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NEST

Nestlé Nigeria NGSE:NESTLE Stock Report

Last Price

₦1.30k

Market Cap

₦1.0t

7D

3.0%

1Y

-15.6%

Updated

08 Aug, 2022

Data

Company Financials +
NESTLE fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends3/6

NESTLE Stock Overview

Nestlé Nigeria Plc manufactures, markets, and distributes food products in Nigeria.

Nestlé Nigeria Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nestlé Nigeria
Historical stock prices
Current Share Price₦1,300.00
52 Week High₦1,556.50
52 Week Low₦1,262.30
Beta0.85
1 Month Change-7.14%
3 Month Change-7.14%
1 Year Change-15.58%
3 Year Change2.36%
5 Year Change7.62%
Change since IPO20,981.11%

Recent News & Updates

Shareholder Returns

NESTLENG FoodNG Market
7D3.0%4.5%1.5%
1Y-15.6%0.4%5.9%

Return vs Industry: NESTLE underperformed the NG Food industry which returned 0.1% over the past year.

Return vs Market: NESTLE underperformed the NG Market which returned 5.8% over the past year.

Price Volatility

Is NESTLE's price volatile compared to industry and market?
NESTLE volatility
NESTLE Average Weekly Movement3.0%
Food Industry Average Movement5.9%
Market Average Movement6.0%
10% most volatile stocks in NG Market9.2%
10% least volatile stocks in NG Market3.1%

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

Volatility Over Time: NESTLE's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19612,318Wassim Elhusseinihttps://www.nestle-cwa.com/en/investors/nigeria

Nestlé Nigeria Plc manufactures, markets, and distributes food products in Nigeria. The company operates through two segments, Food and Beverages. It offers food products under the Maggi, Cerelac, SMA, Nan, Lactogen, and Golden Morn brands; and beverage drinks under the Milo, Milo energy cube, Nescafe, Milo ready-to-drink, and Nestlé Pure Life brands; and coffee products under the Nescafé brand.

Nestlé Nigeria Fundamentals Summary

How do Nestlé Nigeria's earnings and revenue compare to its market cap?
NESTLE fundamental statistics
Market Cap₦1.03t
Earnings (TTM)₦46.06b
Revenue (TTM)₦402.83b

22.4x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NESTLE income statement (TTM)
Revenue₦402.83b
Cost of Revenue₦257.22b
Gross Profit₦145.61b
Other Expenses₦99.55b
Earnings₦46.06b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)58.10
Gross Margin36.15%
Net Profit Margin11.43%
Debt/Equity Ratio321.1%

How did NESTLE perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

44%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NESTLE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NESTLE?

Other financial metrics that can be useful for relative valuation.

NESTLE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA11.5x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does NESTLE's PE Ratio compare to its peers?

NESTLE PE Ratio vs Peers
The above table shows the PE ratio for NESTLE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.2x
BUAFOODS BUA Foods
13.2xn/a₦981.0b
DANGSUGAR Dangote Sugar Refinery
6.8x20.4%₦201.0b
FLOURMILL Flour Mills of Nigeria
5.3x22.0%₦134.9b
UACN UAC of Nigeria
27.8x41.9%₦32.3b
NESTLE Nestlé Nigeria
22.4x13.3%₦1.0t

Price-To-Earnings vs Peers: NESTLE is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the peer average (13.2x).


Price to Earnings Ratio vs Industry

How does NESTLE's PE Ratio compare vs other companies in the African Food Industry?

Price-To-Earnings vs Industry: NESTLE is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the NG Food industry average (9.6x)


Price to Earnings Ratio vs Fair Ratio

What is NESTLE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NESTLE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.4x
Fair PE Ratio16.1x

Price-To-Earnings vs Fair Ratio: NESTLE is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).


Share Price vs Fair Value

What is the Fair Price of NESTLE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NESTLE (NGN1300) is trading above our estimate of fair value (NGN1221.44)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Nestlé Nigeria forecast to perform in the next 1 to 3 years based on estimates from 5 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


13.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NESTLE's forecast earnings growth (13.3% per year) is above the savings rate (12.6%).

Earnings vs Market: NESTLE's earnings (13.3% per year) are forecast to grow slower than the NG market (15.8% per year).

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

Revenue vs Market: NESTLE's revenue (11.2% per year) is forecast to grow slower than the NG market (12.3% per year).

High Growth Revenue: NESTLE's revenue (11.2% 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 (183.6%).


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Past Performance

How has Nestlé Nigeria performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NESTLE has high quality earnings.

Growing Profit Margin: NESTLE's current net profit margins (11.4%) are lower than last year (12.3%).


Past Earnings Growth Analysis

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

Accelerating Growth: NESTLE's earnings growth over the past year (17.7%) exceeds its 5-year average (5% per year).

Earnings vs Industry: NESTLE earnings growth over the past year (17.7%) underperformed the Food industry 19.6%.


Return on Equity

High ROE: Whilst NESTLE's Return on Equity (159.65%) is outstanding, this metric is skewed due to their high level of debt.


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Financial Health

How is Nestlé Nigeria's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NESTLE's short term assets (NGN237.7B) exceed its short term liabilities (NGN208.9B).

Long Term Liabilities: NESTLE's short term assets (NGN237.7B) exceed its long term liabilities (NGN109.0B).


Debt to Equity History and Analysis

Debt Level: NESTLE's net debt to equity ratio (15.4%) is considered satisfactory.

Reducing Debt: NESTLE's debt to equity ratio has increased from 108.3% to 321.1% over the past 5 years.

Debt Coverage: NESTLE's debt is not well covered by operating cash flow (1.6%).

Interest Coverage: NESTLE's interest payments on its debt are well covered by EBIT (16.9x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.88%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NESTLE's dividend (3.88%) is higher than the bottom 25% of dividend payers in the NG market (3.71%).

High Dividend: NESTLE's dividend (3.88%) is low compared to the top 25% of dividend payers in the NG market (8.46%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.9%), NESTLE's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: NESTLE is paying a dividend but the company has no free cash flows.


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Management

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

3.3yrs

Average management tenure


CEO

Wassim Elhusseini

1.92yrs

Tenure

Mr. Wassim Elhusseini serves as Managing Director, Chief Executive Officer and Director of Nestlé Nigeria Plc since September 1, 2020. He joined Nestlé Kuwait in 2002 as Channel Category Sales Development...


Leadership Team

Experienced Management: NESTLE's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: NESTLE's board of directors are considered experienced (3.5 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 Nigeria Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Nestlé Nigeria Plc
  • Ticker: NESTLE
  • Exchange: NGSE
  • Founded: 1961
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: ₦1.030t
  • Shares outstanding: 792.66m
  • Website: https://www.nestle-cwa.com/en/investors/nigeria

Number of Employees


Location

  • Nestlé Nigeria Plc
  • 22-24, Industrial Avenue
  • Ilupeju
  • Lagos
  • Nigeria

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/08 00:00
End of Day Share Price2022/08/08 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.