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Nomad Foods Limited

NOMD
46
Packaged Foods · Consumer Defensive
Price
$11.51
-0.25 (-2.13%)
Market Cap
$1.61B
Winston Score
46
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

15.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 178.1M (2021) → 150.2M (2025)

Nomad Foods is a frozen food company based in Europe. It makes and sells everyday frozen meals, vegetables, and fish products under well-known brand names like Birds Eye, Findus, and iglo. Its main customers are grocery stores and supermarkets, and the end consumers are ordinary households across Europe looking for convenient, affordable meals.

The company earns money by selling packaged frozen food products to retailers, who then sell them to shoppers. Nomad operates almost entirely in Western and Central Europe, with the United Kingdom, Italy, Germany, and Sweden among its largest markets. Its competitive advantage comes from owning strong, trusted local brand names that have been in European kitchens for decades, which makes it harder for newer competitors to gain shelf space. The main risk the business faces is that rising food costs and price-sensitive consumers could squeeze its already modest profit margins, limiting its ability to grow earnings.

Winston Score History

Score breakdown

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Quality

Gross Margin
25.7%
Modest — 25.7% gross margin
Operating Margin
9.3%
Modest — 9.3% operating margin
ROCE
1.4%
Weak — 1.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-2.5%
Shrinking sales (-2.5% YoY)
EPS YoY
-35.5%
Earnings shrinking (-35.5% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
231%
Turns 231% of profit into real cash
FCF Margin
7.6%
Modest free cash flow (7.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.89
Moderate — manageable debt (0.89)
Interest Cover
3.61x
Tight — interest eats into profit (3.6x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
12.8x
Attractive valuation — P/E 12.8

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+6.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (12.8 → 6.6)

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Dividends

Dividend Yield
5.95%
Healthy income — 5.95% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth
+6.3%
Dividend growing modestly (6.3% YoY)

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