Skip to Content

Associated British Foods PLC ABF

Morningstar Rating
GBX 2,493.00 −13.00 (0.52%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Associated British Foods' Profitability Recovers Amid Easing Inflationary Pressure

Although we think Associated British Foods' mass apparel retail division, Primark, should deliver consistent growth through its expansion over the short term, supported by reliable performance from the remaining largely commodified food divisions, we believe the company’s potential will be limited over the long term by intense competition and a lack of differentiation, leading to our no-moat rating.

Price vs Fair Value

ABF is trading at a 354% premium.
Price
GBX 2,506.00
Fair Value
GBX 3,756.00
Uncertainty
Medium
1-Star Price
GBX 5,859.00
5-Star Price
GBX 3,583.00
Economic Moat
Yjndf
Capital Allocation
Zgyymryy

Bulls Say, Bears Say

Bulls

Primark is in the expansion phase, and new store additions will likely drive earnings growth for years to come.

Bears

The lack of an online retail business represents a potential hindrance to long-term growth, as Primark stands to miss out on about 50% of consumers’ budget allocation to the channel by 2029.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if ABF is a good fit for your portfolio.

News

Trading Information

Previous Close Price
GBX 2,506.00
Day Range
GBX 2,488.002,516.00
52-Week Range
GBX 1,862.002,765.00
Bid/Ask
GBX 0.00 / GBX 2,750.00
Market Cap
GBX 1.87 Tril
Volume/Avg
1.5 Mil / 1.3 Mil

Key Statistics

Price/Earnings (Normalized)
14.65
Price/Sales
0.96
Dividend Yield (Trailing)
2.16%
Dividend Yield (Forward)
2.16%
Total Yield
5.46%

Company Profile

Associated British Foods is a diversified international retail, food, and ingredients group with 130,000 employees and operations in 50 countries across Europe, southern Africa, the Americas, Asia, and Australia. The group sells branded grocery products, grows and processes sugar, supplies farmers with crop input and animal feed, and runs the popular Primark clothing retail chain. It also supplies ingredients like baker's yeast, enzymes, lipids, and cereal specialities. Some 40% of sales are in the UK. Primark generates more than half of the firm's operating profit.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Large Core
Total Number of Employees
133,000

Competitors

Valuation

Metric
ABF
ITX
GPS
Price/Earnings (Normalized)
14.6526.0614.45
Price/Book Value
1.708.203.65
Price/Sales
0.963.940.67
Price/Cash Flow
9.1016.478.29
Price/Earnings
ABF
ITX
GPS

Financial Strength

Metric
ABF
ITX
GPS
Quick Ratio
0.851.100.62
Current Ratio
1.831.471.50
Interest Coverage
5.438.81
Quick Ratio
ABF
ITX
GPS

Profitability

Metric
ABF
ITX
GPS
Return on Assets (Normalized)
6.91%17.13%6.85%
Return on Equity (Normalized)
11.72%32.77%30.74%
Return on Invested Capital (Normalized)
8.74%24.36%9.22%
Return on Assets
ABF
ITX
GPS
See how this stock stacks up to its competitors with Morningstar Investor

Packaged Foods Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Nestle SA ADR
NSRGY
HlsvzvlTxty$279.4 Bil
Danone SA ADR
DANOY
MjmjmzvcmPdgfc$41.6 Bil
The Kraft Heinz Co
KHC
HpmzynlvLzycj$39.5 Bil
General Mills Inc
GIS
YwdlbcnnkPmbksy$37.0 Bil
Kellanova Co
K
XywrxbvjpWrwshp$20.1 Bil
McCormick & Co Inc Registered Shs Non Vtg
MKC
FptqttnrcHjqv$18.2 Bil
Hormel Foods Corp
HRL
CvvfzjqcpnLvkxk$16.8 Bil
Conagra Brands Inc
CAG
TgmsddsNypq$13.7 Bil
Campbell Soup Co
CPB
FqcdxtpDpzmz$13.0 Bil
Lamb Weston Holdings Inc
LW
MsxflsybzTwsxxm$12.4 Bil

Sponsor Center