Zacks.com featured highlights include Nomad Foods, AerSale, BJ's Restaurants, AXIS Capital and Avista
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 08 2025
0mins
Source: NASDAQ.COM
Stock Analysis Overview: The article discusses five stocks—Nomad Foods, AerSale Corp, BJ's Restaurants, AXIS Capital, and Avista Corp—that have attractive EV-to-EBITDA ratios, suggesting they may be undervalued compared to their earnings potential.
Valuation Metrics Comparison: It highlights the advantages of using EV-to-EBITDA over the traditional P/E ratio for assessing company value, particularly for firms with high debt or negative net earnings, while also noting that it should be used alongside other metrics for comprehensive analysis.
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Analyst Views on NOMD
Wall Street analysts forecast NOMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOMD is 15.75 USD with a low forecast of 15.00 USD and a high forecast of 17.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 12.280
Low
15.00
Averages
15.75
High
17.00
Current: 12.280
Low
15.00
Averages
15.75
High
17.00
About NOMD
Nomad Foods Limited is a frozen food company. The Company's portfolio of brands includes Birds Eye, Findus, iglo, Ledo, and Frikom. Its portfolio of food brands within the frozen category including fish, vegetables, poultry, meals, pizza, and ice cream. The products are sold primarily through grocery retailers under the Birds Eye brand in the United Kingdom and Ireland, Findus in Italy, France, Spain, Sweden, Switzerland and Norway, iglo in Germany and other continental markets, La Cocinera in Spain, Ledo in south-eastern Europe and Frikom in Serbia and North Macedonia. Its product offerings include frozen fish products, such as fish fingers, coated fish, natural fish; ready to cook vegetable products, such as peas and spinach; meals, such as ready to cook noodles, lasagna, pancakes and other ready-made meals; poultry, such as frozen poultry and meat products, such as nuggets, grills, burgers, and others. It manufactures, sells and distributes products in over 22 European markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nomad Foods Aims to Save $200 Million by Streamlining Operations
- Operational Optimization: Nomad Foods plans to save $200 million between 2026 and 2028 by reducing the number of logistics centers and increasing production capacity, which will significantly improve its current 66% utilization rate, thereby enhancing the company's financial health.
- Share Buybacks: The company repurchased approximately $175 million of its stock in the first three quarters of 2025, reducing shares outstanding by 4% annually since 2021, indicating management's confidence in the company's future while boosting earnings per share.
- Low Valuation: Nomad Foods trades at decade-low price-to-earnings and enterprise value multiples, despite achieving a 6% annual sales growth over the past five years, suggesting the market undervalues its future potential and presenting a compelling investment opportunity.
- High Dividend Yield: With a current dividend yield of 5.8% that only consumes 46% of net income, the company has ample room for future share buybacks and dividend increases, demonstrating its financial stability and ability to provide consistent returns.
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Nomad Foods Aims to Save $200M to Boost Cash Flow
- Stable Cash Flow: Nomad Foods generates consistent free cash flow annually, easily covering a high dividend yield of 5.8% despite facing inflation and inventory challenges, indicating strong financial health.
- Share Buyback Strategy: The company has reduced its outstanding shares by 4% annually since 2021 and repurchased approximately $175 million worth of stock in the first three quarters of 2025, reflecting management's confidence in the company's future.
- Cost Optimization Plan: Nomad aims to save $200 million between 2026 and 2028 by streamlining its logistics chain and increasing production capacity, which will significantly enhance its free cash flow and support future shareholder returns.
- Market Valuation Decline: Despite achieving a 6% annual sales growth over the past five years, the company's valuation has dropped to a decade-low, with management believing that the current stock price does not reflect its growth potential, presenting an attractive investment opportunity.
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