Nestle SA Reg (NSRGY) AI Stock Analysis

• Market Cap: $248.99B
• Dividend Yield: 3.46%
• Average Volume (3M): 385.69K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.01
• Revenue Growth: 0.99%
• EPS Growth: -4.07%
• Country: US
• Employees: 251,786
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 2.78
• Shares Outstanding: 2,576,520,000
• 10 Day Avg. Volume: 340,642
• 30 Day Avg. Volume: 385,688
• PEG Ratio: -1.18
• Price to Book (P/B): 6.14
• Price to Sales (P/S): 2.36
• P/FCF Ratio: 18.55
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.84
• Enterprise Value/Gross Profit: 6.22
• Enterprise Value/Ebitda: 14.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.62
• Revenue Forecast (FY): $113.94B

• Rating: 64 Neutral
• Price Target: $112.00 ▲(19.49% Upside)
• Action: Downgraded Date: 02/21/26
• Date: Action: Downgraded 02/21/26

The score is driven primarily by resilient profitability and strong recurring cash generation, but it is held back by multi-year revenue softness and higher leverage. Technicals are supportive with the stock above major moving averages, though momentum is near overbought. Valuation is reasonable but not cheap, and the latest call reaffirmed guidance while emphasizing margin and cash flow pressures from costs, FX, and tariffs.

Positive Factors

Free Cash Flow Strength

Sustained and improving free cash flow (noted 20.5% improvement in 2025) provides durable funding for dividends, reinvestment and deleveraging. Reliable cash conversion supports strategic flexibility, enables capex and marketing investment, and cushions cyclical earnings swings.

Leading Global Brands in Coffee & Petcare

Market-leading brands and category scale in Coffee and Petcare create structural competitive advantages: pricing power, distribution reach and high consumer loyalty. These durable moats support steady revenue streams, margin resilience and easier roll-out of innovation across channels and geographies.

Strategic Cost Program & Portfolio Simplification

A targeted cost program and portfolio sharpening (Fuel for Growth savings, organizational simplification, asset reviews) structurally improve operating leverage. Reallocating savings into marketing and growth platforms should lift long-term margins and accelerate higher-return investments.

Negative Factors

Rising Leverage

Material increase in leverage reduces financial flexibility and raises refinancing and interest-rate sensitivity. With a heavier debt load, management has less room for M&A or to absorb persistent margin shocks, and balance-sheet risk limits capacity to sustain capital returns during downturns.

Multi-year Revenue Softness

Consecutive annual revenue declines signal structural demand or portfolio issues rather than a transitory blip. Prolonged top-line weakness constrains operating leverage, makes margin recovery harder, and lengthens the horizon for restoring historic growth and EPS momentum.

Margin and Free Cash Flow Pressure

A sharp drop in near-term FCF and margins (driven by input costs, FX and working-capital swings) highlights sensitivity of profitability to commodity and macro pressures. If sustained, this could force higher prices, cutbacks, asset sales or increased borrowing, impairing long-term return profiles.

Nestle SA Reg Business Overview & Revenue Model

Company Description

Nestlé 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 Money

Nestlé generates revenue primarily through the sale of its vast array of food and beverage products across multiple categories. Key revenue streams include the sale of coffee products, such as Nescafé and Nespresso, which are significant contributors due to their global popularity. Additionally, Nestlé's nutrition and health science division, which includes infant nutrition and medical nutrition products, provides substantial earnings. The company also benefits from its strong presence in the pet care market with brands like Purina. Partnerships with retailers, e-commerce platforms, and food service providers enhance distribution and visibility, driving sales. Furthermore, Nestlé invests in innovation and sustainability initiatives, which help to maintain customer loyalty and adapt to changing consumer preferences, ultimately supporting its revenue growth.

Nestle SA Reg Financial Statement Overview

Summary

Profitability and cash generation are durable (mid-40% gross margin historically; cash flow score strength with improving 2025 free cash flow). Offsetting this, revenue has turned negative over the last three annual periods and leverage has risen materially (debt-to-equity up to ~1.76), reducing financial flexibility.

Income Statement

Revenue has been choppy, with growth turning negative in the last three annual periods (2023–2025), including a notable decline in 2025. Profitability remains solid for a packaged foods business—gross margin stayed in the mid‑40% range and operating profitability was fairly steady—but net margin compressed from prior highs (well below the unusually strong 2021 level) and trended down in 2024–2025 as earnings fell alongside sales.

Balance Sheet

Leverage has risen meaningfully over time. Total debt remains large and the debt load is high relative to equity (debt-to-equity moving from ~0.87–0.88 in 2020–2021 to ~1.76 in 2024–2025), which reduces balance-sheet flexibility. Equity has also declined versus earlier years, increasing reliance on debt funding, even though the company still carries a large asset base.

Cash Flow

Cash generation is a clear strength: free cash flow improved in 2025 with strong growth (20.5%) and free cash flow has generally covered a meaningful portion of earnings (roughly ~55%–72% across the periods shown). Operating cash flow and free cash flow levels are consistently substantial, although cash conversion is not perfect and the operating cash flow coverage shown is modest, suggesting working-capital and/or timing impacts that can create year-to-year volatility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	85.47B	91.72B	93.35B	94.42B	87.09B
Gross Profit	38.96B	43.05B	43.02B	42.68B	41.62B
EBITDA	17.10B	18.66B	17.80B	16.08B	15.20B
Net Income	8.63B	10.88B	11.21B	9.27B	16.91B
Balance Sheet
Total Assets	127.30B	139.26B	126.55B	135.18B	139.14B
Cash, Cash Equivalents and Short-Term Investments	6.24B	7.87B	5.85B	6.69B	13.99B
Total Debt	57.92B	63.56B	55.24B	54.31B	46.89B
Total Liabilities	94.20B	102.57B	90.16B	92.39B	85.42B
Stockholders Equity	32.85B	35.92B	35.74B	41.98B	53.14B
Cash Flow
Free Cash Flow	10.87B	10.71B	9.74B	6.55B	8.52B
Operating Cash Flow	15.19B	16.68B	15.94B	11.91B	13.86B
Investing Cash Flow	-5.31B	-8.62B	-6.20B	-2.51B	-3.04B
Financing Cash Flow	-10.39B	-7.36B	-9.76B	-10.78B	-9.15B

Nestle SA Reg Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 93.73
• 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 NSRGY, the sentiment is Positive. The current price of 93.73 is below the 20-day moving average (MA) of 104.34, below the 50-day MA of 99.66, and below the 200-day MA of 97.36, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 49.84 is Neutral, neither overbought nor oversold. The STOCH value of 30.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NSRGY.

Nestle SA Reg Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRL	68 Neutral	$12.50B	18.81	6.13%	4.82%	1.55%	-40.81%
MKC	65 Neutral	$14.78B	22.59	14.03%	2.61%	1.64%	-1.83%
NSRGY	64 Neutral	$248.99B	23.37	29.31%	3.46%	0.99%	-4.07%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GIS	62 Neutral	$20.06B	15.38	27.21%	5.19%	-5.65%	0.41%
SJM	61 Neutral	$10.81B	-3.86	-21.55%	4.45%	-0.66%	-326.55%
KHC	54 Neutral	$26.14B	-4.90	-13.44%	6.75%	-3.70%	-431.05%