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NEST

Nestlé LankaCOSE:NEST.N0000 Stock Report

Last Price

LK₨1.20k

Market Cap

LK₨64.6b

7D

-1.5%

1Y

-5.4%

Updated

24 Jan, 2022

Data

Company Financials +
NEST.N0000 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends3/6

NEST.N0000 Stock Overview

Nestlé Lanka PLC manufactures, markets, distributes, and sells food and beverage products in Sri Lanka.

Nestlé Lanka Competitors

GraceKennedy

JMSE:GK

JA$97.1b

Jamaican Teas

JMSE:JAMT

JA$8.5b

S&P International Holding

SEHK:1695

HK$75.6m

Price History & Performance

Summary of all time highs, changes and price drops for Nestlé Lanka
Historical stock prices
Current Share PriceLK₨1,202.00
52 Week HighLK₨1,650.00
52 Week LowLK₨950.00
Beta0.38
1 Month Change-3.26%
3 Month Change-5.30%
1 Year Change-5.43%
3 Year Change-29.70%
5 Year Change-38.36%
Change since IPO7,412.50%

Recent News & Updates

Shareholder Returns

NEST.N0000LK FoodLK Market
7D-1.5%-0.3%0.2%
1Y-5.4%54.4%56.5%

Return vs Industry: NEST.N0000 underperformed the LK Food industry which returned 54.4% over the past year.

Return vs Market: NEST.N0000 underperformed the LK Market which returned 56.5% over the past year.

Price Volatility

Is NEST.N0000's price volatile compared to industry and market?
NEST.N0000 volatility
NEST.N0000 Average Weekly Movement2.2%
Food Industry Average Movement8.5%
Market Average Movement7.8%
10% most volatile stocks in LK Market13.9%
10% least volatile stocks in LK Market3.7%

Stable Share Price: NEST.N0000 is less volatile than 75% of LK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: NEST.N0000's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1906802Fabrice Cavallinhttps://www.nestle.lk

Nestlé Lanka PLC manufactures, markets, distributes, and sells food and beverage products in Sri Lanka. The company offers its products under Nangrow, Lactogrow, Ceregrow, Nespray, Nestlé a+, Milo, Maggi, Nescafé, Milkmaid, and Nestomalt brand names. It also provides chocolates and confectionery under KitKat brands; breakfast cereals under Nestlé Corn Flakes, Nestlé Koko Krunch, Fitness breakfast cereal, Nestlé Milo balls, and Nestum brand names; and beverage solutions, such as vending machines for hot and cold beverages, and coffee solutions under Nestlé Professional brand, as well as Nestlé Health Science products.

Nestlé Lanka Fundamentals Summary

How do Nestlé Lanka's earnings and revenue compare to its market cap?
NEST.N0000 fundamental statistics
Market CapLK₨64.58b
Earnings (TTM)LK₨4.79b
Revenue (TTM)LK₨42.86b

13.5x

P/E Ratio

1.5x

P/S Ratio

Is NEST.N0000 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NEST.N0000 income statement (TTM)
RevenueLK₨42.86b
Cost of RevenueLK₨28.83b
Gross ProfitLK₨14.02b
ExpensesLK₨9.23b
EarningsLK₨4.79b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)89.19
Gross Margin32.72%
Net Profit Margin11.18%
Debt/Equity Ratio11.4%

How did NEST.N0000 perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is Nestlé Lanka undervalued compared to its fair value and its price relative to the market?

13.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NEST.N0000 (LKR1202) is trading above our estimate of fair value (LKR962.06)

Significantly Below Fair Value: NEST.N0000 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NEST.N0000 is poor value based on its PE Ratio (13.5x) compared to the LK Food industry average (11.5x).

PE vs Market: NEST.N0000 is poor value based on its PE Ratio (13.5x) compared to the LK market (12x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NEST.N0000's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NEST.N0000 is overvalued based on its PB Ratio (9.1x) compared to the LK Food industry average (1.6x).


Future Growth

How is Nestlé Lanka forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NEST.N0000's forecast earnings growth is above the savings rate (3.6%).

Earnings vs Market: Insufficient data to determine if NEST.N0000's earnings are forecast to grow faster than the LK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NEST.N0000's revenue (7.1% per year) is forecast to grow slower than the LK market (20.8% per year).

High Growth Revenue: NEST.N0000's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NEST.N0000's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Nestlé Lanka performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEST.N0000 has high quality earnings.

Growing Profit Margin: NEST.N0000's current net profit margins (11.2%) are higher than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: NEST.N0000's earnings have declined by 2.3% per year over the past 5 years.

Accelerating Growth: NEST.N0000's earnings growth over the past year (61.2%) exceeds its 5-year average (-2.3% per year).

Earnings vs Industry: NEST.N0000 earnings growth over the past year (61.2%) underperformed the Food industry 81.5%.


Return on Equity

High ROE: NEST.N0000's Return on Equity (67.6%) is considered outstanding.


Financial Health

How is Nestlé Lanka's financial position?


Financial Position Analysis

Short Term Liabilities: NEST.N0000's short term assets (LKR10.3B) exceed its short term liabilities (LKR9.6B).

Long Term Liabilities: NEST.N0000's short term assets (LKR10.3B) exceed its long term liabilities (LKR2.3B).


Debt to Equity History and Analysis

Debt Level: NEST.N0000 has more cash than its total debt.

Reducing Debt: NEST.N0000's debt to equity ratio has reduced from 18.6% to 11.4% over the past 5 years.

Debt Coverage: NEST.N0000's debt is well covered by operating cash flow (693.4%).

Interest Coverage: NEST.N0000's interest payments on its debt are well covered by EBIT (37.6x coverage).


Balance Sheet


Dividend

What is Nestlé Lanka current dividend yield, its reliability and sustainability?

4.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NEST.N0000's dividend (4.58%) is higher than the bottom 25% of dividend payers in the LK market (1.25%).

High Dividend: NEST.N0000's dividend (4.58%) is low compared to the top 25% of dividend payers in the LK market (4.85%).


Stability and Growth of Payments

Stable Dividend: NEST.N0000's dividend payments have been volatile in the past 10 years.

Growing Dividend: NEST.N0000's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.4%), NEST.N0000's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Fabrice Cavallin

3yrs

Tenure

Mr. Fabrice Cavallin has been Managing Director and Director of Nestlé Lanka PLC since January 1, 2019. Mr. Cavallin served as Head of Nutrition at Nestlé India Limited. Prior to joining Nestlé Lanka, he w...


Leadership Team

Experienced Management: NEST.N0000's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: NEST.N0000's board of directors are considered experienced (4.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nestlé Lanka PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Nestlé Lanka PLC
  • Ticker: NEST.N0000
  • Exchange: COSE
  • Founded: 1906
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: LK₨64.578b
  • Shares outstanding: 53.73m
  • Website: https://www.nestle.lk

Number of Employees


Location

  • Nestlé Lanka PLC
  • 440, T.B. Jayah Mawatha
  • Colombo
  • 10
  • Sri Lanka

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/24 15:38
End of Day Share Price2022/01/24 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.