Nestlé NESN.SW
Nestlé is a Swiss multinational food and beverage company with a diversified portfolio including infant nutrition, coffee, bottled water, dairy products, and pet food, sold globally. Nestlé shows a defensive profile with a 26.24% ROE and 16.11% operating margin, but growth is negative (revenue -2.5%, earnings -31.5%) and a 107% payout raises doubts about dividend sustainability. Net debt of 3.45x EBITDA and Russia exposure add pressure in a rising-rate environment.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Nestlé is a Swiss multinational food and beverage company with a diversified portfolio including infant nutrition, coffee, bottled water, dairy products, and pet food, sold globally. Nestlé shows a defensive profile with a 26.24% ROE and 16.11% operating margin, but growth is negative (revenue -2.5%, earnings -31.5%) and a 107% payout raises doubts about dividend sustainability. Net debt of 3.45x EBITDA and Russia exposure add pressure in a rising-rate environment.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.0 |
| Quality / Moat | 6.3 |
| Valuation | 4.8 |
| Growth | 1.6 |
| Dividend | 3.8 |
| Momentum | 6.3 |
| Risk & Context | 8.0 |
OVERALL SCORE: 5.2/10
Context and risks
Continued exposure to the Russian market without a change of ownership, with regulatory and reputational risk. The ECB's rate hikes make refinancing net debt of 3.45x EBITDA more expensive, though the impact is moderate for a defensive consumer company.
News considered in the analysis
- Pepsi, Nestle could save 150,000 lives a year with one simple change — Artículo de opinión sin información nueva sobre la empresa; no afecta a la valoración.
- 6 food manufacturers talk supply chain tactics — Contenido genérico de la industria sin datos específicos de Nestlé.
- Nestlé breaks down its path to 2030 for virgin plastic reduction — Iniciativa de sostenibilidad a largo plazo; sin impacto financiero material a corto plazo.
- Crosta Mollica merges with Nestlé pizza spin-off in Europe — Operación corporativa menor en el negocio de pizzas europeo; refuerza la estrategia de portafolio pero con impacto limitado en el conjunto del grupo.
- Nestlé Russia: There has been no “change of ownership” — Confirma que la operación rusa sigue bajo control de Nestlé, manteniendo la exposición a un mercado con riesgo geopolítico y regulatorio.
Verdict: Hold; business quality is solid, but deteriorating growth and a high payout warrant caution until results stabilize.
Main risk: The main risk is the combination of negative growth and a payout above 100%, which could force a dividend cut if earnings do not recover; Russia exposure adds geopolitical risk.
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