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KONINKLIJKE AHOLD DELHAIZE N (AD.AS) Stock Fundamental Analysis

AMS:AD - Euronext Amsterdam - NL0011794037 - Common Stock - Currency: EUR

34.55  -0.36 (-1.03%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to AD. AD was compared to 27 industry peers in the Consumer Staples Distribution & Retail industry. While AD is still in line with the averages on profitability rating, there are concerns on its financial health. AD has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

AD had positive earnings in the past year.
In the past year AD had a positive cash flow from operations.
In the past 5 years AD has always been profitable.
Each year in the past 5 years AD had a positive operating cash flow.
AD.AS Yearly Net Income VS EBIT VS OCF VS FCFAD.AS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

1.2 Ratios

AD has a Return On Assets (3.66%) which is in line with its industry peers.
AD has a Return On Equity of 12.28%. This is comparable to the rest of the industry: AD outperforms 46.15% of its industry peers.
AD has a Return On Invested Capital of 6.65%. This is comparable to the rest of the industry: AD outperforms 53.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AD is in line with the industry average of 9.71%.
Industry RankSector Rank
ROA 3.66%
ROE 12.28%
ROIC 6.65%
ROA(3y)4.69%
ROA(5y)4.35%
ROE(3y)15.2%
ROE(5y)13.87%
ROIC(3y)7.83%
ROIC(5y)7.29%
AD.AS Yearly ROA, ROE, ROICAD.AS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

AD has a Profit Margin of 2.09%. This is comparable to the rest of the industry: AD outperforms 57.69% of its industry peers.
AD's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.25%, AD is in line with its industry, outperforming 46.15% of the companies in the same industry.
AD's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 26.83%, AD is doing good in the industry, outperforming 69.23% of the companies in the same industry.
In the last couple of years the Gross Margin of AD has remained more or less at the same level.
Industry RankSector Rank
OM 3.25%
PM (TTM) 2.09%
GM 26.83%
OM growth 3Y3.07%
OM growth 5Y-5.13%
PM growth 3Y4.19%
PM growth 5Y-5.7%
GM growth 3Y-0.88%
GM growth 5Y-0.14%
AD.AS Yearly Profit, Operating, Gross MarginsAD.AS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AD is still creating some value.
Compared to 1 year ago, AD has less shares outstanding
The number of shares outstanding for AD has been reduced compared to 5 years ago.
The debt/assets ratio for AD is higher compared to a year ago.
AD.AS Yearly Shares OutstandingAD.AS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B
AD.AS Yearly Total Debt VS Total AssetsAD.AS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

2.2 Solvency

AD has an Altman-Z score of 2.61. This is not the best score and indicates that AD is in the grey zone with still only limited risk for bankruptcy at the moment.
AD has a Altman-Z score (2.61) which is in line with its industry peers.
The Debt to FCF ratio of AD is 5.42, which is a neutral value as it means it would take AD, 5.42 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AD (5.42) is better than 61.54% of its industry peers.
AD has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.09, AD is doing worse than 61.54% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.09
Debt/FCF 5.42
Altman-Z 2.61
ROIC/WACC1.35
WACC4.94%
AD.AS Yearly LT Debt VS Equity VS FCFAD.AS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.3 Liquidity

A Current Ratio of 0.85 indicates that AD may have some problems paying its short term obligations.
AD has a Current ratio (0.85) which is in line with its industry peers.
A Quick Ratio of 0.56 indicates that AD may have some problems paying its short term obligations.
AD has a Quick ratio (0.56) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.56
AD.AS Yearly Current Assets VS Current LiabilitesAD.AS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

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3

3. Growth

3.1 Past

AD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.37%.
AD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.10% yearly.
The Revenue has been growing slightly by 0.13% in the past year.
AD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.14% yearly.
EPS 1Y (TTM)2.37%
EPS 3Y3.82%
EPS 5Y10.1%
EPS Q2Q%6.9%
Revenue 1Y (TTM)0.13%
Revenue growth 3Y5.86%
Revenue growth 5Y7.14%
Sales Q2Q%0.31%

3.2 Future

AD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.00% yearly.
Based on estimates for the next years, AD will show a small growth in Revenue. The Revenue will grow by 2.13% on average per year.
EPS Next Y4.05%
EPS Next 2Y6.17%
EPS Next 3Y7.24%
EPS Next 5Y7%
Revenue Next Year0.85%
Revenue Next 2Y2.84%
Revenue Next 3Y2.79%
Revenue Next 5Y2.13%

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.
AD.AS Yearly Revenue VS EstimatesAD.AS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B 100B
AD.AS Yearly EPS VS EstimatesAD.AS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1 2 3

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.34, AD is valued correctly.
Based on the Price/Earnings ratio, AD is valued a bit cheaper than 73.08% of the companies in the same industry.
AD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
AD is valuated correctly with a Price/Forward Earnings ratio of 12.07.
AD's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of AD to the average of the S&P500 Index (92.74), we can say AD is valued rather cheaply.
Industry RankSector Rank
PE 13.34
Fwd PE 12.07
AD.AS Price Earnings VS Forward Price EarningsAD.AS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

AD's Enterprise Value to EBITDA ratio is in line with the industry average.
AD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AD is cheaper than 61.54% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.47
EV/EBITDA 7.03
AD.AS Per share dataAD.AS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AD does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.3
PEG (5Y)1.32
EPS Next 2Y6.17%
EPS Next 3Y7.24%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.23%, AD has a reasonable but not impressive dividend return.
AD's Dividend Yield is comparable with the industry average which is at 3.91.
Compared to an average S&P500 Dividend Yield of 2.28, AD pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.23%

5.2 History

On average, the dividend of AD grows each year by 14.12%, which is quite nice.
Dividend Growth(5Y)14.12%
Div Incr Years3
Div Non Decr Years3
AD.AS Yearly Dividends per shareAD.AS Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

AD pays out 56.14% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of AD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.14%
EPS Next 2Y6.17%
EPS Next 3Y7.24%
AD.AS Yearly Income VS Free CF VS DividendAD.AS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B
AD.AS Dividend Payout.AD.AS Dividend Payout, showing the Payout Ratio.AD.AS Dividend Payout.PayoutRetained Earnings

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KONINKLIJKE AHOLD DELHAIZE N

AMS:AD (2/5/2025, 9:21:19 AM)

34.55

-0.36 (-1.03%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)11-08 2024-11-08/dmh
Earnings (Next)02-12 2025-02-12/amc
Inst Owners55.02%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap32.11B
Analysts74.81
Price Target34.71 (0.46%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.23%
Yearly Dividend0.98
Dividend Growth(5Y)14.12%
DP56.14%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.29%
Min EPS beat(2)-0.4%
Max EPS beat(2)2.98%
EPS beat(4)2
Avg EPS beat(4)1.63%
Min EPS beat(4)-5.41%
Max EPS beat(4)9.37%
EPS beat(8)6
Avg EPS beat(8)4.89%
EPS beat(12)10
Avg EPS beat(12)6.18%
EPS beat(16)12
Avg EPS beat(16)5.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-1.79%
Max Revenue beat(2)1.71%
Revenue beat(4)1
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-3.1%
Max Revenue beat(4)1.71%
Revenue beat(8)1
Avg Revenue beat(8)-1.82%
Revenue beat(12)2
Avg Revenue beat(12)-1.39%
Revenue beat(16)5
Avg Revenue beat(16)-0.87%
PT rev (1m)3.04%
PT rev (3m)6.94%
EPS NQ rev (1m)2.74%
EPS NQ rev (3m)2.74%
EPS NY rev (1m)1.96%
EPS NY rev (3m)1.96%
Revenue NQ rev (1m)-4.9%
Revenue NQ rev (3m)-4.9%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE 13.34
Fwd PE 12.07
P/S 0.36
P/FCF 8.47
P/OCF 5.14
P/B 2.12
P/tB 16.74
EV/EBITDA 7.03
EPS(TTM)2.59
EY7.5%
EPS(NY)2.86
Fwd EY8.29%
FCF(TTM)4.08
FCFY11.8%
OCF(TTM)6.72
OCFY19.46%
SpS95.8
BVpS16.28
TBVpS2.06
PEG (NY)3.3
PEG (5Y)1.32
Profitability
Industry RankSector Rank
ROA 3.66%
ROE 12.28%
ROCE 8.42%
ROIC 6.65%
ROICexc 8.1%
ROICexgc 15.23%
OM 3.25%
PM (TTM) 2.09%
GM 26.83%
FCFM 4.26%
ROA(3y)4.69%
ROA(5y)4.35%
ROE(3y)15.2%
ROE(5y)13.87%
ROIC(3y)7.83%
ROIC(5y)7.29%
ROICexc(3y)8.75%
ROICexc(5y)8.21%
ROICexgc(3y)15.46%
ROICexgc(5y)14.74%
ROCE(3y)10.21%
ROCE(5y)9.54%
ROICexcg growth 3Y2.82%
ROICexcg growth 5Y-1.4%
ROICexc growth 3Y3.77%
ROICexc growth 5Y-0.9%
OM growth 3Y3.07%
OM growth 5Y-5.13%
PM growth 3Y4.19%
PM growth 5Y-5.7%
GM growth 3Y-0.88%
GM growth 5Y-0.14%
F-Score6
Asset Turnover1.76
Health
Industry RankSector Rank
Debt/Equity 1.09
Debt/FCF 5.42
Debt/EBITDA 2.48
Cap/Depr 66.01%
Cap/Sales 2.76%
Interest Coverage 11.57
Cash Conversion 94.41%
Profit Quality 203.93%
Current Ratio 0.85
Quick Ratio 0.56
Altman-Z 2.61
F-Score6
WACC4.94%
ROIC/WACC1.35
Cap/Depr(3y)69.5%
Cap/Depr(5y)75.66%
Cap/Sales(3y)2.91%
Cap/Sales(5y)3.13%
Profit Quality(3y)165.08%
Profit Quality(5y)188.38%
High Growth Momentum
Growth
EPS 1Y (TTM)2.37%
EPS 3Y3.82%
EPS 5Y10.1%
EPS Q2Q%6.9%
EPS Next Y4.05%
EPS Next 2Y6.17%
EPS Next 3Y7.24%
EPS Next 5Y7%
Revenue 1Y (TTM)0.13%
Revenue growth 3Y5.86%
Revenue growth 5Y7.14%
Sales Q2Q%0.31%
Revenue Next Year0.85%
Revenue Next 2Y2.84%
Revenue Next 3Y2.79%
Revenue Next 5Y2.13%
EBIT growth 1Y-19.64%
EBIT growth 3Y9.11%
EBIT growth 5Y1.65%
EBIT Next Year99.42%
EBIT Next 3Y28.55%
EBIT Next 5Y16.81%
FCF growth 1Y26.81%
FCF growth 3Y3.05%
FCF growth 5Y2.42%
OCF growth 1Y14.52%
OCF growth 3Y0.64%
OCF growth 5Y3.83%