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Nestle SA Reg
(OTC:NSRGY)
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Rating:67Neutral
Price Target:
$113.00
â–²(13.06% Upside)
Action:Reiterated
Date:07/23/26
The score is driven primarily by resilient cash generation and profitability, but weighed down by multi-year revenue declines and higher leverage that increase financial risk. Technicals are supportive with price above major moving averages and neutral-to-positive momentum. Valuation is balanced by a solid dividend yield but a relatively high P/E. The earnings call adds a modest positive: maintained guidance, cost-savings progress, and strong cash outlook, tempered by recall-related impacts, below-target RIG, regional margin pressure, and FX headwinds.
Positive Factors
Free cash flow strength
Consistently strong free cash flow, with a 20.5% improvement in 2025 and H1 FCF of CHF3.4bn, provides durable funding for dividends, share repurchases, deleveraging and reinvestment in growth initiatives, enhancing financial resilience through cycles.
Negative Factors
Rising leverage
Material increase in leverage reduces financial flexibility, raises interest and covenant risk, and constrains optionality for M&A or large capex. Even with good cash flow, a high debt load lengthens recovery time and magnifies macro sensitivity.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow strength
Consistently strong free cash flow, with a 20.5% improvement in 2025 and H1 FCF of CHF3.4bn, provides durable funding for dividends, share repurchases, deleveraging and reinvestment in growth initiatives, enhancing financial resilience through cycles.
Read all positive factors
Nestle SA Reg Key Performance Indicators (KPIs)
Nestle SA Reg (NSRGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$242.69B
Dividend Yield4.18%
Average Volume (3M)255.54K
Price to Earnings (P/E)26.9
Beta (1Y)0.10
Revenue Growth6.67%
EPS Growth-21.13%
CountryUS
Employees271,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.90
Shares Outstanding2,576,520,000
10 Day Avg. Volume264,657
30 Day Avg. Volume255,536
Financial Highlights & Ratios
PEG Ratio-1.18
Price to Book (P/B)6.14
Price to Sales (P/S)2.36
P/FCF Ratio18.55
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.5
Revenue Forecast (FY)$110.21B
Nestle SA Reg Business Overview & Revenue Model
Company Description
Nestlé S.A. operates as a leading global food and beverage conglomerate, along with its various subsidiary entities. The company strategically segments its operations across three primary geographical regions: Europe, the Middle East, and North Af...
How the Company Makes Money
Nestlé primarily makes money by selling branded consumer products (food, beverages, and nutrition products) and pet food through a global distribution network. Revenue is largely generated from volume sales of packaged goods to retail customers (e...
Nestle SA Reg Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Positive
The call presented a balanced picture: Nestlé reported solid top-line momentum (3.6% OG, RIG improving quarter-on-quarter) and strong execution on cost savings and cash generation, while simultaneously addressing structural moves (portfolio sharpening and higher marketing effectiveness). However, material near-term headwinds remain — notably the infant formula recall impact, one-off disposal and restructuring charges, regional margin pressures (Europe/Americas), petcare destocking in the U.S. and FX impacts. Management reiterated guidance, highlighted progress on cost savings and investment in growth platforms, and expressed confidence in delivering the 2026 targets and improving margins toward medium-term objectives.Positive Updates
Solid H1 Organic Growth and Improving RIG
Organic sales growth of 3.6% in H1 2026 with RIG accelerating from 1.2% in Q1 to 1.8% in Q2 (H1 RIG 1.5%). Management delivered four consecutive quarters of positive OG/RIG and is targeting sustained organic growth of 4%+ with RIG of at least 2%.
Negative Updates
RIG and Core Growth Still Below Target
H1 RIG of 1.5% remains below the company target of at least 2% and the stated ambition of 4%+ organic growth; core business not yet consistently delivering the 3%–4% organic growth objective.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid H1 Organic Growth and Improving RIG
Organic sales growth of 3.6% in H1 2026 with RIG accelerating from 1.2% in Q1 to 1.8% in Q2 (H1 RIG 1.5%). Management delivered four consecutive quarters of positive OG/RIG and is targeting sustained organic growth of 4%+ with RIG of at least 2%.
Read all positive updates
Company Guidance
Nestlé tightened 2026 top‑line guidance to organic growth of 3–4% while reiterating its mid‑term ambition of sustained organic growth of 4%+ led by RIG of at least 2%; in H1 the group delivered 3.6% OG with RIG 1.5% (Q1 1.2% → Q2 1.8%) and growth‑platform OG of 7%. Management expects H2 UTOP margin broadly similar to H1 (H1 UTOP 16.4%, down 10bps y/y) and full‑year margin to improve versus 2025, noting lower coffee/cocoa costs but some energy/transport headwinds; marketing was 8.9% of sales (up from 8.1% two years ago), non‑working media <20% (from ~25%), paid media up double‑digits, and marketing intensity is expected to remain similar in H2. Cash and efficiency targets remain intact: H1 free cash flow CHF3.4bn, net debt CHF56.3bn (from CHF60bn), CHF600m incremental savings in H1 (CHF1.7bn cumulative) on track to CHF2bn by 2026 and CHF3bn by end‑2027, with full‑year free cash flow expected above CHF9bn; underlying EPS +4% in constant currency (‑2.4% at actual FX) and a full‑year FX drag on reported sales of ~3% at current spot rates.Nestle SA Reg Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
52
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 88.92B | 85.47B | 91.72B | 93.35B | 94.42B | 87.09B |
| Gross Profit | 40.43B | 38.96B | 43.05B | 43.02B | 42.68B | 41.62B |
| EBITDA | 17.70B | 17.10B | 18.66B | 17.80B | 16.08B | 15.20B |
| Net Income | 7.48B | 8.63B | 10.88B | 11.21B | 9.27B | 16.91B |
Balance Sheet | ||||||
| Total Assets | 127.93B | 127.30B | 139.26B | 126.55B | 135.18B | 139.14B |
| Cash, Cash Equivalents and Short-Term Investments | 6.11B | 6.24B | 7.87B | 5.85B | 6.69B | 13.99B |
| Total Debt | 62.62B | 57.92B | 63.56B | 55.24B | 54.31B | 46.89B |
| Total Liabilities | 98.53B | 94.20B | 102.57B | 90.16B | 92.39B | 85.42B |
| Stockholders Equity | 29.13B | 32.85B | 35.92B | 35.74B | 41.98B | 53.14B |
Cash Flow | ||||||
| Free Cash Flow | 12.70B | 10.87B | 10.71B | 9.74B | 6.55B | 8.52B |
| Operating Cash Flow | 16.75B | 15.19B | 16.68B | 15.94B | 11.91B | 13.86B |
| Investing Cash Flow | -5.67B | -5.31B | -8.62B | -6.20B | -2.51B | -3.04B |
| Financing Cash Flow | -12.24B | -10.39B | -7.36B | -9.76B | -10.78B | -9.15B |
Nestle SA Reg Technical Analysis
Negative
99.95
Price Trends
99.49
Negative
99.90
Negative
98.27
Negative
Market Momentum
-1.20
Positive
38.65
Neutral
13.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSRGY, the sentiment is Negative. The current price of 99.95 is above the 20-day moving average (MA) of 97.26, above the 50-day MA of 99.49, and above the 200-day MA of 98.27, indicating a bearish trend. The MACD of -1.20 indicates Positive momentum. The RSI at 38.65 is Neutral, neither overbought nor oversold. The STOCH value of 13.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NSRGY.
Nestle SA Reg Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $13.43B | 8.32 | 25.58% | 3.78% | 9.54% | 108.44% | |
67 Neutral | $242.69B | 26.87 | 23.98% | 4.18% | 6.67% | -21.13% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $29.33B | -8.65 | -8.44% | 6.47% | -1.62% | 36.06% | |
58 Neutral | $7.19B | -3.79 | -24.31% | 8.07% | -2.85% | -265.99% | |
53 Neutral | $19.56B | -216.53 | -0.99% | 6.63% | -5.45% | -104.44% | |
49 Neutral | $6.37B | 15.96 | 10.18% | 7.29% | -4.96% | -33.88% |
* Consumer Defensive Sector Average
NSRGY
Nestle SA Reg
94.32
6.02
6.82%
CPB
Campbell Soup
21.18
-10.39
-32.90%
CAG
Conagra Brands
15.18
-2.20
-12.63%
GIS
General Mills
36.66
-10.27
-21.88%
MKC
McCormick & Company
49.70
-14.48
-22.56%
KHC
Kraft Heinz
24.73
0.32
1.32%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.