Nestle S.A. (NSRGF) Stock

Nestle S.A. trades at a P/E ratio of 18.19, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 17.46 is lower than the current P/E, indicating analysts expect earnings to grow over the next year.

With a beta of 0.51, Nestle S.A. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 6.43 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Nestle S.A. achieves a profit margin of 11.34%, meaning it retains $11.34 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 16.07% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 33.76% and ROA at 7.02%, the company generates strong returns on invested capital.

Nestle S.A.'s revenue declined by 1.80% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 8.90% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against Packaged Foods industry averages for proper context.

Nestle S.A. offers a dividend yield of 3.99%, paying $3.67 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment.

The dividend sustainability can be assessed through the payout ratio - Nestle S.A. pays $3.67 per share in dividends against earnings of $5.07 per share, resulting in a payout ratio of 72.39%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns.

Nestle S.A. has a market capitalization of $238.6B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 2.57B shares outstanding, the company's ownership is widely distributed. As a major player in the Packaged Foods industry, it competes with other firms in this sector.

Nestle S.A.'s book value per share is $14.35, while the current stock price is $96.83, resulting in a price-to-book (P/B) ratio of 6.75. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As EQUITY, this represents a specific type of security.