Nomad Foods (NOMD) AI Stock Analysis

• Market Cap: $3.01B
• Dividend Yield: 3.24%
• Average Volume (3M): 712.15K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.22
• Revenue Growth: -0.24%
• EPS Growth: 26.74%
• Country: US
• Employees: 6,864
• Sector: Consumer Defensive
• Sector Strength: 85
• Industry: Packaged Foods
• EPS (TTM): 0.39
• Shares Outstanding: 153,402,980
• 10 Day Avg. Volume: 906,652
• 30 Day Avg. Volume: 712,147
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: $24.75
• Price Target Upside: 27.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Nomad Foods receives a strong overall score driven by its solid financial performance and positive earnings call insights. The company's stable growth, effective cash management, and strategic investments provide a positive outlook. The technical analysis indicates a neutral trend, and the valuation is fair with a good dividend yield. Despite minor operational challenges, the company's strategic focus suggests potential for sustained growth.

Positive Factors

Earnings

Q4's solid EBITDA beat was supported by a ramp in productivity and consistent with the thesis that efficiencies are an overlooked support for multi-year EBITDA growth.

Innovation

Innovation is expected to jump from 4.2% of sales in 2023 to over 5% in 2025, enabling NOMD to continue to grow its key Must Win Battles as well as push forward several of its key growth platforms.

Market Share

Nomad reported its strongest volume performance since 4Q20, leading to gross margin expansion and a healthy earnings beat.

Negative Factors

Consumer Demand

The consumer demand environment remains worse than before the inflation super-cycle, despite signs of slow improvement.

Inflation

Food inflation has ticked up slightly and may require additional pricing to offset in 2025.

Nomad Foods Business Overview & Revenue Model

Company Description

Nomad Foods (NOMD) is a leading frozen foods company operating primarily in Europe. The company is known for its portfolio of well-established brands such as Birds Eye, Findus, and Iglo. Nomad Foods focuses on producing a wide range of frozen food products including fish, vegetables, ready meals, and poultry, aiming to provide consumers with convenient, nutritious, and high-quality meal solutions.

How the Company Makes Money

Nomad Foods generates revenue primarily through the sale of its frozen food products to retail customers across Europe. The company's key revenue streams include branded products sold under its marquee brands like Birds Eye, Findus, and Iglo. Nomad Foods leverages a robust distribution network to supply its products to supermarkets, hypermarkets, and other retail channels. The company may also engage in strategic partnerships with retailers and distributors to expand its market reach and enhance product visibility. Additionally, Nomad Foods focuses on innovation and product development to meet consumer demands and maintain a competitive edge in the frozen foods market.

Nomad Foods Financial Statement Overview

Summary

Nomad Foods demonstrates strong financial performance with steady revenue growth and profitability. The income statement shows efficient operations, the balance sheet reflects stability with manageable debt, and cash flow metrics are positive. Monitoring leverage and cash flow growth is essential for future sustainability.

Income Statement

Nomad Foods exhibits strong revenue growth with a 2% increase in 2024 over 2023, and consistent profitability with a gross profit margin of 29.6% and a net profit margin of 7.3% in 2024. The EBIT margin stands at 12.5%, indicating efficient operational performance. However, a slight decline in EBIT compared to the previous year suggests room for operational improvements.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.82, signifying manageable leverage. Return on equity is strong at 8.5%, reflecting effective use of equity to generate profits. The equity ratio is 41.4%, indicating a solid equity base. There are no significant red flags, but the slight increase in debt over the years could be monitored for potential risks.

Cash Flow

Nomad Foods demonstrates robust cash flow management with a 1.9% growth in free cash flow in 2024. The operating cash flow to net income ratio of 1.92 indicates strong cash generation relative to net earnings. The free cash flow to net income ratio of 1.56 also highlights effective cash flow management. However, slight declines in operating cash flow growth could be a point of focus moving forward.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.10B	3.04B	2.94B	2.61B	2.52B
	Gross Profit
917.80M	858.70M	815.30M	744.30M	762.50M
	EBIT
387.00M	408.30M	375.40M	342.70M	359.20M
	EBITDA
505.10M	480.50M	492.20M	459.70M	429.80M
	Net Income Common Stockholders
227.10M	192.70M	249.80M	181.00M	225.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
403.00M	412.70M	369.70M	254.20M	418.20M
	Total Assets
6.43B	6.42B	6.33B	6.17B	5.57B
	Total Debt
2.18B	2.15B	2.16B	2.23B	1.76B
	Net Debt
1.77B	1.74B	1.80B	1.97B	1.37B
	Total Liabilities
3.77B	3.82B	3.72B	3.87B	3.45B
	Stockholders Equity
2.66B	2.59B	2.61B	2.30B	2.13B
Cash Flow		Free Cash Flow
355.10M	348.40M	224.70M	227.10M	398.30M
	Operating Cash Flow
435.40M	430.80M	303.80M	306.30M	457.00M
	Investing Cash Flow
-64.40M	-76.80M	-78.70M	-660.00M	-171.40M
	Financing Cash Flow
-366.40M	-321.50M	-108.10M	214.40M	-714.80M

Nomad Foods Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.41
• 50DMA: Negative
• 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 NOMD, the sentiment is Neutral. The current price of 19.41 is below the 20-day moving average (MA) of 19.52, below the 50-day MA of 19.58, and above the 200-day MA of 18.11, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 48.57 is Neutral, neither overbought nor oversold. The STOCH value of 38.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NOMD.

Nomad Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOMD	76 Outperform	$3.01B	13.15	8.75%	3.24%	-0.24%	26.74%
SMPL	74 Outperform	$3.66B	25.24	8.40%	―	11.47%	2.59%
POST	72 Outperform	$6.36B	18.94	10.01%	―	7.32%	34.44%
CAG	68 Neutral	$11.15B	34.40	3.67%	6.09%	-3.15%	-65.38%
JJSF	65 Neutral	$2.26B	33.87	8.20%	2.70%	0.49%	-12.32%
Sector *	64 Neutral	$8.85B	14.84	5.05%	174.27%	3.54%	3.75%
KLG	59 Neutral	$1.55B	27.11	17.70%	3.74%	-3.13%	-51.40%