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

• Market Cap: €32.09B
• Dividend Yield: 3.28%
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.23
• Revenue Growth: 2.93%
• EPS Growth: 3.21%
• Country: NL
• Employees: 390,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.65
• Shares Outstanding: 896,939,450
• 10 Day Avg. Volume: 1,951,254
• 30 Day Avg. Volume: 1,815,872
• PEG Ratio: -6.47
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 4.71
• 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: €35.84
• Price Target Upside: -0.53% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 66 Neutral
• Price Target: €37.00 ▲(2.69% Upside)

The overall stock score of 66 reflects strong financial performance and a fair valuation, balanced by neutral technical indicators. The company's consistent revenue growth and improved debt management are significant strengths, while the technical analysis suggests limited momentum. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong sales performance and market demand, supporting long-term business expansion and stability.

Debt Management

Improved debt management enhances financial stability, reducing risk and increasing the company's ability to invest in growth opportunities.

Cash Flow Generation

Strong cash flow generation supports operational needs and strategic initiatives, ensuring liquidity and financial flexibility for future growth.

Negative Factors

Profit Margin Pressure

Low profit margins are typical in the grocery industry but can limit profitability, impacting the company's ability to reinvest and grow.

EBIT and EBITDA Margins

Decreasing EBIT and EBITDA margins suggest rising operational costs, which may pressure profitability and require efficiency improvements.

Cash Flow Variability

Variability in cash flow growth can impact liquidity management and strategic planning, posing challenges in maintaining consistent financial health.

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 groceries and related products in its supermarkets and online platforms. The company operates a multi-channel retail strategy, which includes physical stores and e-commerce solutions, allowing it to reach a broader customer base. Key revenue streams include in-store sales, online grocery orders, and sales from private label products, which often have higher margins than national brands. Additionally, Ahold Delhaize benefits from strategic partnerships with suppliers and manufacturers, enabling it to optimize product offerings and pricing. The company's focus on cost efficiency, supply chain management, and customer loyalty programs further contributes to its profitability and revenue growth.

Koninklijke Ahold Delhaize N.V. Financial Statement Overview

Summary

Koninklijke Ahold Delhaize N.V. shows strong financial health with consistent revenue growth and improved debt management. Profitability margins are stable, though slightly pressured, typical for the grocery sector. Cash flow generation is strong, supporting operational and strategic initiatives.

Income Statement

The income statement shows a stable gross profit margin around 26.5% to 27.3% over the years, indicating consistent profitability. The net profit margin is relatively low, hovering around 2%, which is typical for the grocery industry due to high competition and low margins. Revenue growth has been positive, with a notable increase in the TTM period, suggesting strong sales performance. However, the EBIT and EBITDA margins have slightly decreased over time, reflecting potential cost pressures.

Balance Sheet

The balance sheet reveals a significant reduction in debt levels in the TTM period, improving the debt-to-equity ratio from over 1.3 to 0.31, which enhances financial stability. Return on equity is solid at around 11% to 16%, indicating effective use of equity to generate profits. The equity ratio is stable, reflecting a balanced approach to financing with equity and debt.

Cash Flow

Cash flow analysis shows a healthy operating cash flow to net income ratio, indicating strong cash generation relative to earnings. Free cash flow has grown significantly in the TTM period, enhancing liquidity. The free cash flow to net income ratio is robust, suggesting efficient conversion of income into cash. However, fluctuations in free cash flow growth rates indicate some variability in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	91.65B	89.36B	88.73B	86.98B	75.60B	74.74B
Gross Profit	24.28B	23.80B	23.85B	23.30B	20.68B	20.57B
EBITDA	6.79B	6.48B	6.50B	7.27B	6.34B	5.06B
Net Income	1.85B	1.76B	1.87B	2.55B	2.25B	1.40B
Balance Sheet
Total Assets	48.99B	51.84B	47.82B	48.55B	45.71B	40.69B
Cash, Cash Equivalents and Short-Term Investments	4.31B	6.45B	3.75B	3.45B	3.27B	3.21B
Total Debt	4.60B	20.32B	17.79B	17.67B	17.09B	14.55B
Total Liabilities	34.88B	36.39B	33.07B	33.15B	31.99B	28.26B
Stockholders Equity	14.11B	15.45B	14.76B	15.40B	13.72B	12.43B
Cash Flow
Free Cash Flow	4.74B	6.22B	3.99B	3.62B	3.10B	3.68B
Operating Cash Flow	6.54B	6.22B	6.47B	6.11B	5.47B	6.34B
Investing Cash Flow	-3.41B	-1.73B	-2.21B	-2.01B	-2.63B	-2.48B
Financing Cash Flow	-4.79B	-1.98B	-3.78B	-4.19B	-3.05B	-4.25B

Koninklijke Ahold Delhaize N.V. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 36.03 is above the 20-day moving average (MA) of 35.93, above the 50-day MA of 34.92, and above the 200-day MA of 34.48, indicating a bullish trend. The MACD of 0.55 indicates Positive momentum. The RSI at 54.14 is Neutral, neither overbought nor oversold. The STOCH value of 35.49 is Neutral, 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	―	€32.09B	18.16	12.68%	3.28%	2.93%	3.21%
SLIGR	―	€418.21M	15.45	5.83%	5.30%	-2.70%	576.55%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%