Associated British Foods (ASBFY) AI Stock Analysis

• Market Cap: $19.92B
• Dividend Yield: 3.61%
• Average Volume (3M): 53.17K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.50
• Revenue Growth: 1.55%
• EPS Growth: 17.02%
• Country: US
• Employees: 138,000
• Sector: Consumer Defensive
• Sector Strength: 62
• Industry: Packaged Foods
• EPS (TTM): 2.27
• Shares Outstanding: 720,464,050
• 10 Day Avg. Volume: 3,837
• 30 Day Avg. Volume: 53,172
• PEG Ratio: 0.39
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: $32.00 ▲(15.44%Upside)

Associated British Foods receives a solid overall score driven by strong financial performance and positive technical indicators. The company's stable financial standing and effective operational management position it well for continued growth. Valuation metrics support a fair value assessment, making it an attractive investment in the packaged foods industry.

Associated British Foods Business Overview & Revenue Model

Company Description

Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide. It operates through five segments: Grocery, Sugar, Agriculture, Ingredients, and Retail. The Grocery segment manufactures and sells grocery products, including hot beverages, sugar and sweeteners, vegetable oils, balsamic vinegars, bread and baked goods, cereals, ethnic foods, and meat products to retail, wholesale, and foodservice businesses. The Sugar segment is involved in growing, processing, and selling sugar beet and sugar cane to industrial users. The Agriculture segment manufactures and sells animal feeds; and provides other products and services for the agriculture sector. The Ingredients segment manufactures bakers' yeast, bakery ingredients, enzymes, lipids, yeast extracts, and cereal specialties. The Retail segment is involved in buying and merchandising clothing and accessories through the Primark and Penneys retail chains, which offer womenswear, menswear, children's wear, footwear, accessories, homeware, and skincare products. The company was founded in 1935 and is headquartered in London, the United Kingdom. Associated British Foods plc is a subsidiary of Wittington Investments Limited.

How the Company Makes Money

Associated British Foods makes money through its diversified operations. In the Grocery segment, it earns revenue by producing and selling a variety of branded food products, including Twinings tea, Silver Spoon sugar, and Jordans cereal. The Sugar segment generates income from the production and sale of sugar to various industries. The Agriculture division provides products and services to farmers, including animal feed and crop inputs, contributing to its revenue. The Ingredients segment earns money by supplying yeast and bakery ingredients to food manufacturers globally. The Retail segment, primarily through Primark, generates revenue through the sale of affordable fashion and clothing items. The company's earnings are bolstered by its strong brand portfolio, extensive distribution networks, and key partnerships with suppliers and retailers worldwide.

Associated British Foods Financial Statement Overview

Summary

Associated British Foods demonstrates solid financial health with strong revenue growth, profitability, and operational efficiency. The income statement reflects robust margins, the balance sheet shows financial stability, and cash flow statements indicate effective cash generation. However, increasing liabilities require attention to maintain this position.

Income Statement

Associated British Foods has demonstrated solid revenue growth and consistent profitability. The revenue growth rate is strong with an increase from the previous year, reflecting a positive trajectory. Gross Profit and Net Profit Margins are healthy, indicating efficient cost management and strong bottom-line performance. The EBIT and EBITDA margins also show robust operational efficiency, further supporting its profitability.

Balance Sheet

The company maintains a stable balance sheet with an adequate equity ratio, suggesting financial stability. The Debt-to-Equity Ratio is moderate, indicating a balanced approach to leverage. Return on Equity is strong, demonstrating effective utilization of equity to generate profits. However, there is a slight increase in total liabilities, which requires monitoring to maintain financial health.

Cash Flow

Cash flow performance is impressive, with significant growth in Free Cash Flow. The Operating Cash Flow to Net Income Ratio is robust, reflecting efficient conversion of profits into cash. The Free Cash Flow to Net Income Ratio is also strong, underscoring effective capital expenditure management. These factors indicate a healthy cash position that supports operational and strategic flexibility.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
20.07B	19.75B	17.00B	13.88B	13.94B
	Gross Profit
4.88B	4.16B	3.78B	3.13B	3.14B
	EBIT
1.93B	1.38B	1.18B	808.00M	810.00M
	EBITDA
3.13B	2.48B	2.13B	1.80B	1.81B
	Net Income Common Stockholders
1.46B	1.04B	700.00M	478.00M	455.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.66B	1.46B	2.13B	2.31B	2.03B
	Total Assets
19.01B	18.84B	19.77B	16.89B	16.67B
	Total Debt
3.68B	3.72B	3.89B	3.69B	4.11B
	Net Debt
2.35B	2.27B	1.77B	1.41B	2.12B
	Total Liabilities
7.74B	7.65B	8.22B	6.89B	7.23B
	Stockholders Equity
11.19B	11.09B	11.45B	9.92B	9.36B
Cash Flow		Free Cash Flow
1.69B	581.00M	384.00M	786.00M	1.13B
	Operating Cash Flow
2.87B	1.65B	1.15B	1.41B	1.75B
	Investing Cash Flow
-1.33B	-906.00M	-744.00M	-561.00M	-518.00M
	Financing Cash Flow
-1.57B	-1.28B	-677.00M	-512.00M	-678.00M

Associated British Foods Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASBFY, the sentiment is Positive. The current price of 27.72 is below the 20-day moving average (MA) of 27.83, above the 50-day MA of 27.21, and above the 200-day MA of 26.75, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 53.84 is Neutral, neither overbought nor oversold. The STOCH value of 51.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASBFY.

Associated British Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASBFY	79 Outperform	$19.92B	12.27	12.04%	3.61%	1.55%	17.02%
MKC	73 Outperform	$19.90B	25.48	14.73%	2.31%	0.40%	10.89%
KHC	68 Neutral	$31.64B	12.12	5.36%	6.04%	-4.25%	-4.04%
CAG	67 Neutral	$10.69B	32.76	3.67%	6.25%	-3.15%	-65.38%
FLO	65 Neutral	$3.53B	15.54	16.34%	5.73%	-1.02%	81.53%
Sector *	65 Neutral	$8.88B	15.03	4.75%	203.74%	3.58%	-2.49%
GIS	63 Neutral	$29.84B	11.97	27.37%	4.38%	-2.62%	4.27%