ScoreWhy is Associated British Foods Plc ?
1
Poor Management Efficiency with a low ROE of 9.27%
- The company has been able to generate a Return on Equity (avg) of 9.27% signifying low profitability per unit of shareholders funds
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 10.63
3
Poor long term growth as Net Sales has grown by an annual rate of 6.94% and Operating profit at 13.37% over the last 5 years
4
Flat results in Feb 25
- CASH AND EQV(HY) Lowest at GBP 824 MM
- DEBT-EQUITY RATIO (HY) Highest at 25.21 %
- NET SALES(Q) Lowest at GBP 9,509 MM
5
With ROE of 13.04%, it has a expensive valuation with a 1.37 Price to Book Value
- Over the past year, while the stock has generated a return of 3.97%, its profits have risen by 11% ; the PEG ratio of the company is 0.7
6
Underperformed the market in the last 1 year
- The stock has generated a return of 3.97% in the last 1 year, much lower than market (FTSE 100) returns of 19.55%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Associated British Foods Plc should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Associated British Foods Plc for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Associated British Foods Plc
-100.0%
-1.11
29.30%
FTSE 100
18.82%
1.54
12.68%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.94%
EBIT Growth (5y)
13.37%
EBIT to Interest (avg)
10.63
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0.02
Sales to Capital Employed (avg)
1.50
Tax Ratio
24.67%
Dividend Payout Ratio
44.50%
Pledged Shares
0
Institutional Holding
0.04%
ROCE (avg)
12.78%
ROE (avg)
9.27%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
1.37
EV to EBIT
8.86
EV to EBITDA
5.66
EV to Capital Employed
1.36
EV to Sales
0.77
PEG Ratio
0.68
Dividend Yield
384.38%
ROCE (Latest)
15.32%
ROE (Latest)
13.04%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend
Not enough Data to analyse Financial Trend
Not enough Data to analyse Financial Trend
Here's what is working for Associated British Foods Plc
Operating Cash Flow
Highest at GBP 5,216 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Debtors Turnover Ratio
Highest at 11.55%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -30.56% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Associated British Foods Plc
Net Sales
Lowest at GBP 9,509 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (GBP MM)
Cash and Eqv
Lowest at GBP 824 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 25.21 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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