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Nestlé

SWX:NESN
Snowflake Description

Established dividend payer with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NESN
SWX
CHF301B
Market Cap
  1. Home
  2. CH
  3. Food, Beverage & Tobacco
Company description

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The last earnings update was 117 days ago. More info.


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NESN Share Price and Events
7 Day Returns
-0.5%
SWX:NESN
0.5%
CH Food
0.5%
CH Market
1 Year Returns
23.8%
SWX:NESN
22.5%
CH Food
15.7%
CH Market
NESN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nestlé (NESN) -0.5% 2% -3.9% 23.8% 54.3% 44.9%
CH Food 0.5% 1.1% -3.6% 22.5% 29% 46.9%
CH Market 0.5% 3.7% 5% 15.7% 24.5% 13.7%
1 Year Return vs Industry and Market
  • NESN outperformed the Food industry which returned 22.5% over the past year.
  • NESN outperformed the Market in Switzerland which returned 15.7% over the past year.
Price Volatility
NESN
Industry
5yr Volatility vs Market

Value

 Is Nestlé undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nestlé to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nestlé.

SWX:NESN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 23 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year CH Government Bond Rate 3.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SWX:NESN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CH Govt Bond Rate 3.3%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.55
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.55 (1 + (1- 18%) (14.27%))
0.742
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.28% + (0.8 * 5.96%)
8.04%

Discounted Cash Flow Calculation for SWX:NESN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Nestlé is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SWX:NESN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CHF, Millions) Source Present Value
Discounted (@ 8.04%)
2020 12,909.15 Analyst x14 11,948.16
2021 13,837.26 Analyst x10 11,853.78
2022 13,914.00 Analyst x2 11,032.20
2023 16,390.00 Analyst x1 12,027.97
2024 17,397.78 Est @ 6.15% 11,817.09
2025 18,317.53 Est @ 5.29% 11,515.61
2026 19,175.36 Est @ 4.68% 11,157.51
2027 19,992.36 Est @ 4.26% 10,766.91
2028 20,785.06 Est @ 3.96% 10,360.52
2029 21,566.16 Est @ 3.76% 9,949.62
Present value of next 10 years cash flows CHF112,429.00
SWX:NESN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CHF21,566.16 × (1 + 3.28%) ÷ (8.04% – 3.28%)
CHF467,123.50
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CHF467,123.50 ÷ (1 + 8.04%)10
CHF215,508.98
SWX:NESN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CHF112,429.00 + CHF215,508.98
CHF327,937.98
Equity Value per Share
(CHF)
= Total value / Shares Outstanding
= CHF327,937.98 / 2,887.48
CHF113.57
SWX:NESN Discount to Share Price
Calculation Result
Value per share (CHF) From above. CHF113.57
Current discount Discount to share price of CHF104.08
= -1 x (CHF104.08 - CHF113.57) / CHF113.57
8.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Nestlé is available for.
Intrinsic value
8%
Share price is CHF104.08 vs Future cash flow value of CHF113.57
Current Discount Checks
For Nestlé to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Nestlé's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Nestlé's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nestlé's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nestlé's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SWX:NESN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in CHF CHF3.12
SWX:NESN Share Price ** SWX (2019-11-19) in CHF CHF104.08
Switzerland Food Industry PE Ratio Median Figure of 7 Publicly-Listed Food Companies 29.6x
Switzerland Market PE Ratio Median Figure of 171 Publicly-Listed Companies 19.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nestlé.

SWX:NESN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SWX:NESN Share Price ÷ EPS (both in CHF)

= 104.08 ÷ 3.12

33.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nestlé is overvalued based on earnings compared to the CH Food industry average.
  • Nestlé is overvalued based on earnings compared to the Switzerland market.
Price based on expected Growth
Does Nestlé's expected growth come at a high price?
Raw Data
SWX:NESN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.34x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts
3.9%per year
Switzerland Food Industry PEG Ratio Median Figure of 6 Publicly-Listed Food Companies 3.91x
Switzerland Market PEG Ratio Median Figure of 124 Publicly-Listed Companies 2.12x

*Line of best fit is calculated by linear regression .

SWX:NESN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.34x ÷ 3.9%

8.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nestlé is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Nestlé's assets?
Raw Data
SWX:NESN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in CHF CHF16.98
SWX:NESN Share Price * SWX (2019-11-19) in CHF CHF104.08
Switzerland Food Industry PB Ratio Median Figure of 9 Publicly-Listed Food Companies 2.8x
Switzerland Market PB Ratio Median Figure of 214 Publicly-Listed Companies 1.65x
SWX:NESN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SWX:NESN Share Price ÷ Book Value per Share (both in CHF)

= 104.08 ÷ 16.98

6.13x

* Primary Listing of Nestlé.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nestlé is overvalued based on assets compared to the CH Food industry average.
X
Value checks
We assess Nestlé's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Nestlé has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Nestlé expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nestlé expected to grow at an attractive rate?
  • Nestlé's earnings growth is expected to exceed the low risk savings rate of 3.3%.
Growth vs Market Checks
  • Nestlé's earnings growth is positive but not above the Switzerland market average.
  • Nestlé's revenue growth is positive but not above the Switzerland market average.
Annual Growth Rates Comparison
Raw Data
SWX:NESN Future Growth Rates Data Sources
Data Point Source Value (per year)
SWX:NESN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts 3.9%
SWX:NESN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts 2.6%
Switzerland Food Industry Earnings Growth Rate Market Cap Weighted Average 4.7%
Switzerland Food Industry Revenue Growth Rate Market Cap Weighted Average 2.9%
Switzerland Market Earnings Growth Rate Market Cap Weighted Average 10%
Switzerland Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SWX:NESN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
All numbers in CHF Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SWX:NESN Future Estimates Data
Date (Data in CHF Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 103,866 19,507 14,380 5
2022-12-31 100,320 18,151 13,486 6
2021-12-31 97,298 17,895 13,314 20
2020-12-31 93,795 17,083 12,532 23
2019-12-31 93,216 15,861 12,566 23
2019-11-20
SWX:NESN Past Financials Data
Date (Data in CHF Millions) Revenue Cash Flow Net Income *
2019-06-30 93,290 16,158 9,282
2019-03-31 92,520 15,778 9,709
2018-12-31 91,750 15,398 10,135
2018-09-30 91,328 15,306 9,110
2018-06-30 90,905 15,214 8,084
2018-03-31 90,414 14,707 7,620
2017-12-31 89,922 14,199 7,156
2017-09-30 89,750 14,152 8,242
2017-06-30 89,577 14,104 9,328
2017-03-31 89,682 14,843 8,930
2016-12-31 89,786 15,582 8,531
2016-09-30 89,599 15,438 8,590

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nestlé's earnings are expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
  • Nestlé's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SWX:NESN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below

All data from Nestlé Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:NESN Future Estimates Data
Date (Data in CHF Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 5.33 5.33 5.33 2.00
2022-12-31 4.96 4.98 4.93 2.00
2021-12-31 4.76 5.09 4.56 10.00
2020-12-31 4.41 4.72 4.19 14.00
2019-12-31 4.24 5.18 3.68 14.00
2019-11-20
SWX:NESN Past Financials Data
Date (Data in CHF Millions) EPS *
2019-06-30 3.12
2019-03-31 3.24
2018-12-31 3.36
2018-09-30 3.00
2018-06-30 2.64
2018-03-31 2.48
2017-12-31 2.31
2017-09-30 2.66
2017-06-30 3.01
2017-03-31 2.89
2016-12-31 2.76
2016-09-30 2.78

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Nestlé is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Nestlé's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Switzerland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Switzerland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nestlé has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Nestlé performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nestlé's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Nestlé's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Nestlé's 1-year earnings growth exceeds its 5-year average (14.8% vs -8.4%)
  • Nestlé's earnings growth has exceeded the CH Food industry average in the past year (14.8% vs 5.8%).
Earnings and Revenue History
Nestlé's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nestlé Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:NESN Past Revenue, Cash Flow and Net Income Data
Date (Data in CHF Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 93,290.00 9,282.00 28,938.00 1,693.00
2019-03-31 92,520.00 9,708.50 28,780.50 1,690.00
2018-12-31 91,750.00 10,135.00 28,623.00 1,687.00
2018-09-30 91,327.50 9,109.50 28,449.50 1,696.50
2018-06-30 90,905.00 8,084.00 28,276.00 1,706.00
2018-03-31 90,413.50 7,620.00 28,159.00 1,722.50
2017-12-31 89,922.00 7,156.00 28,042.00 1,739.00
2017-09-30 89,749.50 8,242.00 28,528.00 1,741.00
2017-06-30 89,577.00 9,328.00 29,014.00 1,743.00
2017-03-31 89,681.50 8,929.50 29,373.00 1,739.50
2016-12-31 89,786.00 8,531.00 29,732.00 1,736.00
2016-09-30 89,598.50 8,590.00 29,546.50 1,728.50
2016-06-30 89,411.00 8,649.00 29,361.00 1,721.00
2016-03-31 89,247.00 8,857.50 29,090.50 1,699.50
2015-12-31 89,083.00 9,066.00 28,820.00 1,678.00
2015-09-30 90,419.50 11,702.50 28,704.00 1,684.00
2015-06-30 91,756.00 14,339.00 28,588.00 1,690.00
2015-03-31 91,810.50 14,397.50 28,325.00 1,659.00
2014-12-31 91,865.00 14,456.00 28,062.00 1,628.00
2014-09-30 91,015.50 11,992.50 27,725.00 1,577.50
2014-06-30 90,166.00 9,529.00 27,388.00 1,527.00
2014-03-31 91,269.50 9,772.00 27,751.50 1,515.00
2013-12-31 92,373.00 10,015.00 28,115.00 1,503.00
2013-09-30 92,305.50 10,213.00 28,202.50 1,472.00
2013-06-30 92,238.00 10,411.00 28,290.00 1,441.00
2013-03-31 91,084.50 10,319.50 27,792.50 1,427.00
2012-12-31 89,931.00 10,228.00 27,295.00 1,413.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Nestlé has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Nestlé used its assets more efficiently than the CH Food industry average last year based on Return on Assets.
  • Nestlé has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Nestlé's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nestlé has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Nestlé's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Nestlé's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Nestlé's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Nestlé's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Nestlé's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nestlé Company Filings, last reported 4 months ago.

SWX:NESN Past Debt and Equity Data
Date (Data in CHF Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 51,214.00 42,985.00 5,022.00
2019-03-31 51,214.00 42,985.00 5,022.00
2018-12-31 58,403.00 37,431.00 10,301.00
2018-09-30 58,403.00 37,431.00 10,301.00
2018-06-30 57,555.00 35,603.00 6,717.00
2018-03-31 57,555.00 35,603.00 6,717.00
2017-12-31 62,229.00 26,655.00 8,593.00
2017-09-30 62,229.00 26,655.00 8,593.00
2017-06-30 61,810.00 26,152.00 4,993.00
2017-03-31 61,810.00 26,152.00 4,993.00
2016-12-31 65,981.00 23,906.00 9,394.00
2016-09-30 65,981.00 23,906.00 9,394.00
2016-06-30 58,054.00 26,914.00 5,076.00
2016-03-31 58,054.00 26,914.00 5,076.00
2015-12-31 63,986.00 21,867.00 5,884.00
2015-09-30 63,986.00 21,867.00 5,884.00
2015-06-30 62,861.00 22,820.00 4,731.00
2015-03-31 62,861.00 22,820.00 4,731.00
2014-12-31 71,884.00 21,458.00 8,967.00
2014-09-30 71,884.00 21,458.00 8,967.00
2014-06-30 60,397.00 23,378.00 3,765.00
2014-03-31 60,397.00 23,378.00 3,765.00
2013-12-31 64,139.00 21,765.00 7,152.00
2013-09-30 64,139.00 21,765.00 7,152.00
2013-06-30 63,610.00 28,597.00 6,376.00
2013-03-31 63,610.00 28,597.00 6,376.00
2012-12-31 62,664.00 27,447.00 9,788.00
  • Nestlé's level of debt (77.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (38.2% vs 77.6% today).
  • Debt is well covered by operating cash flow (40.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 20.8x coverage).
X
Financial health checks
We assess Nestlé's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nestlé has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Nestlé's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.35%
Current annual income from Nestlé dividends. Estimated to be 2.72% next year.
If you bought CHF2,000 of Nestlé shares you are expected to receive CHF47 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Nestlé's pays a higher dividend yield than the bottom 25% of dividend payers in Switzerland (1.84%).
  • Nestlé's dividend is below the markets top 25% of dividend payers in Switzerland (3.61%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SWX:NESN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
Switzerland Food Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 2.2%
Switzerland Market Average Dividend Yield Market Cap Weighted Average of 163 Stocks 2.9%
Switzerland Minimum Threshold Dividend Yield 10th Percentile 1.2%
Switzerland Bottom 25% Dividend Yield 25th Percentile 1.8%
Switzerland Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SWX:NESN Future Dividends Estimate Data
Date (Data in CHF) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 3.21 2.00
2022-12-31 2.99 3.00
2021-12-31 2.97 20.00
2020-12-31 2.81 24.00
2019-12-31 2.69 24.00
2019-11-20
SWX:NESN Past Annualized Dividends Data
Date (Data in CHF) Dividend per share (annual) Avg. Yield (%)
2019-02-14 2.450 2.427
2018-02-15 2.350 2.950
2017-02-16 2.300 2.841
2016-02-18 2.250 3.064
2015-02-19 2.200 3.012
2014-05-21 2.150 3.071
2014-02-13 2.150 3.207
2014-01-15 2.150 3.217
2013-04-11 2.050 3.205
2012-02-17 1.950 3.276
2012-01-16 1.950 3.635
2011-05-11 1.850 3.604
2011-02-17 1.850 3.520
2010-03-01 1.600 3.008
2010-02-19 1.600 3.015
2010-01-15 1.600 3.187
2009-02-19 1.400 3.297

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Nestlé's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Nestlé's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nestlé afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nestlé has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Nestlé's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Schneider
COMPENSATION CHF9,468,558
AGE 54
TENURE AS CEO 2.8 years
CEO Bio

Dr. Ulf Mark Schneider, also known as Mark, has been the Chief Executive Officer of Nestlé S.A. since January 1, 2017 and has been its Director since April 6, 2017. He serves as Member of Executive Board at Nestlé S.A. He has been the Chief Executive Officer and President at Fresenius Management Se at Fresenius SE & Co KGaA since 2003. Dr. Schneider served as the Chairman of the Management Board of Fresenius Management Se, the General Partner of Fresenius SE & Co KGaA from May 28, 2003 to June 30, 2016 and served as its Member of Management Board of Fresenius Management Se until June 30, 2016. He served as the Chairman of the Managing Board of Fresenius AG since April 8, 2005. Dr. Schneider served as the Chairman of the Management Board at Fresenius Kabi AG. He served as the Chief Executive Officer of Fresenius AG at Fresenius Medical Care AG & Co. KGAA since September 4, 2003. He served as the Chief Financial Officer of Fresenius Medical Care AG from November 2001 to March 2003. Dr. Schneider served as Group Finance Director of Gehe UK PLC in Great Britain that is part of the Haniel Group, where he served for twelve years. He held several senior executive and financial positions since 1989 with Gehes majority shareholder, Franz Haniel & Cie. GmbH, Duisburg. He served as the Chairman of Management Board at Fresenius SE since May 28, 2003. Dr. Schneider serves as the Chairman of the Supervisory Board at EUFETS GmbH and Fresenius Kabi AG. He serves as the Chairman of the Supervisory Board at Eufets AG and HELIOS Kliniken GmbH. Dr. Schneider has been Chairman of The Supervisory Board of Management Ag- General Partner of Fresenius Medical Care AG & Co. KGAA., since April 2005. He served as the Chairman of Supervisory Board of Fresenius Medical Care Management AG at Fresenius Medical Care Holdings Inc. since April 15, 2005 until June 30, 2016 and served as its Member of Supervisory Board until June 30, 2016. Dr. Schneider served as the Chairman of Supervisory Board of Fmc Management at Fresenius Medical Care AG & Co. KGAA since May 15, 2005 to January 28, 2011. He has been a Director of DuPont do Brasil S.A. since October 2014. Dr. Schneider served as a Director of E. I. du Pont de Nemours and Company since October 22, 2014 until May 24, 2017. He serves as Member of Advisory Board of Nestlé Health Science S.A. He served as a Member of Supervisory Board at Fresenius Kabi EspaÑa S.A. He served as a Director of Fresenius Kabi Pharmaceuticals Holding, Inc. from September 2008 to February 2011. Dr. Schneider served as Member of Supervisory Board at Fresenius Medical Care AG & Co. KGAA since May 2004. He served as a Member of the Supervisory Board of Fresenius SE. Dr. Schneider holds a Degree in Finance and Accounting and a Ph.D. in Economics from the University of St. Gallen and an MBA from Harvard University.

CEO Compensation
  • Mark's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Mark's remuneration is higher than average for companies of similar size in Switzerland.
Management Team Tenure

Average tenure and age of the Nestlé management team in years:

5.1
Average Tenure
57
Average Age
  • The average tenure for the Nestlé management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mark Schneider

TITLE
CEO, Member of Executive Board & Director
COMPENSATION
CHF9M
AGE
54
TENURE
2.8 yrs

François-Xavier Roger

TITLE
Executive VP
AGE
57
TENURE
4.3 yrs

Chris Johnson

TITLE
Executive VP
AGE
58
TENURE
8.8 yrs

Laurent Freixe

TITLE
Executive VP
AGE
57

Patrice Bula

TITLE
Executive VP
AGE
63
TENURE
8.5 yrs

Marco Settembri

TITLE
Executive VP
AGE
60
TENURE
5.9 yrs

Greg Behar

TITLE
Member of Executive Board
AGE
50

Magdi Batato

TITLE
Executive VP
AGE
60
TENURE
4.1 yrs

Maurizio Patarnello

TITLE
Deputy Executive VP & Member of Executive Board
AGE
53

Stefan Palzer

TITLE
Executive VP
Board of Directors Tenure

Average tenure and age of the Nestlé board of directors in years:

4.8
Average Tenure
67
Average Age
  • The tenure for the Nestlé board of directors is about average.
Board of Directors

Paul Bulcke

TITLE
Chairman of the Board
COMPENSATION
CHF3M
AGE
65
TENURE
2.6 yrs

Mark Schneider

TITLE
CEO, Member of Executive Board & Director
COMPENSATION
CHF9M
AGE
54
TENURE
2.6 yrs

Henri René Marie de la Croix de Castries

TITLE
Vice Chairman & Lead Independent Director
COMPENSATION
CHF715K
AGE
65
TENURE
1.6 yrs

Helmut Maucher

TITLE
Honorary Chairman
AGE
92
TENURE
19.5 yrs

Peter Brabeck-Letmathe

TITLE
Chairman Emeritus
COMPENSATION
CHF407K
AGE
75
TENURE
2.6 yrs

Suresh Narayanan

TITLE
Chairman & MD of Nestle India

Beat Hess

TITLE
Non-Executive Director
COMPENSATION
CHF623K
AGE
70
TENURE
11.5 yrs

Renato Fassbind

TITLE
Non-Executive Director
COMPENSATION
CHF623K
AGE
64
TENURE
4.8 yrs

Ann Veneman

TITLE
Non-Executive Director
COMPENSATION
CHF362K
AGE
70
TENURE
8.6 yrs

Eva Cheng

TITLE
Non-Executive Director
COMPENSATION
CHF449K
AGE
67
TENURE
6.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CHF) Value (CHF)
X
Management checks
We assess Nestlé's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nestlé has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Nestlé (VTX:NESN) Has A Pretty Healthy Balance Sheet

What we care about is avoiding the permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Do Institutions Own Nestlé S.A. (VTX:NESN) Shares?

View our latest analysis for Nestlé SWX:NESN Ownership Summary, August 13th 2019 What Does The Institutional Ownership Tell Us About Nestlé? … We can see that Nestlé does have institutional investors; and they hold 37% of the stock. … Insider Ownership Of Nestlé While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Calculating The Intrinsic Value Of Nestlé S.A. (VTX:NESN)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CHF, Millions) CHF13.1b CHF14.0b CHF14.3b CHF16.4b CHF17.4b CHF18.3b CHF19.1b CHF19.9b CHF20.7b CHF21.5b Growth Rate Estimate Source Analyst x15 Analyst x12 Analyst x2 Analyst x1 Est @ 6% Est @ 5.18% Est @ 4.61% Est @ 4.21% Est @ 3.93% Est @ 3.73% Present Value (CHF, Millions) Discounted @ 8.04% CHF12.1k CHF12.0k CHF11.3k CHF12.0k CHF11.8k CHF11.5k CHF11.1k CHF10.7k CHF10.3k CHF9.9k ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CHF112.8b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CHF21b × (1 + 3.3%) ÷ (8% – 3.3%) = CHF465b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CHFCHF465b ÷ ( 1 + 8%)10 = CHF214.61b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is CHF327.39b. … SWX:NESN Intrinsic value, August 4th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

What Should We Expect From Nestlé S.A.'s (VTX:NESN) Earnings In The Year Ahead?

Looking at Nestlé S.A.'s (VTX:NESN) earnings update in December 2018, analysts seem fairly confident, with profits predicted to increase by 16% next year compared with the past 5-year average growth rate of -7.9%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … SWX:NESN Past and Future Earnings, July 26th 2019 This results in an annual growth rate of 9.0% based on the most recent earnings level of CHF10b to the final forecast of CHF14b by 2022.

Simply Wall St -

Nestlé S.A. (VTX:NESN) Is Employing Capital Very Effectively

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Nestlé: 0.16 = CHF15b ÷ (CHF137b - CHF43b) (Based on the trailing twelve months to December 2018.) So, Nestlé has an ROCE of 16%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. … What We Can Learn From Nestlé's ROCE Nestlé's ROCE does look good, but the level of current liabilities also contribute to that.

Simply Wall St -

Why Fundamental Investors Might Love Nestlé S.A. (VTX:NESN)

SWX:NESN Income Statement, June 26th 2019 Income investors would also be happy to know that NESN is a great dividend company, with a current yield standing at 2.4%. … SWX:NESN Historical Dividend Yield, June 26th 2019 Next Steps: For Nestlé, there are three fundamental factors you should look at: Future Outlook: What are well-informed industry analysts predicting for NESN’s future growth? … Take a look at our free research report of analyst consensus for NESN’s outlook.

Simply Wall St -

These Fundamentals Make Nestlé S.A. (VTX:NESN) Truly Worth Looking At

Established dividend payer with proven track record NESN delivered a bottom-line expansion of 42% in the prior year, with its most recent earnings level surpassing its average level over the last five years. … SWX:NESN Income Statement, June 26th 2019 NESN is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy. … SWX:NESN Historical Dividend Yield, June 26th 2019 Next Steps: For Nestlé, there are three relevant factors you should further research: Future Outlook: What are well-informed industry analysts predicting for NESN’s future growth?

Simply Wall St -

Nestlé S.A. (VTX:NESN): Has Recent Earnings Growth Beaten Long-Term Trend?

Today I will examine Nestlé S.A.'s (VTX:NESN) latest earnings update (31 December 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of NESN's industry performed. … Check out our latest analysis for Nestlé Were NESN's earnings stronger than its past performances and the industry? … I suggest you continue to research Nestlé to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for NESN’s future growth?

Simply Wall St -

What Does Nestlé S.A.'s (VTX:NESN) P/E Ratio Tell You?

See our latest analysis for Nestlé How Do I Calculate Nestlé's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Nestlé: P/E of 29.36 = CHF98.72 ÷ CHF3.36 (Based on the trailing twelve months to December 2018.) Is A High P/E Ratio Good? … In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.

Simply Wall St -

Could The Nestlé S.A. (VTX:NESN) Ownership Structure Tell Us Something Useful?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that have been privatized tend to have low insider ownership. … We'd expect to see both institutions and retail investors owning a portion of the company.

Simply Wall St -

Company Info

Description

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone Europe, Middle East and North Africa; Zone Americas; Zone Asia, Oceania and sub-Saharan Africa; and Nestlé Waters segments. It offers baby foods under the Cerelac, Gerber, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Poland Spring, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Nestle L’atelier, Nestle Toll House, Milkybar, Smarties, Quality Street, Aero, Garoto, Orion, and Cailler brands. The company also provides coffee products under the Nescafé original, Nespresso, Nescafé Dolce Gusto, Nescafé, Nescafé Original 3 in 1, Coffee-Mate, Nescafé Gold, and Nescafé Cappuccino brands; culinary, chilled, and frozen foods under the Maggi, Hot Pockets, Stouffer's, Thomy, Jacks, TombStone, Buitoni, DiGiorno, and Lean Cuisine brands; dairy products under the Carnation, Nido, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Sjora, Minor’s, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Peptamen, Resource, and Nutren Junior brands; ice cream products under the Dreyer’s, Mövenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Chef Michael’s, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. Further, it provides Starbucks Creamers. The company was founded in 1866 and is headquartered in Vevey, Switzerland.

Details
Name: Nestlé S.A.
NESN
Exchange: SWX
Founded: 1866
CHF301,164,110,494
2,887,479,487
Website: http://www.nestle.com
Address: Nestlé S.A.
Avenue Nestlé 55,
Vevey,
Vaud, 1800,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SWX NESN Registered Shares SIX Swiss Exchange CH CHF 06. Jan 1975
OTCPK NSRG.F Registered Shares Pink Sheets LLC US USD 06. Jan 1975
DB NESR Registered Shares Deutsche Boerse AG DE EUR 06. Jan 1975
XTRA NESR Registered Shares XETRA Trading Platform DE EUR 06. Jan 1975
LSE 0QR4 Registered Shares London Stock Exchange GB CHF 06. Jan 1975
SEP NESN Registered Shares The Stock Exchange Prague Co. Ltd. CZ CZK 06. Jan 1975
BMV NESN N Registered Shares Bolsa Mexicana de Valores MX MXN 06. Jan 1975
OTCPK NSRG.Y SPON ADR EACH REPR 1 COM CHF0.10 Pink Sheets LLC US USD 16. Mar 1990
DB NESM SPON ADR EACH REPR 1 COM CHF0.10 Deutsche Boerse AG DE EUR 16. Mar 1990
XTRA NESM SPON ADR EACH REPR 1 COM CHF0.10 XETRA Trading Platform DE EUR 16. Mar 1990
LSE 0RR6 CHF0.10 (2ND BUYBACK LINE) London Stock Exchange GB CHF 04. Jul 2017
SWX NESNE CHF0.10 (2ND BUYBACK LINE) SIX Swiss Exchange CH CHF 04. Jul 2017
Number of employees
Current staff
Staff numbers
308,000
Nestlé employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/20 20:54
End of day share price update: 2019/11/19 00:00
Last estimates confirmation: 2019/11/19
Last earnings filing: 2019/07/26
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.