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Nestle SA ADR NSRGY

Morningstar Rating
$105.83 −0.09 (0.09%)
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Company Report

Nestle's Exposure to Advantaged Categories and a Wide Moat Support Profitable Growth Ahead

Although Nestle's performance during the pandemic has been nothing short of stellar, we believe the main drivers of this outperformance have been fueled by pandemic-led lockdowns—millions of households have adopted pets, and consumption of coffee at home has been boosted by work-from-home trends. While we don't expect a complete reversal of these trends in the future, we do expect outperformance to be less pronounced in the years ahead. We expect organic growth to slow toward the 5% level by the end of our explicit forecast period.

Price vs Fair Value

NSRGY is trading at a 46% premium.
Price
$105.83
Fair Value
$125.00
Uncertainty
Low
1-Star Price
$765.00
5-Star Price
$82.20
Economic Moat
Yzsz
Capital Allocation
Zmrgsntnc

Bulls Say, Bears Say

Bulls

The breadth and diversity of Nestle's portfolio and its geographic reach allow for easier absorption of brand and operational shocks.

Bears

Given inflationary pressures, volume growth in some of its product categories appears to be weakening, particularly in prepared dishes and milk products, a function of higher demand elasticities and lower pricing power in these categories.

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News

Trading Information

Previous Close Price
$105.92
Day Range
$105.73106.90
52-Week Range
$99.04125.41
Bid/Ask
$105.67 / $106.47
Market Cap
$277.27 Bil
Volume/Avg
392,778 / 586,387

Key Statistics

Price/Earnings (Normalized)
19.35
Price/Sales
2.70
Dividend Yield (Trailing)
3.10%
Dividend Yield (Forward)
3.10%
Total Yield
5.22%

Company Profile

With a 150-year-plus history, Nestle is the largest food and beverage manufacturer in the world by sales, generating more than CHF 90 billion in annual revenue. Its diverse product portfolio includes brands such as Nestle, Nescafe, Perrier, Pure Life, and Purina. Nestle also owns around 20% of French cosmetics firm L'Oreal. The company employs 275,000 people around the world and has a vast portfolio of global products, with more than 30 brands each achieving more than CHF 1 billion in sales annually and a geographic presence that spans almost 190 countries.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Large Core
Total Number of Employees
270,000

Competitors

Valuation

Metric
NSRGY
GIS
KHC
Price/Earnings (Normalized)
19.3514.4611.38
Price/Book Value
6.523.890.83
Price/Sales
2.701.911.57
Price/Cash Flow
16.5511.508.70
Price/Earnings
NSRGY
GIS
KHC

Financial Strength

Metric
NSRGY
GIS
KHC
Quick Ratio
0.490.340.51
Current Ratio
0.830.651.09
Interest Coverage
8.567.044.91
Quick Ratio
NSRGY
GIS
KHC

Profitability

Metric
NSRGY
GIS
KHC
Return on Assets (Normalized)
10.01%8.45%4.07%
Return on Equity (Normalized)
34.58%27.01%7.44%
Return on Invested Capital (Normalized)
14.97%13.40%6.23%
Return on Assets
NSRGY
GIS
KHC
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