Associated British Foods plc

$ 1 885.00 -1.31 %

Associated British Foods plc (ABF) is a global diversified entity, primarily engaged in the food, ingredient, and retail sectors. Its extensive operations are segmented into five distinct divisions: Grocery, Sugar, Agriculture, Ingredients, and Retail. Within the Grocery segment, ABF is responsible for the production and distribution of a wide array of consumer food products. This includes hot beverages, various sweeteners, cooking oils, specialty vinegars, bakery items, breakfast cereals, ethnic culinary products, and meat products, all supplied to retail, wholesale, and foodservice channels. The Sugar division is dedicated to the cultivation, processing, and subsequent sale of sugar beet and sugar cane, primarily catering to industrial clients. Its Agriculture segment focuses on the manufacturing and supply of animal feeds, alongside a range of other products and services designed for the agricultural industry. The Ingredients segment specializes in the creation of key components such as bakers' yeast, essential bakery ingredients, enzymes, lipids, yeast extracts, and various cereal specialties. Lastly, the Retail segment manages the sourcing and merchandising of apparel and accessories through its well-known Primark and Penneys retail chains. These outlets offer a comprehensive selection spanning womenswear, menswear, children's clothing, footwear, fashion accessories, homeware, and skincare products. Founded in 1935 and based in London, United Kingdom, Associated British Foods plc is ultimately controlled by Wittington Investments Limited.

CEO: George Garfield Weston - https://www.abf.co.uk

Price objectif

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Recommandation

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DCF

$ 3 152.23

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ABF.L vs S&P500

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Quick ratio

0.65

indicates that the company may have difficulty covering its short-term debts with its readily available assets.

P/E ratio

14.17

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

1.33

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

8.44 %

indicates low profitability, suggesting that the company is not using equity efficiently to generate profits.

ROIC

6.34 %

does not generate enough return to cover its financing costs, which indicates value destruction and may pose long-term profitability issues.

WACC

6.98

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

0.33

indicates that the company uses more equity than debt, suggesting prudent management.

Free cash flow per share

1.66

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

47.26 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
6 indicates moderate financial health
Altman score
4.47 indicates good financial health and low risk of bankruptcy
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Cash / Debt

Cash Ratio
0.18 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.19 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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