LSE:ABF

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet average 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


Market Performance


7 Day Return

-0.5%

LSE:ABF

0.2%

GB Food

1.6%

GB Market


1 Year Return

4.8%

LSE:ABF

1.3%

GB Food

0.3%

GB Market

ABF outperformed the Food industry which returned 1.3% over the past year.

ABF outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 0.3% over the past year.


Share holder returns

ABFIndustryMarket
7 Day-0.5%0.2%1.6%
30 Day1.7%3.9%5.7%
90 Day-3.3%-2.6%1.3%
1 Year6.9%4.8%3.9%1.3%5.1%0.3%
3 Year-9.3%-13.6%-2.8%-9.9%23.7%9.0%
5 Year-6.1%-12.4%3.9%-6.8%29.9%2.5%

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 based on future cash flows and its price relative to the stock market?

23%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Associated British Foods's share price is below the future cash flow value, and at a moderate discount (> 20%).

Associated British Foods's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Associated British Foods is overvalued based on earnings compared to the GB Food industry average.

Associated British Foods is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Associated British Foods is poor value based on expected growth next year.


Price Based on Value of Assets

Associated British Foods is overvalued based on assets compared to the GB Food industry average.


Next Steps

Future Growth

How is Associated British Foods expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Associated British Foods's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).

Associated British Foods's earnings are expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).

Associated British Foods's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Associated British Foods's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Associated British Foods's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Associated British Foods is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

12.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Associated British Foods's year on year earnings growth rate has been positive over the past 5 years.

Associated British Foods's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Associated British Foods's 1-year earnings growth is negative, it can't be compared to the GB Food industry average.


Return on Equity

Associated British Foods has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Associated British Foods used its assets more efficiently than the GB Food industry average last year based on Return on Assets.


Return on Capital Employed

Associated British Foods's use of capital has not improved over the past 3 years (Return on Capital Employed).


Next Steps

Financial Health

How is Associated British Foods's financial position?


Financial Position Analysis

Associated British Foods is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Associated British Foods's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Associated British Foods's level of debt (8.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (17.6% vs 8.4% today).

Debt is well covered by operating cash flow (199.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 40.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 6.6x debt.


Next Steps

Dividend

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

2.18%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Associated British Foods's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).

Associated British Foods's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.5%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).


Next Steps

Management

What is the CEO of Associated British Foods's salary, the management and board of directors tenure and is there insider trading?

14.0yrs

Average management tenure


CEO

George Weston (55yo)

14.4yrs

Tenure

UK£3,826,000

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

George's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

George's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

14.0yrs

Average Tenure

56.5yo

Average Age

The average tenure for the Associated British Foods management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.4yrs

Average Tenure

62yo

Average Age

The tenure for the Associated British Foods board of directors is about average.


Insider Trading

More shares have been bought than sold by Associated British Foods individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUK£49,65111 Sep 19
Linda Cairnie
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares2,223
Max PriceUK£22.36
BuyUK£67,50001 Mar 19
Graham Allan
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares3,000
Max PriceUK£22.50

Ownership Breakdown


Management Team

  • John Bason (61yo)

    Finance Director & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£2.71m
  • Paul Marchant

    Chief Executive Officer of Primark/Penneys

    • Tenure: 9.8yrs
  • George Weston (55yo)

    CEO & Executive Director

    • Tenure: 14.4yrs
    • Compensation: UK£3.83m
  • Paul Lister (55yo)

    Company Secretary

    • Tenure: 0yrs
  • Flic Howard-Allen (58yo)

    Head of External Affairs

    • Tenure: 0yrs
  • Des Pullen

    Group Human Resources Director

    • Tenure: 13.7yrs
  • Julie Withnall

    Group Head of Reward

    • Tenure: 0yrs

Board Members

  • John Bason (61yo)

    Finance Director & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£2.71m
  • Michael George McLintock (57yo)

    Chairman

    • Tenure: 1.4yrs
    • Compensation: UK£209.00k
  • George Weston (55yo)

    CEO & Executive Director

    • Tenure: 14.4yrs
    • Compensation: UK£3.83m
  • Wolfhart Hauser (70yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£74.00k
  • Graham Allan (64yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: UK£2.00k
  • Arthur Ryan

    Chairman of Primark/Penneys

    • Tenure: 0yrs
  • Richard Reid (63yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: UK£95.00k
  • Linda Cairnie (65yo)

    Senior Independent Director

    • Tenure: 0.8yrs
    • Compensation: UK£83.00k
  • Emma Adamo (56yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: UK£74.00k

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£18.452b
  • Shares outstanding: 787.52m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASBF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
ABFLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1980
AFO1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
ABFLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1980
ASBF.YOTCPK (Pink Sheets LLC)ADR EACH CNV INTO 1 ORD GBP0.0568USUSDJun 1992
AFO2DB (Deutsche Boerse AG)ADR EACH CNV INTO 1 ORD GBP0.0568DEEURJun 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 20:46
End of Day Share Price2019/09/13 00:00
Earnings2019/03/02
Annual Earnings2018/09/15


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.