Nomad Foods: Don't Bet On Shareholder Returns To Continue -- Sell
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Alan Galecki544 FollowersFollow5ShareSavePlay(10min)Comment(1)SummaryNomad Foods (NOMD) is rated a sell due to deteriorating fundamentals and balance sheet risks.Overly aggressive price hikes eroded volume, revealing weak pricing power (despite the claim of “strong brands”) and driving consumers to private-label alternatives.Net debt of ~$1.7–$1.8 billion and near-zero FCF raise concerns about dividend sustainability and likely buyback reductions.With an enterprise value of $3.5 billion and ongoing operating headwinds, NOMD’s shareholder returns are at risk of significant cuts. nazar_ab/iStock via Getty Images Intro Nomad Foods (NOMD) is Europe’s largest frozen food company with a market share of close to 20%. The company sells its products across 22 markets and is headquartered in the UK, but the stockThis article was written byAlan Galecki544 FollowersFollowAlways on the hunt for undervalued, promising stocks with a focus on risk and reward. Limited risks and decent to high upside by knowing what one's owning. I strongly believe that the best investment ideas are often the simplest. If contrarian, the better.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You