Nomad Foods (NOMD) AI Stock Analysis

• Market Cap: $2.05B
• Dividend Yield: 4.99%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.13
• Revenue Growth: 0.87%
• EPS Growth: 8.59%
• Country: US
• Employees: 6,864
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.47
• Shares Outstanding: 153,402,980
• 10 Day Avg. Volume: 1,285,920
• 30 Day Avg. Volume: 1,489,555
• PEG Ratio: 0.47
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 7.52
• Enterprise Value/Market Cap: 2.31
• Enterprise Value/Revenue: 1.55
• Enterprise Value/Gross Profit: 5.32
• Enterprise Value/Ebitda: 9.72
• 1Y Price Target: $19.40
• Price Target Upside: 46.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: $16.50 ▲(24.72% Upside)

Nomad Foods' overall stock score is primarily influenced by its strong valuation, with an attractive P/E ratio and dividend yield. However, the score is tempered by a bearish technical outlook and cautious sentiment from the latest earnings call, which highlighted significant challenges such as lowered guidance and rising inflation. Financial performance remains stable, but the revenue decline poses a risk to future growth.

Positive Factors

Innovation and Renovation Initiatives

Doubling sales from innovation indicates a strong pipeline and adaptability to consumer trends, enhancing long-term growth prospects and market relevance.

Market Share Gains

Regaining market share in key regions highlights competitive strength and effective market strategies, supporting sustained revenue and brand positioning.

Strong Cash Generation

Robust cash flow growth enhances financial flexibility, allowing for strategic investments and shareholder returns, underpinning long-term stability.

Negative Factors

Revenue Decline

A significant revenue decline poses risks to growth and market competitiveness, potentially affecting future profitability and strategic initiatives.

Rising Inflationary Pressures

Increased inflationary pressures can erode profit margins and purchasing power, challenging cost management and pricing strategies in the medium term.

Lowered Full-Year Guidance

Repeated guidance reductions signal potential operational challenges and market uncertainties, affecting investor confidence and strategic planning.

Nomad Foods Business Overview & Revenue Model

Company Description

Nomad Foods (NOMD) is a prominent European frozen food company, specializing in the production and distribution of high-quality frozen meals and snacks. The company operates in the consumer packaged goods sector, with a diverse portfolio that includes brands such as Birds Eye, Findus, and Iglo. Nomad Foods focuses on providing convenient and nutritious frozen food options across various categories, including fish, vegetables, and ready meals, catering to the evolving preferences of health-conscious consumers.

How the Company Makes Money

Nomad Foods generates revenue primarily through the sale of its frozen food products to retail and food service channels. The company employs a multi-channel distribution model, supplying products to supermarkets, grocery stores, and restaurants across Europe. Key revenue streams include direct sales from their branded products, as well as private label offerings. The company's growth is supported by strategic partnerships with retailers, promotional campaigns to increase brand visibility, and ongoing investments in product innovation to meet consumer trends. Additionally, strong operational efficiencies in sourcing and manufacturing help to maintain profit margins.

Nomad Foods Financial Statement Overview

Summary

Nomad Foods demonstrates strong operational efficiency with healthy margins and cash flow generation. However, the significant revenue decline in the TTM poses a risk to future growth. The balance sheet remains stable with manageable leverage, supporting long-term stability.

Income Statement

Nomad Foods shows a stable gross profit margin of around 29% over the TTM, with a slight decline in net profit margin to 6.89%. The company experienced a revenue decline of 20.2% in the TTM, which is a concern. However, EBIT and EBITDA margins remain healthy at 12.63% and 15.91%, respectively, indicating operational efficiency.

Balance Sheet

The debt-to-equity ratio is stable at 0.82, suggesting manageable leverage. Return on equity is moderate at 8.04%, reflecting decent profitability. The equity ratio stands at 40.21%, indicating a solid equity base relative to total assets.

Cash Flow

Free cash flow grew by 19.56% in the TTM, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is 0.38, and the free cash flow to net income ratio is 0.83, indicating efficient cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.07B	3.10B	3.04B	2.94B	2.61B	2.52B
Gross Profit	892.00M	917.80M	858.70M	815.30M	744.30M	762.50M
EBITDA	488.50M	505.10M	480.50M	492.20M	369.80M	429.80M
Net Income	211.50M	227.10M	192.70M	249.80M	181.00M	225.20M
Balance Sheet
Total Assets	6.38B	6.43B	6.42B	6.33B	6.17B	5.58B
Cash, Cash Equivalents and Short-Term Investments	266.60M	403.00M	412.70M	369.40M	254.00M	418.10M
Total Debt	2.10B	2.18B	2.15B	2.17B	2.23B	1.77B
Total Liabilities	3.81B	3.77B	3.82B	3.72B	3.87B	3.45B
Stockholders Equity	2.56B	2.66B	2.59B	2.61B	2.30B	2.13B
Cash Flow
Free Cash Flow	366.80M	355.10M	348.40M	224.70M	227.10M	398.30M
Operating Cash Flow	444.30M	435.40M	430.80M	303.80M	306.30M	457.00M
Investing Cash Flow	-62.90M	-64.40M	-76.80M	-78.70M	-660.00M	-171.40M
Financing Cash Flow	-444.70M	-366.40M	-321.50M	-108.10M	214.40M	-714.80M

Nomad Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOMD, the sentiment is Negative. The current price of 13.23 is below the 20-day moving average (MA) of 13.60, below the 50-day MA of 14.96, and below the 200-day MA of 17.07, indicating a bearish trend. The MACD of -0.55 indicates Negative momentum. The RSI at 35.34 is Neutral, neither overbought nor oversold. The STOCH value of 44.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NOMD.

Nomad Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPC	79 Outperform	$9.80B	7.88	33.10%	―	2.06%	63.27%
NOMD	69 Neutral	$2.05B	8.93	7.88%	4.99%	0.87%	8.59%
CPB	67 Neutral	$9.53B	15.94	15.43%	4.98%	6.40%	6.17%
CAG	67 Neutral	$9.21B	10.88	9.53%	7.30%	-4.11%	72.17%
HRL	63 Neutral	$13.64B	18.08	9.33%	4.67%	0.65%	-3.76%
SJM	50 Neutral	$11.58B	-7.86	-24.63%	4.03%	2.54%	-293.39%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Nomad Foods Corporate Events

Nomad Foods Unveils New Efficiency Program and Financial Targets at Barclays Conference

On September 3, 2025, Nomad Foods announced its participation in the Barclays Global Consumer Staples Conference, where it reiterated its 2025 guidance and unveiled a new efficiency program aimed at achieving €200 million in operational savings from 2026 to 2028. The company also set new medium-term financial targets, including a compound annual Adjusted EBITDA growth of 1-3% and a 15% increase in Free Cash Flow from 2026-2028. These initiatives are expected to enhance Nomad Foods’ market positioning by funding reinvestments, mitigating inflation, and supporting its growth goals. Additionally, the company plans to launch a new Masterbrand campaign in the UK and Ireland to promote its Birds Eye brand and introduce several new products across Europe.

Nomad Foods Reports Q2 2025 Financial Results Amid Weather Challenges

On August 6, 2025, Nomad Foods Limited announced its financial results for the second quarter of 2025, revealing a challenging period marked by a 0.8% decrease in revenue to €747 million and a 7.2% drop in adjusted EBITDA to €129 million. The company attributed these declines to record-setting warm weather in Western Europe, which affected consumer behavior and retailer strategies, causing volume declines in savory frozen categories. Despite these challenges, Nomad Foods improved its market share and retail sell-out growth, with plans to return to organic sales growth in the latter half of the year. Additionally, Carey Dorman was appointed as an independent member of the Board of Directors, bringing extensive experience from his role as Executive Vice President and CFO of Element Solutions Inc.

Nomad Foods Increases Quarterly Dividend by 13%

On July 30, 2025, Nomad Foods Limited announced a 13% increase in its quarterly cash dividend, now set at $0.17 per share. This decision reflects the company’s confidence in its long-term strategy and commitment to creating sustained value for shareholders. The dividend will be payable on August 26, 2025, to shareholders recorded by August 11, 2025. This move is likely to strengthen Nomad Foods’ position in the frozen food industry and reassure stakeholders of its financial health and strategic direction.

Nomad Foods Holds 2025 Annual Shareholder Meeting

On July 10, 2025, Nomad Foods Limited held its annual meeting of shareholders where key decisions were made regarding the company’s governance and financial oversight. Shareholders elected ten directors for a one-year term and ratified PricewaterhouseCoopers LLP as the independent auditor for the fiscal year 2025. These decisions are pivotal for maintaining the company’s strategic direction and ensuring robust financial practices.