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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Freshpet, Inc.

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Ashland, Inc.

Lancaster Colony Corp.

Balchem Corp.

Flowers Foods, Inc.

Ingredion, Inc.

Post Holdings, Inc.

Nomad Foods Ltd.

J&J Snack Foods Corp.

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 -29.88%, 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 -29.88% 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 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 Nomad Foods Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nomad Foods Ltd.

-41.57%

-1.06

26.53%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.61%

EBIT Growth (5y)

1.11%

EBIT to Interest (avg)

4.35

Debt to EBITDA (avg)

3.35

Net Debt to Equity (avg)

0.66

Sales to Capital Employed (avg)

0.70

Tax Ratio

18.29%

Dividend Payout Ratio

66.05%

Pledged Shares

Institutional Holding

83.13%

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

0.47

EV to EBIT

7.93

EV to EBITDA

6.24

EV to Capital Employed

0.70

EV to Sales

1.06

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

8.83%

ROE (Latest)

11.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 5.03 times

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 239.81 MM

ROCE(HY)

Lowest at 5.38%

INTEREST COVERAGE RATIO(Q)

Lowest at 326.98

RAW MATERIAL COST(Y)

Grown by 8.08% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 80.81 %

OPERATING PROFIT(Q)

Lowest at USD 106.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.71 %

PRE-TAX PROFIT(Q)

Lowest at USD 47.97 MM

NET PROFIT(Q)

Lowest at USD 39.27 MM

Here's what is working for Nomad Foods Ltd.

Inventory Turnover Ratio

Highest at 5.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Operating Cash Flow

Lowest at USD 239.81 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Lowest at 326.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 106.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 12.71 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 47.97 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 39.27 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 80.81 %

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

Raw Material Cost

Grown by 8.08% (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