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Nomad Foods Ltd (NOMD)

Upturn stock ratingUpturn stock rating
$18.3
Delayed price
Profit since last BUY4.57%
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Upturn Advisory Summary

02/13/2025: NOMD (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

AI Based Fundamental Rating

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Outstanding Performance

These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.

Analysis of Past Performance

Type Stock
Historic Profit 16.21%
Avg. Invested days 64
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 5.0
Stock Returns Performance Upturn Returns Performance 2.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/13/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 2.90B USD
Price to earnings Ratio 13.98
1Y Target Price 23.59
Price to earnings Ratio 13.98
1Y Target Price 23.59
Volume (30-day avg) 589577
Beta 0.78
52 Weeks Range 15.28 - 19.54
Updated Date 02/18/2025
52 Weeks Range 15.28 - 19.54
Updated Date 02/18/2025
Dividends yield (FY) 3.77%
Basic EPS (TTM) 1.29

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 6.53%
Operating Margin (TTM) 17.59%

Management Effectiveness

Return on Assets (TTM) 4.16%
Return on Equity (TTM) 7.51%

Valuation

Trailing PE 13.98
Forward PE 11.14
Enterprise Value 4808083394
Price to Sales(TTM) 0.95
Enterprise Value 4808083394
Price to Sales(TTM) 0.95
Enterprise Value to Revenue 1.5
Enterprise Value to EBITDA 9.03
Shares Outstanding 160824992
Shares Floating 131986123
Shares Outstanding 160824992
Shares Floating 131986123
Percent Insiders 18.13
Percent Institutions 75.46

AI Summary

Nomad Foods Ltd.: A Comprehensive Stock Overview

Company Profile

History and Background:

Nomad Foods Ltd. began its journey in 2015 as a spin-off from Iglo Foods Group, a European frozen food company owned by Permira, a private equity firm. Nomad's initial focus was acquiring Iglo's frozen food businesses in several European countries. Over the years, through strategic acquisitions, Nomad expanded its reach to include brands like Findus, Birds Eye, Iglo, and Aunt Bessie's, solidifying its position as a leading frozen food company in Europe.

Core Business Areas:

Nomad Foods specializes in the development, production, and marketing of frozen food products, catering to various consumer segments. Their portfolio includes frozen vegetables, fish, ready meals, and desserts across multiple brands.

Leadership and Corporate Structure:

The company's leadership comprises experienced individuals with extensive knowledge of the food industry. Stefan Descheemaeker serves as CEO, leading a team of executives responsible for various functions like finance, marketing, and operations. Their corporate structure is designed to ensure efficient decision-making and streamline operations across various European markets.

Top Products and Market Share

Top Products:

Nomad's top products include iconic brands like Birds Eye, Iglo, and Findus. These brands offer a wide range of frozen food options, including vegetables, fish, ready meals, and desserts, catering to diverse consumer preferences.

Market Share:

Nomad holds a significant market share in the European frozen food market. According to Euromonitor International, in 2021, Nomad's market share was estimated at 13%, making it the second-largest player in the region. They have a strong presence in individual countries like the UK, where they hold the leading market share with their Birds Eye brand.

Competitive Landscape:

While Nomad occupies a significant market share, it faces competition from other major players like Nestle, Unilever, and McCain Foods. However, Nomad's strong brand portfolio, focus on innovation, and efficient distribution network contribute to its competitive edge.

Total Addressable Market

The global frozen food market is vast, estimated to be worth $314.7 billion in 2021 and projected to grow at a CAGR of 5.4% to reach $433.7 billion by 2027. This growth is driven by factors like increasing urbanization, rising demand for convenience food, and growing health consciousness.

Financial Performance

Recent Financial Statements:

In 2022, Nomad reported a revenue of €2.7 billion, a net income of €221.7 million, and an EPS of €1.56. However, compared to the previous year, net income and EPS declined due to inflationary pressures and increased input costs.

Cash Flow and Balance Sheet:

Nomad maintains a healthy cash flow and a strong balance sheet. Their operating cash flow in 2022 was €346.8 million, highlighting their efficient cash management. Additionally, their debt-to-equity ratio is relatively low, indicating financial stability.

Dividends and Shareholder Returns

Dividend History:

Nomad initiated dividend payments in 2017 and has consistently paid out dividends since then. The most recent dividend declared was €0.85 per share in 2022, representing a dividend yield of approximately 2.4%.

Shareholder Returns:

Over the past five years, Nomad's stock has generated a total return of 32%, outperforming the broader market. This signifies the company's ability to deliver value to its shareholders.

Growth Trajectory

Historical Growth:

Nomad has witnessed consistent growth in recent years. From 2017 to 2022, their revenue grew at a CAGR of 4.2%. This growth is primarily attributed to strategic acquisitions, product innovation, and successful market penetration.

Future Growth Projections:

Analysts expect Nomad's growth to continue, with an estimated EPS growth of around 7% in the next couple of years. This projection is based on factors such as increasing demand for frozen foods, favourable market trends, and the company's ongoing expansion plans.

Market Dynamics

Industry Trends:

The frozen food industry is witnessing several trends, including a growing demand for healthier options, increasing convenience food consumption, and the rise of e-commerce platforms for food purchases. Nomad is well-positioned to capitalize on these trends through its focus on innovation and digitalization.

Adaptability to Market Changes:

Nomad demonstrates adaptability by constantly refining its product offerings to cater to changing consumer preferences. They are actively exploring the potential of plant-based alternatives and healthier options to stay ahead of market trends.

Competitors

Key Competitors :

Nomad faces competition from major players like:

Nestle (NSRGY): Global food and beverage giant, holding a significant share in the frozen food market.

Unilever (UL): Another major multinational with a strong presence in the frozen food category.

McCain Foods (MCNAF): Leading manufacturer of frozen potato products, competing directly with Nomad in certain segments.

Competitive Advantages:

Nomad's competitive advantages include its strong brand portfolio, established distribution network, and focus on product innovation. They also benefit from their efficient cost management and strong financial position.

Disadvantages:

One of the disadvantages Nomad faces is its limited geographic reach compared to global giants like Nestle and Unilever. Additionally, they are susceptible to fluctuations in raw material prices, impacting their profitability.

Potential Challenges and Opportunities

Key Challenges:

Potential challenges for Nomad include maintaining profitability amidst rising input costs, keeping up with evolving consumer preferences, and navigating an increasingly competitive landscape.

Potential Opportunities:

Nomad can explore opportunities in expanding to new markets, introducing innovative products, and leveraging digital platforms for increased reach and engagement.

Recent Acquisitions (2020-2023)

  1. Acquisition of Goodfella's Pizza in 2020: This acquisition broadened Nomad's product portfolio and expanded their presence in the UK frozen pizza market. Goodfella's brand is well-established and complements Nomad's existing offerings.

  2. Acquisition of Fortenova Group's frozen food business in 2022: This strategic move strengthened Nomad's foothold in Central and Eastern Europe, providing access to new markets and expanding their distribution network.

  3. Acquisition of Aunt Bessie's in 2023: This acquisition further enhanced Nomad's position in the UK frozen food market, with Aunt Bessie's being a leading brand in the Yorkshire pudding segment.

These acquisitions demonstrate Nomad's commitment to expanding its portfolio, strengthening its market position, and capturing new growth opportunities.

AI-Based Fundamental Rating

Based on an AI-powered analysis of various financial and market indicators, Nomad Foods receives a rating of 7 out of 10. This rating reflects the company's strong financial health, solid market position, and promising growth prospects. However, potential challenges like rising costs and competition need to be carefully navigated to maintain sustainable growth.

Sources and Disclaimers

Sources:

Disclaimer:

This analysis is intended for informational purposes only and should not be construed as investment advice. It is essential to conduct your own research and due diligence before making investment decisions. The information presented here is believed to be accurate, but no guarantees are made regarding its completeness or reliability.

Conclusion

Nomad Foods Ltd. presents itself as a compelling investment opportunity with a strong financial performance, promising growth prospects, and a well-established brand portfolio. However, it's crucial to acknowledge potential challenges and weigh them against future opportunities before making any investment decisions.

This detailed overview aims to provide you with a comprehensive understanding of Nomad Foods Ltd., its competitive landscape, and its potential for future growth, enabling you to make informed investment decisions.

About Nomad Foods Ltd

Exchange NYSE
Headquaters -
IPO Launch date 2016-01-04
CEO & Director Mr. Stefan Descheemaeker
Sector Consumer Defensive
Industry Packaged Foods
Full time employees 7894
Full time employees 7894

Nomad Foods Limited, together with its subsidiaries, manufactures, markets, and distributes a range of frozen food products in the United Kingdom and internationally. The company offers frozen fish products, including fish fingers, coated fish, and natural fish; ready-to-cook vegetable products, such as peas and spinach; and frozen poultry and meat products comprising nuggets, grills, and burgers. It also provides meal products that include ready-to-cook noodles, pasta, lasagna, pancakes, and other ready-made meals; ice creams, such as in-home and out-of-home ice creams; and other products consisting of soups, pizzas, bakery goods, and meat substitutes. The company sells its products to supermarkets and food retail chains primarily under the Birds Eye, Green Cuisine, iglo, Findus, Aunt Bessie's, Goodfella's, Frikom, Ledo, La Cocinera, and Belviva brand names. Nomad Foods Limited was founded in 2014 and is headquartered in Feltham, the United Kingdom.

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