Associated British Foods (ABF) AI Stock Analysis

• Market Cap: £15.07B
• Dividend Yield: 0.99%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.89
• Revenue Growth: -3.06%
• EPS Growth: -26.93%
• Country: UK
• Employees: 138,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.96
• Shares Outstanding: 713,418,700
• 10 Day Avg. Volume: 628,749
• 30 Day Avg. Volume: 1,020,937
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £2,223.89
• Price Target Upside: 4.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: 2,338.00p ▲(10.08% Upside)

Associated British Foods has a stable financial foundation with strong operational efficiency, but faces challenges in revenue growth and cash flow generation. The technical indicators show mixed signals, and the valuation is reasonable with a moderate dividend yield. The recent earnings call highlighted both strategic initiatives and ongoing challenges, particularly in the sugar segment and European markets. These factors collectively result in a moderate overall stock score.

Positive Factors

Strong Capital Returns

ABF's consistent capital returns through dividends and buybacks demonstrate strong cash generation and a commitment to shareholder value, reinforcing investor confidence over the long term.

Primark's Store Expansion

Primark's successful store expansion enhances market presence and revenue potential, supporting long-term growth in competitive retail markets.

Growth in Ingredients Segment

The strong growth in the Ingredients segment highlights effective cost management and productivity, contributing positively to ABF's diversified business model.

Negative Factors

Decline in Group Sales and Profit

The decline in sales and profit reflects challenges in maintaining revenue growth, particularly in the sugar segment, which could impact future profitability.

Sugar Segment Losses

Losses in the sugar segment, driven by low prices and high costs, pose a risk to ABF's earnings stability, necessitating strategic adjustments for recovery.

Challenges in Primark's European Markets

Weaker trading conditions in Europe for Primark indicate potential market saturation and pricing pressures, which could hinder growth in key regions.

Associated British Foods Business Overview & Revenue Model

Company Description

Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide. It operates through five segments: Grocery, Sugar, Agriculture, Ingredients, and Retail. The Grocery segment manufactures and sells grocery products, including hot beverages, sugar and sweeteners, vegetable oils, balsamic vinegars, bread and baked goods, cereals, ethnic foods, and meat products to retail, wholesale, and foodservice businesses. The Sugar segment is involved in growing, processing, and selling sugar beet and sugar cane to industrial users. The Agriculture segment manufactures and sells animal feeds; and provides other products and services for the agriculture sector. The Ingredients segment manufactures bakers' yeast, bakery ingredients, enzymes, lipids, yeast extracts, and cereal specialties. The Retail segment is involved in buying and merchandising clothing and accessories through the Primark and Penneys retail chains, which offer womenswear, menswear, children's wear, footwear, accessories, homeware, and skincare products. The company was founded in 1935 and is headquartered in London, the United Kingdom. Associated British Foods plc is a subsidiary of Wittington Investments Limited.

How the Company Makes Money

ABF generates revenue through multiple key streams. The grocery segment, which includes brands like Twinings and Ovaltine, contributes significantly by selling packaged foods, beverages, and grocery items. The sugar division profits from the production and sale of sugar, which is influenced by global sugar prices and agricultural yields. Additionally, the ingredients sector supplies various food and industrial ingredients, further diversifying income. The retail arm, Primark, is a major revenue driver, offering clothing and home goods at competitive prices. Significant partnerships with suppliers and retailers enhance ABF's market reach, while the company also benefits from economies of scale and a strong focus on cost management, all of which contribute to its overall earnings.

Associated British Foods Financial Statement Overview

Summary

Associated British Foods exhibits a strong financial profile with consistent revenue growth and solid profitability margins. The balance sheet is robust with low leverage, and cash flow generation is healthy, supporting operational and strategic initiatives.

Income Statement

Associated British Foods has demonstrated strong revenue growth with a notable increase of 1.57% over the last year, reaching £20.07 billion. The company maintains a solid gross profit margin of 24.32% and a healthy net profit margin of 7.25%, indicating effective cost management and profitability. The EBIT margin stands at 9.63%, and the EBITDA margin at 15.61%, showcasing robust operational performance. Overall, the income statement reflects a positive growth trajectory and stable profitability.

Balance Sheet

The balance sheet of Associated British Foods reveals a sturdy financial position with a debt-to-equity ratio of 0.33, suggesting moderate leverage and manageable debt levels. The company achieves a return on equity of 12.99%, which signifies efficient utilization of equity to generate profits. Additionally, the equity ratio is strong at 58.81%, indicating a solid capital structure with a good portion of assets financed by equity. These metrics underline the company's financial stability and low risk exposure.

Cash Flow

The cash flow statement highlights a significant improvement in free cash flow, which surged by 190.91% year-over-year, reaching £1.79 billion. The operating cash flow to net income ratio is 2.00, reflecting strong cash generation relative to net income. However, the free cash flow to net income ratio is 1.23, indicating a slight dependence on net income for free cash generation. Overall, the cash flow metrics suggest healthy liquidity and operational cash generation, despite some reliance on net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.46B	19.46B	20.07B	19.75B	17.00B	13.88B
Gross Profit	4.66B	4.66B	1.84B	1.34B	3.78B	3.13B
EBITDA	2.43B	2.43B	2.56B	2.02B	1.87B	1.48B
Net Income	1.02B	1.02B	1.46B	1.04B	700.00M	478.00M
Balance Sheet
Total Assets	19.29B	19.29B	19.01B	18.84B	19.77B	16.89B
Cash, Cash Equivalents and Short-Term Investments	1.06B	1.06B	1.66B	1.46B	2.13B	2.31B
Total Debt	3.69B	3.69B	3.68B	3.72B	3.89B	3.69B
Total Liabilities	8.11B	8.11B	7.74B	7.65B	8.22B	6.89B
Stockholders Equity	11.06B	11.06B	11.19B	11.09B	11.45B	9.92B
Cash Flow
Free Cash Flow	1.13B	1.15B	1.79B	614.00M	380.00M	742.00M
Operating Cash Flow	2.23B	2.25B	2.87B	1.69B	1.15B	1.37B
Investing Cash Flow	-797.00M	-878.00M	-1.33B	-1.06B	-854.00M	-656.00M
Financing Cash Flow	-1.71B	-1.65B	-1.57B	-1.16B	-563.00M	-373.00M

Associated British Foods Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2124.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ABF, the sentiment is Positive. The current price of 2124 is above the 20-day moving average (MA) of 2089.97, below the 50-day MA of 2139.46, and above the 200-day MA of 2061.85, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 73.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ABF.

Associated British Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWK	78 Outperform	£2.73B	18.47	15.07%	2.02%	6.96%	28.47%
PFD	76 Outperform	£1.50B	11.38	9.47%	1.61%	0.50%	20.52%
HFG	71 Outperform	£448.34M	11.45	12.72%	7.01%	8.58%	-15.81%
ABF	69 Neutral	£15.07B	15.00	9.22%	0.99%	-3.06%	-26.93%
TATE	65 Neutral	£1.68B	49.47	2.48%	3.54%	26.84%	-81.73%
BAKK	64 Neutral	£1.39B	37.48	5.88%	2.46%	0.59%	-41.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Associated British Foods Corporate Events

Associated British Foods Announces Final Dividend for 2025

Associated British Foods has announced a final dividend of 42.3 pence per share for the year ended 13 September 2025, with payment scheduled for 9 January 2026. This decision, pending shareholder approval at the upcoming Annual General Meeting, reflects the company’s commitment to returning value to its shareholders and highlights its financial stability and operational success over the past year.

The most recent analyst rating on (GB:ABF) stock is a Buy with a £2614.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Reports Decline Amid Strategic Review

Associated British Foods reported a decline in revenue and profit for the year ending September 2025, with a 1% decrease in revenue and a 12% drop in adjusted operating profit, primarily due to challenges in its Sugar segment. Despite these setbacks, the company continued to invest in growth, sustainability, and digital initiatives, particularly in its Primark retail chain, which saw a 1% sales increase. The company is also reviewing its group structure, considering a potential separation of its Primark and Food businesses to maximize long-term value, with a decision expected after consultation with stakeholders.

The most recent analyst rating on (GB:ABF) stock is a Buy with a £2614.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Updates Shareholder Communication Preferences

Associated British Foods plc has announced the distribution of a letter to certain shareholders regarding their preferences for electronic and hard copy communications. This initiative reflects the company’s efforts to streamline shareholder communications and enhance engagement, potentially impacting how stakeholders interact with the company.

The most recent analyst rating on (GB:ABF) stock is a Hold with a £2050.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Reports Mixed Trading Update Amid Strategic Changes

Associated British Foods reported a mixed trading update for the second half of its financial year, highlighting strong performance in the US market for its Primark stores, while facing challenges in Europe due to a weaker consumer environment. The company is undergoing strategic changes, including the closure of its Vivergo bioethanol plant and restructuring of its Spanish sugar business, which are expected to impact its financials. Despite these challenges, the company is optimistic about future benefits from recent actions and continued investments, particularly in expanding its store portfolio and digital initiatives.

The most recent analyst rating on (GB:ABF) stock is a Sell with a £2130.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Updates Shareholders on Voting Rights

Associated British Foods plc announced that it has 715,863,867 ordinary shares admitted to trading, each carrying one vote at general meetings. This update, in line with the Financial Conduct Authority’s rules, aids shareholders in determining their notification requirements regarding their interest in the company.

The most recent analyst rating on (GB:ABF) stock is a Sell with a £2130.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Completes £500 Million Share Buyback

Associated British Foods plc has completed its £500 million share buyback program, which was announced in November 2024, by repurchasing 94,116 of its ordinary shares from Barclays Capital Securities Limited. This transaction marks the final purchase under the second and final £250 million tranche of the program, indicating a strategic move to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (GB:ABF) stock is a Sell with a £17.70 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Executes Share Buyback to Enhance Shareholder Value

Associated British Foods announced the repurchase and cancellation of 110,000 of its ordinary shares from Barclays Capital Securities as part of its ongoing share repurchase program. This transaction, conducted on the London Stock Exchange, reflects the company’s strategy to enhance shareholder value and optimize its capital structure, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (GB:ABF) stock is a Sell with a £17.70 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Executes Share Buyback

Associated British Foods plc announced the repurchase and cancellation of 108,004 of its ordinary shares from Barclays Capital Securities Limited as part of its share repurchase programme. This transaction, executed on the London Stock Exchange, reflects the company’s ongoing strategy to manage its capital structure, potentially enhancing shareholder value and indicating confidence in its financial health.

The most recent analyst rating on (GB:ABF) stock is a Sell with a £17.70 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Executes Share Buyback

Associated British Foods plc announced the repurchase and cancellation of 98,789 of its ordinary shares as part of its share repurchase program. This transaction, conducted with Barclays Capital Securities Limited, is part of the company’s ongoing efforts to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (GB:ABF) stock is a Hold with a £2150.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Executes Share Buyback

Associated British Foods announced the repurchase and cancellation of 119,595 ordinary shares as part of its share repurchase program. This transaction, executed through Barclays Capital Securities, reflects the company’s strategic financial management and could potentially enhance shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (GB:ABF) stock is a Hold with a £2150.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Acquires Hovis Group to Strengthen UK Bakery Business

Associated British Foods has announced its acquisition of Hovis Group Limited, a move aimed at revitalizing its UK bakery business, Allied Bakeries. This strategic acquisition is expected to generate cost synergies and efficiencies, positioning the combined entity to compete more effectively in the UK bakery market. The merger will support product innovation and expansion into new product ranges, catering to evolving consumer preferences, and is anticipated to create value for shareholders and offer greater choice for consumers. The transaction is pending regulatory approval.

The most recent analyst rating on (GB:ABF) stock is a Hold with a £2150.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Executes Share Buyback

Associated British Foods plc announced the repurchase and cancellation of 85,000 of its ordinary shares as part of its ongoing share repurchase program. The transaction, conducted through Barclays Capital Securities Limited, reflects the company’s strategic focus on optimizing its capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (GB:ABF) stock is a Hold with a £2150.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Executes Share Buyback

Associated British Foods announced the repurchase and cancellation of 90,000 ordinary shares as part of its share repurchase program. This transaction, executed through Barclays Capital Securities, reflects the company’s ongoing strategy to manage its capital structure effectively, potentially enhancing shareholder value and signaling confidence in its financial health.

The most recent analyst rating on (GB:ABF) stock is a Hold with a £2150.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Enhances Shareholder Value with Share Buyback

Associated British Foods plc announced the repurchase and cancellation of 70,000 ordinary shares as part of its ongoing share repurchase program, with the transaction executed through Barclays Capital Securities Limited. This strategic move aims to enhance shareholder value and reflects the company’s robust financial position, potentially impacting its stock performance positively and signaling confidence in its future growth prospects.

The most recent analyst rating on (GB:ABF) stock is a Hold with a £2150.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Executes Share Buyback

Associated British Foods plc announced the repurchase and cancellation of 105,051 of its ordinary shares from Barclays Capital Securities Limited as part of its share repurchase program. This strategic move is likely aimed at enhancing shareholder value and optimizing the company’s capital structure, reflecting confidence in its financial health and future prospects.

The most recent analyst rating on (GB:ABF) stock is a Hold with a £2150.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Executes Share Buyback

Associated British Foods plc announced the repurchase and cancellation of 90,000 of its ordinary shares as part of its ongoing share repurchase program. This transaction, executed through Barclays Capital Securities Limited, reflects the company’s strategic financial management and may positively impact shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (GB:ABF) stock is a Buy with a £2650.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Executes Share Buyback

Associated British Foods plc announced the repurchase and cancellation of 100,000 of its ordinary shares as part of its ongoing share repurchase program. This transaction, conducted through Barclays Capital Securities Limited, reflects the company’s strategy to manage its capital structure and potentially enhance shareholder value by reducing the number of shares in circulation.

The most recent analyst rating on (GB:ABF) stock is a Hold with a £2150.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Executes Share Buyback to Optimize Capital Structure

Associated British Foods plc has announced the repurchase and cancellation of 90,000 of its ordinary shares as part of its ongoing share buyback program. This move, executed through Barclays Capital Securities Limited, is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (GB:ABF) stock is a Hold with a £2150.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.

Associated British Foods Executes Share Buyback

Associated British Foods plc announced the repurchase and cancellation of 218,538 of its ordinary shares from Barclays Capital Securities Limited as part of its share buyback program. This move, executed on the London Stock Exchange, is part of the company’s strategy to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (GB:ABF) stock is a Hold with a £2150.00 price target. To see the full list of analyst forecasts on Associated British Foods stock, see the GB:ABF Stock Forecast page.