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Associated British Foods (ASBFY)
OTHER OTC:ASBFY
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Associated British Foods
(OTC:ASBFY)
79Outperform
Associated British Foods (ASBFY) vs. S&P 500 (SPY)
Market Cap
$18.11B
Dividend Yield4.03%
Average Volume (3M)760.00
Price to Earnings (P/E)10.2
Beta (1Y)0.86
Revenue Growth5.39%
EPS Growth50.00%
CountryUS
Employees138,000
SectorConsumer Defensive
Sector Strength73
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.45
Shares Outstanding725,239,000
10 Day Avg. Volume0
30 Day Avg. Volume760
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)N/A
Price to Sales (P/S)0.70
Price to Cash Flow (P/CF)5.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Associated British Foods Business Overview & Revenue Model
Company DescriptionAssociated British Foods (ASBFY) is a diversified international food, ingredients, and retail group. The company operates across five business segments: Grocery, Sugar, Agriculture, Ingredients, and Retail. Its core products and services include a wide range of grocery brands, sugar production, agricultural supplies, yeast and bakery ingredients, as well as fashion retail through Primark, a leading clothing retailer in Europe and the United States.
How the Company Makes MoneyAssociated British Foods makes money through its diversified operations. In the Grocery segment, it earns revenue by producing and selling a variety of branded food products, including Twinings tea, Silver Spoon sugar, and Jordans cereal. The Sugar segment generates income from the production and sale of sugar to various industries. The Agriculture division provides products and services to farmers, including animal feed and crop inputs, contributing to its revenue. The Ingredients segment earns money by supplying yeast and bakery ingredients to food manufacturers globally. The Retail segment, primarily through Primark, generates revenue through the sale of affordable fashion and clothing items. The company's earnings are bolstered by its strong brand portfolio, extensive distribution networks, and key partnerships with suppliers and retailers worldwide.
Associated British Foods Financial Statement Overview
Summary
Associated British Foods demonstrates solid financial health with strong revenue growth, profitability, and operational efficiency. The income statement reflects robust margins, the balance sheet shows financial stability, and cash flow statements indicate effective cash generation. However, increasing liabilities require attention to maintain this position.Income Statement
Associated British Foods has demonstrated solid revenue growth and consistent profitability. The revenue growth rate is strong with an increase from the previous year, reflecting a positive trajectory. Gross Profit and Net Profit Margins are healthy, indicating efficient cost management and strong bottom-line performance. The EBIT and EBITDA margins also show robust operational efficiency, further supporting its profitability.85
Very Positive
Balance Sheet
The company maintains a stable balance sheet with an adequate equity ratio, suggesting financial stability. The Debt-to-Equity Ratio is moderate, indicating a balanced approach to leverage. Return on Equity is strong, demonstrating effective utilization of equity to generate profits. However, there is a slight increase in total liabilities, which requires monitoring to maintain financial health.78
Positive
Cash Flow
Cash flow performance is impressive, with significant growth in Free Cash Flow. The Operating Cash Flow to Net Income Ratio is robust, reflecting efficient conversion of profits into cash. The Free Cash Flow to Net Income Ratio is also strong, underscoring effective capital expenditure management. These factors indicate a healthy cash position that supports operational and strategic flexibility.82
Very Positive
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 20.07B | 19.75B | 17.00B | 13.88B | 13.94B | Gross Profit |
| 4.88B | 4.16B | 3.78B | 3.13B | 3.14B | EBIT |
| 1.93B | 1.38B | 1.18B | 808.00M | 810.00M | EBITDA |
| 3.13B | 2.48B | 2.13B | 1.80B | 1.81B | Net Income Common Stockholders |
| 1.46B | 1.04B | 700.00M | 478.00M | 455.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.66B | 1.46B | 2.13B | 2.31B | 2.03B | Total Assets |
| 19.01B | 18.84B | 19.77B | 16.89B | 16.67B | Total Debt |
| 3.68B | 3.72B | 3.89B | 3.69B | 4.11B | Net Debt |
| 2.35B | 2.27B | 1.77B | 1.41B | 2.12B | Total Liabilities |
| 7.74B | 7.65B | 8.22B | 6.89B | 7.23B | Stockholders Equity |
| 11.19B | 11.09B | 11.45B | 9.92B | 9.36B |
| Cash Flow | Free Cash Flow | |||
| 1.69B | 581.00M | 384.00M | 786.00M | 1.13B | Operating Cash Flow |
| 2.87B | 1.65B | 1.15B | 1.41B | 1.75B | Investing Cash Flow |
| -1.33B | -906.00M | -744.00M | -561.00M | -518.00M | Financing Cash Flow |
| -1.57B | -1.28B | -677.00M | -512.00M | -678.00M |
Associated British Foods Technical Analysis
Positive
25.11
Price Trends
24.03
Positive
25.33
Negative
27.73
Negative
Market Momentum
0.24
Negative
59.00
Neutral
82.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASBFY, the sentiment is Positive. The current price of 25.11 is above the 20-day moving average (MA) of 24.51, above the 50-day MA of 24.03, and below the 200-day MA of 27.73, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 59.00 is Neutral, neither overbought nor oversold. The STOCH value of 82.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASBFY.
Associated British Foods Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $18.11B | 10.23 | 12.91% | 4.03% | 5.39% | 50.00% | |
73 Outperform | $28.47B | 21.25 | 38.65% | 2.74% | -16.16% | 41.01% | |
67 Neutral | $36.14B | 13.39 | 5.56% | 5.29% | -2.98% | -2.22% | |
66 Neutral | $32.37B | 12.98 | 27.37% | 4.04% | -2.62% | 4.27% | |
66 Neutral | $11.84B | 22.88 | 13.43% | 3.78% | 9.15% | -31.94% | |
62 Neutral | $20.67B | 14.36 | -12.41% | 3.14% | 1.24% | 2.53% | |
61 Neutral | $12.38B | 22.22 | -3.55% | 3.70% | 7.07% | -181.54% |
* Consumer Defensive Sector Average
Performance Comparison
ASBFY
Associated British Foods
25.11
-5.09
-16.85%
CPB
Campbell Soup
39.72
-3.46
-8.01%
GIS
General Mills
59.11
-8.52
-12.60%
SJM
JM Smucker
116.32
-3.70
-3.08%
K
Kellanova
82.47
27.12
49.00%
KHC
Kraft Heinz
30.24
-5.06
-14.33%
Associated British Foods Earnings Call Summary
Earnings Call Date: Nov 5, 2024 | % Change Since: -12.72% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth and profitability across multiple segments, with substantial investments supporting future growth and shareholder returns. However, challenges in the Sugar division and specific markets like Germany and China were noted, presenting areas of concern.Highlights
Substantial Improvement in Profitability
Operating profit increased by 38%, and adjusted earnings per share rose by 39%. Cash generation also saw a significant increase to GBP1.4 billion, an increase of GBP1.1 billion from the previous year.
Strong Performance Across Segments
Revenue grew 4% on a constant currency basis to GBP20.1 billion, with notable performance in Retail, Grocery, Ingredients, and Sugar. Retail operating margin recovered to 11.7%, with adjusted operating profit rising from GBP735 million to over GBP1.1 billion.
Record Investments and Shareholder Returns
ABF invested GBP1.3 billion, supporting future growth and ESG priorities. A total dividend increase of 50% was proposed, and GBP2.3 billion was returned to shareholders over two years through dividends and share buybacks.
Strong Growth in Primark
6% growth at constant currency, driven by strong performance in the US, France, Spain, Italy, and Central and Eastern Europe. Primark's operating margin recovered significantly, and return on average capital employed increased from 12% to 18.7%.
Positive Outlook for Future Growth
Targeted mid-single-digit growth for Primark in 2025. Store rollout plans continue, with a significant opportunity in growth markets and the US.
Lowlights
Challenges in Sugar Division
European Sugar faced a significant price decline in Q4, impacting profitability and expected to affect the following year. The market faced a surplus due to increased acreage and high yields.
Struggles in Specific Markets
Challenges in the German retail market required restructuring. Additionally, the Agri division saw a decline in compound feed sales, and the Frontier JV was negatively impacted by weather conditions in the UK.
Exit from China
ABF fully exited its business in China to streamline focus and resources, indicating challenges in achieving desired results in that market.
Company Guidance
In the most recent call, ABF reported strong financial results for the fiscal year 2024, ending on September 14. Operating profit saw an impressive increase of 38%, while adjusted earnings per share rose by 39%. Cash generation was notably high, reaching GBP1.4 billion, up by GBP1.1 billion from the previous year. The return on capital employed improved significantly, climbing to 18.1% from 13.6% last year. The group also proposed a total dividend increase of 50%, contributing to a total shareholder return of approximately GBP2.3 billion over the past two years through dividends and share buybacks. The call highlighted operational progress across various segments, with Primark's sales growing 6% and a recovery in operating margin to 11.7%. ABF's grocery and sugar segments also reported strong performances, contributing to an overall substantial improvement in profitability and strategic growth investments.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.