Associated British Foods AI Stock Analysis
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Associated British Foods (ASBFY) AI Stock Analysis
Associated British Foods
(Other OTC:ASBFY)
The score is driven primarily by stable but mixed financial performance—conservative leverage and positive free cash flow are offset by recent margin compression and uneven profitability. Technicals are supportive with price above key moving averages, while valuation is reasonable with a mid-teens P/E and ~3% yield. The latest earnings call tempers the outlook due to guidance for lower 2027 operating profit and EPS and continued sugar-related headwinds.
Associated British Foods Key Performance Indicators (KPIs)
Revenue by SegmentShows how much each business unit contributes to overall sales, highlighting areas of strength and potential growth or risk within the company's diverse operations.
Associated British Foods' Retail segment has shown robust growth, indicating strong consumer demand and effective retail strategies. The Sugar segment also experienced significant revenue increases, suggesting favorable market conditions or pricing strategies. However, the Agriculture segment is facing a downward trend, which could signal challenges in that area. Overall, the company's diversified portfolio seems to be balancing out sector-specific fluctuations, with Retail and Sugar providing a solid foundation for revenue growth.
The FlyAssociated British Foods (ASBFY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $18.53B
- Dividend Yield
- 3.16%
- Average Volume (3M)
- 46.76K
- Price to Earnings (P/E)
- 15.0
- Beta (1Y)
- 0.16
- Revenue Growth
- 3.15%
- EPS Growth
- -4.43%
- Country
- US
- Employees
- 140,000
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Packaged Foods
Associated British Foods Business Overview & Revenue Model
Company Description
Associated British Foods plc (ABF) is a global diversified enterprise, encompassing significant operations in food production, ingredient manufacturing, and retail. Its activities are organized across five principal segments: Grocery, Sugar, Agricult...
How the Company Makes Money
ABF generates revenue through a portfolio of operating segments with different business models. (1) Primark: Primark earns money by designing, sourcing, and selling apparel, accessories, and homeware through its own brick-and-mortar retail stores. Re...
Associated British Foods Earnings Call Summary
The call presented substantial strategic progress, investment and long-term growth initiatives across Primark and AB Foods, including Primark's U.K. recovery, franchise expansion, Hovis integration and capacity additions. However, the near-term financial picture was pressured by a 14% decline in adjusted operating profit, lower Primark margins and like-for-like sales, weakness in U.S. oils and ingredients, a significant sugar loss, and guidance for adjusted operating profit and EPS to decline again in 2027. The positive strategic outlook and strong balance sheet were balanced by significant current and near-term operating challenges.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For 2027, AB Foods expects group adjusted operating profit and adjusted EPS to be below 2026, mainly due to sugar; Grocery adjusted operating profit is expected to be broadly in line with 2026, with sales growth in most brands and businesses offset by higher input costs and a one-off impact from consolidating Hovis' losses in the first year of ownership. Group CapEx is expected to remain at a similar level in 2027, while CapEx in AB Foods is expected to start to reduce in 2028; Primark is targeting 4% to 5% medium-term expansion, and home delivery in the U.K. is planned to launch by the end of the calendar year next year. Hovis production and distribution synergies are expected to start to come through from the second half of 2027 and be accretive to earnings in 2028, while the anticipated devaluation of the Malawian currency has been factored into 2027 figures and 2027 results will not really benefit from high European sugar prices.
Associated British Foods Financial Statement Overview
Summary
Overall financial profile is stable but not accelerating. The balance sheet is relatively conservative (moderate debt-to-equity and stable equity), and free cash flow is positive with improvement in the most recent year. Offsetting this, profitability has become less consistent: net margins stepped down into 2026 and the latest annual gross margin is notably weaker versus prior years, indicating cost/mix pressure and reducing earnings quality.
Income Statement
56NeutralBalance Sheet
72PositiveCash Flow
64Positive| Breakdown | TTM | Sep 2026 | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.63B | 19.92B | 19.46B | 20.07B | 19.75B | 17.00B |
| Gross Profit | 1.39B | 1.41B | 4.66B | 4.88B | 4.16B | 3.78B |
| EBITDA | 1.89B | 1.41B | 2.65B | 3.13B | 2.48B | 2.13B |
| Net Income | 932.17M | 945.82M | 1.02B | 1.46B | 1.04B | 700.00M |
Balance Sheet | ||||||
| Total Assets | 20.40B | 20.40B | 19.29B | 19.01B | 18.84B | 19.77B |
| Cash, Cash Equivalents and Short-Term Investments | 1.02B | 1.02B | 1.06B | 1.66B | 1.46B | 2.13B |
| Total Debt | 3.85B | 3.88B | 3.69B | 3.68B | 3.72B | 3.89B |
| Total Liabilities | 8.55B | 8.55B | 8.11B | 7.74B | 7.65B | 8.22B |
| Stockholders Equity | 11.68B | 11.68B | 11.06B | 11.19B | 11.09B | 11.45B |
Cash Flow | ||||||
| Free Cash Flow | 1.28B | 1.30B | 997.00M | 1.69B | 581.00M | 384.00M |
| Operating Cash Flow | 2.45B | 2.48B | 2.23B | 2.87B | 1.65B | 1.15B |
| Investing Cash Flow | -1.41B | -1.43B | -721.00M | -1.33B | -906.00M | -744.00M |
| Financing Cash Flow | -1.05B | -1.07B | -1.79B | -1.57B | -1.28B | -677.00M |
Associated British Foods Technical Analysis
Price Trends
Market Momentum
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 26.35 is above the 20-day moving average (MA) of 26.08, above the 50-day MA of 25.46, and above the 200-day MA of 25.68, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 54.06 is Neutral, neither overbought nor oversold. The STOCH value of 65.85 is Neutral, 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
MKC77Outperform- ASBFY63Neutral
INGR63Neutral
KHC58Neutral
GIS48Neutral
CAG46Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| MKC | 77Outperform | $12.57B | 8.46 | 22.32% | 4.09% | 13.23% | 91.32% |
| ASBFY | 63Neutral | $18.65B | 15.03 | 8.06% | 3.16% | 3.15% | -4.43% |
| INGR | 63Neutral | $5.73B | 10.44 | 12.58% | 3.54% | -0.98% | -12.90% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| KHC | 58Neutral | $28.70B | -8.31 | -8.91% | 6.59% | -1.53% | 21.36% |
| GIS | 48Neutral | $18.50B | -20.73 | -10.69% | 7.13% | -4.49% | -131.46% |
| CAG | 46Neutral | $7.25B | -3.73 | -26.28% | 7.08% | -1.80% | -323.82% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| ASBFY | Associated British Foods Plc | 26.35 | -1.27 | -4.61% | |
| CAG | Conagra Brands | 14.83 | -1.48 | -9.09% | |
| GIS | General Mills Inc | 34.21 | -10.14 | -22.86% | |
| MKC | McCormick & Company Inc | 46.94 | -16.11 | -25.55% | |
| INGR | Ingredion | 92.83 | -11.42 | -10.96% | |
| KHC | Kraft Heinz Co | 24.27 | 1.01 | 4.36% |
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.
Date of analysis: Nov 05, 2026