Nestlé S.A.
Nestlé S.A. Fundamental Analysis
Nestlé S.A. (NSRGY) shows moderate financial fundamentals with a PE ratio of 23.10, profit margin of 10.08%, and ROE of 29.19%. The company generates $89.3B in annual revenue with weak year-over-year growth of -1.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NSRGY's fundamental strength across five key dimensions:
Efficiency Score
WeakNSRGY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNSRGY trades at attractive valuation levels.
Growth Score
WeakNSRGY faces weak or negative growth trends.
Financial Health Score
WeakNSRGY carries high financial risk with limited liquidity.
Profitability Score
ModerateNSRGY maintains healthy but balanced margins.
Key Financial Metrics
Is NSRGY Expensive or Cheap?
P/E Ratio
NSRGY trades at 23.10 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NSRGY's PEG of -2.38 indicates potential undervaluation.
Price to Book
The market values Nestlé S.A. at 6.33 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.74 times EBITDA. This is generally considered low.
How Well Does NSRGY Make Money?
Net Profit Margin
For every $100 in sales, Nestlé S.A. keeps $10.08 as profit after all expenses.
Operating Margin
Core operations generate 15.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.19 in profit for every $100 of shareholder equity.
ROA
Nestlé S.A. generates $7.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nestlé S.A. produces operating cash flow of $16.16B, showing steady but balanced cash generation.
Free Cash Flow
Nestlé S.A. generates strong free cash flow of $11.48B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.46 in free cash annually.
FCF Yield
NSRGY converts 5.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How NSRGY Stacks Against Its Sector Peers
| Metric | NSRGY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.10 | 23.25 | Neutral |
| ROE | 29.19% | 1240.00% | Weak |
| Net Margin | 10.08% | -9728.00% (disorted) | Strong |
| Debt/Equity | 1.76 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.79 | 2.54 | Weak Liquidity |
| ROA | 7.07% | -203388.00% (disorted) | Weak |
NSRGY outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nestlé S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
11.44%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-2.61%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
18.70%
Industry Style: Defensive, Dividend, Low Volatility
High Growth