Nestle SA Reg (NSRGY) AI Stock Analysis

• Market Cap: $269.09B
• Dividend Yield: 2.05%
• Average Volume (3M): 445.03K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.12
• Revenue Growth: 0.23%
• EPS Growth: 1.13%
• Country: US
• Employees: 251,786
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Packaged Foods
• EPS (TTM): 2.61
• Shares Outstanding: 2,576,520,000
• 10 Day Avg. Volume: 338,921
• 30 Day Avg. Volume: 445,030
• PEG Ratio: 29.69
• Price to Book (P/B): 6.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.90
• 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: $91.00
• Price Target Upside: -15.92% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• 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 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 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 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.

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.

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
91.94B	91.72B	93.35B	94.42B	87.09B	84.34B
	Gross Profit
42.99B	43.05B	43.02B	42.68B	41.62B	41.50B
	EBIT
15.61B	14.72B	14.06B	15.96B	15.12B	15.26B
	EBITDA
19.45B	18.66B	17.80B	16.08B	15.20B	18.37B
	Net Income Common Stockholders
11.20B	10.88B	11.21B	9.27B	16.91B	12.23B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.36B	7.87B	5.85B	6.69B	13.99B	8.61B
	Total Assets
137.01B	139.26B	126.55B	135.18B	139.14B	124.03B
	Total Debt
40.39B	0.00	55.24B	54.31B	46.57B	39.95B
	Net Debt
35.89B	-5.56B	50.42B	48.80B	39.59B	35.39B
	Total Liabilities
78.61B	102.57B	90.16B	92.39B	85.42B	77.51B
	Stockholders Equity
57.36B	35.92B	35.74B	41.98B	53.14B	45.70B
Cash Flow		Free Cash Flow
11.09B	10.71B	9.74B	6.55B	8.52B	10.01B
	Operating Cash Flow
17.17B	16.68B	15.94B	11.91B	13.86B	14.38B
	Investing Cash Flow
-8.19B	-8.62B	-6.20B	-2.51B	-3.65B	-5.67B
	Financing Cash Flow
-7.69B	-7.36B	-9.76B	-10.78B	-8.55B	-10.38B

Nestle SA Reg Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 108.23 is above the 20-day moving average (MA) of 105.13, above the 50-day MA of 102.76, and above the 200-day MA of 94.19, indicating a bullish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 91.69 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSRGY	79 Outperform	$269.09B	22.37	30.10%	2.05%	0.23%	1.13%
GIS	70 Outperform	$29.21B	11.72	27.37%	4.50%	-2.62%	4.27%
CAG	68 Neutral	$10.69B	32.78	3.67%	6.28%	-3.15%	-65.38%
KHC	68 Neutral	$31.13B	11.92	5.36%	6.08%	-4.25%	-4.04%
MKC	67 Neutral	$19.12B	24.48	14.73%	2.44%	0.40%	10.89%
HRL	66 Neutral	$16.19B	21.37	9.54%	3.89%	-1.84%	-5.14%
Sector *	64 Neutral	$8.82B	14.56	4.78%	173.92%	3.50%	2.20%