Associated British Foods (ASBFY)
OTHER OTC:ASBFY
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Associated British Foods
(OTC:ASBFY)
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Rating:66Neutral
Price Target:
$26.00
▼(-7.47% 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
Persistently low leverage and sizable equity provide financial resilience across cycles. This durable balance-sheet strength lowers refinancing risk, supports sustained capex and M&A capacity, and underpins ability to fund dividends/buybacks without over-reliance on volatile cash flows.
Negative Factors
Sugar segment weakness
Sugar's swing to loss highlights structural exposure to commodity prices, crop yields and regulatory conditions. This segment can materially depress group operating profit in weak cycles, raising earnings volatility and limiting the group's ability to rely on sugar as a stable profit contributor over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Persistently low leverage and sizable equity provide financial resilience across cycles. This durable balance-sheet strength lowers refinancing risk, supports sustained capex and M&A capacity, and underpins ability to fund dividends/buybacks without over-reliance on volatile cash flows.
Read all positive factors
Associated British Foods (ASBFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.14B
Dividend Yield2.66%
Average Volume (3M)50.76K
Price to Earnings (P/E)15.7
Beta (1Y)0.37
Revenue Growth1.55%
EPS Growth17.02%
CountryUS
Employees138,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)1.25
Shares Outstanding707,699,900
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 Cap0.91
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit3.36
Enterprise Value/Ebitda5.89
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.19
Revenue Forecast (FY)$26.31B
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 through a multi-segment model combining branded consumer products, commodity-linked food production, ingredient supply, and mass-market apparel retail. (1) Retail (Primark): Primark generates revenue from selli...
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:Nov 04, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with strategic investments and growth initiatives in Primark and the Ingredients segment highlighting positive aspects. However, significant challenges in the Sugar segment and a decline in overall group revenue and profit indicate financial difficulties. The consumer environment remains challenging, impacting Primark's sales performance. While ABF is taking steps to address these issues, the balance of highlights and lowlights suggests a cautious outlook.Positive Updates
New Share Buyback Program
ABF announced a new share buyback program of GBP 250 million to be completed in 2026, demonstrating confidence in future growth.
Negative Updates
Decline in Group Revenue and Profit
Group revenue decreased by 1% and adjusted operating profit fell by 12% at constant currency, primarily due to a significant drop in sugar profits.
Read all updates
Q4-2025 Updates
Positive
Negative
New Share Buyback Program
ABF announced a new share buyback program of GBP 250 million to be completed in 2026, demonstrating confidence in future growth.
Read all positive updates
Company Guidance
During the call, ABF provided guidance on several key financial metrics and strategic initiatives. For the fiscal year ending September 13, 2025, the group's sales decreased by 1%, while adjusted operating profit fell by 12%, primarily due to a decline in sugar profits from close to GBP 200 million in 2024 to breakeven in 2025. Despite these challenges, ABF maintained its interim and final dividends in line with the previous year and announced a new GBP 250 million buyback program to be completed in 2026. The company invested GBP 1.2 billion in capital across Primark and its food businesses, with a focus on long-term growth and cash generation. Additionally, Primark's sales grew by 1% to GBP 9.5 billion, although like-for-like sales declined by 2.3%. The group expects to deliver growth in adjusted operating profit and adjusted EPS for 2026, with Primark anticipating a subdued consumer environment but focusing on initiatives to strengthen its value proposition. Sugar profits are expected to improve slightly, while grocery and ingredients profit levels are anticipated to remain stable.Associated British Foods Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
78
Positive
Cash Flow
58
Neutral
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 19.46B | 20.07B | 19.75B | 17.00B | 13.88B |
| Gross Profit | 4.66B | 4.88B | 4.16B | 3.78B | 3.13B |
| EBITDA | 2.65B | 3.13B | 2.48B | 2.13B | 1.80B |
| Net Income | 1.02B | 1.46B | 1.04B | 700.00M | 478.00M |
Balance Sheet | |||||
| Total Assets | 19.29B | 19.01B | 18.84B | 19.77B | 16.89B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 1.66B | 1.46B | 2.13B | 2.31B |
| Total Debt | 3.69B | 3.68B | 3.72B | 3.89B | 3.69B |
| Total Liabilities | 8.11B | 7.74B | 7.65B | 8.22B | 6.89B |
| Stockholders Equity | 11.06B | 11.19B | 11.09B | 11.45B | 9.92B |
Cash Flow | |||||
| Free Cash Flow | 997.00M | 1.69B | 581.00M | 384.00M | 786.00M |
| Operating Cash Flow | 2.23B | 2.87B | 1.65B | 1.15B | 1.41B |
| Investing Cash Flow | -721.00M | -1.33B | -906.00M | -744.00M | -561.00M |
| Financing Cash Flow | -1.79B | -1.57B | -1.28B | -677.00M | -512.00M |
Associated British Foods Technical Analysis
Negative
28.10
Price Trends
25.56
Negative
26.70
Negative
27.56
Negative
Market Momentum
-0.46
Negative
42.40
Neutral
61.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASBFY, the sentiment is Negative. The current price of 28.1 is above the 20-day moving average (MA) of 24.72, above the 50-day MA of 25.56, and above the 200-day MA of 27.56, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 61.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $18.20B | 2.67 | 32.16% | 9.72% | ― | 119.48% | |
68 Neutral | $12.70B | 18.81 | 6.13% | 4.82% | 1.55% | -40.81% | |
66 Neutral | $17.14B | 15.65 | 9.30% | 2.66% | 1.55% | 17.02% | |
63 Neutral | $14.24B | 22.59 | 14.03% | 2.61% | 1.64% | -1.83% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $19.45B | 20.26 | 23.70% | 5.19% | -5.65% | 0.41% | |
54 Neutral | $26.09B | -4.90 | -13.44% | 6.75% | -3.70% | -431.05% |
* Consumer Defensive Sector Average
ASBFY
Associated British Foods
24.41
0.38
1.59%
GIS
General Mills
37.11
-19.83
-34.83%
HRL
Hormel Foods
23.02
-6.58
-22.23%
MKC
McCormick & Company
53.72
-26.49
-33.03%
KHC
Kraft Heinz
22.34
-6.26
-21.90%
JBS
JBS
17.34
3.92
29.21%
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.