Associated British Foods plc (ABF.L) stock analysis

In our weekly check, Associated British Foods plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 5, red flags: 2.

About Associated British Foods plc

Associated British Foods plc is a Consumer Defensive company (Packaged Foods) based in the United Kingdom, listed on LSE as ABF.L.

What our checks show for ABF.L

Red flags

• The gross margin fell by 14.2 points, to 8.4%: costs are rising faster than prices.
• The stock has fallen as much as 66% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 2% a year of growth in revenue.
• Revenue grew only 4.6% a year over the last 3 years.
• The net margin is only 5.3%: little room if costs rise.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 9.6%.

Strengths

• Net debt is only 1.1x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 16.5 times over.
• The net margin rose by 1.8 points over 5 years, to 5.3%.
• Operating cash flow is 2.19x net profit: the profit arrives as real cash.
• Earnings per share grew 16.9% a year over the last 3 years.
• Net profit grew 13.6% a year over the last 3 years.

Next earnings report: 2026-11-03

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Questions

What grade does Associated British Foods plc (ABF.L) have?

In our weekly check, Associated British Foods plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 5, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ABF.L stock?

This week's biggest flags for Associated British Foods plc: Gross margin falling, Deep past fall, Weak revenue forecast. In total 7 of 25 checks show a warning or a red flag.

What does Associated British Foods plc do?

Associated British Foods plc is a Consumer Defensive company (Packaged Foods) based in the United Kingdom, listed on LSE as ABF.L.

When does Associated British Foods plc report earnings next?

The next earnings report is expected on 2026-11-03. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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