NYSE:NOMD

Stock Analysis Report

Executive Summary

Nomad Foods Limited, together with its subsidiaries, produces, markets, and distributes frozen foods in the United Kingdom, Italy, Germany, Sweden, France, Norway, Austria, Spain, and rest of Europe.

Snowflake

Fundamentals

Slightly overvalued with limited growth.


Similar Companies

Share Price & News

How has Nomad Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.8%

NOMD

-0.09%

US Food

3.4%

US Market


1 Year Return

-5.5%

NOMD

1.0%

US Food

5.4%

US Market

Return vs Industry: NOMD underperformed the US Food industry which returned 1% over the past year.

Return vs Market: NOMD underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

NOMDIndustryMarket
7 Day-3.8%-0.09%3.4%
30 Day-8.8%-2.6%-1.0%
90 Day-15.2%-0.8%-0.4%
1 Year-5.5%-5.5%4.0%1.0%7.7%5.4%
3 Year56.2%56.2%-2.4%-11.0%46.2%36.8%
5 Year76.2%76.2%45.1%27.8%65.6%47.5%

Price Volatility Vs. Market

How volatile is Nomad Foods's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

21.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: NOMD ($19.29) is trading above our estimate of fair value ($1.46)

Significantly Undervalued: NOMD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NOMD is good value based on its PE Ratio (21.7x) compared to the Food industry average (25.3x).

PE vs Market: NOMD is poor value based on its PE Ratio (21.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: NOMD is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: NOMD is good value based on its PB Ratio (1.6x) compared to the US Food industry average (2.1x).


Next Steps

Future Growth

How is Nomad Foods forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOMD's forecast earnings growth (15% per year) is above the savings rate (2.7%).

Earnings vs Market: NOMD's earnings (15% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: NOMD's revenue (3.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: NOMD's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NOMD's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has Nomad Foods performed over the past 5 years?

77.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NOMD's earnings have grown significantly by 77.4% per year over the past 5 years.

Accelerating Growth: NOMD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NOMD had negative earnings growth (-9.8%) over the past year, making it difficult to compare to the Food industry average (-22.7%).


Return on Equity

High ROE: NOMD's Return on Equity (5.9%) is considered low.


Return on Assets

ROA vs Industry: NOMD's Return on Assets is below or equal to the Food industry average last year.


Return on Capital Employed

ROCE Improving: NOMD's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Nomad Foods's financial position?


Financial Position Analysis

Short Term Liabilities: NOMD's short term assets (€1.3B) exceeds its short term liabilities (€792.0M)

Long Term Liabilities: NOMD's short term assets (1.3B) do not cover its long term liabilities (2.5B)


Debt to Equity History and Analysis

Debt Level: NOMD's debt to equity ratio (77.2%) is considered high

Reducing Debt: Insufficient data to determine if NOMD's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NOMD's debt is not well covered by operating cash flow (17.8%).

Interest Coverage: NOMD's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet

Inventory Level: NOMD has a low level of unsold assets or inventory.

Debt Coverage by Assets: NOMD's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate NOMD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NOMD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if NOMD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NOMD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NOMD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.7yrs

Average board tenure


CEO

Stéfan Descheemaeker (59yo)

4.3yrs

Tenure

0

Mr. Stéfan Descheemaeker has been the Chief Executive Officer of Nomad Foods Europe Holdings Limited since June 01, 2015. Mr. Descheemaeker has been the Chief Executive Officer of Iglo Foods Group Limited  ...


Board Age and Tenure

3.7yrs

Average Tenure

58yo

Average Age

Experienced Board: NOMD's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Martin Ellis Franklin (54yo)

    Co-Founder & Co-Chairman

    • Tenure: 4.3yrs
  • Noam Gottesman (58yo)

    Co-Founder & Co-Chairman

    • Tenure: 4.3yrs
  • Stéfan Descheemaeker (59yo)

    CEO & Director

    • Tenure: 4.3yrs
  • Taposh Bari

    Head of Investor Relations

    • Tenure: 0yrs
  • Samy Zekhout

    CFO & Director

    • Tenure: 1.5yrs
  • Anja van Kruijsbergen

    Company Secretary

    • Tenure: 0yrs

Board Members

  • Martin Ellis Franklin (54yo)

    Co-Founder & Co-Chairman

    • Tenure: 4.3yrs
  • Jeremy Isaacs (54yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
  • Jim Lillie (58yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
  • Paul Myners (71yo)

    Lead Independent Director

    • Tenure: 0yrs
  • Ian G. Ashken (58yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
  • Noam Gottesman (58yo)

    Co-Founder & Co-Chairman

    • Tenure: 4.3yrs
  • Stéfan Descheemaeker (59yo)

    CEO & Director

    • Tenure: 4.3yrs
  • Victoria Parry (53yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
  • Paul Kenyon (55yo)

    • Tenure: 1.8yrs
  • Samy Zekhout

    CFO & Director

    • Tenure: 1.5yrs

Company Information

Nomad Foods Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nomad Foods Limited
  • Ticker: NOMD
  • Exchange: NYSE
  • Founded:
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$3.752b
  • Shares outstanding: 194.49m
  • Website: https://www.nomadfoods.com

Number of Employees


Location

  • Nomad Foods Limited
  • No. 1 New Square
  • Bedfont Lakes Business Park
  • Feltham
  • Middlesex
  • TW14 8HA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOMDNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDApr 2014
0NHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2014
NOMD NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNApr 2014

Biography

Nomad Foods Limited, together with its subsidiaries, produces, markets, and distributes frozen foods in the United Kingdom, Italy, Germany, Sweden, France, Norway, Austria, Spain, and rest of Europe. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:41
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.