Nestle reported a first-quarter trading update that included organic growth of 1.4%—real internal growth, or RIG, of negative 2.0% and pricing up 3.4%—which was below company-compiled consensus estimates of 2.9% and driven predominantly by the worse-than-expected RIG (down 0.5% for consensus, a 150-basis-points miss).
The breadth and diversity of Nestle's portfolio and its geographic reach allow for easier absorption of brand and operational shocks.
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.
|
Metric
|
NESN
|
GIS
|
KHC
|
|---|---|---|---|
Price/Earnings (Normalized) | 19.11 | 15.42 | 12.85 |
Price/Book Value | 6.89 | 4.27 | 0.94 |
Price/Sales | 2.67 | 2.07 | 1.77 |
Price/Cash Flow | 16.34 | 12.80 | 9.85 |
|
Metric
|
NESN
|
GIS
|
KHC
|
|---|---|---|---|
Quick Ratio | 0.49 | 0.33 | 0.44 |
Current Ratio | 0.83 | 0.66 | 0.99 |
Interest Coverage | 8.56 | 7.70 | 4.94 |
|
Metric
|
NESN
|
GIS
|
KHC
|
|---|---|---|---|
Return on Assets (Normalized) | 10.01% | 8.71% | 4.15% |
Return on Equity (Normalized) | 34.58% | 27.32% | 7.62% |
Return on Invested Capital (Normalized) | 14.97% | 13.78% | 6.39% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
NSRGY
| Nestle SA ADR | Scwkdfqhx | Gnx | $263.9 Bil | |
KHC
| The Kraft Heinz Co | Vhrdqdx | Xyjz | $46.4 Bil | |
DANOY
| Danone SA ADR | Pxqbktbj | Lfcsfy | $41.1 Bil | |
GIS
| General Mills Inc | Zvjgqppwb | Htxxbzq | $39.0 Bil | |
MKC
| McCormick & Co Inc Registered Shs Non Vtg | Fcdgbzsnj | Sfkqh | $20.3 Bil | |
K
| Kellanova Co | Hxssjbxb | Gzzvzw | $20.0 Bil | |
HRL
| Hormel Foods Corp | Hjhrkpxgxf | Zhsqvp | $19.3 Bil | |
CAG
| Conagra Brands Inc | Sfrnzhkp | Qkpt | $15.1 Bil | |
CPB
| Campbell Soup Co | Lrtkpvghl | Yly | $13.5 Bil | |
SJM
| JM Smucker Co | Qbq | Bdb | $12.2 Bil |
