KONINKLIJKE AHOLD DELHAIZE N (AD.AS) Stock Fundamental Analysis
AMS:AD - Euronext Amsterdam - NL0011794037 - Common Stock - Currency: EUR
AD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 28 industry peers in the Consumer Staples Distribution & Retail industry. AD has a medium profitability rating, but doesn't score so well on its financial health evaluation. AD is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AD was profitable.
AD had a positive operating cash flow in the past year.
AD had positive earnings in each of the past 5 years.
Each year in the past 5 years AD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AD (3.40%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 11.42%, AD is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
AD has a Return On Invested Capital of 6.01%. This is comparable to the rest of the industry: AD outperforms 53.57% of its industry peers.
AD had an Average Return On Invested Capital over the past 3 years of 7.16%. This is below the industry average of 9.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 11.42% | ||
| ROIC | 6.01% |
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
The Profit Margin of AD (1.98%) is better than 60.71% of its industry peers.
In the last couple of years the Profit Margin of AD has declined.
AD has a Operating Margin (3.12%) which is in line with its industry peers.
AD's Operating Margin has declined in the last couple of years.
AD's Gross Margin of 26.64% is fine compared to the rest of the industry. AD outperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of AD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.12% | ||
| PM (TTM) | 1.98% | ||
| GM | 26.64% |
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
AD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AD has less shares outstanding
The debt/assets ratio for AD is higher compared to a year ago.
2.2 Solvency
AD has an Altman-Z score of 2.54. 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's Altman-Z score of 2.54 is on the low side compared to the rest of the industry. AD is outperformed by 60.71% of its industry peers.
AD has a debt to FCF ratio of 5.18. This is a neutral value as AD would need 5.18 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.18, AD is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that AD has dependencies on debt financing.
AD's Debt to Equity ratio of 1.18 is on the low side compared to the rest of the industry. AD is outperformed by 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.21
WACC4.95%
2.3 Liquidity
A Current Ratio of 0.84 indicates that AD may have some problems paying its short term obligations.
AD has a Current ratio (0.84) which is in line with its industry peers.
AD has a Quick Ratio of 0.84. This is a bad value and indicates that AD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.56, AD is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.31% over the past year.
The Earnings Per Share has been growing by 8.52% on average over the past years. This is quite good.
AD shows a small growth in Revenue. In the last year, the Revenue has grown by 0.80%.
Measured over the past years, AD shows a small growth in Revenue. The Revenue has been growing by 6.16% on average per year.
EPS 1Y (TTM)1.31%
EPS 3Y5.52%
EPS 5Y8.52%
EPS Q2Q%-2.29%
Revenue 1Y (TTM)0.8%
Revenue growth 3Y5.73%
Revenue growth 5Y6.16%
Sales Q2Q%3.96%
3.2 Future
The Earnings Per Share is expected to grow by 6.22% on average over the next years.
The Revenue is expected to grow by 2.67% on average over the next years.
EPS Next Y10.87%
EPS Next 2Y9.53%
EPS Next 3Y8.92%
EPS Next 5Y6.22%
Revenue Next Year7.01%
Revenue Next 2Y4.99%
Revenue Next 3Y4.29%
Revenue Next 5Y2.67%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 13.27, AD is valued correctly.
Based on the Price/Earnings ratio, AD is valued a bit cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of AD to the average of the S&P500 Index (29.35), we can say AD is valued rather cheaply.
A Price/Forward Earnings ratio of 11.96 indicates a reasonable valuation of AD.
AD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AD is cheaper than 67.86% of the companies in the same industry.
AD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.27 | ||
| Fwd PE | 11.96 |
4.2 Price Multiples
AD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AD is cheaper than 67.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AD is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8 | ||
| EV/EBITDA | 6.57 |
4.3 Compensation for Growth
AD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.22
PEG (5Y)1.56
EPS Next 2Y9.53%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
AD has a Yearly Dividend Yield of 3.47%. Purely for dividend investing, there may be better candidates out there.
AD's Dividend Yield is a higher than the industry average which is at 3.75.
Compared to an average S&P500 Dividend Yield of 2.33, AD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
The dividend of AD is nicely growing with an annual growth rate of 21.56%!
Dividend Growth(5Y)21.56%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
AD pays out 58.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
AD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.75%
EPS Next 2Y9.53%
EPS Next 3Y8.92%
AMS:AD (3/7/2025, 7:00:00 PM)
34.11
+0.4 (+1.19%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners54.89%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap31.40B
Analysts75
Price Target37.06 (8.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend1.12
Dividend Growth(5Y)21.56%
DP58.75%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.3%
Min EPS beat(2)2%
Max EPS beat(2)2.59%
EPS beat(4)3
Avg EPS beat(4)1.79%
Min EPS beat(4)-0.4%
Max EPS beat(4)2.98%
EPS beat(8)6
Avg EPS beat(8)1.92%
EPS beat(12)10
Avg EPS beat(12)4.63%
EPS beat(16)13
Avg EPS beat(16)5.22%
Revenue beat(2)2
Avg Revenue beat(2)1.37%
Min Revenue beat(2)0.35%
Max Revenue beat(2)2.39%
Revenue beat(4)3
Avg Revenue beat(4)0.67%
Min Revenue beat(4)-1.79%
Max Revenue beat(4)2.39%
Revenue beat(8)3
Avg Revenue beat(8)-1.08%
Revenue beat(12)3
Avg Revenue beat(12)-1.13%
Revenue beat(16)6
Avg Revenue beat(16)-0.68%
PT rev (1m)6.76%
PT rev (3m)10.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.1%
Revenue NY rev (3m)3.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.27 | ||
| Fwd PE | 11.96 | ||
| P/S | 0.35 | ||
| P/FCF | 8 | ||
| P/OCF | 5.04 | ||
| P/B | 2.03 | ||
| P/tB | 15.44 | ||
| EV/EBITDA | 6.57 |
EPS(TTM)2.57
EY7.53%
EPS(NY)2.85
Fwd EY8.36%
FCF(TTM)4.26
FCFY12.5%
OCF(TTM)6.76
OCFY19.82%
SpS97.07
BVpS16.79
TBVpS2.21
PEG (NY)1.22
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 11.42% | ||
| ROCE | 8.08% | ||
| ROIC | 6.01% | ||
| ROICexc | 7.3% | ||
| ROICexgc | 13.13% | ||
| OM | 3.12% | ||
| PM (TTM) | 1.98% | ||
| GM | 26.64% | ||
| FCFM | 4.39% |
ROA(3y)4.19%
ROA(5y)4.18%
ROE(3y)13.55%
ROE(5y)13.65%
ROIC(3y)7.16%
ROIC(5y)7.13%
ROICexc(3y)8.2%
ROICexc(5y)8.1%
ROICexgc(3y)14.53%
ROICexgc(5y)14.46%
ROCE(3y)9.39%
ROCE(5y)9.31%
ROICexcg growth 3Y-6.55%
ROICexcg growth 5Y-2.37%
ROICexc growth 3Y-6.86%
ROICexc growth 5Y-1.86%
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%
F-Score5
Asset Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 5.18 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 62.03% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 12.1 | ||
| Cash Conversion | 95.9% | ||
| Profit Quality | 222.38% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.54 |
F-Score5
WACC4.95%
ROIC/WACC1.21
Cap/Depr(3y)64.41%
Cap/Depr(5y)72.49%
Cap/Sales(3y)2.73%
Cap/Sales(5y)2.97%
Profit Quality(3y)193.28%
Profit Quality(5y)196.29%
High Growth Momentum
Growth
EPS 1Y (TTM)1.31%
EPS 3Y5.52%
EPS 5Y8.52%
EPS Q2Q%-2.29%
EPS Next Y10.87%
EPS Next 2Y9.53%
EPS Next 3Y8.92%
EPS Next 5Y6.22%
Revenue 1Y (TTM)0.8%
Revenue growth 3Y5.73%
Revenue growth 5Y6.16%
Sales Q2Q%3.96%
Revenue Next Year7.01%
Revenue Next 2Y4.99%
Revenue Next 3Y4.29%
Revenue Next 5Y2.67%
EBIT growth 1Y-2.18%
EBIT growth 3Y-5.7%
EBIT growth 5Y0.9%
EBIT Next Year104.78%
EBIT Next 3Y26.62%
EBIT Next 5Y16.64%
FCF growth 1Y-2.65%
FCF growth 3Y8.22%
FCF growth 5Y3.97%
OCF growth 1Y-3.74%
OCF growth 3Y4.41%
OCF growth 5Y2.7%