KONINKLIJKE AHOLD DELHAIZE N (1AD.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AD - NL0011794037 - Common Stock
36.39 EUR
+0.31 (+0.86%)
Taking everything into account, 1AD scores 4 out of 10 in our fundamental rating. 1AD was compared to 24 industry peers in the Consumer Staples Distribution & Retail industry. There are concerns on the financial health of 1AD while its profitability can be described as average. 1AD has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- 1AD had positive earnings in the past year.
- 1AD had a positive operating cash flow in the past year.
- Each year in the past 5 years 1AD has been profitable.
- Each year in the past 5 years 1AD had a positive operating cash flow.
1.2 Ratios
- 1AD has a Return On Assets (3.79%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 13.15%, 1AD is in line with its industry, outperforming 54.17% of the companies in the same industry.
- 1AD has a Return On Invested Capital (7.26%) which is in line with its industry peers.
- 1AD had an Average Return On Invested Capital over the past 3 years of 7.16%. This is below the industry average of 9.20%.
- The last Return On Invested Capital (7.26%) for 1AD is above the 3 year average (7.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 13.15% | ||
| ROIC | 7.26% |
ROA(3y)4.19%
ROA(5y)4.18%
ROE(3y)13.55%
ROE(5y)13.65%
ROIC(3y)7.16%
ROIC(5y)7.13%
1.3 Margins
- 1AD has a Profit Margin (2.02%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of 1AD has declined.
- 1AD has a Operating Margin (3.20%) which is in line with its industry peers.
- 1AD's Operating Margin has declined in the last couple of years.
- 1AD has a Gross Margin (26.49%) which is comparable to the rest of the industry.
- 1AD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.2% | ||
| PM (TTM) | 2.02% | ||
| GM | 26.49% |
OM growth 3Y-10.81%
OM growth 5Y-4.96%
PM growth 3Y-12.74%
PM growth 5Y-5.83%
GM growth 3Y-0.89%
GM growth 5Y-0.46%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1AD is creating some value.
- Compared to 1 year ago, 1AD has less shares outstanding
- The number of shares outstanding for 1AD has been reduced compared to 5 years ago.
- Compared to 1 year ago, 1AD has a worse debt to assets ratio.
2.2 Solvency
- 1AD has an Altman-Z score of 2.73. This is not the best score and indicates that 1AD is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of 1AD (2.73) is comparable to the rest of the industry.
- 1AD has a debt to FCF ratio of 4.74. This is a neutral value as 1AD would need 4.74 years to pay back of all of its debts.
- 1AD has a Debt to FCF ratio of 4.74. This is in the better half of the industry: 1AD outperforms 66.67% of its industry peers.
- A Debt/Equity ratio of 1.07 is on the high side and indicates that 1AD has dependencies on debt financing.
- The Debt to Equity ratio of 1AD (1.07) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 4.74 | ||
| Altman-Z | 2.73 |
ROIC/WACC1.42
WACC5.1%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that 1AD may have some problems paying its short term obligations.
- With a Current ratio value of 0.72, 1AD is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
- A Quick Ratio of 0.43 indicates that 1AD may have some problems paying its short term obligations.
- The Quick ratio of 1AD (0.43) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
- 1AD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.54%.
- The Earnings Per Share has been growing by 8.32% on average over the past years. This is quite good.
- Looking at the last year, 1AD shows a small growth in Revenue. The Revenue has grown by 0.70% in the last year.
- The Revenue has been growing slightly by 6.16% on average over the past years.
EPS 1Y (TTM)1.54%
EPS 3Y5.2%
EPS 5Y8.32%
EPS Q2Q%8.06%
Revenue 1Y (TTM)0.7%
Revenue growth 3Y5.73%
Revenue growth 5Y6.16%
Sales Q2Q%2.23%
3.2 Future
- The Earnings Per Share is expected to grow by 1.24% on average over the next years.
- 1AD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.46% yearly.
EPS Next Y5%
EPS Next 2Y6.24%
EPS Next 3Y6.98%
EPS Next 5Y1.24%
Revenue Next Year3.8%
Revenue Next 2Y2.81%
Revenue Next 3Y2.91%
Revenue Next 5Y2.46%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 13.84 indicates a correct valuation of 1AD.
- 1AD's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of 1AD to the average of the S&P500 Index (27.21), we can say 1AD is valued slightly cheaper.
- 1AD is valuated correctly with a Price/Forward Earnings ratio of 12.64.
- 1AD's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of 1AD to the average of the S&P500 Index (25.98), we can say 1AD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1AD.
- Based on the Price/Free Cash Flow ratio, 1AD is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.91 | ||
| EV/EBITDA | 7.76 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1AD does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.77
PEG (5Y)1.66
EPS Next 2Y6.24%
EPS Next 3Y6.98%
5. Dividend
5.1 Amount
- 1AD has a Yearly Dividend Yield of 3.38%.
- Compared to an average industry Dividend Yield of 2.82, 1AD pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, 1AD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
5.2 History
- On average, the dividend of 1AD grows each year by 21.56%, which is quite nice.
Dividend Growth(5Y)21.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 57.95% of the earnings are spent on dividend by 1AD. This is a bit on the high side, but may be sustainable.
- 1AD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP57.95%
EPS Next 2Y6.24%
EPS Next 3Y6.98%
KONINKLIJKE AHOLD DELHAIZE N / 1AD.MI FAQ
What is the fundamental rating for 1AD stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1AD.MI.
What is the valuation status for 1AD stock?
ChartMill assigns a valuation rating of 4 / 10 to KONINKLIJKE AHOLD DELHAIZE N (1AD.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for KONINKLIJKE AHOLD DELHAIZE N?
KONINKLIJKE AHOLD DELHAIZE N (1AD.MI) has a profitability rating of 4 / 10.
What is the expected EPS growth for KONINKLIJKE AHOLD DELHAIZE N (1AD.MI) stock?
The Earnings per Share (EPS) of KONINKLIJKE AHOLD DELHAIZE N (1AD.MI) is expected to grow by 5% in the next year.
Is the dividend of KONINKLIJKE AHOLD DELHAIZE N sustainable?
The dividend rating of KONINKLIJKE AHOLD DELHAIZE N (1AD.MI) is 4 / 10 and the dividend payout ratio is 57.95%.