Nomad Foods Ltd (NOMD)

Price$11.64Cached quoteAs of 2026-09-05 20:26 UTC

AI: Undervalued

Price checkThe shares look undervalued because low earnings and cash multiples already price in lasting weakness.

Management’s 2026 outlook translates to roughly six to seven times adjusted earnings, which exclude selected unusual costs. Applying its minimum 90% cash-conversion target to guided adjusted profit implies about €175 million to €195 million of free cash flow, meaning cash left after running and investing in the business. That represents an estimated low-to-mid-teens yield on the equity value. Including about €2.0 billion of net debt, the whole business costs near seven times guided operating cash profit. These low multiples compensate for shrinking sales, leverage, and accounting adjustments.

Big pictureCash generation remains useful, but sales and profits have weakened from their recent peak.

Revenue peaked at €3.10 billion in 2024, then slipped 2.2% in 2025. Operating income fell 16% and reported net income fell 40%, partly because refinancing produced €57 million of after-tax losses. Even so, operating cash flow less capital spending produced about €252 million in 2025. This measure was positive throughout 2020-2025, although it fell from €355 million in 2024. Food demand is relatively defensive, but profit still moves with retailer orders and food-cost cycles. First-half 2026 revenue dropped another 4.5%, confirming that durability is being tested.

Business strengthLeading frozen-food brands support cash flow, while heavy borrowing limits financial flexibility.

Birds Eye, Findus, iglo, Ledo and Frikom give Nomad leading positions across European frozen food and support repeat demand. Liquidity appears adequate: June current assets of €1.19 billion slightly exceeded €1.08 billion of current liabilities. The concern is about €2.0 billion of net debt, more than four times guided 2026 operating cash profit, while goodwill and brands dominate assets. Buybacks cut shares from 172.6 million in 2022 to 139.8 million by June 2026, limiting dilution. However, the €287 million returned through dividends and repurchases in 2025 competed with debt reduction.

What could change the storyA volume recovery would unlock upside; continued customer losses or costly debt would erase it.

The bull case needs volumes to recover while pricing holds, allowing the planned €200 million of 2026-2028 savings to rebuild margins and support management’s targeted 15% free-cash-flow growth. Evidence would be comparable sales turning flat or positive and debt falling. The bear case is already visible: first-half 2026 volume fell 5.1%, adjusted operating cash profit dropped 13.3%, and refinancing raised interest expense. The valuation does not require strong growth or every planned saving, but it does require cash generation to stop eroding and leverage to remain serviceable.

AI: News

Second-quarter margin reboundPricing restored margins, but falling volumes and lower earnings guidance kept the recovery incomplete.

On August 13, Nomad reported second-quarter revenue down 3.1% to €724 million. Volumes fell 5.9%, while pricing and product mix added 3.0%; adjusted gross margin improved 1.1 percentage points to 28.9%. Adjusted operating cash profit still declined 4.3%. The company lowered 2026 adjusted earnings guidance to €1.38-€1.53 per share because refinancing and variable rates increased interest costs. Shares were reported down about 5% before trading opened but finished 5.6% higher; that reversal makes attribution uncertain.

Debt maturity extendedA major refinancing reduced near-term repayment risk but raised interest costs and lowered expected earnings.

On July 30, Nomad issued €800 million of 5.25% secured notes due in 2033 and used the proceeds to repay the same amount of notes due in 2028. It also increased its revolving credit line by €105 million to €280 million. This extends a large maturity and adds liquidity without reducing debt. The trade-off is a higher interest burden, later reflected in reduced 2026 earnings guidance, so debt repayment has become more important to the value of the shares.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	€3.03B	€3.10B	€3.04B	€2.94B	€2.61B	€2.52B	€2.32B	€2.17B	€1.96B	€1.93B	€0
Gross profit	€823.0M	€917.8M	€858.7M	€815.3M	€744.3M	€762.5M	€697.9M	€653.5M	€599.4M	€571.0M	€0
Gross margin	27.14%	29.61%	28.20%	27.73%	28.55%	30.31%	30.03%	30.08%	30.63%	29.62%	—
Research & development	€23.3M	€20.9M	€20.9M	€19.3M	€19.2M	€17.6M	€18.9M	€15.5M	€15.4M	€13.3M	€0
Operating expenses	€497.6M	€530.8M	€518.3M	€439.9M	€401.6M	€403.3M	€414.4M	€370.4M	€356.5M	€432.9M	€167.6M
Operating income	€325.4M	€387.0M	€340.4M	€375.4M	€342.7M	€359.2M	€283.5M	€283.1M	€242.9M	€138.1M	−€167.6M
Operating margin	10.73%	12.48%	11.18%	12.77%	13.15%	14.28%	12.20%	13.03%	12.41%	7.16%	—
EBITDA	€434.8M	€483.9M	€435.4M	€464.0M	€414.3M	€426.8M	€351.8M	€329.4M	€285.3M	€189.2M	−€167.6M
EBITDA margin	14.34%	15.61%	14.30%	15.78%	15.89%	16.96%	15.14%	15.16%	14.58%	9.81%	—
Net income	€136.7M	€227.1M	€192.7M	€249.8M	€181.0M	€225.1M	€153.6M	€170.5M	€136.5M	€36.4M	−€167.5M
Net profit margin	4.51%	7.33%	6.33%	8.50%	6.94%	8.95%	6.61%	7.85%	6.98%	1.89%	—
Basic EPSper basic share	€0.91	€1.41	€1.13	€1.43	€1.02	€1.16	€0.80	€0.97	€0.78	€0.20	-€3.35
Diluted EPSper diluted share	€0.91	€1.40	€1.13	€1.43	€1.02	€1.14	€0.78	€0.97	€0.74	€0.20	-€3.35

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of NOMD
Holder	Shares held
Gottesman Noam	11.28M
FRANKLIN MARTIN E	10.88M
Allspring Global Investments Holdings, LLC	5.3M
Boston Partners	5.24M
DESCHEEMAEKER STEFAN	4.2M
BROWN ADVISORY INC	4.07M
MASSACHUSETTS FINANCIAL SERVICES CO /MA/	4M
Doma Perpetual Capital Management LLC	3.83M
ROYCE & ASSOCIATES LP	3.32M
River Road Asset Management, LLC	3.11M
T. Rowe Price Investment Management, Inc.	2.58M
RENAISSANCE TECHNOLOGIES LLC	2.57M
FMR LLC	2.56M
STOREBRAND ASSET MANAGEMENT AS	2.54M
TWO SIGMA INVESTMENTS, LP	2.53M
NORGES BANK	2.11M
Invenomic Capital Management LP	2.09M
Polaris Capital Management, LLC	1.78M
Mount Capital Ltd	1.78M
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	1.78M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys5$9.16M disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 15, 2026Form 4	BRISBY DOMINICChief Executive Officer	BuyOrdinary Shares	150.0K	$9.79	$1.47M	676.8K
May 14, 2026Form 4	BALDEW RUBENChief Financial Officer	BuyOrdinary Shares	14.7K	$9.71	$143.0K	338.9K
May 13, 2026Form 4	ASHKEN IAN G HDirector	BuyOrdinary Shares · indirect	100.0K	$9.13	$913.0K	116.9K
May 12, 2026Form 4	Gottesman NoamDirector,Other	BuyOrdinary Shares · indirect	200.0K	$9.23	$1.85M	7.41M
May 11, 2026Form 4	Gottesman NoamDirector,Other	BuyOrdinary Shares · indirect	500.0K	$9.57	$4.79M	7.21M

Review ownership filings at SEC.gov ↗

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Nomad Foods Ltd (NOMD)

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