Nomad Foods Ltd. (NOMD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Freshpet, Inc.

Balchem Corp.

Lancaster Colony Corp.

J&J Snack Foods Corp.

Ingredion, Inc.

Flowers Foods, Inc.

Nomad Foods Ltd.

Ashland, Inc.

Post Holdings, Inc.

Darling Ingredients, Inc.

Hostess Brands, Inc.

Why is Nomad Foods Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate 5.59% of over the last 5 years

Flat results in Jun 25

RAW MATERIAL COST(Y) Grown by 11% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 71.61 %
DEBTORS TURNOVER RATIO(HY) Lowest at 7 times

With ROCE of 10.37%, it has a attractive valuation with a 0.96 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -31.90%, its profits have risen by 14.8% ; the PEG ratio of the company is 0.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -31.90% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nomad Foods Ltd. 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 Nomad Foods Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nomad Foods Ltd.

-31.25%

-1.10

26.82%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.15%

EBIT Growth (5y)

5.59%

EBIT to Interest (avg)

4.35

Debt to EBITDA (avg)

3.35

Net Debt to Equity (avg)

0.66

Sales to Capital Employed (avg)

0.63

Tax Ratio

18.29%

Dividend Payout Ratio

39.45%

Pledged Shares

Institutional Holding

76.24%

ROCE (avg)

9.97%

ROE (avg)

9.84%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.93

EV to EBIT

9.21

EV to EBITDA

7.58

EV to Capital Employed

0.96

EV to Sales

1.36

PEG Ratio

0.45

Dividend Yield

ROCE (Latest)

10.37%

ROE (Latest)

9.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 381.81 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 40%

DIVIDEND PER SHARE(HY)

Highest at USD 7

NET SALES(Q)

Highest at USD 847.23 MM

-3What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 11% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 71.61 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 7 times

Here's what is working for Nomad Foods Ltd.

Operating Cash Flow

Highest at USD 381.81 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 847.23 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Dividend per share

Highest at USD 7

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 40%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 29.83 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Nomad Foods Ltd.

Debt-Equity Ratio

Highest at 71.61 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 7 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 11% (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