NYSE:NOMD

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 Analysis

Good value with proven track record.


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

Stable Share Price: NOMD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

NOMD

-1.6%

US Food

1.3%

US Market


1 Year Return

-5.4%

NOMD

-2.8%

US Food

6.1%

US Market

Return vs Industry: NOMD underperformed the US Food industry which returned -2.3% over the past year.

Return vs Market: NOMD underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

NOMDIndustryMarket
7 Day-2.0%-1.6%1.3%
30 Day-1.0%-4.8%-0.3%
90 Day9.7%2.2%16.6%
1 Year-5.4%-5.4%-0.4%-2.8%8.4%6.1%
3 Year47.4%47.4%-0.7%-8.9%35.8%26.9%
5 Year-3.1%-3.1%7.7%-6.8%62.7%44.7%

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?

49.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NOMD ($20.83) is trading below our estimate of fair value ($41.33)

Significantly Below Fair Value: NOMD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NOMD is good value based on its PE Ratio (20.4x) compared to the Food industry average (20.7x).

PE vs Market: NOMD is poor value based on its PE Ratio (20.4x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: NOMD is poor value based on its PEG Ratio (2.3x)


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 (1.8x).


Next Steps

Future Growth

How is Nomad Foods forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOMD's forecast earnings growth (8.9% per year) is above the savings rate (2.2%).

Earnings vs Market: NOMD's earnings (8.9% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: NOMD's revenue (0.6% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: NOMD's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NOMD's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Nomad Foods performed over the past 5 years?

64.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOMD has high quality earnings.

Growing Profit Margin: NOMD's current net profit margins (7.5%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: NOMD has become profitable over the past 5 years, growing earnings by 64% per year.

Accelerating Growth: NOMD's earnings growth over the past year (36.3%) is below its 5-year average (64% per year).

Earnings vs Industry: NOMD earnings growth over the past year (36.3%) exceeded the Food industry -2.2%.


Return on Equity

High ROE: NOMD's Return on Equity (7%) is considered low.


Next Steps

Financial Health

How is Nomad Foods's financial position?


Financial Position Analysis

Short Term Liabilities: NOMD's short term assets (€1.4B) exceed its short term liabilities (€839.2M).

Long Term Liabilities: NOMD's short term assets (€1.4B) do not cover its long term liabilities (€2.5B).


Debt to Equity History and Analysis

Debt Level: NOMD's debt to equity ratio (69.7%) is considered high.

Reducing Debt: NOMD's debt to equity ratio has increased from 8.5% to 69.7% over the past 5 years.

Debt Coverage: NOMD's debt is not well covered by operating cash flow (17.4%).

Interest Coverage: NOMD's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

  • Explore strong dividend paying companies in the Food, Beverage & Tobacco industry.

Management

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

2.1yrs

Average management tenure


CEO

Stéfan Descheemaeker (60yo)

5.08yrs

Tenure

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  ...


Leadership Team

NamePositionTenureCompensationOwnership
Noam Gottesman
Co-Founder & Co-Chairman5.08yrsno datano data
Martin Ellis Franklin
Co-Founder & Co-Chairman5.08yrsno data4.42% 181.0m
Stéfan Descheemaeker
CEO & Director5.08yrsno data1.32% 54.2m
Samy Zekhout
CFO & Director2.25yrsno datano data
Taposh Bari
Head of Investor Relationsno datano datano data
Neil Fletcher
Head of Legal0.50yrno datano data
Brian Murray
Group HR Directorno datano datano data
Wayne Hudson
Managing Director of UK0.50yrno datano data
Steven Libermann
Managing Director of Southern Europe2yrsno datano data
Albert Mathieu
Chief Commercial Officer3.75yrsno datano data

2.1yrs

Average Tenure

58yo

Average Age

Experienced Management: NOMD's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Noam Gottesman
Co-Founder & Co-Chairman5.08yrsno datano data
Martin Ellis Franklin
Co-Founder & Co-Chairman5.08yrsno data4.42% 181.0m
Stéfan Descheemaeker
CEO & Director5.08yrsno data1.32% 54.2m
Samy Zekhout
CFO & Director2.25yrsno datano data
Jeremy Isaacs
Independent Non-Executive Director4.42yrsno data0.012% 492.0k
James Lillie
Independent Non-Executive Director5.17yrsno data0.012% 494.4k
Paul Myners
Lead Independent Directorno datano data0.023% 950.8k
Ian G. Ashken
Independent Non-Executive Director4.08yrsno data0.012% 492.0k
Simon White
Independent Non-Executive Director3.67yrsno data0.015% 594.8k
Victoria Parry
Independent Non-Executive Director4.42yrsno data0.0070% 288.0k

4.4yrs

Average Tenure

59yo

Average Age

Experienced Board: NOMD's board of directors are considered experienced (4.4 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

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$4.096b
  • Shares outstanding: 196.65m
  • Website: https://www.nomadfoods.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0RMOLSE (London Stock Exchange)YesOrdinary SharesGBEURApr 2014
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 company offers fish products, including fish fingers, coated fish, and natural fish; vegetables, such as peas and spinach; and poultry and meat products comprising nuggets, grills, and burgers. It also provides meals products that include ready to cook noodles, pasta, lasagne, pancakes, and other ready-made meals; and other products, such as soups, pizzas, and bakery goods. The company sells its products to supermarkets and food retail chains directly or through distribution arrangements primarily under the Birds Eye, Iglo, Findus, Goodfella's, La Cocinera, San Marco, and Aunt Bessie’s brands. Nomad Foods Limited is headquartered in Feltham, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 23:56
End of Day Share Price2020/07/09 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.