Associated British Foods plc
Associated British Foods plc Fundamental Analysis
Associated British Foods plc (ASBFF) shows weak financial fundamentals with a PE ratio of 14.71, profit margin of 5.27%, and ROE of 7.92%. The company generates $19.2B in annual revenue with weak year-over-year growth of 1.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ASBFF's fundamental strength across five key dimensions:
Efficiency Score
WeakASBFF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentASBFF trades at attractive valuation levels.
Growth Score
ModerateASBFF shows steady but slowing expansion.
Financial Health Score
ExcellentASBFF maintains a strong and stable balance sheet.
Profitability Score
WeakASBFF struggles to sustain strong margins.
Key Financial Metrics
Is ASBFF Expensive or Cheap?
P/E Ratio
ASBFF trades at 14.71 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ASBFF's PEG of -1.00 indicates potential undervaluation.
Price to Book
The market values Associated British Foods plc at 1.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.20 times EBITDA. This is generally considered low.
How Well Does ASBFF Make Money?
Net Profit Margin
For every $100 in sales, Associated British Foods plc keeps $5.27 as profit after all expenses.
Operating Margin
Core operations generate 7.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.92 in profit for every $100 of shareholder equity.
ROA
Associated British Foods plc generates $3.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Associated British Foods plc produces operating cash flow of $2.20B, showing steady but balanced cash generation.
Free Cash Flow
Associated British Foods plc produces free cash flow of $1.11B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.58 in free cash annually.
FCF Yield
ASBFF converts 7.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How ASBFF Stacks Against Its Sector Peers
| Metric | ASBFF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.71 | 23.25 | Better (Cheaper) |
| ROE | 7.92% | 1240.00% | Weak |
| Net Margin | 5.27% | -9728.00% (disorted) | Weak |
| Debt/Equity | 0.25 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 2.07 | 2.54 | Strong Liquidity |
| ROA | 3.95% | -203388.00% (disorted) | Weak |
ASBFF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Associated British Foods plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.44%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
74.32%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
100.35%
Industry Style: Defensive, Dividend, Low Volatility
High Growth