EBRO FOODS (EBRO) AI Stock Analysis

• Market Cap: €2.71B
• Dividend Yield: 3.54%
• Average Volume (3M): 122.33K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.10
• Revenue Growth: -0.42%
• EPS Growth: -3.34%
• Country: ES
• Employees: 5,365
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): N/A
• Shares Outstanding: 153,865,390
• 10 Day Avg. Volume: 86,129
• 30 Day Avg. Volume: 122,327
• PEG Ratio: 1.10
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 17.47
• 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: €18.10
• Price Target Upside: -0.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €20.00 ▲(9.53% Upside)

EBRO FOODS demonstrates a strong financial position with consistent revenue growth and improved profitability margins, which are the most significant factors in its overall score. The stock's valuation is reasonable, and the dividend yield is attractive. However, technical indicators suggest a lack of strong momentum, and potential cash flow challenges need monitoring.

Positive Factors

Profitability Margins

Improved profitability margins indicate enhanced operational efficiency, contributing to stronger long-term financial health and shareholder value.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities.

Revenue Growth

Consistent revenue growth, albeit modest, suggests sustained demand for products and supports long-term market presence and expansion.

Negative Factors

Cash Flow Challenges

Reduced operating cash flow can limit the company's ability to fund operations and growth initiatives, potentially impacting future financial flexibility.

Liabilities Increase

An increase in liabilities, even if slight, could indicate rising financial obligations that may affect the company's long-term debt management strategies.

EPS Growth Decline

A decline in EPS growth suggests challenges in profitability per share, which could impact investor confidence and long-term earnings potential.

EBRO FOODS Business Overview & Revenue Model

Company Description

Ebro Foods, S.A. produces and sells food products in Spain, rest of Europe, the United States, and internationally. The company offers various rice varieties; ancient grains, such as quinoa, chia, and bulgur; organic food products; and vegetable protein products under various brands. It primarily serves food distributors, food multinationals, and restaurants. The company was formerly known as Ebro Puleva, S.A. and changed its name to Ebro Foods, S.A. in June 2010. Ebro Foods, S.A. was incorporated in 1998 and is headquartered in Madrid, Spain.

How the Company Makes Money

EBRO generates revenue through the sale of its core products, which include pasta, sauces, and rice, distributed under multiple brand names. The company's revenue model is predominantly based on the retail and food service sectors, where they supply both packaged goods and bulk products. Key revenue streams include direct sales to supermarkets, grocery stores, and restaurants, as well as partnerships with distributors and wholesalers. Additionally, EBRO benefits from economies of scale, efficient production processes, and strategic marketing initiatives that enhance brand visibility and consumer loyalty. Collaborations with retailers for promotional campaigns and product placements further contribute to its earnings.

EBRO FOODS Financial Statement Overview

Summary

EBRO FOODS shows strong financial performance with steady revenue growth and improved profitability margins. The balance sheet reflects low leverage and efficient equity usage, though cash flow management presents potential challenges.

Income Statement

EBRO FOODS has demonstrated steady revenue growth with a strong gross profit margin of approximately 45.5% in 2024. The net profit margin increased from 6.1% in 2023 to 6.6% in 2024, indicating improved profitability. The EBIT and EBITDA margins of 9.8% and 15.3%, respectively, further highlight operating efficiency. Revenue growth from 2023 to 2024 is modest but positive at 1.82%, reflecting steady market demand.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 58.1% in 2024, reflecting financial stability. The debt-to-equity ratio improved to 0.22, indicating decreased leverage. Return on Equity (ROE) increased to 8.9%, showcasing efficient utilization of equity. Overall, EBRO FOODS' balance sheet shows a strong equity position with manageable debt levels, though the slight increase in liabilities merits monitoring.

Cash Flow

EBRO FOODS experienced a significant drop in operating cash flow in 2024, leading to a decreased free cash flow compared to 2023. The free cash flow to net income ratio is positive but lower than in previous years, reflecting potential cash flow challenges. Despite this, the company has managed its capital expenditures effectively, ensuring positive free cash flow in 2024.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.04B	3.14B	3.08B	2.96B	2.42B	2.43B
Gross Profit	360.80M	1.43B	1.33B	1.28B	1.09B	1.08B
EBITDA	438.12M	423.57M	392.25M	293.64M	296.54M	259.47M
Net Income	192.35M	207.87M	186.96M	122.06M	238.63M	192.41M
Balance Sheet
Total Assets	3.90B	4.01B	3.87B	3.90B	3.94B	4.04B
Cash, Cash Equivalents and Short-Term Investments	269.70M	257.45M	335.33M	186.82M	541.36M	212.54M
Total Debt	560.38M	510.42M	634.13M	734.17M	847.57M	971.04M
Total Liabilities	1.69B	1.65B	1.65B	1.70B	1.81B	2.08B
Stockholders Equity	2.17B	2.33B	2.19B	2.16B	2.10B	1.93B
Cash Flow
Free Cash Flow	116.91M	139.84M	336.82M	104.27M	-102.55M	252.26M
Operating Cash Flow	329.60M	288.48M	478.49M	223.08M	17.48M	369.86M
Investing Cash Flow	-174.13M	-119.11M	-127.89M	-139.60M	609.71M	105.00M
Financing Cash Flow	-218.46M	-262.10M	-200.11M	-218.23M	-315.37M	-507.27M

EBRO FOODS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:EBRO, the sentiment is Positive. The current price of 18.26 is above the 20-day moving average (MA) of 17.97, above the 50-day MA of 17.89, and above the 200-day MA of 17.26, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 62.10 is Neutral, neither overbought nor oversold. The STOCH value of 80.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:EBRO.

EBRO FOODS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBRO	72 Outperform	€2.71B	13.83	8.92%	3.54%	-0.42%	-3.34%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DIA	56 Neutral	€1.68B	32.18	―	―	5.97%	―
OLE	44 Neutral	€98.00M	-3.53	-12.41%	―	-1.52%	-116.80%