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Nestlé SA
(NESN)
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Rating:64Neutral
Price Target:
CHF85.00
▲(5.37% Upside)
Action:Reiterated
Date:07/24/26
The score is driven primarily by solid fundamentals (durable margins and cash flow) and a constructive earnings-call outlook with improving RIG and cost-savings execution. These positives are tempered by elevated leverage and weak near-term technicals (below key short-term moving averages with low RSI), while valuation is supported by a strong dividend but not especially cheap on P/E.
Positive Factors
Margin resilience
Nestlé’s mid-to-high 40s gross margin and ~16% operating margin reflect durable category pricing power and scale in manufacturing and distribution. These margins support sustained profitability across cycles, enabling reinvestment, marketing and resilience to moderate input-cost shocks over the next several quarters.
Negative Factors
Elevated leverage
Materially higher leverage limits strategic optionality and raises interest-rate sensitivity. With debt-to-equity near 1.8, Nestlé has less buffer for large, discretionary investments or aggressive buybacks and faces higher refinancing risk if rates rise, constraining capital allocation over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin resilience
Nestlé’s mid-to-high 40s gross margin and ~16% operating margin reflect durable category pricing power and scale in manufacturing and distribution. These margins support sustained profitability across cycles, enabling reinvestment, marketing and resilience to moderate input-cost shocks over the next several quarters.
Read all positive factors
Nestlé SA (NESN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF208.38B
Dividend Yield3.83%
Average Volume (3M)2.99M
Price to Earnings (P/E)28.0
Beta (1Y)0.81
Revenue Growth-2.39%
EPS Growth-27.81%
CountryCH
Employees271,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.89
Shares Outstanding2,576,520,000
10 Day Avg. Volume3,003,339
30 Day Avg. Volume2,989,774
Financial Highlights & Ratios
PEG Ratio-1.38
Price to Book (P/B)6.17
Price to Sales (P/S)2.26
P/FCF Ratio17.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF85.70Price Target Upside6.24% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)4.47
Revenue Forecast (FY)CHF89.60B
Nestlé SA Business Overview & Revenue Model
Company Description
Nestlé S.A., along with its affiliated entities, stands as a leading global enterprise in the food and beverage industry. The company strategically divides its extensive operations into three primary geographical segments: Zone Europe, Middle East...
How the Company Makes Money
Nestlé primarily makes money by selling branded packaged food and beverage products and pet care products to customers globally. Its revenue model is largely based on high-volume, repeat purchases of consumer staples, supported by brand marketing,...
Nestlé SA Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Positive
The call conveyed constructive operational momentum and clear execution progress: improving RIG momentum (Q1 to Q2), strong growth-platform performance (7% OG), meaningful cost-savings delivery (CHF 600m in H1; CHF 1.7bn cumulative) and robust free cash flow (CHF 3.4bn) that reduced net debt. Management reiterated on-track 2026 guidance and medium-term margin targets, while acknowledging tangible near-term headwinds including FX, commodity cost pass-through, the infant formula recall impact and zone-specific challenges (petcare destocking in the U.S., temporary delistings in Europe). Overall, positives around cash generation, portfolio sharpening, marketing effectiveness and emerging market strength outweigh the transitory and manageable negatives, provided execution continues.Positive Updates
Solid H1 Organic Sales Growth
Organic sales grew 3.6% in H1 2026, driven by improving RIG and pricing contributions (pricing 2.1%).
Negative Updates
FX Headwind on Reported Sales
Swiss franc strength created a strong FX drag: approximately -9% impact in Q1 and -3% in Q2 (total -6% in H1); full-year reported sales FX impact expected around -3% assuming current spot rates.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid H1 Organic Sales Growth
Organic sales grew 3.6% in H1 2026, driven by improving RIG and pricing contributions (pricing 2.1%).
Read all positive updates
Company Guidance
The company tightened full‑year organic growth guidance to 3–4% (while targeting sustained 4%+ long‑term) and reiterated the need to accelerate RIG to at least 2%; H1 delivered 3.6% organic growth (RIG 1.5%, pricing 2.1%; Q1 RIG 1.2%, Q2 RIG 1.8%), with growth platforms up ~7% OG in H1 and a core target of 3–4% OG; H1 UTOP was 16.4% (‑10bps YoY) and full‑year margin is expected to improve versus 2025 with H2 broadly similar to H1 and a medium‑term margin target of ≥17%; free cash flow is expected to be above CHF 9bn for the year (H1 FCF CHF 3.4bn) and net debt was CHF 56.3bn (down from CHF 60bn); cost‑savings delivered CHF 600m incremental in H1 (cumulative CHF 1.7bn) on track to CHF 2bn by 2026 and CHF 3bn by end‑2027; marketing is 8.9% of sales (up from 8.1% two years ago) with non‑working media <20% (from ~25%); FX dragged H1 sales by ~6% (Q1 ‑9%, Q2 ‑3%) with a full‑year reported sales FX drag of ~3% at current spots; underlying EPS was +4% in constant currency (‑2.4% reported).Nestlé SA Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
57
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 88.37B | 89.49B | 91.72B | 93.35B | 94.78B | 87.47B |
| Gross Profit | 40.17B | 40.80B | 43.05B | 43.02B | 43.03B | 42.00B |
| EBITDA | 16.63B | 17.21B | 18.18B | 18.16B | 18.24B | 17.14B |
| Net Income | 7.44B | 9.03B | 10.88B | 11.21B | 9.27B | 16.91B |
Balance Sheet | ||||||
| Total Assets | 128.38B | 127.15B | 139.26B | 126.55B | 135.18B | 139.14B |
| Cash, Cash Equivalents and Short-Term Investments | 6.13B | 6.23B | 7.87B | 5.85B | 6.69B | 14.04B |
| Total Debt | 62.84B | 57.85B | 63.56B | 55.24B | 54.31B | 46.89B |
| Total Liabilities | 98.88B | 94.09B | 102.57B | 90.16B | 92.39B | 85.42B |
| Stockholders Equity | 29.23B | 32.81B | 35.92B | 35.74B | 41.98B | 53.14B |
Cash Flow | ||||||
| Free Cash Flow | 12.52B | 11.38B | 10.71B | 9.74B | 6.55B | 8.52B |
| Operating Cash Flow | 16.37B | 15.90B | 16.68B | 15.94B | 11.91B | 13.86B |
| Investing Cash Flow | -5.45B | -5.56B | -8.62B | -6.20B | -2.51B | -3.65B |
| Financing Cash Flow | -12.04B | -10.88B | -7.36B | -9.76B | -10.78B | -8.55B |
Nestlé SA Technical Analysis
Negative
80.67
Price Trends
81.41
Negative
79.02
Positive
77.24
Positive
Market Momentum
-0.18
Positive
44.44
Neutral
28.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:NESN, the sentiment is Negative. The current price of 80.67 is below the 20-day moving average (MA) of 83.17, below the 50-day MA of 81.41, and above the 200-day MA of 77.24, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 28.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:NESN.
Nestlé SA Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | CHF4.64B | 20.45 | 22.25% | 2.03% | 9.13% | 3.07% | |
67 Neutral | CHF1.31B | 13.68 | 19.22% | ― | -0.31% | 3.66% | |
64 Neutral | CHF208.38B | 28.03 | 32.66% | 3.84% | -2.39% | -27.81% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
53 Neutral | CHF1.14B | 16.36 | 4.34% | 3.92% | 3.31% | -43.64% |
* Consumer Defensive Sector Average
CH:NESN
Nestlé SA
80.66
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16.63%
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Nestlé SA Corporate Events
Nestlé and Platinum Equity to launch Peranel joint venture in premium water and beverages
Jul 23, 2026
Nestlé SA and private equity firm Platinum Equity are forming Peranel, a 50:50 joint venture that will house Nestlé’s global waters and premium beverages business, valued at EUR 4.9 billion. The new Paris-based company, encompassin...
Nestlé pushes RIG-led growth as portfolio reshaping weighs on profit
Jul 23, 2026
Nestlé reported half-year 2026 organic growth of 3.6%, driven by improving real internal growth of 1.5% and pricing of 2.1%, with emerging markets showing particularly strong momentum. Growth was broad-based across categories, led by coffee a...
Nestlé Elevates Antonia Wanner to Lead Combined Communications and Sustainability Role
Jun 18, 2026
Nestlé has appointed current Chief Sustainability Officer Antonia Wanner as Chief Communications and Sustainability Officer and member of the Group Executive Board, effective 1 September 2026. Wanner, who joined Nestlé in 1996 and has he...
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.