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
Poor long term growth as Net Sales has grown by an annual rate of 9.06% and Operating profit at 12.41% over the last 5 years
3
Negative results in Feb 26
- ROCE(HY) Lowest at 8.46%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,672.06
- RAW MATERIAL COST(Y) Grown by 28.7% (YoY)
4
With ROE of 9.07%, it has a expensive valuation with a 1.16 Price to Book Value
- Over the past year, while the stock has generated a return of -9.27%, its profits have fallen by -27.5%
5
Underperformed the market in the last 1 year
- Even though the market (FTSE 100) has generated returns of 19.08% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.27% returns
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Associated British Foods Plc for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Associated British Foods Plc
-9.27%
-1.28
26.81%
FTSE 100
19.08%
1.62
11.79%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.06%
EBIT Growth (5y)
12.41%
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)
1.53
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
13
Industry P/E
Price to Book Value
1.16
EV to EBIT
9.41
EV to EBITDA
5.55
EV to Capital Employed
1.15
EV to Sales
0.71
PEG Ratio
NA
Dividend Yield
304.58%
ROCE (Latest)
12.23%
ROE (Latest)
9.07%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 4,744 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 33.02%
-14What is not working for the Company
ROCE(HY)
Lowest at 8.46%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,672.06
RAW MATERIAL COST(Y)
Grown by 28.7% (YoY
CASH AND EQV(HY)
Lowest at GBP 712 MM
DEBT-EQUITY RATIO
(HY)
Highest at 26.41 %
NET SALES(Q)
Lowest at GBP 9,470 MM
OPERATING PROFIT(Q)
Lowest at GBP 1,137 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 12.01 %
PRE-TAX PROFIT(Q)
Lowest at GBP 616 MM
NET PROFIT(Q)
Lowest at GBP 456.66 MM
EPS(Q)
Lowest at GBP 0.63
Here's what is working for Associated British Foods Plc
Operating Cash Flow
Highest at GBP 4,744 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)
Dividend Payout Ratio
Highest at 33.02%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Associated British Foods Plc
Interest Coverage Ratio
Lowest at 1,672.06
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at GBP 9,470 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (GBP MM)
Operating Profit
Lowest at GBP 1,137 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (GBP MM)
Operating Profit Margin
Lowest at 12.01 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at GBP 616 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (GBP MM)
Net Profit
Lowest at GBP 456.66 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (GBP MM)
Net Profit
Fallen at -23.58%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (GBP MM)
EPS
Lowest at GBP 0.63
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (GBP)
Cash and Eqv
Lowest at GBP 712 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 26.41 %
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
Raw Material Cost
Grown by 28.7% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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