Nomad Foods Limited
Nomad Foods Limited Fundamental Analysis
Nomad Foods Limited (NOMD) shows weak financial fundamentals with a PE ratio of 8.22, profit margin of 6.51%, and ROE of 7.65%. The company generates $3.0B in annual revenue with weak year-over-year growth of 1.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NOMD's fundamental strength across five key dimensions:
Efficiency Score
WeakNOMD struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNOMD trades at attractive valuation levels.
Growth Score
ModerateNOMD shows steady but slowing expansion.
Financial Health Score
ExcellentNOMD maintains a strong and stable balance sheet.
Profitability Score
WeakNOMD struggles to sustain strong margins.
Key Financial Metrics
Is NOMD Expensive or Cheap?
P/E Ratio
NOMD trades at 8.22 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NOMD's PEG of -2.58 indicates potential undervaluation.
Price to Book
The market values Nomad Foods Limited at 0.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.62 times EBITDA. This is generally considered low.
How Well Does NOMD Make Money?
Net Profit Margin
For every $100 in sales, Nomad Foods Limited keeps $6.51 as profit after all expenses.
Operating Margin
Core operations generate 11.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.65 in profit for every $100 of shareholder equity.
ROA
Nomad Foods Limited generates $3.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nomad Foods Limited produces operating cash flow of $397.86M, showing steady but balanced cash generation.
Free Cash Flow
Nomad Foods Limited generates strong free cash flow of $314.46M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.14 in free cash annually.
FCF Yield
NOMD converts 19.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.58
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How NOMD Stacks Against Its Sector Peers
| Metric | NOMD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.22 | 23.25 | Better (Cheaper) |
| ROE | 7.65% | 1240.00% | Weak |
| Net Margin | 6.51% | -9728.00% (disorted) | Weak |
| Debt/Equity | 0.82 | 0.77 | Neutral |
| Current Ratio | 1.02 | 2.54 | Neutral |
| ROA | 3.15% | -203388.00% (disorted) | Weak |
NOMD outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nomad Foods Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.30%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
71.72%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
60.75%
Industry Style: Defensive, Dividend, Low Volatility
High Growth