Nestlé SA (Germany) Buy Hold or Sell Recommendation

NESM Stock  EUR 93.00  0.20  0.22%   
Assuming the 90 days trading horizon and your way above-average risk tolerance, our recommendation regarding Nestl SA is 'Hold'. Macroaxis provides Nestlé SA buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding NESM positions.
  
Check out Nestlé SA Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note, we conduct extensive research on individual companies such as Nestlé and provide practical buy, sell, or hold advice based on investors' constraints. Nestl SA. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.

Execute Nestlé SA Buy or Sell Advice

The Nestlé recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Nestl SA. Macroaxis does not own or have any residual interests in Nestl SA or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Nestlé SA's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Nestlé SABuy Nestlé SA
Hold

Market Performance

GoodDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Nestl SA has a Risk Adjusted Performance of 0.1091, Jensen Alpha of 0.1951, Total Risk Alpha of 0.2499, Sortino Ratio of 0.2311 and Treynor Ratio of (0.60)
Macroaxis provides trade recommendations on Nestlé SA to complement and cross-verify current analyst consensus on Nestlé SA. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Nestlé SA is not overpriced, please verify all Nestl SA fundamentals, including its gross profit, net income, and the relationship between the revenue and ebitda .

Nestlé SA Trading Alerts and Improvement Suggestions

Nestl SA has accumulated 44.93 B in total debt with debt to equity ratio (D/E) of 0.97, which is about average as compared to similar companies. Nestlé SA has a current ratio of 0.78, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Nestlé SA until it has trouble settling it off, either with new capital or with free cash flow. So, Nestlé SA's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Nestlé SA sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Nestlé to invest in growth at high rates of return. When we think about Nestlé SA's use of debt, we should always consider it together with cash and equity.

Nestlé SA Returns Distribution Density

The distribution of Nestlé SA's historical returns is an attempt to chart the uncertainty of Nestlé SA's future price movements. The chart of the probability distribution of Nestlé SA daily returns describes the distribution of returns around its average expected value. We use Nestl SA price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Nestlé SA returns is essential to provide solid investment advice for Nestlé SA.
Mean Return
0.21
Value At Risk
-1.27
Potential Upside
2.97
Standard Deviation
1.51
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Nestlé SA historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Nestlé SA Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Nestlé SA or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Nestlé SA's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Nestlé stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.20
β
Beta against Dow Jones-0.34
σ
Overall volatility
1.49
Ir
Information ratio 0.15

Nestlé SA Volatility Alert

Nestl SA has low volatility with Treynor Ratio of -0.6, Maximum Drawdown of 7.74 and kurtosis of 7.15. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Nestlé SA's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Nestlé SA's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Nestlé SA Fundamentals Vs Peers

Comparing Nestlé SA's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Nestlé SA's direct or indirect competition across all of the common fundamentals between Nestlé SA and the related equities. This way, we can detect undervalued stocks with similar characteristics as Nestlé SA or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Nestlé SA's fundamental indicators could also be used in its relative valuation, which is a method of valuing Nestlé SA by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Nestlé SA to competition
FundamentalsNestlé SAPeer Average
Return On Equity0.2-0.31
Return On Asset0.0718-0.14
Profit Margin0.1 %(1.27) %
Operating Margin0.17 %(5.51) %
Current Valuation357.99 B16.62 B
Shares Outstanding2.67 B571.82 M
Shares Owned By Institutions1.41 %39.21 %
Price To Earning27.48 X28.72 X
Price To Book6.90 X9.51 X
Price To Sales3.27 X11.42 X
Revenue94.78 B9.43 B
Gross Profit43.03 B27.38 B
EBITDA16.08 B3.9 B
Net Income9.27 B570.98 M
Cash And Equivalents6.44 B2.7 B
Cash Per Share2.30 X5.01 X
Total Debt44.93 B5.32 B
Debt To Equity0.97 %48.70 %
Current Ratio0.80 X2.16 X
Book Value Per Share15.73 X1.93 K
Cash Flow From Operations11.91 B971.22 M
Earnings Per Share3.42 X3.12 X
Price To Earnings To Growth4.17 X4.89 X
Target Price142.5
Number Of Employees275 K18.84 K
Beta0.31-0.15
Market Capitalization284.15 B19.03 B
Total Asset135.18 B29.47 B
Retained Earnings76.69 B9.33 B
Working Capital(7.06 B)1.48 B
Current Asset29.9 B9.34 B
Current Liabilities36.95 B7.9 B
Z Score3.68.72

Nestlé SA Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Nestlé . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Nestlé SA Buy or Sell Advice

When is the right time to buy or sell Nestl SA? Buying financial instruments such as Nestlé Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Nestlé SA in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Construction Materials Thematic Idea Now

Construction Materials
Construction Materials Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Construction Materials theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Construction Materials Theme or any other thematic opportunities.
View All  Next Launch

Other Information on Investing in Nestlé Stock

Nestlé SA financial ratios help investors to determine whether Nestlé Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Nestlé with respect to the benefits of owning Nestlé SA security.