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ABF

Associated British Foods LSE:ABF Stock Report

Last Price

UK£16.51

Market Cap

UK£13.0b

7D

2.3%

1Y

-29.8%

Updated

25 May, 2022

Data

Company Financials +
ABF fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends4/6

ABF Stock Overview

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

Associated British Foods Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Associated British Foods
Historical stock prices
Current Share PriceUK£16.51
52 Week HighUK£23.89
52 Week LowUK£14.63
Beta1.06
1 Month Change1.26%
3 Month Change-12.56%
1 Year Change-29.77%
3 Year Change-33.37%
5 Year Change-44.91%
Change since IPO596.84%

Recent News & Updates

Apr 10
Is Now The Time To Look At Buying Associated British Foods plc (LON:ABF)?

Is Now The Time To Look At Buying Associated British Foods plc (LON:ABF)?

Associated British Foods plc ( LON:ABF ) saw significant share price movement during recent months on the LSE, rising...

Mar 26
Associated British Foods plc (LON:ABF) Shares Could Be 42% Below Their Intrinsic Value Estimate

Associated British Foods plc (LON:ABF) Shares Could Be 42% Below Their Intrinsic Value Estimate

Does the March share price for Associated British Foods plc ( LON:ABF ) reflect what it's really worth? Today, we will...

Feb 12
Associated British Foods (LON:ABF) Could Be Struggling To Allocate Capital

Associated British Foods (LON:ABF) Could Be Struggling To Allocate Capital

There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two...

Shareholder Returns

ABFGB FoodGB Market
7D2.3%1.3%1.0%
1Y-29.8%-25.5%-2.8%

Return vs Industry: ABF underperformed the UK Food industry which returned -25.2% over the past year.

Return vs Market: ABF underperformed the UK Market which returned -3% over the past year.

Price Volatility

Is ABF's price volatile compared to industry and market?
ABF volatility
ABF Average Weekly Movement5.2%
Food Industry Average Movement5.2%
Market Average Movement6.0%
10% most volatile stocks in GB Market11.4%
10% least volatile stocks in GB Market3.0%

Stable Share Price: ABF is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ABF's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1935128,000George Westonhttps://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

How do Associated British Foods's earnings and revenue compare to its market cap?
ABF fundamental statistics
Market CapUK£13.04b
Earnings (TTM)UK£792.00m
Revenue (TTM)UK£15.45b

16.5x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABF income statement (TTM)
RevenueUK£15.45b
Cost of RevenueUK£12.00b
Gross ProfitUK£3.46b
Other ExpensesUK£2.67b
EarningsUK£792.00m

Last Reported Earnings

Mar 05, 2022

Next Earnings Date

Nov 08, 2022

Earnings per share (EPS)1.00
Gross Margin22.38%
Net Profit Margin5.13%
Debt/Equity Ratio7.2%

How did ABF perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

34%

Payout Ratio

Does ABF pay a reliable dividends?

See ABF dividend history and benchmarks
When do you need to buy ABF by to receive an upcoming dividend?
Associated British Foods dividend dates
Ex Dividend DateJun 09 2022
Dividend Pay DateJul 08 2022
Days until Ex dividend14 days
Days until Dividend pay date43 days

Does ABF pay a reliable dividends?

See ABF dividend history and benchmarks

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ABF (£16.51) is trading below our estimate of fair value (£47.16)

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 Price-To-Earnings Ratio (16.5x) compared to the UK Food industry average (13.5x).

PE vs Market: ABF is poor value based on its Price-To-Earnings Ratio (16.5x) compared to the UK market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: ABF is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: ABF is overvalued based on its Price-To-Book Ratio (1.3x) compared to the GB Food industry average (1.1x).


Future Growth

How is Associated British Foods forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABF's forecast earnings growth (9.5% per year) is above the savings rate (0.9%).

Earnings vs Market: ABF's earnings (9.5% per year) are forecast to grow slower than the UK market (11.3% per year).

High Growth Earnings: ABF's earnings are forecast to grow, but not significantly.

Revenue vs Market: ABF's revenue (4.5% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: ABF's revenue (4.5% 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 (10.6%).


Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-20.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ABF has high quality earnings.

Growing Profit Margin: ABF's current net profit margins (5.1%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: ABF's earnings have declined by 20.2% per year over the past 5 years.

Accelerating Growth: ABF's earnings growth over the past year (97%) exceeds its 5-year average (-20.2% per year).

Earnings vs Industry: ABF earnings growth over the past year (97%) exceeded the Food industry 34.6%.


Return on Equity

High ROE: ABF's Return on Equity (7.8%) is considered low.


Financial Health

How is Associated British Foods's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ABF's short term assets (£6.6B) exceed its short term liabilities (£3.3B).

Long Term Liabilities: ABF's short term assets (£6.6B) exceed its long term liabilities (£4.0B).


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 11.2% to 7.2% over the past 5 years.

Debt Coverage: ABF's debt is well covered by operating cash flow (299.7%).

Interest Coverage: ABF's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.08%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 26 2022Ex Dividend DateJun 09 2022Dividend Pay DateJul 08 202229 days from Ex DividendBuy in the next 14 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ABF's dividend (2.08%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: ABF's dividend (2.08%) is low compared to the top 25% of dividend payers in the UK market (4.82%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (34.2%), ABF's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (17.1%), ABF's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

17.1yrs

Average management tenure


CEO

George Weston (57 yo)

17.08yrs

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 ($USD4.26M) is about average for companies of similar size in the UK market ($USD5.10M).

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 (17.1 years average tenure).


Board Members

Experienced Board: ABF's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ABF 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 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£13.044b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 00:00
Earnings2022/03/05
Annual Earnings2021/09/18


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.