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Nestle SA Reg Shs. (NSRGY)
OTHER OTC:NSRGY
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Nestle SA Reg
(OTC:NSRGY)
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Select Model
Rating:79Outperform
Price Target:―
Nestle's overall stock score reflects a strong financial foundation with robust profitability and a healthy balance sheet. Technical indicators support a positive near-term outlook, although the stock may be somewhat overbought. Valuation metrics suggest a fair market price, while earnings call insights highlight both strategic growth plans and existing challenges. Addressing revenue decline and margin pressures could enhance performance further.
Nestle SA Reg (NSRGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$235.08B
Dividend Yield3.64%
Average Volume (3M)615.06K
Price to Earnings (P/E)20.1
Beta (1Y)0.08
Revenue Growth0.99%
EPS Growth-4.07%
CountryUS
Employees251,786
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.48
Shares Outstanding2,576,520,000
10 Day Avg. Volume820,746
30 Day Avg. Volume615,063
Financial Highlights & Ratios
PEG Ratio-18.71
Price to Book (P/B)5.36
Price to Sales (P/S)2.10
P/FCF Ratio17.97
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue3.64
Enterprise Value/Gross Profit7.81
Enterprise Value/Ebitda18.37
Forecast
1Y Price Target
$104.70Price Target Upside12.09% Upside
Rating ConsensusHold
Number of Analyst Covering1
Nestle SA Reg Business Overview & Revenue Model
Company DescriptionNestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone Europe, Middle East and North Africa; Zone Americas; and Zone Asia, Oceania and sub-Saharan Africa segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Nestle L'atelier, Nestle Toll House, Milkybar, Smarties, Quality Street, Aero, Garoto, Orion, and Cailler brands. The company also provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, Hot Pockets, Stouffer's, Thomy, Jacks, TombStone, Herta, Buitoni, DiGiorno, and Lean Cuisine brands; dairy products under the Carnation, Nido, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Sjora, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Peptamen, Resource, Optifast, and Nutren Junior brands; ice cream products under the Dreyer's, Mövenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.
How the Company Makes MoneyNestlé generates revenue through the sale of its extensive range of food and beverage products across various categories. The company operates in several geographical segments, which include Zone Americas, Zone Europe, Middle East and North Africa, and Zone Asia, Oceania, and sub-Saharan Africa. Each zone contributes to its overall revenue through local subsidiaries that market and sell Nestlé products tailored to regional preferences and needs. Key revenue streams include sales from the company's diverse brand portfolio like Nescafé and Purina, as well as from strategic acquisitions and partnerships that expand its product offerings and market reach. Additionally, Nestlé invests in research and development to innovate and improve products, enhancing its competitive edge and market share in the global food and beverage industry.
Nestle SA Reg Key Performance Indicators (KPIs)
Nestle SA Reg Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
Nestlé's performance in the first half of 2025 showed resilience with solid organic sales growth and strategic investments in marketing and efficiencies. However, challenges remain, particularly in the Greater China market and in managing margins amidst cost pressures. While the maintenance of full-year guidance is a positive indicator, the significant headwinds and reduced free cash flow present notable concerns.Q2-2025 Updates
Positive Updates
Solid Organic Sales Growth
Nestlé delivered 2.9% organic sales growth in the first half of 2025, with a RIG of 0.2% and pricing of 2.7%, reflecting broad-based sales growth across geographies and categories.
Maintenance of Full-Year Guidance
Despite increased headwinds, Nestlé maintained its full-year guidance for organic growth and UTOP margin, expecting the UTOP margin to be at or above 16%.
Investment in Marketing and Brand Value Proposition
Nestlé increased its advertising and marketing spend to 8.6% of sales, ahead of schedule, aiming to reach 9% by the end of the year.
Fuel for Growth Program Success
Nestlé's 'Fuel for Growth' program is on track, with CHF 350 million in savings expected in the second half, totaling CHF 700 million for the full year.
Negative Updates
Decline in UTOP Margin
The UTOP margin decreased by 90 basis points to 16.5% in the first half, with a gross margin decline of 60 basis points due to input cost inflation and FX headwinds.
Challenges in Greater China
The Greater China market posed challenges with a negative impact on RIG due to stock corrections and a deflationary market environment. Nestlé expects a headwind for up to a year as they transition their business model.
Free Cash Flow Reduction
Free cash flow halved in the first half to around CHF 2 billion, impacted by working capital build-up and lower EBITDA, not covering the dividend.
Pressure on Coffee and Confectionery Margins
Coffee and confectionery margins are expected to worsen before recovering due to commodity cost increases impacting the P&L in the second half.
Company Guidance
During Nestlé's Half-year 2025 Results Conference Call, the company maintained its full-year guidance despite facing increased headwinds, including tariffs and foreign exchange impacts. For the first half of 2025, Nestlé reported a 2.9% organic sales growth, with a Real Internal Growth (RIG) of 0.2% and pricing increase of 2.7%. The UTOP margin was 16.5%, slightly better than expectations, despite a 90 basis points decrease due to increased advertising and marketing spend and a 60 basis points decline in gross margin. The company faced foreign exchange challenges, notably as the Swiss franc strengthened significantly against the dollar. In response to rising input costs, especially in coffee and confectionery, Nestlé took significant pricing actions, which led to some elasticity impacts. The company is on track to achieve CHF 700 million in savings through its 'Fuel for Growth' program, with CHF 150 million recognized in the first half. Looking ahead, Nestlé anticipates a significant reduction in second-half margins due to continued input cost and tariff pressures but expects to maintain its UTOP margin at or above 16% for the full year.Nestle SA Reg Financial Statement Overview
Summary
Nestle's financial performance is strong with high profitability margins and a solid balance sheet. The reduction of debt to zero enhances financial stability, and cash flow is robust. However, the decline in revenue growth is a concern that needs to be addressed to maintain market position.Income Statement
Nestle's income statement reflects stable profitability with a gross profit margin of 46.96% and a net profit margin of 11.87% for 2024. However, there has been a slight decline in total revenue over the past year, showcasing a revenue growth rate of -1.74%. The EBIT margin stands at 16.06%, and the EBITDA margin at 20.35%, indicating strong operational efficiency. Despite stable profit margins, the negative revenue growth is a concern.75
Positive
Balance Sheet
The balance sheet reveals a robust financial position with a zero total debt, marking a significant reduction from the previous year and resulting in a debt-to-equity ratio of 0. The return on equity is stable at 30.30%, reflecting efficient use of shareholders' equity. The equity ratio is 25.78%, which is relatively strong, indicating substantial equity financing. Overall, the balance sheet displays financial stability and low leverage risk.82
Very Positive
Cash Flow
Nestle's cash flow statement shows a healthy growth in free cash flow of 10.04% compared to the previous year. The operating cash flow to net income ratio is 1.53, illustrating strong cash generation relative to net income. The free cash flow to net income ratio is 0.98, which is solid and suggests good cash flow management. The positive growth in free cash flow enhances the company's liquidity position.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 90.90B | 91.72B | 93.35B | 94.42B | 87.09B | 84.34B |
| Gross Profit | 42.41B | 43.05B | 43.02B | 42.68B | 41.62B | 41.50B |
| EBITDA | 18.04B | 18.66B | 17.80B | 16.08B | 15.20B | 18.37B |
| Net Income | 10.30B | 10.88B | 11.21B | 9.27B | 16.91B | 12.23B |
Balance Sheet | ||||||
| Total Assets | 130.12B | 139.26B | 126.55B | 135.18B | 139.14B | 124.03B |
| Cash, Cash Equivalents and Short-Term Investments | 5.51B | 7.87B | 5.85B | 6.69B | 13.99B | 8.61B |
| Total Debt | 65.60B | 63.56B | 55.24B | 54.31B | 46.89B | 39.95B |
| Total Liabilities | 101.08B | 102.57B | 90.16B | 92.39B | 85.42B | 77.51B |
| Stockholders Equity | 28.83B | 35.92B | 35.74B | 41.98B | 53.14B | 45.70B |
Cash Flow | ||||||
| Free Cash Flow | 9.02B | 10.71B | 9.74B | 6.55B | 8.52B | 10.01B |
| Operating Cash Flow | 14.58B | 16.68B | 15.94B | 11.91B | 13.86B | 14.38B |
| Investing Cash Flow | -5.69B | -8.62B | -6.20B | -2.51B | -3.04B | -5.67B |
| Financing Cash Flow | -8.48B | -7.36B | -9.76B | -10.78B | -9.15B | -10.38B |
Nestle SA Reg Technical Analysis
Positive
93.41
Price Trends
91.21
Positive
96.05
Negative
94.76
Negative
Market Momentum
0.28
Negative
58.70
Neutral
87.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSRGY, the sentiment is Positive. The current price of 93.41 is above the 20-day moving average (MA) of 91.33, above the 50-day MA of 91.21, and below the 200-day MA of 94.76, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 58.70 is Neutral, neither overbought nor oversold. The STOCH value of 87.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NSRGY.
Nestle SA Reg Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $235.08B | 20.15 | 32.66% | 3.64% | 0.99% | -4.07% | |
70 Outperform | $18.33B | 23.63 | 13.92% | 2.69% | 1.64% | -1.83% | |
68 Neutral | $27.17B | 9.64 | 30.98% | 4.84% | -3.26% | 25.58% | |
63 Neutral | $13.20B | 17.50 | 9.46% | 4.82% | 0.65% | -3.76% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | $29.91B | 12.81 | -11.68% | 6.38% | -3.83% | -384.08% | |
49 Neutral | $11.42B | 22.22 | -21.32% | 4.10% | 2.54% | -293.39% |
* Consumer Defensive Sector Average
NSRGY
Nestle SA Reg
93.41
-2.22
-2.32%
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-5.82%
MKC
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65.81
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KHC
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25.08
-7.89
-23.93%
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.