Nomad Foods (NYSE:NOMD) is a mid-cap company that operates within the food products industry. Its market cap is $3 billion today and the total one-year return is 44.96% for shareholders.
Nomad Foods stock is beating the market, and it reports earnings soon. But does that make it a good buy today? To answer this question we've turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✓ Earnings-per-Share (EPS) Growth: Nomad Foods reported a recent EPS growth rate of 1100%. That's above the food products industry average of 37.06%. That's a great sign. Nomad Foods’ earnings growth is outpacing competitors.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the food products industry is 136.63. And Nomad Foods’ ratio comes in at 22.36. It's trading at a better value than many of its competitors.
✗ Debt-to-Equity : The debt-to-equity ratio for Nomad Foods stock is 77.41%. That's above the food products industry average of 43.10%. That's not a good sign.
✗ Free Cash Flow per Share Growth : Nomad Foods has decreased its FCF per share over the last year relative to its competitors. That's not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
✓ Profit Margins : The profit margin of Nomad Foods comes in at 9.13% today. And generally, the higher, the better. We also like to see this ratio above competitors. Nomad Foods’ profit margin is above the food products average of 5.28%. So that's a positive indicator for investors.
✗ Return on Equity : Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for Nomad Foods is 5.77% and that's below the industry average ROE of 13.15%.
Nomad Foods stock passes three of our six key metrics today. That's why our Investment U Stock Grader gives it a Hold.