ARYZTA AG (ARYN) AI Stock Analysis

• Market Cap: CHF1.27B
• Dividend Yield: N/A
• Average Volume (3M): 99.73K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.65
• Revenue Growth: 0.90%
• EPS Growth: 30.62%
• Country: CH
• Employees: 7,654
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 1.74
• Shares Outstanding: 24,827,644
• 10 Day Avg. Volume: 191,711
• 30 Day Avg. Volume: 99,732
• PEG Ratio: 0.30
• Price to Book (P/B): 3.70
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 7.73
• 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: CHF73.25
• Price Target Upside: 41.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 69 Neutral
• Price Target: CHF82.00 ▲(58.61% Upside)

The overall stock score reflects ARYZTA AG's strong financial recovery and reasonable valuation, balanced by technical indicators suggesting a lack of bullish momentum. The increased leverage poses a potential risk, emphasizing the need for careful debt management.

ARYZTA AG Business Overview & Revenue Model

Company Description

ARYZTA AG provides frozen B2B baking solutions in Europe, Asia, Australia, New Zealand, and South America. It offers bread rolls and artisan loaves, sweet baked and morning goods, and savory and other products. The company also provides asset management services; and distributes food products. It serves large retail, convenience, and independent retailers, as well as quick service restaurants and other foodservice customers. The company has 32 bakeries in 28 countries. ARYZTA AG was founded in 1897 and is based in Schlieren, Switzerland.

How the Company Makes Money

ARYZTA generates revenue primarily through the sale of its baked goods to various sectors, including retail and food service. The company's revenue model is based on both direct sales and long-term contracts with customers, ensuring a steady stream of income. Key revenue streams include the sale of frozen dough products, fresh bakery items, and specialty baked goods tailored to customer specifications. Significant partnerships with major grocery chains and food service providers enhance its market presence and contribute to earnings. Additionally, ARYZTA focuses on innovation and product development, which allows it to meet changing consumer preferences and drive sales growth.

ARYZTA AG Financial Statement Overview

Summary

ARYZTA AG shows a strong financial recovery with significant improvements in revenue and profitability, coupled with effective cash flow management. However, increased leverage and decreased equity ratio represent potential risks.

Income Statement

ARYZTA AG has demonstrated solid revenue growth with a 25.0% increase from 2022 to 2023. Gross profit margin improved to 21.4% in 2023, indicating enhanced operational efficiency. The net profit margin turned positive in 2023 at 6.2%, a significant turnaround from previous losses, reflecting improved profitability. However, the EBIT and EBITDA margins, at 8.7% and 16.1% respectively, suggest room for improvement in cost management.

Balance Sheet

The debt-to-equity ratio increased to 1.81 in 2023 from 0.66 in 2022, indicating higher leverage which could pose financial risk. Return on equity improved significantly to 28.7% in 2023, showcasing strong returns for shareholders. The equity ratio decreased to 23.7%, highlighting reduced reliance on equity financing. Overall, while profitability is up, increasing debt levels are a concern.

Cash Flow

Operating cash flow grew by 18.9% from 2022 to 2023, indicating robust cash generation capabilities. Free cash flow also improved, with a free cash flow to net income ratio of 1.58, suggesting strong cash conversion. However, the high operating cash flow to net income ratio of 2.31 indicates conservative earnings quality, as cash generation outpaces reported profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.14B	2.19B	2.22B	1.76B	1.53B	1.67B
Gross Profit	444.00M	469.20M	711.34M	318.50M	252.50M	305.00M
EBITDA	251.80M	341.00M	304.76M	170.30M	182.90M	-81.90M
Net Income	107.20M	129.60M	70.00M	900.00K	-235.80M	-1.09B
Balance Sheet
Total Assets	1.91B	1.91B	1.97B	2.08B	2.06B	3.41B
Cash, Cash Equivalents and Short-Term Investments	77.10M	77.10M	130.80M	245.80M	170.90M	423.60M
Total Debt	816.40M	816.40M	524.90M	535.80M	373.30M	1.39B
Total Liabilities	1.46B	1.46B	1.17B	1.15B	961.60M	2.14B
Stockholders Equity	452.10M	452.10M	793.30M	932.40M	1.10B	1.27B
Cash Flow
Free Cash Flow	146.70M	216.40M	197.30M	116.80M	300.00K	-71.90M
Operating Cash Flow	230.70M	298.90M	251.40M	200.10M	84.30M	24.30M
Investing Cash Flow	-92.20M	-93.40M	-60.10M	8.90M	633.20M	69.10M
Financing Cash Flow	-175.80M	-230.60M	-299.10M	-143.40M	-976.00M	-28.40M

ARYZTA AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ARYN, the sentiment is Negative. The current price of 51.7 is below the 20-day moving average (MA) of 61.40, below the 50-day MA of 68.81, and below the 200-day MA of 74.97, indicating a bearish trend. The MACD of -5.48 indicates Positive momentum. The RSI at 15.13 is Positive, neither overbought nor oversold. The STOCH value of 8.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:ARYN.

ARYZTA AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMMN	70 Outperform	CHF3.93B	18.45	18.34%	2.24%	10.78%	10.53%
ARYN	69 Neutral	CHF1.27B	12.82	24.18%	―	0.90%	30.62%
BELL	64 Neutral	CHF1.50B	12.06	7.93%	2.92%	4.59%	-3.22%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ORON	42 Neutral	CHF82.51M	5.66	―	18.84%	-0.16%	-241.84%

ARYZTA AG Corporate Events

ARYZTA Announces Share Consolidation Plans

ARYZTA announced the implementation details of its planned share consolidation, a strategic move that may impact its market positioning and shareholder value. This decision reflects ARYZTA’s ongoing efforts to streamline operations and enhance its financial structure, potentially benefiting stakeholders by improving share liquidity and market perception.