Core Insights - Nomad Foods Limited reported a challenging second quarter in 2025, with unfavorable weather impacting consumer behavior and sales, leading to a decrease in revenue and profit metrics [2][5][7] - The company has lowered its full-year guidance for organic revenue and Adjusted EBITDA due to weaker-than-expected first half results, now expecting organic revenue to be flat to -2% and Adjusted EBITDA to decline by 3% to 7% year-on-year [5][8] Financial Performance - Revenue for the second quarter of 2025 decreased by 0.8% to €747 million compared to the same period in 2024, with organic revenue declining by 1.1% driven by a volume decline of 1.0% and a price/mix decline of 0.1% [7][8] - Adjusted EBITDA for the second quarter decreased by 7.2% to €129 million, while Adjusted EPS decreased by 9.1% to €0.40 [7][8] - For the first six months of 2025, revenue decreased by 1.9% to €1,507 million, with organic revenue down 2.4% due to a volume decline of 2.3% [8][23] Market Position and Strategy - Despite external challenges, Nomad Foods improved its market share in the quarter, with retail sell-out growth accelerating to +1% for the second quarter, bringing year-to-date growth to +0.7% [2][5] - The company is focusing on innovation and renovation initiatives to drive future growth, with expectations of organic sales returning to growth in the second half of the year, assuming normalized weather conditions [2][5] Guidance and Outlook - The revised full-year guidance includes an expected Adjusted EPS range of €1.64 to €1.76, down from the previous range of €1.82 to €1.89, translating to a USD range of $1.89 to $2.02 based on the July 30, 2025 exchange rate [5][8] - The company maintains its full-year adjusted free cash flow conversion guidance of 90% or greater, indicating a focus on cash generation despite the current challenges [5][8]

Financial Performance - Q2 2025 - Total Revenue was €747 million[19, 21], a decrease of 0.8% year-over-year[21] - Organic revenue declined by 1.1%[9, 19, 21] due to a 1% volume decline[9] - Adjusted Gross Margin contracted by 310 bps year-over-year to 27.8%[9, 19, 21] - Adjusted EBITDA decreased by 7% year-over-year to €129 million[9, 19, 21] - Adjusted EPS decreased by 9% year-over-year to €0.40[9, 19, 21] Cash Flow - YTD 2025 (6 Months Ended June 30) - Adjusted Free Cash Flow was €49 million[22] - Adjusted Free Cash Flow as a percentage of adjusted profit for the period was 43%[22] compared to 32% in the same period last year[22] Outlook - 2025 Guidance - Organic Revenue growth is expected to be between 0% and -2%[25] - Adjusted EBITDA is expected to decline by 3% to 7% year-over-year[25] - Adjusted EPS is projected to be in the range of €1.64 to €1.76[25] - Adjusted Free Cash Flow Conversion is expected to be 90%+[25]

Core Insights - Investors favor businesses with consistent profitability, measured effectively by net profit margin, which indicates a company's efficiency in converting sales into profits [1][2] - Companies such as Chefs' Warehouse, Perdoceo Education, Adtalem Global Education, and Nomad Foods exhibit strong net profit margins, making them attractive to investors [1][8] Financial Metrics - Net profit margin is calculated as Net Profit/Sales * 100, representing the amount retained after all expenses [2] - A higher net profit margin not only attracts investors but also skilled employees, enhancing overall business value [3] Investment Considerations - A strong net profit margin provides clarity on a company's business model, including pricing, cost structure, and manufacturing efficiency, making it a preferred metric for investors [4] - However, net profit margin varies significantly across industries, and its relevance can diminish for companies that rely heavily on debt financing [5] Screening Criteria - The screening parameters for selecting stocks include a net margin of at least 0%, positive earnings per share (EPS) growth, and a strong broker rating [7] - Stocks like CHEF, PRDO, ATGE, and NOMD were selected based on their strong net margins and favorable EPS growth outlooks, each holding a Zacks Rank of 2 and a VGM Score of A [8] Company Performance - Chefs' Warehouse has seen its 2025 earnings estimate revised upward to $1.75 per share, with a historical average earnings surprise of 11.3% [10] - Perdoceo Education's 2025 earnings estimate increased to $2.52 per share, with an average earnings surprise of 6.2% [12] - Adtalem Global Education maintains a fiscal 2026 earnings estimate of $6.52 per share, with an average earnings surprise of 18.4% [13] - Nomad Foods' 2025 earnings estimate was revised upward to $2.13 per share, with an average earnings surprise of 3.2% [14]

Core Viewpoint - Nomad Foods (NOMD) shows potential for significant upside, with a mean price target of $24 indicating a 37.2% increase from the current price of $17.49 [1] Price Targets and Analyst Estimates - The mean estimate consists of six short-term price targets with a standard deviation of $2.37, suggesting a range of estimates from $20.00 (14.4% increase) to $27.00 (54.4% increase) [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [9] Earnings Estimates and Analyst Sentiment - Analysts exhibit growing optimism about NOMD's earnings prospects, as evidenced by a positive trend in earnings estimate revisions, which correlates with near-term stock price movements [11] - Over the last 30 days, one estimate has increased, leading to a 1.7% rise in the Zacks Consensus Estimate for the current year [12] Zacks Rank and Investment Potential - NOMD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [13] - While consensus price targets may not be entirely reliable, the implied direction of price movement appears to be a useful guide for investors [14]

Group 1 - Nomad Foods Limited will report its second quarter results for the period ended June 30, 2025, before the market opens on August 6, 2025 [1] - A conference call with the executive management team is scheduled for 8:30 AM Eastern Daylight Time on August 6, 2025, to discuss the results [2] - The conference call will be accompanied by a presentation and will be webcast, accessible via the Nomad Foods website [2] Group 2 - 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 [3] - The company emphasizes its commitment to providing great tasting, convenient, high-quality, and nutritious food options for consumers [3] - Nomad Foods is headquartered in the United Kingdom, and additional information can be found on its website [3]

Core Insights - Nomad Foods (NOMD) is focusing on innovation to recover from a decline in total revenues, organic sales, and volume in Q1 2025, which fell by 3%, 3.6%, and 3.7% respectively [1][9] - The company is particularly enhancing its fish portfolio, which accounts for about one-third of total revenues, by renovating existing products and launching new lines [2][9] - Nomad Foods is targeting new consumption occasions, especially snacking, to reposition frozen fish products, with early success indicated by a 9% year-over-year increase in fish retail sales in Italy during Q1 [3][9] Innovation Strategy - The company plans to increase the percentage of sales from innovation in 2025 while maintaining investment levels despite macroeconomic challenges [4] - Management will monitor the performance of innovation initiatives and apply insights across markets to support volume trends and enhance product relevance over time [4] Industry Context - Other companies in the industry, such as Conagra Brands and Lamb Weston, are also focusing on innovation to drive growth, with Conagra reporting a 6.3% revenue decline in Q3 2025 and Lamb Weston achieving a 9% volume growth despite challenges [5][6][7] Financial Performance - Nomad Foods' shares have decreased by approximately 1.8% over the past month, contrasting with the industry's growth of 2.3% [8] - The company trades at a forward price-to-earnings ratio of 8.04X, significantly lower than the industry average of 15.97X [11] - The Zacks Consensus Estimate indicates a projected year-over-year sales growth of 4.6% and earnings per share growth of 7.3% for the current financial year [12] Sales and Earnings Estimates - Current quarter sales are estimated at $857.70 million, with a year-over-year growth estimate of 5.80% [14] - The earnings per share for the current year is projected at $2.07, reflecting a year-over-year growth estimate of 7.25% [15]

Core Insights - Nomad Foods Limited (NOMD) and Lamb Weston Holdings Inc. (LW) are key players in the global frozen foods market, employing different growth strategies and operational focuses [2][3] - NOMD leads in the European frozen food sector with a health-oriented product portfolio, while LW specializes in frozen potato products primarily for North American foodservice [2][3] Company Performance - NOMD's revenue is significantly derived from health-centric products, with 94% of its U.K. and Western Europe sales classified as healthy meals [4] - In Q1 2025, NOMD experienced a 3.6% organic sales decline but achieved retail sell-through growth and improved gross margins due to operational efficiencies [5] - NOMD reported a 36% year-over-year sales increase in innovation-led categories, particularly in chicken and frozen chips, with notable market share gains in Germany and the U.K. [6] - LW posted 9% volume growth and 4% sales growth in Q3 2025, but faced a 5% decline in price/mix due to competitive pricing pressures [10] Strategic Initiatives - NOMD is focused on brand equity and innovation, integrating marketing and merchandising to adapt to consumer preferences, which has led to a 9% sales growth in its Fish Bar sub-brand in Italy [7][8] - LW is undergoing a company-wide transformation targeting $55 million in pretax savings for fiscal 2025 and $85 million for fiscal 2026, with over 30 projects aimed at improving efficiency [11] - LW has introduced new products to align with consumer trends, but continues to face margin pressures from high inventory costs and unfavorable pricing dynamics [12] Financial Metrics - The Zacks Consensus Estimate for NOMD's EPS in 2025 is projected at $2.07, indicating a 7.3% year-over-year growth [14] - In contrast, LW's EPS estimate for fiscal 2025 is $3.14, reflecting a significant projected decline of 38.2% compared to the previous year [14] - NOMD trades at a forward P/E ratio of 8.05x, below the industry average of 15.83x, while LW trades at a higher multiple of 15.59x, suggesting NOMD is the more value-oriented option [17] Market Performance - Over the past six months, NOMD has gained 5.9%, while LW has declined by 13.9%, indicating NOMD's stronger market performance [19] - NOMD's consistent execution and diversified product portfolio position it favorably in the evolving frozen foods industry [21] - Investors seeking value and stability may find NOMD a more compelling investment choice in the current market environment [22]

Core Insights - Nomad Foods Limited (NOMD) is facing increasing input cost pressures, particularly in protein categories such as chicken and red meat, due to heightened demand and disruptions related to Asian flu in Europe [1][7] - The company's management indicated that pricing actions are being implemented but will likely lag behind cost inflation in the near term, leading to a revised lower adjusted EBITDA growth guidance for 2025 [2][3] Financial Performance - In Q1 2025, Nomad Foods reported a gross margin increase of 90 basis points year-over-year to 27.8%, but adjusted EBITDA declined by 1.8%, indicating early signs of margin pressure [2][7] - The updated guidance for adjusted EBITDA growth for 2025 has been revised downward to a range of 0% to 2%, from a previous range of 2% to 4% [2] Market Position and Strategy - Nomad Foods has a history of pricing to recover cost increases, but prolonged inflation in protein inputs may challenge consumer elasticity, particularly in value-seeking markets like the UK [3] - The company must balance cost recovery with demand retention while maintaining brand strength to offset margin pressure in the upcoming quarters [3] Peer Comparison - Conagra Brands (CAG) is also facing elevated protein and input costs, resulting in a 389-basis-point adjusted gross margin decline in Q3 fiscal 2025, and is focusing on portfolio restructuring [4] - Lamb Weston reported 9% global volume growth in Q3 fiscal 2025 and is executing over 30 strategic projects, despite a 5% decline in price/mix due to strategic pricing adjustments [5] Valuation Metrics - Nomad Foods shares have decreased approximately 5.5% in the past month, compared to a 1.7% decline in the industry [6] - The company trades at a forward price-to-earnings ratio of 7.89X, significantly lower than the industry average of 15.77X [9] Earnings Estimates - The Zacks Consensus Estimate for Nomad Foods' current financial-year sales and earnings per share implies year-over-year growth of 4.6% and 7.3%, respectively [11] - For Q2 2025, the consensus estimate for sales is $892.71 million, reflecting a year-over-year growth estimate of 5.54% [12]

Core Insights - Nomad Foods Limited (NOMD) is trading at a forward 12-month price-to-earnings (P/E) ratio of 8.12, significantly lower than the industry average of 16.02, indicating a compelling investment opportunity for value-focused investors [1][4] - The company has a Value Score of A, reflecting strong fundamentals and positioning within the market [1] - Recent stock performance shows NOMD shares have declined by 9.4% over the past three months, underperforming both the industry and broader market indices [5] Valuation Comparison - NOMD's forward P/E ratio of 8.12 is notably lower than major competitors such as Mondelez International (21.18), The Hershey Company (27.42), and McCormick & Company (23.78) [4] - The stock is currently priced at $17.43, approximately 16.2% below its 52-week high of $20.81 [9] Growth Strategy - The company reported a 36% year-over-year sales growth in its Growth Platforms during Q1 2025, with notable performance in chicken and prepared meals [12] - NOMD is investing in innovation, launching new product lines and brand relaunches to enhance consumer engagement, particularly in the fish category [11][10] - Retail sales of NOMD's fish products in Italy increased by 9% year-over-year, showcasing the effectiveness of its revitalization strategy [13] Earnings Estimates - The Zacks Consensus Estimate for NOMD's earnings per share (EPS) has seen upward revisions, with the current fiscal year estimate rising by 8 cents to $2.07 and next fiscal year by 11 cents to $2.25 [14] - Projected year-over-year EPS growth is expected to be 7.3% this year and 8.7% next year [14] Market Challenges - The company is facing inventory destocking across European markets, leading to a gap of nearly 4 percentage points between sell-in and retail sell-through in Q1 2025 [15] - Rising input costs, particularly in chicken and red meat, are expected to pressure profitability in the near term due to inflationary pressures and supply disruptions [17]

Core Insights - Frozen foods are experiencing rapid growth due to convenience, durability, and healthier options, with Nomad Foods Limited (NOMD) leading the savory frozen food market [1][2] - The company is focused on acquiring a leadership position in the frozen food sector through product launches, market expansion, sustainability efforts, and strategic acquisitions [2][3] Company Strategy - Innovation is central to NOMD's strategy, enhancing its product offerings and market presence through acquisitions like Fortenova Group's Frozen Food Business Group, Findus Switzerland, Goodfella's, and Aunt Bessie's Limited [3][10] - The management highlighted that the frozen food category has outpaced the overall food industry by nearly one percentage point over the last decade, driven by trends in convenience, sustainability, value, and taste [4] Market Position and Competition - NOMD is strategically positioned to leverage evolving market trends and meet consumers' nutritional needs, with major competitors including Conagra Brands, Inc. and Tyson Foods, Inc. [5][6] - Conagra reported net sales of $1.1 billion in its Refrigerated & Frozen segment for the third quarter of fiscal 2025, emphasizing innovation and supply-chain modernization [7] - Tyson Foods' Prepared Foods segment generated $2.4 billion in sales in the second quarter of fiscal 2025, focusing on a broad range of frozen and refrigerated products [8] Financial Performance - NOMD's shares have increased by 5.5% year-to-date, outperforming the industry's decline of 2.2% [9] - The company trades at a forward price-to-earnings ratio of 8.11X, significantly lower than the industry average of 15.98X [11] - The Zacks Consensus Estimate indicates year-over-year EPS growth of 7.3% for 2025 and 8.7% for 2026, although estimates have been revised downward in the past 30 days [12]