Latest news with #NomadFoodsLimited
Yahoo
29-05-2025
- Business
- Yahoo
Are Investors Undervaluing Nomad Foods Limited (NYSE:NOMD) By 43%?
Using the 2 Stage Free Cash Flow to Equity, Nomad Foods fair value estimate is US$30.18 Nomad Foods' US$17.30 share price signals that it might be 43% undervalued Our fair value estimate is 19% higher than Nomad Foods' analyst price target of €25.33 How far off is Nomad Foods Limited (NYSE:NOMD) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €259.0m €233.5m €219.4m €212.1m €209.1m €208.8m €210.4m €213.4m €217.5m €222.3m Growth Rate Estimate Source Est @ -15.34% Est @ -9.86% Est @ -6.02% Est @ -3.33% Est @ -1.45% Est @ -0.13% Est @ 0.79% Est @ 1.43% Est @ 1.89% Est @ 2.20% Present Value (€, Millions) Discounted @ 7.3% €241 €203 €177 €160 €147 €137 €128 €121 €115 €110 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = €1.5b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.9%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.3%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €222m× (1 + 2.9%) ÷ (7.3%– 2.9%) = €5.2b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €5.2b÷ ( 1 + 7.3%)10= €2.6b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €4.1b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$17.3, the company appears quite good value at a 43% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Nomad Foods as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.3%, which is based on a levered beta of 0.857. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Nomad Foods Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Food market. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio and estimated fair value. Threat Debt is not well covered by operating cash flow. Annual earnings are forecast to grow slower than the American market. Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. What is the reason for the share price sitting below the intrinsic value? For Nomad Foods, we've compiled three relevant aspects you should further examine: Risks: Take risks, for example - Nomad Foods has 1 warning sign we think you should be aware of. Future Earnings: How does NOMD's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Nomad Foods to Present at the Deutsche Bank dbAccess Global Consumer Conference on June 4, 2025
WOKING, England, May 21, 2025 /PRNewswire/ -- Nomad Foods Limited (NYSE: NOMD) today announced that Stéfan Descheemaeker, Chief Executive Officer, and Ruben Baldew, Chief Financial Officer, will present and host meetings with investors at the Deutsche Bank dbAccess Global Consumer Conference to be held in Paris from June 3-5, 2025. Nomad Foods' fireside chat will begin at 3:45 p.m. Central European Summer Time (9:45 a.m. ET) on Wednesday, June 4, 2025. An audio webcast of the fireside chat will be made available on Nomad Foods' website at An archive of the webcast will be available following the event through the same website. EnquiriesInvestor Relations ContactJason Englishinvestorrelations@ Media ContactOliver Thomas, Head of Corporate About Nomad Foods Nomad Foods (NYSE: NOMD) is Europe's leading frozen food company. The Company's portfolio of iconic brands, which includes Birds Eye, Findus, iglo, Ledo and Frikom, have been a part of consumers' meals for generations, standing for great tasting food that is convenient, high quality and nutritious. Nomad Foods is headquartered in the United Kingdom. Additional information may be found at View original content to download multimedia: SOURCE Nomad Foods Limited
Yahoo
07-05-2025
- Business
- Yahoo
Why Nomad Foods (NOMD) Is Among the Best Food Stocks to Buy Under $30
We recently published a list of 12 Best Food Stocks to Buy Under $30. In this article, we are going to take a look at where Nomad Foods Limited (NYSE:NOMD) stands against other best food stocks to buy under $30. Consumer Defensive Sector: Trends and Outlook On April 25, Shana Sissel, Founder & CEO of Banrion Capital Mgmt, appeared on CNBC to talk about the struggles in the consumer staple sector and investor caution due to tariffs and 'Trump exhaustion.' She said the consumer defensive stocks are going on a downward trend, which makes sense to her, especially if you look at how the market's momentum flows. The concern about a recession and potential economic downturn might be too aggressive. She opined that she wouldn't take it as much of a point right now because even if we are going to see any economic slowdown from tariffs, one thing is certain: consumers do not tend to cut back on staples. The sector includes the types of companies and consumer goods that people cannot and will not live without. However, even in this sector, there are some unusual economic indicators that may reflect signs of an economic recession. This includes the snack indicator, where people tend to cut back on snacks in tough times instead of staple food items and other more essential nutrition types. While this is something to keep in mind about the sector, Sissel said that how the consumer staples are performing reflects the momentum swing we have seen in the market. The outlook is, of course, concerning, as it is necessary to look at how people are thinking about the market conditions and the effects of tariff impacts. JP Morgan also recently gave a market outlook amid tariffs, saying that the market is very bearish, especially in the macro community. It further said that: 'Most are disregarding the latest trade developments, partly due to 'Trump exhaustion.' We observe that many prefer to stay in cash and maintain lower leverage in their books.' Talking about this outlook, Sissel said that one of the triggers that one must look out for a potential change in sentiment is the fact that there is a contrarian sentiment, where we have seen a lot of investors buying the dip. A whole generation of investors has learned to buy the dip because, most of the time, the market recovers quickly. She also said that the Trump exhaustion appears to be very real, as continuous policy changes have created uncertainty in the market, especially regarding tariffs. While it looks like things are calming down, investors are going to be cautious about jumping in too quickly because of the continuous policy changes. She thus opined that we might see cash staying on the sideline a little bit longer, which meant that we have not seen enough change to indicate that any market gains we are seeing right now are sustainable.
Yahoo
27-04-2025
- Business
- Yahoo
Is Nomad Foods Limited (NOMD) the Best Undervalued UK Stock to Buy Right Now?
We recently published a list of the . In this article, we are going to take a look at where Nomad Foods Limited (NYSE:NOMD) stands against other best undervalued UK stocks to buy right now. The global markets entered 2025 in the hope that the bullish run of the fourth quarter will continue in the first quarter of 2025. However, the uncertainty due to the tariffs led to the reversal of all gains made in the fourth quarter leading to a loss of 4.5%. However, on the positive side, the UK and the European market saw some excellent returns during the first quarter of 2025. Rory McPherson, the Chief Market Strategist of Wren Sterling, noted that the first quarter of 2025 was the best quarterly return quarter for the UK market since 2022. For the European market, it was their best quarterly return in over a year. The performance of the UK and the European markets was based on several factors. Firstly, for Europe, the approval of a 500 billion Euro infrastructure fund and the lifting of restrictions on defense spending in Germany helped take the overall European market higher. This was also backed by the continued stimulus from the Chinese government to help fire up the engines of China and Germany. On the other hand, the UK market mainly benefitted from the better-than-expected corporate earnings, particularly from the banking sector. The UK's banking sector reaped the advantage of its diversification, followed by its cheaper valuations, and increased profitability. As per Wern Sterling's report, the UK banking sector grew its earnings by 30% year-over-year during the first quarter of 2025, which was similar to the growth of the Magnificent Seven in the United States. On top of this, the sector benefited from its extremely cheap valuation as compared to the top US stocks. The report also highlighted that the UK's banking sector is using its excess cash to buy back stocks and increase dividends which makes it even more lucrative for shareholders. On April 24, Andrew Bailey, Bank of England governor, joined CNBC to talk about the impact of tariffs on the UK's economy. He segregates the impact of tariffs into two portions, which are the impact on growth and the impact on inflation. He said that unfortunately, if we talk about the impact on growth, tariffs will have an impact in the longer run due to the closed nature of the global economy. Bailey elaborated that if we reduce the trade and openness of the global economy it directly impacts the growth trajectory of the economy. On top of this, there is the uncertainty effect which has led CEOs and consumers alike to postpone investment decisions. He noted that the UK already has a high saving rate, which shows that the people are simply uncertain about the economic and policy conditions that are restricting them from making investment decisions. In terms of the inflationary impact, Bailey remains confident that the tariffs are not having an inflationary impact. He explains that inflation factors in a lot of other indicators, for instance, if trade with the United States is restricted the economy can redirect its exports to other markets. On the other hand, retaliation from the UK government could also lead to a deflationary impact. To conclude, Bailey is more concerned about the impact of tariffs on growth as compared to inflation. He noted that the UK administration not only needs to address the supply and demand side issues related to growth but also has to tackle the trade issues with effective policies. To curate the list of the 11 best undervalued UK stocks to buy right now, we used the Finviz stock screener, Seeking Alpha, and Yahoo Finance as our sources. Using the screener we aggregated a list of UK stocks that are trading below the Fwd P/E of 15. Next, we cross-checked the Fwd P/E of each stock from Seeking Alpha and earnings growth from Yahoo Finance. Finally, we ranked these stocks in ascending order of the number of hedge funds that hold stakes in them, as of Q4 2024. Please note that the forward P/E data was collected on April 23, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of fresh frozen vegetables and fish products ready for packaging. Nomad Foods Limited (NYSE:NOMD) is recognized as one of the largest frozen food companies in Europe and around the globe. The company markets and sells a range of branded frozen foods across 16 European markets. Its products include frozen fish, ready-to-cook, frozen meat, ready meals, and more. The company had a strong finish to fiscal 2024, which was characterized by volume growth, organic sales growth, and gross margin expansion. The fourth quarter ended with revenues growing 4.3% to €793 million along with a volume growth of 4.7%. Nomad Foods Limited (NYSE:NOMD) has been delivering consistent growth over the past 9 years, marked by organic sales growing at a compound annual growth rate of 3% since 2016. Management of the company has been focused on strengthening its innovation engine. It increased the proportion of its sales coming from new products by 4.8% in 2024 and expects it to exceed 5% next year. Looking ahead, Nomad Foods Limited (NYSE:NOMD) aims to further expand its profit margins by improving its production and supply chain. It is one of the best undervalued UK stocks to buy right now. Overall, NOMD ranks 6th on our list of best undervalued UK stocks to buy right now. While we acknowledge the potential of NOMD to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NOMD but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
21-04-2025
- Business
- Yahoo
Nomad Foods Limited (NOMD): A Bull Case Theory
We came across a bullish thesis on Nomad Foods Limited (NOMD) on Value Investing Subreddit Pafe by Weak-Command-6576. In this article, we will summarize the bulls' thesis on NOMD. Nomad Foods Limited (NOMD)'s share was trading at $19.62 as of April 17th. NOMD's trailing and forward P/E were 12.41 and 11.14 respectively according to Yahoo Finance. An aisle lined with shelves of fresh and frozen foods in a supermarket store. Nomad Foods appears significantly undervalued relative to its historical valuation and current financial performance, presenting a compelling opportunity for investors. The British-based frozen foods manufacturer, which distributes meals across Europe, is trading at an EV/EBITDA multiple of just 8.3x as of December 2024—well below its historical range of 12.0x–14.0x—despite improving earnings and resilient fundamentals. The stock is up 5.71% over the past year, yet the market seems to be overlooking its defensive positioning and consistent performance. In a downturn, Nomad's value proposition strengthens as consumers trade down from dining out to more affordable frozen meals, making its offerings not just resilient but potentially countercyclical. The company's capital allocation strategy reinforces its long-term appeal: a steady 3.47% dividend yield, ongoing share buybacks, and a history of disciplined bolt-on acquisitions signal a shareholder-friendly approach. Nomad has also been accumulating cash, suggesting potential for future portfolio expansion through strategic acquisitions. The market's current pricing fails to reflect the company's stability, strategic positioning, and growth potential. As such, Nomad Foods offers a solid margin of safety in today's uncertain environment, with the potential for a meaningful rerating once the market reassesses the durability and strength of its business model. Nomad Foods Limited (NOMD) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held NOMD at the end of the fourth quarter which was 24 in the previous quarter. While we acknowledge the risk and potential of NOMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NOMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
