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NEST

Nestlé (Malaysia) BerhadKLSE:NESTLE Stock Report

Last Price

RM132.20

Market Cap

RM30.9b

7D

-1.3%

1Y

-3.9%

Updated

20 Jan, 2022

Data

Company Financials +
NESTLE fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends2/6

NESTLE Stock Overview

Nestlé (Malaysia) Berhad manufactures and sells food and beverage products in Malaysia and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Nestlé (Malaysia) Berhad
Historical stock prices
Current Share PriceRM132.20
52 Week HighRM139.00
52 Week LowRM130.60
Beta0.11
1 Month Change0.46%
3 Month Change-1.64%
1 Year Change-3.86%
3 Year Change-10.86%
5 Year Change76.27%
Change since IPO1,736.11%

Recent News & Updates

Dec 24
We Think Nestlé (Malaysia) Berhad (KLSE:NESTLE) Can Manage Its Debt With Ease

We Think Nestlé (Malaysia) Berhad (KLSE:NESTLE) Can Manage Its Debt With Ease

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 27
Nestlé (Malaysia) Berhad (KLSE:NESTLE) Will Pay A Dividend Of RM0.70

Nestlé (Malaysia) Berhad (KLSE:NESTLE) Will Pay A Dividend Of RM0.70

Nestlé (Malaysia) Berhad ( KLSE:NESTLE ) will pay a dividend of RM0.70 on the 7th of October. The dividend yield is...

Shareholder Returns

NESTLEMY FoodMY Market
7D-1.3%-1.2%-2.7%
1Y-3.9%-9.4%-4.5%

Return vs Industry: NESTLE exceeded the MY Food industry which returned -9.4% over the past year.

Return vs Market: NESTLE matched the MY Market which returned -4.5% over the past year.

Price Volatility

Is NESTLE's price volatile compared to industry and market?
NESTLE volatility
NESTLE Average Weekly Movement1.0%
Food Industry Average Movement4.5%
Market Average Movement5.4%
10% most volatile stocks in MY Market12.6%
10% least volatile stocks in MY Market2.7%

Stable Share Price: NESTLE is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: NESTLE's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19124,817Juan Jose Campillohttps://www.nestle.com.my

Nestlé (Malaysia) Berhad manufactures and sells food and beverage products in Malaysia and internationally. The company offers ice-cream, powdered milk and drinks, liquid milk and juices, instant coffee and other beverages, chocolate confectionery products, instant noodles, culinary products, cereals, and related products. The company offers its products primarily under the Milo, Nescafé, Maggi, KitKat, Nestum, Nestlé, and La Cremeria brands.

Nestlé (Malaysia) Berhad Fundamentals Summary

How do Nestlé (Malaysia) Berhad's earnings and revenue compare to its market cap?
NESTLE fundamental statistics
Market CapRM30.93b
Earnings (TTM)RM590.19m
Revenue (TTM)RM5.64b

52.5x

P/E Ratio

5.5x

P/S Ratio


Dividends

1.8%

Current Dividend Yield

92%

Payout Ratio

Valuation

Is Nestlé (Malaysia) Berhad undervalued compared to its fair value and its price relative to the market?

52.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NESTLE (MYR132.2) is trading above our estimate of fair value (MYR75.97)

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


Price To Earnings Ratio

PE vs Industry: NESTLE is poor value based on its PE Ratio (52.5x) compared to the MY Food industry average (13.6x).

PE vs Market: NESTLE is poor value based on its PE Ratio (52.5x) compared to the MY market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: NESTLE is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: NESTLE is overvalued based on its PB Ratio (48.7x) compared to the MY Food industry average (1x).


Future Growth

How is Nestlé (Malaysia) Berhad forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NESTLE's forecast earnings growth (8.8% per year) is above the savings rate (3.6%).

Earnings vs Market: NESTLE's earnings (8.8% per year) are forecast to grow slower than the MY market (12.3% per year).

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

Revenue vs Market: NESTLE's revenue (4.5% per year) is forecast to grow slower than the MY market (7% per year).

High Growth Revenue: NESTLE'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: NESTLE's Return on Equity is forecast to be very high in 3 years time (114.3%).


Past Performance

How has Nestlé (Malaysia) Berhad performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NESTLE has high quality earnings.

Growing Profit Margin: NESTLE's current net profit margins (10.5%) are higher than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: NESTLE's earnings have declined by 2.7% per year over the past 5 years.

Accelerating Growth: NESTLE's earnings growth over the past year (6.9%) exceeds its 5-year average (-2.7% per year).

Earnings vs Industry: NESTLE earnings growth over the past year (6.9%) underperformed the Food industry 47.5%.


Return on Equity

High ROE: NESTLE's Return on Equity (92.7%) is considered outstanding.


Financial Health

How is Nestlé (Malaysia) Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: NESTLE's short term assets (MYR1.1B) do not cover its short term liabilities (MYR1.8B).

Long Term Liabilities: NESTLE's short term assets (MYR1.1B) exceed its long term liabilities (MYR465.1M).


Debt to Equity History and Analysis

Debt Level: NESTLE's net debt to equity ratio (11.8%) is considered satisfactory.

Reducing Debt: NESTLE's debt to equity ratio has reduced from 48.1% to 15.7% over the past 5 years.

Debt Coverage: NESTLE's debt is well covered by operating cash flow (958%).

Interest Coverage: NESTLE's interest payments on its debt are well covered by EBIT (25.1x coverage).


Balance Sheet


Dividend

What is Nestlé (Malaysia) Berhad current dividend yield, its reliability and sustainability?

1.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NESTLE's dividend (1.75%) is higher than the bottom 25% of dividend payers in the MY market (1.69%).

High Dividend: NESTLE's dividend (1.75%) is low compared to the top 25% of dividend payers in the MY market (4.52%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (92.2%), NESTLE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NESTLE's dividends in 3 years are not forecast to be well covered by earnings (96.4% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Juan Jose Campillo (52 yo)

3.08yrs

Tenure

RM4,427,032

Compensation

Mr. Juan Jose Aranols Campillo has been Chief Executive Director Of Nestlé (Malaysia) Berhad since December 01, 2018 and has been its Executive Director since December 01, 2018. Mr. Campillo served as a No...


CEO Compensation Analysis

Compensation vs Market: Juan Jose's total compensation ($USD1.06M) is about average for companies of similar size in the MY market ($USD1.02M).

Compensation vs Earnings: Juan Jose's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NESTLE's management team is seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: NESTLE's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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 (Malaysia) Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Nestlé (Malaysia) Berhad
  • Ticker: NESTLE
  • Exchange: KLSE
  • Founded: 1912
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: RM30.931b
  • Shares outstanding: 234.50m
  • Website: https://www.nestle.com.my

Number of Employees


Location

  • Nestlé (Malaysia) Berhad
  • 1 Powerhouse
  • Level 22
  • Petaling Jaya
  • Selangor
  • 47800
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 11:02
End of Day Share Price2022/01/20 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.