Nestle SA Reg (NSRGY) AI Stock Analysis

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Nestle SA Reg

(Other OTC:NSRGY)

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Rating:65Neutral

Price Target:$112.00▲(6.62% Upside)

Action:reiterated

Date:10/23/26

The score is driven primarily by solid underlying profitability and strong recurring cash generation, supported by a constructive earnings update (improving RIG, strong savings and free cash flow outlook). The main offsets are elevated leverage on the balance sheet, a relatively expensive valuation (P/E ~28.9), and technical indicators suggesting the stock is overbought despite an uptrend.

Positive Factors

Diversified branded portfolioNestlé’s broad portfolio across everyday food, beverage, pet care and nutrition categories diversifies demand and reduces reliance on any single product or geography. Established brands, global distribution and multiple sales channels support repeat purchasing and provide a durable platform for pricing, innovation and reinvestment.

Negative Factors

Elevated leverageHigher leverage reduces financial flexibility and leaves more cash flow committed to debt service and refinancing needs. Although recent cash generation is strong, the larger debt burden can constrain acquisitions, investment and shareholder distributions if operating performance weakens.

Nestle SA Reg Key Performance Indicators (KPIs)

Sales by SegmentAnalyzes revenue generated from different business segments, highlighting which areas drive the most sales and indicating strategic focus and diversification.

Chart Insights

Nestlé's Powdered & Liquid Beverages segment shows resilience with steady growth, while Water and Milk Products & Ice Cream face persistent declines. The Nutrition & Health Science segment remains stable, but Prepared Dishes & Cooking Aids and Confectionery are under pressure, reflecting broader cost challenges. Despite these mixed trends, Nestlé's earnings call highlights strategic pricing actions and marketing investments to counteract input cost pressures, particularly in coffee and confectionery. The company maintains its full-year guidance, leveraging its 'Fuel for Growth' program to achieve cost savings, though margin pressures persist.

Data provided by:

The Fly

Nestle SA Reg (NSRGY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $266.07B
Dividend Yield: 3.75%
Average Volume (3M): 400.54K
Price to Earnings (P/E): 29.7
Beta (1Y): 0.10
Revenue Growth: 6.67%
EPS Growth: -21.13%
Country: US
Employees: 271,000
Sector: Consumer Defensive
Sector Strength: 62
Industry: Packaged Foods

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 Afric...

How the Company Makes Money

Nestlé primarily makes money by selling branded food and beverage products and nutrition solutions across multiple categories and geographies. Revenue is generated through the sale of finished goods to retailers (e.g., supermarkets, mass merchants, c...

Nestle SA Reg Earnings Call Summary

Earnings Call Date:Jul 23, 2026(Q2-2026)|% Change Since:0.91%|Next Earnings Date:Feb 18, 2027

Earnings Call SentimentPositive

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.

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

Cash flow is a key strength (Cash Flow Score 70) with improving free cash flow and solid cash generation, supporting business quality. However, the income statement shows weakening top-line trends and net margin compression (Income Statement Score 67), and the balance sheet is the main risk with meaningfully higher leverage and reduced flexibility (Balance Sheet Score 52).

Income Statement

67Positive

Balance Sheet

52Neutral

Cash Flow

70Positive

Financial statement breakdown
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	17.71B	17.26B	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

Technical Analysis SentimentPositive

Last Price105.05

Price Trends

50DMA96.79Positive

100DMA98.87Positive

200DMA98.81Positive

Market Momentum

MACD2.62Negative

RSI63.74Neutral

STOCH68.53Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSRGY, the sentiment is Positive. The current price of 105.05 is above the 20-day moving average (MA) of 101.75, above the 50-day MA of 96.79, and above the 200-day MA of 98.81, indicating a bullish trend. The MACD of 2.62 indicates Negative momentum. The RSI at 63.74 is Neutral, neither overbought nor oversold. The STOCH value of 68.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NSRGY.

Nestle SA Reg Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

NSRGY against its peers
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%
NSRGY	65Neutral	$267.07B	29.73	23.98%	3.75%	6.67%	-21.13%
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%
CPB	50Neutral	$6.74B	16.65	10.18%	6.36%	-4.96%	-33.88%
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

NSRGY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NSRGY	Nestle SA Reg Shs.	105.05	5.95	6.00%
CPB	Campbell Soup Company	22.31	-7.04	-23.99%
CAG	Conagra Brands	14.83	-1.47	-8.99%
GIS	General Mills Inc	34.21	-10.06	-22.73%
MKC	McCormick & Company Inc	46.94	-16.86	-26.42%
KHC	Kraft Heinz Co	24.27	0.91	3.90%

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.

Date of analysis: Oct 23, 2026

Nestle SA Reg AI Stock Analysis