |
| 5 Year Change | -15.93% |
| Change since IPO | 762.13% |
Recent News & Updates
Should You Think About Buying Associated British Foods plc (LON:ABF) Now?
Today we're going to take a look at the well-established Associated British Foods plc ( LON:ABF ). The company's stock...
Are Investors Undervaluing Associated British Foods plc (LON:ABF) By 33%?
How far off is Associated British Foods plc ( LON:ABF ) from its intrinsic value? Using the most recent financial data...
Associated British Foods (LON:ABF) Has A Pretty Healthy Balance Sheet
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Shareholder Returns
| ABF | GB Food | GB Market | |
|---|---|---|---|
| 7D | -3.5% | -1.4% | -0.5% |
| 1Y | -9.4% | -1.4% | 8.7% |
Return vs Industry: ABF underperformed the UK Food industry which returned -1.4% over the past year.
Return vs Market: ABF underperformed the UK Market which returned 8.7% over the past year.
Price Volatility
| ABF volatility | |
|---|---|
| ABF Average Weekly Movement | 4.2% |
| Food Industry Average Movement | 4.0% |
| Market Average Movement | 5.0% |
| 10% most volatile stocks in GB Market | 10.7% |
| 10% least volatile stocks in GB Market | 2.5% |
Stable Share Price: ABF is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ABF's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1935 | 128,000 | George Weston | https://www.abf.co.uk |
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.
Associated British Foods Fundamentals Summary
| ABF fundamental statistics | |
|---|---|
| Market Cap | UK£16.14b |
| Earnings (TTM) | UK£478.00m |
| Revenue (TTM) | UK£13.88b |
33.8x
P/E Ratio1.2x
P/S RatioIs ABF overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ABF income statement (TTM) | |
|---|---|
| Revenue | UK£13.88b |
| Cost of Revenue | UK£10.75b |
| Gross Profit | UK£3.13b |
| Expenses | UK£2.65b |
| Earnings | UK£478.00m |
Last Reported Earnings
Sep 18, 2021
Next Earnings Date
Apr 26, 2022
| Earnings per share (EPS) | 0.60 |
| Gross Margin | 22.55% |
| Net Profit Margin | 3.44% |
| Debt/Equity Ratio | 4.1% |
How did ABF perform over the long term?
See historical performance and comparisonDividends
1.3%
Current Dividend Yield44%
Payout RatioValuation
Is Associated British Foods undervalued compared to its fair value and its price relative to the market?
33.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ABF (£20.42) is trading below our estimate of fair value (£30.69)
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 (33.8x) compared to the UK Food industry average (16.7x).
PE vs Market: ABF is poor value based on its PE Ratio (33.8x) compared to the UK market (19.1x).
Price to Earnings Growth Ratio
PEG Ratio: ABF is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: ABF is overvalued based on its PB Ratio (1.6x) compared to the GB Food industry average (1.2x).
Future Growth
How is Associated British Foods forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
22.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ABF's forecast earnings growth (22.4% per year) is above the savings rate (0.9%).
Earnings vs Market: ABF's earnings (22.4% per year) are forecast to grow faster than the UK market (12.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ABF's revenue (6.8% per year) is forecast to grow faster than the UK market (4.9% per year).
High Growth Revenue: ABF's revenue (6.8% 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 (11.2%).
Past Performance
How has Associated British Foods performed over the past 5 years?
-20.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ABF has high quality earnings.
Growing Profit Margin: ABF's current net profit margins (3.4%) are higher than last year (3.3%).
Past Earnings Growth Analysis
Earnings Trend: ABF's earnings have declined by 20.3% per year over the past 5 years.
Accelerating Growth: ABF's earnings growth over the past year (5.6%) exceeds its 5-year average (-20.3% per year).
Earnings vs Industry: ABF earnings growth over the past year (5.6%) underperformed the Food industry 12.2%.
Return on Equity
High ROE: ABF's Return on Equity (5%) is considered low.
Financial Health
How is Associated British Foods's financial position?
Financial Position Analysis
Short Term Liabilities: ABF's short term assets (£6.1B) exceed its short term liabilities (£3.3B).
Long Term Liabilities: ABF's short term assets (£6.1B) exceed its long term liabilities (£3.6B).
Debt to Equity History and Analysis
Debt Level: ABF has more cash than its total debt.
Reducing Debt: ABF's debt to equity ratio has reduced from 12.2% to 4.1% over the past 5 years.
Debt Coverage: ABF's debt is well covered by operating cash flow (348%).
Interest Coverage: ABF's interest payments on its debt are well covered by EBIT (8.6x coverage).
Balance Sheet
Dividend
What is Associated British Foods's current dividend yield, its reliability and sustainability?
1.31%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ABF's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.37%).
High Dividend: ABF's dividend (1.31%) is low compared to the top 25% of dividend payers in the UK market (4.04%).
Stability and Growth of Payments
Stable Dividend: ABF's dividend payments have been volatile 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 (44.1%), 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 (35.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
16.8yrs
Average management tenure
CEO
George Weston (57 yo)
16.75yrs
Tenure
UK£3,390,000
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 ($USD4.60M) is about average for companies of similar size in the UK market ($USD3.96M).
Compensation vs Earnings: George's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: ABF's management team is seasoned and experienced (16.8 years average tenure).
Board Members
Experienced Board: ABF's board of directors are considered experienced (6.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ABF insiders have only sold shares 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 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
- Implied Market Cap: UK£16.138b
- Shares outstanding: 790.33m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 21:16 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/18 |
| Annual Earnings | 2021/09/18 |
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.