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Associated British Foods (ASBFY)
OTHER OTC:ASBFY
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Associated British Foods
(OTC:ASBFY)
Rating:79Outperform
Price Target:
$32.00
â–²(4.44% Upside)
Associated British Foods (ASBFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.85B
Dividend Yield3.88%
Average Volume (3M)906.00
Price to Earnings (P/E)13.5
Beta (1Y)0.48
Revenue Growth1.55%
EPS Growth17.02%
CountryUS
Employees138,000
SectorConsumer Defensive
Sector Strength69
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.27
Shares Outstanding716,769,350
10 Day Avg. Volume1,000
30 Day Avg. Volume906
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit9.26
Enterprise Value/Ebitda6.68
Forecast
1Y Price Target
$32.00Price Target Upside4.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Associated British Foods Business Overview & Revenue Model
Company DescriptionAssociated British Foods (ASBFY) is a diversified multinational company headquartered in the UK, operating across various sectors including food production, retail, agriculture, and ingredients. The company is known for its prominent brands such as Twinings tea, Kingsmill bread, and the discount retail chain Primark. ASBFY's operations are segmented into several divisions, including Grocery, Sugar, Agriculture, Ingredients, and Retail, allowing it to leverage its extensive portfolio to cater to a wide range of consumer needs.
How the Company Makes MoneyAssociated British Foods generates revenue through multiple streams across its diverse sectors. The Grocery division, which includes well-known brands like Twinings, Ovaltine, and Silver Spoon, contributes significantly to the company's earnings through the sale of packaged food products. The Sugar division, one of the largest sugar producers in Europe, earns revenue from the production and sale of sugar and related products. The Agriculture segment generates income through the production of animal feed and other agricultural products. The Ingredients division specializes in the supply of functional food ingredients, generating revenue from food manufacturers. Notably, Primark, the company's retail arm, is a key revenue driver, known for offering low-cost fashion apparel, attracting a large customer base. ASBFY also benefits from strategic partnerships and economies of scale, enhancing its operational efficiency and profitability. Overall, the company's diversified portfolio and strong brand presence across multiple sectors contribute to its financial performance.
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:
Main Street Data
Main Street DataAssociated British Foods Earnings Call Summary
Earnings Call Date:Nov 05, 2024
(Q4-2024)
| % Change Since: 3.03%|
Next Earnings Date:Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth and profitability across multiple segments, with substantial investments supporting future growth and shareholder returns. However, challenges in the Sugar division and specific markets like Germany and China were noted, presenting areas of concern.Q4-2024 Updates
Positive Updates
Substantial Improvement in Profitability
Operating profit increased by 38%, and adjusted earnings per share rose by 39%. Cash generation also saw a significant increase to GBP1.4 billion, an increase of GBP1.1 billion from the previous year.
Strong Performance Across Segments
Revenue grew 4% on a constant currency basis to GBP20.1 billion, with notable performance in Retail, Grocery, Ingredients, and Sugar. Retail operating margin recovered to 11.7%, with adjusted operating profit rising from GBP735 million to over GBP1.1 billion.
Record Investments and Shareholder Returns
ABF invested GBP1.3 billion, supporting future growth and ESG priorities. A total dividend increase of 50% was proposed, and GBP2.3 billion was returned to shareholders over two years through dividends and share buybacks.
Strong Growth in Primark
6% growth at constant currency, driven by strong performance in the US, France, Spain, Italy, and Central and Eastern Europe. Primark's operating margin recovered significantly, and return on average capital employed increased from 12% to 18.7%.
Positive Outlook for Future Growth
Targeted mid-single-digit growth for Primark in 2025. Store rollout plans continue, with a significant opportunity in growth markets and the US.
Negative Updates
Challenges in Sugar Division
European Sugar faced a significant price decline in Q4, impacting profitability and expected to affect the following year. The market faced a surplus due to increased acreage and high yields.
Struggles in Specific Markets
Challenges in the German retail market required restructuring. Additionally, the Agri division saw a decline in compound feed sales, and the Frontier JV was negatively impacted by weather conditions in the UK.
Exit from China
ABF fully exited its business in China to streamline focus and resources, indicating challenges in achieving desired results in that market.
Company Guidance
In the most recent call, ABF reported strong financial results for the fiscal year 2024, ending on September 14. Operating profit saw an impressive increase of 38%, while adjusted earnings per share rose by 39%. Cash generation was notably high, reaching GBP1.4 billion, up by GBP1.1 billion from the previous year. The return on capital employed improved significantly, climbing to 18.1% from 13.6% last year. The group also proposed a total dividend increase of 50%, contributing to a total shareholder return of approximately GBP2.3 billion over the past two years through dividends and share buybacks. The call highlighted operational progress across various segments, with Primark's sales growing 6% and a recovery in operating margin to 11.7%. ABF's grocery and sugar segments also reported strong performances, contributing to an overall substantial improvement in profitability and strategic growth investments.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.85
Very Positive
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.78
Positive
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.82
Very Positive
| 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 |
| EBITDA | 3.13B | 2.48B | 2.13B | 1.80B | 1.81B |
| Net Income | 1.46B | 1.04B | 700.00M | 478.00M | 455.00M |
Balance Sheet | |||||
| Total Assets | 19.01B | 18.84B | 19.77B | 16.89B | 16.67B |
| Cash, Cash Equivalents and Short-Term Investments | 1.66B | 1.46B | 2.13B | 2.31B | 2.03B |
| Total Debt | 3.68B | 3.72B | 3.89B | 3.69B | 4.11B |
| 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
Positive
30.64
Price Trends
28.63
Positive
27.72
Positive
26.57
Positive
Market Momentum
0.41
Negative
68.55
Neutral
100.16
Negative
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 30.64 is above the 20-day moving average (MA) of 29.61, above the 50-day MA of 28.63, and above the 200-day MA of 26.57, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 68.55 is Neutral, neither overbought nor oversold. The STOCH value of 100.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASBFY.
Associated British Foods Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $21.85B | 13.52 | 12.04% | 3.88% | 1.55% | 17.02% | |
73 Outperform | $3.42B | 15.06 | 16.34% | 5.88% | -1.02% | 81.53% | |
70 Outperform | $9.31B | 8.12 | 13.27% | 7.18% | -3.64% | 231.77% | |
69 Neutral | $18.69B | 24.19 | 14.19% | 2.56% | 0.89% | 4.85% | |
63 Neutral | $21.00B | 13.77 | -6.24% | 3.09% | 3.49% | -6.25% | |
63 Neutral | $26.77B | 12.04 | 24.57% | 4.90% | -1.87% | -5.16% | |
55 Neutral | $32.47B | 12.81 | -11.68% | 5.85% | -3.83% | -384.08% |
* Consumer Defensive Sector Average
Performance Comparison
ASBFY
Associated British Foods
30.64
0.03
0.10%
CAG
Conagra Brands
19.50
-9.58
-32.94%
FLO
Flowers Foods
16.46
-5.19
-23.97%
GIS
General Mills
49.16
-18.44
-27.28%
MKC
McCormick & Company
69.09
-7.10
-9.32%
KHC
Kraft Heinz
27.35
-5.40
-16.49%
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.