Koninklijke Ahold Delhaize N.V. (AD) AI Stock Analysis

• Market Cap: €32.46B
• Dividend Yield: 3.19%
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.30
• Revenue Growth: 2.42%
• EPS Growth: 2.23%
• Country: NL
• Employees: 390,000
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Grocery Stores
• EPS (TTM): 0.62
• Shares Outstanding: 912,933,840
• 10 Day Avg. Volume: 2,074,723
• 30 Day Avg. Volume: 2,182,208
• PEG Ratio: 5.03
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.54
• 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: €34.88
• Price Target Upside: -4.73% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 74 Outperform
• Price Target: €42.00 ▲(14.72%Upside)

Koninklijke Ahold Delhaize N.V. demonstrates solid financial performance with stable revenue growth and strong cash generation, which are vital for sustainability in the grocery industry. The technical indicators show positive momentum, although caution is needed due to the RSI nearing overbought levels. The valuation is reasonable, with a good dividend yield providing additional investor appeal. The overall score reflects a balance of these factors, with the company's financial stability being the most significant contributor.

Positive Factors

Retail Sales Growth

Solid food retail sales growth outlook in both US and Europe, with US food and grocery spending accelerating.

Sales Trends

There are early signs that the recent US turnaround plan is gaining traction, with positive sales trends.

Negative Factors

Market Reaction

The market is reacting to a combination of US margin miss and EPS guide that is perceived as soft.

US Sales Growth

Forecasts for US sales growth have been trimmed due to store closures and a slight drag from fuel.

Koninklijke Ahold Delhaize N.V. Business Overview & Revenue Model

Company Description

Koninklijke Ahold Delhaize N.V. operates retail food stores and e-commerce primarily in the United States and Europe. Its store formats include supermarkets, convenience stores, drugstores, and hypermarkets. It also subleases its stores to franchisees. As of January 2, 2022, it operated 7,452 stores primarily under local brands serving approximately 55 million customers, as well as online. The company was formerly known as Koninklijke Ahold N.V. and changed its name to Koninklijke Ahold Delhaize N.V. in July 2016. Koninklijke Ahold Delhaize N.V. was founded in 1887 and is headquartered in Zaandam, the Netherlands.

How the Company Makes Money

Ahold Delhaize generates revenue primarily through the sale of food and non-food products in its supermarkets and online platforms. The company's revenue streams include retail sales from its brick-and-mortar stores, online grocery orders, and private label products. Additionally, Ahold Delhaize benefits from loyalty programs and customer data analytics, which help drive sales and optimize inventory management. The company also engages in strategic partnerships and acquisitions to enhance its market presence and expand its digital capabilities, further contributing to its earnings.

Koninklijke Ahold Delhaize N.V. Financial Statement Overview

Summary

Koninklijke Ahold Delhaize N.V. exhibits stable revenue growth and strong cash generation from operations, crucial for the grocery industry. While the company maintains a conservative leverage position with a strong equity base, there are moderate efficiency levels in profit generation. Overall, the company is financially sound but could enhance operational efficiencies to improve profit margins and cash flow sustainability.

Income Statement

The company shows stable revenue growth with a 2.1% increase in TTM from the previous annual period, reflecting consistent demand in the grocery sector. Gross profit margins are robust at 26.6% TTM, indicating effective cost management. However, EBIT and net profit margins are moderate at 3.1% and 2.0% TTM, respectively, suggesting room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is low at 0.31 TTM, indicating a conservative leverage strategy. The equity ratio stands at 30.0% TTM, showing a solid equity base. However, ROE at 11.7% TTM suggests moderate efficiency in using equity to generate profit, which could be improved.

Cash Flow

A moderate free cash flow growth of -36.5% TTM indicates challenges in maintaining cash flow levels from previous periods. The operating cash flow to net income ratio is strong at 3.5 TTM, reflecting healthy cash generation from operations. The free cash flow to net income ratio, however, has decreased, indicating potential pressure on cash reserves.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
90.91B	89.36B	88.65B	86.98B	75.60B	74.74B
	Gross Profit
24.15B	23.81B	23.77B	23.30B	20.68B	20.68B
	EBIT
2.86B	2.78B	2.85B	3.77B	3.32B	2.19B
	EBITDA
6.68B	6.71B	6.49B	7.25B	6.29B	5.00B
	Net Income Common Stockholders
1.80B	1.76B	1.87B	2.55B	2.25B	1.40B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.12B	6.45B	3.48B	3.21B	3.13B	3.10B
	Total Assets
51.48B	51.84B	47.82B	48.55B	45.71B	40.69B
	Total Debt
4.71B	20.32B	17.77B	4.53B	4.68B	3.86B
	Net Debt
-7.00M	14.16B	14.29B	1.45B	1.69B	930.00M
	Total Liabilities
36.06B	36.39B	33.07B	33.15B	31.99B	28.26B
	Stockholders Equity
15.43B	15.45B	14.76B	15.40B	13.72B	12.43B
Cash Flow		Free Cash Flow
3.95B	6.22B	3.99B	3.62B	3.10B	3.68B
	Operating Cash Flow
6.33B	6.22B	6.47B	6.11B	5.47B	6.34B
	Investing Cash Flow
-3.33B	-1.73B	-2.21B	-2.01B	-2.63B	-2.48B
	Financing Cash Flow
-4.85B	-1.98B	-3.78B	-4.19B	-3.05B	-4.25B

Koninklijke Ahold Delhaize N.V. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:AD, the sentiment is Positive. The current price of 36.61 is below the 20-day moving average (MA) of 37.12, above the 50-day MA of 35.40, and above the 200-day MA of 32.57, indicating a bullish trend. The MACD of 0.53 indicates Positive momentum. The RSI at 56.14 is Neutral, neither overbought nor oversold. The STOCH value of 19.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:AD.

Koninklijke Ahold Delhaize N.V. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AD	74 Outperform	€32.46B	18.51	11.77%	3.19%	2.42%	2.23%
BSGR	73 Outperform	€492.44M	12.33	15.62%	3.24%	8.88%	18.27%
SLIGR	65 Neutral	€636.39M	27.12	5.15%	2.77%	1.08%	300.88%
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%