Core Insights - Nomad Foods is recognized as Europe's largest frozen food company, holding a market share of nearly 20% [1] - The company operates in 22 markets and is headquartered in the UK [1] Company Overview - Nomad Foods specializes in frozen food products, indicating a strong presence in the food industry [1] - The company's strategy focuses on identifying undervalued stocks with potential for high returns while managing risks effectively [1]

Core Insights - Renaissance Investment Management's Q3 2025 "International Small Cap Equity Strategy" investor letter indicates that international equities have achieved positive returns for three consecutive quarters, on track for their best year since 2017 [1] - The portfolio outperformed its benchmark during the quarter, showcasing strong relative performance [1] Company Analysis: Nomad Foods Limited (NYSE:NOMD) - Nomad Foods Limited is a food company specializing in frozen food products, with a market capitalization of $1.854 billion as of December 10, 2025 [2] - The stock experienced a one-month return of -1.23% and a significant decline of 30.44% over the past 52 weeks [2] - The company was identified as the largest detractor from performance in the portfolio due to weaker-than-expected revenue attributed to unusually warm weather affecting frozen food sales [3] - Rising input costs are anticipated, with recovery expected only after price adjustments in 2026 [3] Hedge Fund Interest - Nomad Foods Limited was held by 32 hedge fund portfolios at the end of Q3 2025, an increase from 24 in the previous quarter [4] - Despite its potential, the company is not considered among the 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks present greater upside potential and lower downside risk [4]

Core Insights - The article highlights two undervalued dividend stocks, Zoetis and Nomad Foods, as attractive investment opportunities in a market characterized by high valuations for growth stocks [1][2]. Zoetis - Zoetis is a global leader in animal healthcare, generating over $100 million annually from 17 blockbuster products [5]. - The company has seen its market value decline by 50% since 2022, despite its leading position in the market [6]. - Currently trading at 20 times earnings, Zoetis is at its lowest valuation ever, making it appealing for dividend investors [9]. - The company maintains a strong innovation pipeline, with new monoclonal antibody drugs aimed at treating osteoarthritis in pets [10]. - Zoetis' livestock unit provides stability, as demand for protein is expected to rise, ensuring continued need for its products [11]. - The company has a return on invested capital (ROIC) of 22%, indicating strong profitability and cash returns to shareholders [12]. - Over the last decade, Zoetis has increased its dividend by 19% annually, with a current yield of 1.7% [13]. Nomad Foods - Nomad Foods is the leading frozen foods provider in Europe, particularly in the protein and vegetable categories [14]. - The stock has dropped 62% from its all-time high in 2021, trading at a low enterprise value to EBITDA ratio of 7 [15]. - Recent sales and adjusted earnings declined by 2% and 11% respectively, attributed to unusual weather affecting the frozen food market [17]. - The company is focusing on healthier food options, with new chicken offerings and protein bowls seeing a 34% increase in sales [19]. - Management prioritizes share repurchases as a key use of cash flow, having reduced share count by 4% annually over the last five years [21]. - Nomad has initiated a new dividend yielding 5.7%, utilizing only 46% of its net income [21]. - The CFO's personal investment of $1 million in Nomad shares signals confidence in the company's undervaluation [23].

Core Insights - Nomad Foods Limited (NYSE:NOMD) is a prominent player in the frozen food industry, particularly in Europe, focusing on innovation and strategic growth initiatives to maintain its market position [1] Financial Performance - For Q3 2025, Nomad Foods reported an EPS of $0.57, exceeding the estimated $0.47 and the Zacks Consensus Estimate of $0.55, resulting in a +3.64% earnings surprise [2][6] - The company generated approximately $882 million in revenue, surpassing the estimated $761 million and showing growth from $845.81 million in the same quarter last year [3][6] - However, there was a 2.2% decrease in revenue to €752 million compared to the same period in 2024, with organic revenue declining by 1.6% [3] Management Outlook - CEO Stéfan Descheemaeker expressed optimism regarding temporary category weakness and weather-related pressures, indicating that strong results in Growth Platforms helped mitigate these challenges [4] - The company is on track to deliver full-year results near the low end of its existing guidance ranges [4][6] Market Valuation - Nomad Foods has a price-to-earnings (P/E) ratio of approximately 7.58, a price-to-sales ratio of about 0.51, and an enterprise value to sales ratio of approximately 1.11, indicating a relatively low market valuation compared to its sales [5] - The debt-to-equity ratio stands at about 0.82, reflecting a moderate level of leverage [5]

Financial Data and Key Metrics Changes - The company confirmed its guidance for Q4, albeit at the low end, expecting a top-line decline of between -1.5% and -2% [19] - Year-to-date sellout growth is reported at +0.2%, with the last three months showing a value growth of +0.5% and volume growth of +0.7% [20][40] - The company is actively working on a €200 million multi-year efficiency target, which remains a priority [6][10] Business Line Data and Key Metrics Changes - The company is focusing on improving product quality in its pizza business in the UK, with early positive signals from a new campaign launched in September [20] - Renovation efforts are underway for key products such as fish fingers and pizza, which are expected to enhance competitiveness against private labels [26][27] Market Data and Key Metrics Changes - The company has observed a slight decrease in its price index compared to private label competitors, which has been beneficial in the context of necessary price increases [9] - The competitive landscape is evolving, with private labels improving in quality and innovation, prompting the company to enhance its value proposition [23][26] Company Strategy and Development Direction - The company is committed to a holistic approach for pricing and product renovation, aiming to balance cost increases with maintaining market share [30][32] - The focus remains on cash flow growth and reducing exceptional items while driving a competitiveness program [6][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced this year, including weather impacts and a less favorable ice cream season, but expresses confidence in recovery and improvement [19][40] - The incoming CEO is expected to build upon the foundation laid by the current management, with optimism for future performance [47] Other Important Information - The company plans to continue share buybacks, especially given the current low price-to-earnings ratio, indicating a belief in the intrinsic value of the company [43] - The management has emphasized the importance of not being complacent in the competitive frozen food category, focusing on both pricing and non-pricing factors [24][26] Q&A Session Summary Question: Are the medium-term goals still relevant after the CEO change? - Management reassured that the commitments regarding efficiency targets and EBITDA growth remain intact despite the leadership change [6][7] Question: How is the company balancing pricing with market share? - The company noted that while private labels have caught up slightly in pricing, they are implementing a cost competitiveness program to help manage inflation and maintain market share [9][10] Question: What are the expectations for 2026? - Management indicated that while it is too early to provide specific guidance for 2026, they expect results to improve compared to 2025 [16][17] Question: What factors could impact Q4 results? - Management highlighted that pricing decisions and competition dynamics would be key factors influencing Q4 performance [21] Question: How is private label competition evolving? - Management acknowledged that private labels are improving in quality and innovation, necessitating a stronger value proposition from the company [23][26] Question: What drove the decision to delay repricing? - The decision was based on a more stable cost environment compared to previous years, avoiding unnecessary negotiations [31][32] Question: What are the capital allocation priorities? - The company plans to prioritize share buybacks and dividends, supported by recent refinancing efforts [41][43]

Core Insights - Nomad Foods reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.55 per share, but down from $0.60 per share a year ago, resulting in an earnings surprise of +3.64% [1] - The company generated revenues of $879.5 million for the quarter ended September 2025, slightly surpassing the Zacks Consensus Estimate by 0.01% and up from $845.81 million year-over-year [2] - Nomad Foods has outperformed consensus EPS estimates three times over the last four quarters and has topped revenue estimates twice in the same period [2] Earnings Outlook - The future performance of Nomad Foods' stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.49 on revenues of $903.84 million, while the estimate for the current fiscal year is $1.91 on revenues of $3.54 billion [7] Industry Context - The Zacks Industry Rank indicates that the Food - Miscellaneous sector is currently in the bottom 31% of over 250 Zacks industries, suggesting potential challenges for stocks within this category [8] - Another company in the same industry, Campbell's, is expected to report quarterly earnings of $0.74 per share, reflecting a year-over-year decline of -16.9%, with revenues projected at $2.67 billion, down 3.8% from the previous year [9]

Third Quarter 2025 Performance - Organic growth contracted by 1.6% due to a 0.5% volume decline, but trends improved sequentially throughout the quarter[8] - Category sales growth accelerated to 2%+ value growth[8] - Adjusted gross margin decreased by 420 bps year-over-year due to higher COGS inflation[8] - Adjusted EBITDA declined 14% year-over-year, and Adjusted EPS fell 11%[8] - Total revenue was €752 million, a 2.2% decrease from €770 million in 3Q 2024[23] - Adjusted gross profit decreased by 15% from €248 million to €212 million[23] - Adjusted EBITDA was €143 million, a 14% decrease from €166 million[23] - Adjusted EPS was €0.49, an 11% decrease from €0.55[23] Cash Flow and Capital Allocation - The company returned cash to shareholders through share repurchases (€151 million YTD) and dividend payments (€70 million YTD), collectively up 100% year-over-year[8] - Adjusted free cash flow was €66 million for the nine months ended September 30, 2025, compared to €105 million for the same period in 2024[24] Outlook - Management expects to deliver full-year 2025 results near the low-end of its organic revenue, Adjusted EBITDA, and Adjusted EPS ranges[8] - The company is guiding to the low end of its existing 2025 ranges, with organic revenue between 0% to -2%, and Adjusted EBITDA between -3% to -7% year-over-year[27]

Core Insights - Nomad Foods Limited is on track to deliver full-year results near the low end of its existing guidance ranges, with challenges faced in the third quarter of 2025 impacting overall performance [1][5]. Financial Performance - For the third quarter of 2025, revenue decreased by 2.2% to €752 million compared to the same period in 2024, with organic revenue declining by 1.6% due to a volume decline of 0.5% and a price/mix decline of 1.1% [3][4]. - Adjusted EBITDA for the third quarter decreased by 14.2% to €143 million, and adjusted EPS decreased by 10.9% to €0.49 [4][3]. - For the first nine months of 2025, revenue decreased by 2.0% to €2,259 million, with organic revenue down by 2.1% driven by a volume decline of 1.6% [3][4]. Management Commentary - CEO Stéfan Descheemaeker noted that while the third quarter results were in line with expectations, the company faced headwinds such as weather-related category pressure and soft performance in the UK, which offset strong performance in growth platforms [1]. - Co-Chairman Noam Gottesman expressed confidence in the underlying fundamentals of the business and highlighted the company's focus on innovation and efficiency programs to drive future growth [1]. Guidance - The company expects full-year organic revenue to be near the low end of its flat to -2% range, with adjusted EBITDA anticipated to be near the low end of the -3% to -7% year-on-year range [5]. - Adjusted EPS is expected to be near the low end of its €1.64 to €1.76 range, translating to a USD range of $1.89 to $2.02 based on the USD/EUR exchange rate as of September 30, 2025 [5]. Strategic Initiatives - Nomad Foods is focusing on a robust pipeline of innovation and renovation initiatives, with price increases for 2026 already communicated to the trade [1]. - The company has implemented a multi-year efficiency program aimed at providing further financial flexibility [1].

Core Insights - Nomad Foods Limited has successfully priced a USD 620 million term loan and a EUR 880 million term loan, both due in 2032, with interest rates linked to SOFR and EURIBOR respectively [1] - The company has extended its Revolving Cash Facility of EUR 175 million to 2032, indicating a strategic move to enhance liquidity and financial flexibility [1] - The net proceeds from the term loans will be utilized for repaying existing loans, transaction expenses, and general corporate purposes, reflecting a focus on financial restructuring [1] - The CFO of Nomad Foods expressed satisfaction with the refinancing outcome, highlighting the strength of the company's cash flow and portfolio [1] Company Overview - Nomad Foods is recognized as Europe's leading frozen food company, with a portfolio that includes well-known brands such as Birds Eye, Findus, iglo, Ledo, and Frikom [2] - The company is headquartered in the United Kingdom and is committed to providing high-quality, nutritious, and convenient food options to consumers [2]

Core Insights - The article discusses the current market environment, highlighting the performance of high P/E growth stocks and the potential shift towards undervalued stocks trading below their book value due to economic factors like tariffs and interest rates [2][3]. Group 1: Market Overview - High P/E growth stocks are currently performing well, but this trend may not last as economic pressures from tariffs and inflation set in [2]. - There is a suggestion to consider cheap stocks that trade below their book value, as some companies are undervalued despite the overall market's high valuations [3]. Group 2: Company Analysis - **Deutsche Bank**: Market cap of $64.76 billion, trading at a 15% discount to book value, P/E ratio of 10.24, debt-to-equity ratio of 2.29, and a dividend yield of 3.48% [4]. - **Lincoln National**: Market cap of $7.57 billion, shares at 88% of book value, P/E ratio of 6.97, debt-to-equity ratio of 0.60, and a dividend yield of 4.51% [5]. - **Matador Resources**: Market cap of $4.89 billion, trading at an 11% discount to book value, P/E ratio of 6.29, debt-to-equity ratio of 0.58, with a dividend yield of 3.43% [6]. - **Nomad Foods**: Market cap of $1.81 billion, trading at 59% of book value, P/E ratio of 8.05, debt-to-equity ratio of 0.82, and a dividend yield of 6.30% [7].