Associated British Foods (ASBFY)
OTHER OTC:ASBFY
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Associated British Foods
(OTC:ASBFY)
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Rating:66Neutral
Price Target:
$27.00
▼(-3.91% Downside)
Action:DowngradedDate:01/04/26
The score is primarily driven by steady but cooling fundamentals: a strong balance sheet is offset by weaker 2025 profitability and notably poorer free-cash-flow conversion. Technicals are mildly supportive (price above key moving averages and positive MACD) but with stretched short-term momentum signals. Valuation is reasonable with a moderate P/E and dividend yield, while earnings-call takeaways are cautious due to profit pressure (especially sugar) despite shareholder returns and 2026 growth guidance.
Positive Factors
Conservative Balance Sheet
ABF's conservative leverage (debt-to-equity ≈0.33) and sizable equity position provide durable financial flexibility. That balance-sheet strength supports sustained capital allocation for store expansion, capex and buybacks while absorbing cyclical profit swings without forcing distress or rapid deleveraging.
Negative Factors
Weakened Free Cash Flow Conversion
FCF decline (~27%) and coverage (~0.45x of net income) signal deteriorating cash conversion driven by working-capital swings or higher cash outlays. Persistently weak cash conversion would constrain durable funding for capex, buybacks and dividend policy and reduce financial optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
ABF's conservative leverage (debt-to-equity ≈0.33) and sizable equity position provide durable financial flexibility. That balance-sheet strength supports sustained capital allocation for store expansion, capex and buybacks while absorbing cyclical profit swings without forcing distress or rapid deleveraging.
Read all positive factors
Associated British Foods (ASBFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.41B
Dividend Yield2.66%
Average Volume (3M)50.76K
Price to Earnings (P/E)7.9
Beta (1Y)0.34
Revenue Growth2.67%
EPS Growth-21.19%
CountryUS
Employees138,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.95
Shares Outstanding705,686,300
10 Day Avg. Volume16,268
30 Day Avg. Volume50,762
Financial Highlights & Ratios
PEG Ratio-0.56
Price to Book (P/B)1.45
Price to Sales (P/S)0.82
P/FCF Ratio16.09
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue0.82
Enterprise Value/Gross Profit3.52
Enterprise Value/Ebitda5.93
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.13
Revenue Forecast (FY)$26.33B
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 pro...
How the Company Makes Money
Associated British Foods makes money primarily by selling consumer products and commodities and by operating a mass-market apparel retailer. A significant portion of revenue comes from Primark, which generates sales through company-operated brick-...
Associated British Foods Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much each business unit contributes to overall sales, highlighting areas of strength and potential growth or risk within the company's diverse operations.
Shows how much each business unit contributes to overall sales, highlighting areas of strength and potential growth or risk within the company's diverse operations.
Data provided by:
The Fly
The FlyAssociated British Foods Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
Mixed results: the group demonstrated strong strategic and operational progress (Primark UK recovery, digital and CRM growth, store expansion, franchise success, improved free cash flow, sustained shareholder returns and a resilient balance sheet). However, near‑term financial results were weaker with group adjusted operating profit down 18% and notable challenges in sugar (full‑year loss now expected), Grocery (US oils), some Ingredients and Agriculture segments, plus margin pressure from markdowns. Management reiterated unchanged full‑year guidance except for sugar and highlighted H2 weighting, but geopolitical cost inflation and consumer demand risk remain key uncertainties.Positive Updates
Maintained shareholder returns and active buybacks
Interim dividend maintained at 20.7p (in line with prior year); completed GBP 187m of share buybacks year-to-date and expect to complete announced GBP 250m by year-end.
Negative Updates
Group profit and EPS decline
Group adjusted operating profit GBP 691m, down 18% at constant currency; adjusted EPS down 15% (partially offset by buyback benefit); group revenue GBP 9.5bn flat on an actual basis but down 2% at constant currency.
Read all updates
Q2-2026 Updates
Positive
Negative
Maintained shareholder returns and active buybacks
Interim dividend maintained at 20.7p (in line with prior year); completed GBP 187m of share buybacks year-to-date and expect to complete announced GBP 250m by year-end.
Read all positive updates
Company Guidance
The Group reiterated full-year guidance that, aside from sugar, is unchanged: group adjusted operating profit and adjusted EPS are expected to be below last year, with profit phasing weighted to H2; H1 group revenue was £9.5bn (flat; -2% at constant currency) and group adjusted operating profit was £691m (down 18% at constant currency) with adjusted EPS down 15%. Primark delivered £4.7bn sales (up 2%) but like‑for‑like sales were -2.7% (UK +3%, LFL +1.3%), H1 margin 10.1% and full‑year Primark margin expected at approximately 10%; store rollout contributed c.4% of sales. Food revenue fell 3% (Grocery £2.1bn) with Grocery profit expected moderately below last year and Ingredients guidance unchanged; Sugar H1 sales were -9% with an adjusted operating loss of £27m and is now expected to deliver a full‑year adjusted operating loss. Balance sheet and cash guidance: H1 capex £534m (full‑year c.£1.2bn), free cash flow £71m (vs £27m), interim dividend 20.7p in line with last year, £187m of £250m buybacks completed (£63m remaining), H1 net debt including leases c.£3.0bn (leverage 1.2x), total liquidity £2.2bn (including £1.8bn committed facilities) and a pension surplus of £1.7bn; management expects the near‑term cost impact from the Middle East conflict to be manageable in 2026 given current hedges.Associated British Foods Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
78
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.38B | 19.46B | 20.07B | 19.75B | 17.00B | 13.88B |
| Gross Profit | 4.53B | 4.66B | 4.88B | 4.16B | 3.78B | 3.13B |
| EBITDA | 2.69B | 2.65B | 3.13B | 2.48B | 2.13B | 1.80B |
| Net Income | 948.10M | 1.02B | 1.46B | 1.04B | 700.00M | 478.00M |
Balance Sheet | ||||||
| Total Assets | 19.64B | 19.29B | 19.01B | 18.84B | 19.77B | 16.89B |
| Cash, Cash Equivalents and Short-Term Investments | 712.39M | 1.06B | 1.66B | 1.46B | 2.13B | 2.31B |
| Total Debt | 3.74B | 3.69B | 3.68B | 3.72B | 3.89B | 3.69B |
| Total Liabilities | 8.01B | 8.11B | 7.74B | 7.65B | 8.22B | 6.89B |
| Stockholders Equity | 11.47B | 11.06B | 11.19B | 11.09B | 11.45B | 9.92B |
Cash Flow | ||||||
| Free Cash Flow | 1.19B | 997.00M | 1.69B | 581.00M | 384.00M | 786.00M |
| Operating Cash Flow | 2.29B | 2.23B | 2.87B | 1.65B | 1.15B | 1.41B |
| Investing Cash Flow | -1.13B | -721.00M | -1.33B | -906.00M | -744.00M | -561.00M |
| Financing Cash Flow | -1.21B | -1.79B | -1.57B | -1.28B | -677.00M | -512.00M |
Associated British Foods Technical Analysis
Positive
28.10
Price Trends
25.41
Positive
26.26
Negative
27.39
Negative
Market Momentum
0.04
Negative
53.89
Neutral
35.05
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 28.1 is above the 20-day moving average (MA) of 24.86, above the 50-day MA of 25.41, and above the 200-day MA of 27.39, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 35.05 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $13.58B | 4.70 | 27.31% | 2.61% | 5.68% | 109.20% | |
69 Neutral | $16.76B | 7.60 | 31.09% | 9.72% | ― | 90.01% | |
68 Neutral | $11.48B | 18.81 | 6.13% | 4.82% | 1.95% | -35.52% | |
66 Neutral | $17.41B | 7.89 | 8.44% | 2.66% | 2.67% | -21.19% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | $18.40B | 20.26 | 23.70% | 5.19% | -6.48% | -10.99% | |
54 Neutral | $26.58B | -4.90 | -13.44% | 6.75% | -3.50% | -316.94% |
* Consumer Defensive Sector Average
ASBFY
Associated British Foods
24.84
-1.29
-4.92%
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JBS
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.