Education
About Us
Working with TipRanks
Follow Us
Nestle SA Reg Shs. (NSRGY)
:NSRGY
Top Page
Nestle SA Reg
(OTC:NSRGY)
Select Model
Select Model
Rating:74Outperform
Price Target:
$107.00
▼(-0.37% Downside)
Nestlé's overall stock score reflects strong financial health and strategic resilience, despite facing revenue growth challenges. The company's robust balance sheet and cash flow generation are significant strengths. Technical indicators suggest caution due to potential overvaluation, while earnings call insights highlight ongoing margin pressures and headwinds.
Nestle SA Reg (NSRGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$252.75B
Dividend Yield3.41%
Average Volume (3M)724.90K
Price to Earnings (P/E)21.6
Beta (1Y)0.06
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. Volume623,414
30 Day Avg. Volume724,904
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 Cap1.31
Enterprise Value/Revenue3.64
Enterprise Value/Gross Profit7.81
Enterprise Value/Ebitda18.37
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Nestle SA Reg Business Overview & Revenue Model
Company DescriptionNestlé SA is a Swiss multinational food and beverage company, recognized as one of the largest in the world. Founded in 1866, Nestlé operates in various sectors, including dairy, nutrition, coffee, bottled water, and pet care, offering a diverse range of products such as powdered and liquid beverages, milk products, infant food, cereals, confectionery, and pet food. The company is committed to enhancing quality of life and contributing to a healthier future through its extensive portfolio of trusted brands.
How the Company Makes MoneyNestlé 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 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
107.40
Price Trends
94.26
Positive
95.13
Positive
96.10
Positive
Market Momentum
2.47
Negative
56.87
Neutral
33.14
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 107.4 is above the 20-day moving average (MA) of 97.64, above the 50-day MA of 94.26, and above the 200-day MA of 96.10, indicating a bullish trend. The MACD of 2.47 indicates Negative momentum. The RSI at 56.87 is Neutral, neither overbought nor oversold. The STOCH value of 33.14 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $252.75B | 21.57 | 32.66% | 3.41% | 0.99% | -4.07% | |
| ― | $17.72B | 22.84 | 13.92% | 2.68% | 1.64% | -1.83% | |
| ― | $25.63B | 9.10 | 30.98% | 5.04% | -3.26% | 25.58% | |
| ― | $13.01B | 17.24 | 9.46% | 4.89% | 0.65% | -3.76% | |
| ― | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
| ― | $30.21B | -5.70 | -11.68% | 6.25% | -3.83% | -384.08% | |
| ― | $10.90B | ― | -21.32% | 4.25% | 2.54% | -293.39% |
* Consumer Defensive Sector Average
NSRGY
Nestle SA Reg
99.63
6.60
7.09%
GIS
General Mills
48.05
-17.19
-26.35%
HRL
Hormel Foods
23.65
-5.73
-19.50%
SJM
JM Smucker
104.84
-4.65
-4.25%
MKC
McCormick & Company
66.01
-10.03
-13.19%
KHC
Kraft Heinz
25.52
-6.40
-20.05%
Nestle SA Reg Corporate Events
Nestlé’s Earnings Call: Growth Amidst Challenges
Jul 25, 2025
Nestlé’s Recent Earnings Call: A Mixed Bag of Achievements and Challenges
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.