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Koninklijke Ahold Delhaize NV AD

Morningstar Rating
€29.30 +0.07 (0.24%)
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Company Report

Ahold Delhaize Earnings: Ahead of Expectations, but Guidance Reiterated

Ahold Delhaize released first-quarter results with sales, excluding gas, up 0.4% (up 1.3% at constant exchange rates). Sales were slightly ahead of company-compiled consensus expectations (EUR 21.728 billion versus EUR 21.530 billion for consensus), with underlying operating income of EUR 861 million (4% margin), ahead of the EUR 824 million estimate from consensus. This was driven by improvements in Europe (EUR 268 million versus expectations for EUR 260 million) and better-than-expected US performance (EUR 614 million versus EUR 594 million for consensus). Comparable sales growth for the first quarter was 0.8% for the US and 2.8% for Europe, versus 0% and 2.2% for consensus, respectively. In a strategic shift toward growth, the company is simplifying its operations and enhancing its Save for Our Customers program, notably through the Belgium Future Plan, which has successfully transitioned 76 of 128 stores to franchises, leading to increased customer frequency and larger basket sizes. Despite inflationary pressures, this has contributed to a 0.3 percentage point improvement in first-quarter margins across European operations, supporting consistent group-level margins and enabling enhanced investments in US customer value propositions amid reductions in supplemental nutrition assistance program benefits.

Price vs Fair Value

AD is trading at a 422% premium.
Price
€29.30
Fair Value
€45.00
Uncertainty
Medium
1-Star Price
€43.58
5-Star Price
€63.50
Economic Moat
Zkdd
Capital Allocation
Nszvdwbq

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
€29.23
Day Range
€29.1629.39
52-Week Range
€25.4031.88
Bid/Ask
€29.20 / €29.39
Market Cap
€27.48 Bil
Volume/Avg
1.9 Mil / 2.1 Mil

Key Statistics

Price/Earnings (Normalized)
11.54
Price/Sales
0.32
Dividend Yield (Trailing)
3.76%
Dividend Yield (Forward)
4.17%
Total Yield
7.47%

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
402,000

Competitors

Valuation

Metric
AD
KR
TSCO
Price/Earnings (Normalized)
11.5411.5613.03
Price/Book Value
1.803.371.83
Price/Sales
0.320.260.32
Price/Cash Flow
4.296.606.15
Price/Earnings
AD
KR
TSCO

Financial Strength

Metric
AD
KR
TSCO
Quick Ratio
0.400.330.30
Current Ratio
0.730.810.81
Interest Coverage
3.897.433.48
Quick Ratio
AD
KR
TSCO

Profitability

Metric
AD
KR
TSCO
Return on Assets (Normalized)
4.90%6.91%3.59%
Return on Equity (Normalized)
15.89%32.00%14.01%
Return on Invested Capital (Normalized)
12.65%12.44%7.76%
Return on Assets
AD
KR
TSCO
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Grocery Stores Industry Comparables

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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
KR
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SVNDY
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ADRNY
Koninklijke Ahold Delhaize NV ADRKblnyrpgcJsmzb$29.9 Bil
AHODF
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TSCDY
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TSCDF
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WOLWF
Woolworths Group LtdFgbchsw$25.3 Bil
ACI
Albertsons Companies Inc Class AMrzszvzLths$12.1 Bil

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