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Nestlé S.A.

NESN.SW
46
Packaged Foods · Consumer Defensive
Also trades as: NSRGY
Exchange
SIX Swiss Exchange
Winston Score
46
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Weak
Cash Flow
Exceptional
Stability
Mixed
Valuation
Strong
Dividends
Strong

Winston Score History

The full picture

Nestlé is one of the largest food and beverage companies in the world, selling products that billions of people buy every day. Its brands include Nescafé coffee, KitKat chocolate, Maggi soups, Purina pet food, and Nestlé water, sold to everyday consumers through grocery stores, restaurants, and online retailers. The company operates across nearly every food and drink category, making it one of the most diversified packaged food businesses on the planet.

Nestlé makes money by manufacturing and selling branded consumer goods, with revenue coming from repeat purchases of everyday staples rather than one-time sales. It operates in roughly 190 countries, generating annual sales of around $90 billion, and its competitive strength comes from owning deeply trusted brands that command premium shelf space and pricing power. The company's main growth challenge is balancing price increases — used to offset rising ingredient costs — against the risk of losing budget-conscious shoppers to cheaper store-brand alternatives.

Score breakdown

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Quality

Profit per sale
Gross Margin
46.4%
Healthy — 46.4% gross margin
Profit after running costs
Operating Margin
16.2%
Healthy — 16.2% operating margin
Return on the money invested
ROCE
15.2%
Strong — 15.2% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
-2.8%
Shrinking sales (-2.8% YoY)
Profit growth
EPS YoY
-27.7%
Earnings shrinking (-27.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
220%
Turns 220% of profit into real cash
Spare cash per sale
FCF Margin
14.2%
Converts sales into free cash efficiently (14.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
2.15
Heavy debt load (2.15)
Covers its interest
Interest Cover
7.95x
Adequate interest coverage (8.0x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
27.2x
no trend
Growth-priced — P/E 27.2

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+11.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (27.2 → 15.9)

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Dividends

Dividend
Dividend Yield
3.82%
no trend
Moderate income — 3.82% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
+13.1%
no trend
Dividend growing fast (13.1% YoY)

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