Nestlé SA (CH:NESN)
:NESN
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Nestlé SA
(NESN)
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Rating:61Neutral
Price Target:
CHF80.00
▲(1.14% Upside)
Action:ReiteratedDate:03/21/26
The score is driven primarily by solid underlying fundamentals (strong margins and durable free cash flow) tempered by higher leverage and muted recent revenue momentum. Technicals are a major drag due to a clear downtrend across key moving averages and negative MACD, while valuation is supported by the ~4% dividend but not especially cheap on earnings.
Positive Factors
Margin resilience
Nestlé’s sustained mid-to-high 40s gross margin and healthy operating/EBITDA margins provide a durable profitability buffer typical of leading packaged-food businesses. Strong margins support cash flow, enable reinvestment in brands and R&D, and help absorb commodity or input cost shocks over the medium term.
Negative Factors
Soft revenue trend
A multi-year soft top line (down ~1–2% recently and -2.04% revenue growth) undermines scale economics and can limit pricing leverage. Continued revenue weakness risks eroding market share, constraining reinvestment capacity and putting pressure on medium-term growth targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin resilience
Nestlé’s sustained mid-to-high 40s gross margin and healthy operating/EBITDA margins provide a durable profitability buffer typical of leading packaged-food businesses. Strong margins support cash flow, enable reinvestment in brands and R&D, and help absorb commodity or input cost shocks over the medium term.
Read all positive factors
Nestlé SA (NESN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF200.06B
Dividend Yield3.92%
Average Volume (3M)2.99M
Price to Earnings (P/E)22.4
Beta (1Y)0.79
Revenue Growth-1.32%
EPS Growth-6.27%
CountryCH
Employees251,786
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.15
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
CHF84.82Price Target Upside7.23% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)4.37
Revenue Forecast (FY)CHF88.15B
Nestlé SA Business Overview & Revenue Model
Company Description
Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone Europe, Middle East and North Africa; Zone Americas; and Zone Asia, Oceania and sub-Saharan Africa segments. It offers baby foo...
How the Company Makes Money
Nestlé primarily makes money by selling branded consumer products at scale across multiple categories, earning revenue when it ships finished goods to retailers, distributors, and other customers and recognizes net sales after deductions such as t...
Nestlé SA Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a balanced overview of Nestlé's performance with positive elements like organic growth and market share improvements, but significant challenges remain, including market adjustments in China, expected margin declines in the second half, and free cash flow issues.Positive Updates
Organic Sales Growth
Nestlé delivered 2.9% organic sales growth in the first half of 2025, with pricing contributing 2.7% and a real internal growth (RIG) of 0.2%.
Negative Updates
China Market Challenges
Greater China impacted RIG negatively by 40 bps in Q2, necessitating a strategic shift from distribution to consumer demand focus.
Read all updates
Q2-2025 Updates
Positive
Negative
Organic Sales Growth
Nestlé delivered 2.9% organic sales growth in the first half of 2025, with pricing contributing 2.7% and a real internal growth (RIG) of 0.2%.
Read all positive updates
Company Guidance
In the Nestlé Half-year 2025 Results Conference Call, the company maintained its full-year guidance despite facing increased headwinds. Organic sales growth for the first half of 2025 was reported at 2.9%, with a Real Internal Growth (RIG) of 0.2% and pricing growth at 2.7%. The first half saw a UTOP margin of 16.5%, a decline of 90 basis points, attributed to a 60 basis point decrease in gross margin and a 50 basis point increase in advertising and marketing expenditures. Foreign exchange movements, notably the Swiss franc strengthening by 10% against the dollar, impacted sales negatively. Despite challenges, the company remains committed to investing for growth through its ‘Fuel for Growth’ program, anticipating CHF 700 million savings for the year. The strategic focus remains on maintaining or improving market share across segments, with specific emphasis on driving consumer demand in Greater China and focusing on premium brands in the VMS category.Nestlé SA Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
57
Neutral
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 89.49B | 91.72B | 93.35B | 94.78B | 87.47B |
| Gross Profit | 40.80B | 43.05B | 43.02B | 43.03B | 42.00B |
| EBITDA | 17.90B | 18.18B | 18.16B | 18.24B | 17.14B |
| Net Income | 9.03B | 10.88B | 11.21B | 9.27B | 16.91B |
Balance Sheet | |||||
| Total Assets | 127.15B | 139.26B | 126.55B | 135.18B | 139.14B |
| Cash, Cash Equivalents and Short-Term Investments | 6.23B | 7.87B | 5.85B | 6.69B | 14.04B |
| Total Debt | 57.85B | 63.56B | 55.24B | 54.31B | 46.89B |
| Total Liabilities | 94.09B | 102.57B | 90.16B | 92.39B | 85.42B |
| Stockholders Equity | 32.81B | 35.92B | 35.74B | 41.98B | 53.14B |
Cash Flow | |||||
| Free Cash Flow | 11.38B | 10.71B | 9.74B | 6.55B | 8.52B |
| Operating Cash Flow | 15.90B | 16.68B | 15.94B | 11.91B | 13.86B |
| Investing Cash Flow | -5.56B | -8.62B | -6.20B | -2.51B | -3.65B |
| Financing Cash Flow | -10.88B | -7.36B | -9.76B | -10.78B | -8.55B |
Nestlé SA Technical Analysis
Positive
79.10
Price Trends
78.84
Positive
78.26
Positive
77.02
Positive
Market Momentum
-0.22
Negative
53.19
Neutral
72.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:NESN, the sentiment is Positive. The current price of 79.1 is above the 20-day moving average (MA) of 78.11, above the 50-day MA of 78.84, and above the 200-day MA of 77.02, indicating a bullish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 72.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | CHF4.43B | 7.18 | 22.25% | 2.26% | 10.78% | 10.53% | |
69 Neutral | CHF1.58B | 12.13 | 21.15% | ― | 0.90% | 30.62% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | CHF200.06B | 22.43 | 32.66% | 3.92% | -1.32% | -6.27% | |
53 Neutral | CHF1.26B | 14.64 | 7.93% | 3.18% | 4.59% | -3.22% |
* Consumer Defensive Sector Average
CH:NESN
Nestlé SA
79.10
-3.97
-4.77%
CH:ARYN
ARYZTA AG
63.70
-13.66
-17.66%
CH:EMMN
Emmi AG
828.00
60.00
7.81%
CH:BELL
Bell Food Group
201.00
-57.50
-22.24%
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.