Nestle SA — Financial Overview, Stock Price, Market Cap

Financial Performance

5Y price score: (39)

10Y return: 44.8%

DATE RANGE:

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70.2

52-week range

87.0

82.43

Your model inputs

Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

5.9 %

Dividend Yield TTM

3.8 %

Market cap

$ 212,028

Price / Earnings TTM

28.5

Price / Book TTM

7.3

PEG TTM

(1.8)

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

2.7 %

(15.5) %

44.8 %

Free cash flow per share growth

(12.1) %

25.7 %

32.8 %

Earnings per share growth

(37.5) %

(18.2) %

21.5 %

Founded: 1,866

Employees: 270,000

Business Summary: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; and Zone Asia, Oceania and sub-Saharan Africa segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, 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, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, Hot Pockets, Stouffer's, Thomy, Jacks, TombStone, Herta, Buitoni, DiGiorno, and Lean Cuisine brands; dairy products under the Carnation, Nido, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, 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, Optifast, 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, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.

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Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q2 (Jul 23, 2026)

1) Strategy & Leadership - CEO Philipp Navratil emphasized the importance of consistent execution and improving operational efficiency to drive growth. - The company aims to sharpen its portfolio, focusing on four key categories: Coffee, PetCare, Nutrition, and Food & Snacks. - Nestlé is committed to achieving sustained organic growth of 4%+, with a target of at least 2% from real internal growth (RIG). - The partnership for Nestlé Waters is a strategic move to enhance focus and drive growth in premium beverages.

2) Financial & Segment Results - Nestlé reported 3.6% organic sales growth in H1 2026, with RIG at 1.5% and pricing at 2.1%. - RIG improved from 1.2% in Q1 to 1.8% in Q2, marking four consecutive quarters of positive growth. - Free cash flow was strong at CHF 3.4 billion, significantly higher than the previous year, with net debt reduced to CHF 56.3 billion. - Underlying trading operating profit (UTOP) margin was 16.4%, a slight decline year-on-year, attributed to higher input costs and increased marketing investment.

Metric	H1 2026	H1 2025	YoY Change
Organic Sales Growth	3.6%	N/A	N/A
RIG	1.5%	N/A	N/A
Pricing	2.1%	N/A	N/A
Free Cash Flow	CHF 3.4B	N/A	N/A
UTOP Margin	16.4%	16.5%	-10 bps

3) Problems / Headwinds - The company faced challenges from foreign exchange impacts, particularly a 9% drag in Q1 due to a stronger Swiss franc. - Retailer inventory reductions in North America and customer delistings in Europe negatively impacted growth. - The infant formula recall continues to affect performance, although improvements are expected in the second half.

4) Operational or Product Plans - Nestlé plans to increase marketing investment, up from 8.1% two years ago to 8.9% today, focusing on both core and growth platforms. - The company is enhancing innovation and leveraging AI to improve marketing effectiveness. - Continued focus on driving RIG through better product offerings and stronger brand visibility.

5) Guidance & Outlook / Investor Angle - Nestlé tightened its 2026 organic growth guidance to a range of 3% to 4%, with no change to profitability outlook. - The company expects UTOP margins in H2 to be broadly similar to H1, with further cost savings anticipated. - There is cautious optimism regarding RIG performance in the second half, despite tougher comps and some one-off impacts from Q2.

Bottom line: Nestlé is on track to meet its 2026 guidance, with a clear strategy focused on consistent execution and operational efficiency. While facing some headwinds, the company is committed to driving RIG-led growth and enhancing shareholder value through strategic investments and portfolio optimization.