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Koninklijke Ahold Delhaize NV ADR ADRNY

Morningstar Rating
$29.84 +0.12 (0.40%)
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Company Report

Ahold Delhaize Earnings: Broadly in Line With Free Cash Flow Guidance, Ahead on Lower Investments

Ahold Delhaize released fourth-quarter and fiscal 2023 results with sales, excluding gas, up 1.8% and 3.9% respectively (up 1.9% and 3.8% respectively at constant exchange rates). Sales were slightly ahead of our annual estimates (EUR 88.65 billion versus EUR 88 billion in our model), with underlying operating income of EUR 3.604 billion (4.1% margin), slightly ahead of our EUR 3.583 billion estimate for the fiscal year. This was driven by the U.S. segment (EUR 2.553 billion versus our expectations for EUR 2.499 billion) with Europe largely in line (EUR 1.120 billion versus EUR 1.128 billion in our model). Comparable sales growth in fiscal 2023 was 2.3% for the United States and 6.5% for Europe, versus 1.9% and 6% in our model. In the U.S., the reduction in emergency federal supplemental nutrition assistance program benefits is still hitting top-line performance with net sales down 1.5% in the fourth quarter. Excluding one-offs and despite growth headwinds, the grocer was still able to maintain margins in the region, a testament to its continuing focus on efficiencies and cost-savings. In Europe, like-for-like sales growth was up 6.5% in the fourth quarter, signaling the first positive volume trend in over two years.

Price vs Fair Value

ADRNY is trading at a 11% discount.
Price
$29.84
Fair Value
$93.40
Uncertainty
Medium
1-Star Price
$54.61
5-Star Price
$64.14
Economic Moat
Svx
Capital Allocation
Sptddrrx

Bulls Say, Bears Say

Bulls

Albert Heijn boasts an undisputed leading market position in the Netherlands in online grocery and food retail (37% share).

Bears

The grocer needs to keep investing in automation and fulfilment efficiency in order to streamline the still poor economics of the online channel.

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News

Trading Information

Previous Close Price
$29.72
Day Range
$29.7130.00
52-Week Range
$27.5135.51
Bid/Ask
$29.80 / $30.00
Market Cap
$28.23 Bil
Volume/Avg
49,231 / 101,278

Key Statistics

Price/Earnings (Normalized)
10.72
Price/Sales
0.30
Dividend Yield (Trailing)
3.94%
Dividend Yield (Forward)
3.94%
Total Yield
7.79%

Company Profile

Ahold Delhaize is the product of the July 2016 merger between Netherlands-based Ahold and Belgium's Delhaize, forming one of the largest grocers in the U.S. and a top player in many parts of Europe. The U.S. is the largest market, accounting for over 60% of group sales, with Ahold Delhaize the leading grocer on the Eastern Seaboard. The U.S. store network stretches from Maine to Georgia and includes such banners as Stop & Shop, Giant Carlisle, Giant Landover, Food Lion, Hannaford, and Peapod. The Netherlands, Belgium, and Central and Southeastern Europe, including the Czech Republic, Greece, Romania, and Serbia, account for slightly less than 40% of sales. Ahold Delhaize holds the number-one and number-two positions in these countries.
Sector
Consumer Defensive
Industry
Grocery Stores
Stock Style Box
Large Value
Total Number of Employees
414,000

Competitors

Valuation

Metric
ADRNY
TSCO
KR
Price/Earnings (Normalized)
10.7211.2711.27
Price/Book Value
1.731.643.15
Price/Sales
0.300.300.24
Price/Cash Flow
4.105.645.83
Price/Earnings
ADRNY
TSCO
KR

Financial Strength

Metric
ADRNY
TSCO
KR
Quick Ratio
0.400.570.29
Current Ratio
0.730.740.80
Interest Coverage
3.893.166.56
Quick Ratio
ADRNY
TSCO
KR

Profitability

Metric
ADRNY
TSCO
KR
Return on Assets (Normalized)
5.03%3.67%6.42%
Return on Equity (Normalized)
16.10%13.64%30.83%
Return on Invested Capital (Normalized)
11.58%7.70%11.67%
Return on Assets
ADRNY
TSCO
KR
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Economic Moat
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AHODF
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