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Nomad Foods Ltd. (NOMD)
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Nomad Foods (NOMD) AI Stock Analysis

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NOMD

Nomad Foods

(NYSE:NOMD)

Rating:69Neutral
Price Target:
$16.50
▲(9.63% Upside)
Nomad Foods' overall stock score is primarily influenced by its strong valuation, with an attractive P/E ratio and dividend yield. However, the score is tempered by a bearish technical outlook and cautious sentiment from the latest earnings call, which highlighted significant challenges such as lowered guidance and rising inflation. Financial performance remains stable, but the revenue decline poses a risk to future growth.
Positive Factors
Cost Savings and Efficiency
NOMD missed Q2 topline but beat on adj. EBITDA / EPS, as weather-driven volume declines were offset by cost savings initiatives.
Innovation and Renovation
Innovation and renovation initiatives are expected to contribute significantly to NOMD's growth, broadening its market exposure.
Market Expansion and Share Gains
'Lift & Launch' delivers strong initial showing, reinforcing optimism for volume and mix accretion, with significant share gains in frozen food categories.
Negative Factors
Consumer Demand Environment
The consumer demand environment remains worse than before the inflation super-cycle, despite signs of slow improvement.
Inflation and Economic Concerns
With weather impacts persisting and inflationary pressures building, management cut full-year guidance and widened the range to reflect ongoing volatility.
Revenue and Earnings Guidance
Reductions to FY25E guidance are disappointing for sales and EBITDA due to weather and larger input costs.

Nomad Foods (NOMD) vs. SPDR S&P 500 ETF (SPY)

Nomad Foods Business Overview & Revenue Model

Company DescriptionNomad Foods Limited manufactures, markets, and distributes frozen food products in the United Kingdom, Italy, Germany, France, Sweden, Austria, Norway, Spain, and rest of Europe. The company offers fish products, including fish fingers, coated fish, and natural fish; vegetables, such as peas and spinach; and poultry and meat products comprising nuggets, grills, and burgers. It also provides meals products that include ready to cook noodles, pasta, lasagna, pancakes, and other ready-made meals; ice-creams; and other products, such as soups, pizzas, bakery goods, and meat substitutes. The company sells its products to supermarkets and food retail chains directly or through distribution arrangements primarily under the Birds Eye, Iglo, Findus, Goodfella's, La Cocinera, Ledo, Frikom, San Marco, and Aunt Bessie's brands. Nomad Foods Limited is headquartered in Feltham, the United Kingdom.
How the Company Makes MoneyNomad Foods generates revenue primarily through the sale of its frozen food products to retail and food service channels. The company employs a multi-channel distribution model, supplying products to supermarkets, grocery stores, and restaurants across Europe. Key revenue streams include direct sales from their branded products, as well as private label offerings. The company's growth is supported by strategic partnerships with retailers, promotional campaigns to increase brand visibility, and ongoing investments in product innovation to meet consumer trends. Additionally, strong operational efficiencies in sourcing and manufacturing help to maintain profit margins.

Nomad Foods Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: -8.95%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Negative
The call highlighted some positive aspects, such as regained market share, strong innovation pipeline, and cost-cutting measures. However, these were overshadowed by significant challenges, including lowered guidance, adverse weather impacts, and rising inflation. The sentiment was cautious with a focus on future improvements.
Q2-2025 Updates
Positive Updates
Market Share Gains
Despite challenging conditions, Nomad Foods regained market share in volume, particularly in Western Europe, indicating strong competitive positioning.
Innovation and Renovation Initiatives
Nomad Foods reported that around 10% of sales were from innovation and renovation in 2024, and this is expected to nearly double. Initiatives include new products in chicken, fish, and snacking categories, with a focus on expansion in the frozen food sector.
SG&A Savings and Cost Competitiveness
The company achieved reductions in SG&A through targeted overhead expense cuts and synergies. This initiative supports their focus on cost competitiveness while maintaining pricing power.
Future Food Lab and Innovation Partnerships
Nomad Foods is exploring partnerships with startups through its Future Food Lab to drive innovation, particularly in food service and other new product areas.
Negative Updates
Lowered Full-Year Guidance
Nomad Foods lowered its full-year guidance for the second time, citing self-inflicted issues like optimistic ERP implementation and excess inventory, as well as external factors such as weather disruptions.
Impact of Weather on Sales
The hottest June on record in Western Europe negatively impacted sales, with market volume declines of 5-7% in key regions like France, U.K., and Belgium.
Rising Inflationary Pressures
Inflation assumptions increased from 2.5% to 4.5% throughout the year, driven by the hot weather and poor crop yields, impacting gross margins.
Weak Start to July Sales
Sales in July started weak, particularly in the U.K., continuing the negative trend seen in June.
Company Guidance
During the Nomad Foods Second Quarter 2025 Q&A session, CEO Stefan Descheemaeker provided guidance on the company's outlook, addressing recent challenges and future strategies. The company has adjusted its full-year guidance to reflect a range between 0% and -2% for organic sales growth in the second half, citing influences such as the hottest June on record in Western Europe and ongoing internal adjustments like ERP implementation issues and excess inventory. Descheemaeker highlighted increased innovation efforts, with the expectation that sales from innovation and renovation would nearly double from 10% in 2024. Additionally, Nomad Foods anticipates full-year inflation to be around 4.5%, up from earlier estimates of 2.5%, largely due to adverse weather impacting crops. Cost competitiveness remains a focus, with productivity improvements and supply chain optimization, including a facility closure in Sweden. CFO Ruben Baldew emphasized the company's commitment to pricing strategies and cost savings to manage these pressures, while maintaining flexibility in capital allocation between share buybacks, dividends, and potential M&A opportunities.

Nomad Foods Financial Statement Overview

Summary
Nomad Foods shows strong profitability and efficient cash flow management. However, challenges include declining revenue growth and reliance on debt, which could pose risks if not managed carefully.
Income Statement
72
Positive
Nomad Foods exhibits strong profitability with consistent gross profit and EBIT margins over recent periods. The gross profit margin for the TTM is approximately 29.9%, and the net profit margin stands at 7.3%. However, the revenue growth rate shows a slight decline recently, indicating potential challenges in increasing sales. Despite this, the solid EBITDA margin of 16.4% suggests efficient operational management.
Balance Sheet
65
Positive
The company's balance sheet demonstrates moderate financial stability. The debt-to-equity ratio is about 0.82, suggesting a balanced capital structure, though slightly high for industry standards. Return on equity is solid at 8.6%, reflecting good profitability relative to shareholder equity. However, the equity ratio is 40.8%, indicating a substantial reliance on debt financing, which could pose risks if not managed carefully.
Cash Flow
68
Positive
Nomad Foods shows a healthy cash flow position with a free cash flow of approximately 306.8 million USD for the TTM. The operating cash flow to net income ratio is robust at 1.72, indicating strong cash generation relative to earnings. However, the free cash flow has declined compared to the previous year, suggesting some challenges in maintaining cash flow growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.07B3.10B3.04B2.94B2.61B2.52B
Gross Profit892.00M917.80M858.70M815.30M744.30M762.50M
EBITDA488.50M505.10M480.50M492.20M369.80M429.80M
Net Income211.50M227.10M192.70M249.80M181.00M225.20M
Balance Sheet
Total Assets6.38B6.43B6.42B6.33B6.17B5.58B
Cash, Cash Equivalents and Short-Term Investments266.60M403.00M412.70M369.40M254.00M418.10M
Total Debt2.10B2.18B2.15B2.17B2.23B1.77B
Total Liabilities3.81B3.77B3.82B3.72B3.87B3.45B
Stockholders Equity2.56B2.66B2.59B2.61B2.30B2.13B
Cash Flow
Free Cash Flow366.80M355.10M348.40M224.70M227.10M398.30M
Operating Cash Flow444.30M435.40M430.80M303.80M306.30M457.00M
Investing Cash Flow-62.90M-64.40M-76.80M-78.70M-660.00M-171.40M
Financing Cash Flow-444.70M-366.40M-321.50M-108.10M214.40M-714.80M

Nomad Foods Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.05
Price Trends
50DMA
16.71
Negative
100DMA
17.58
Negative
200DMA
17.47
Negative
Market Momentum
MACD
-0.60
Positive
RSI
36.26
Neutral
STOCH
14.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOMD, the sentiment is Negative. The current price of 15.05 is below the 20-day moving average (MA) of 16.09, below the 50-day MA of 16.71, and below the 200-day MA of 17.47, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 36.26 is Neutral, neither overbought nor oversold. The STOCH value of 14.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NOMD.

Nomad Foods Risk Analysis

Nomad Foods disclosed 60 risk factors in its most recent earnings report. Nomad Foods reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Nomad Foods Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$5.97B18.949.23%0.80%10.43%
72
Outperform
$9.20B8.0213.27%7.27%-3.64%231.77%
71
Outperform
$2.89B20.178.22%14.22%-1.81%
69
Neutral
$2.31B10.227.88%4.39%0.87%8.59%
63
Neutral
$20.95B14.50-4.08%3.12%2.72%-11.24%
61
Neutral
$2.22B26.638.79%2.78%0.50%-4.46%
60
Neutral
$1.98B54.9810.87%2.83%-4.30%-69.47%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NOMD
Nomad Foods
15.47
-2.49
-13.86%
CAG
Conagra Brands
19.30
-9.60
-33.22%
JJSF
J & J Snack Foods
112.42
-51.90
-31.58%
SMPL
Simply Good Foods
29.37
-2.59
-8.10%
POST
Post Holdings
110.92
-5.71
-4.90%
KLG
WK Kellogg Co
22.99
5.87
34.29%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025