Nomad Foods Limited (NOMD) stock analysis
In our weekly check, Nomad Foods Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 8, red flags: 5.
About Nomad Foods Limited
Nomad Foods Limited is a Consumer Defensive company (Packaged Foods) based in the United Kingdom, listed on NYSE as NOMD.
What our checks show for NOMD
Red flags
- Net debt is 4.8x a year of EBITDA (debt/equity 0.92). That limits room in a downturn and raises refinancing risk.
- Operating profit covers interest only 1.6 times: a weak year could make the payments hard.
- The net margin fell by 2.8 points over 5 years, to 4.2%: the company keeps less of each sale as profit.
- The net margin is only 4.2%: little room if costs rise.
- The stock has fallen as much as 71% from a peak. Would you have held through that?
Warning signs
- The gross margin fell by 1.6 points, to 26.9%: costs are rising faster than prices.
- Analysts expect only about 1.7% a year of growth in revenue.
- Revenue grew only 0.3% a year over the last 3 years.
- Earnings per share fell 15.4% a year over the last 3 years.
- Net profit fell 20.8% a year over the last 3 years.
- A small company (market value $1.68 billion): usually riskier and followed by fewer analysts.
- The stock is still below its previous peak.
- Return on capital (ROCE) is only 5.8%.
Strengths
- Operating cash flow is 2.29x net profit: the profit arrives as real cash.
- Analysts expect earnings per share to grow about 26.5% a year over the next years.
- Analysts expect the net margin to improve by 3.4 points from today's 4.2%.
- The price is 12.4 times earnings (P/E), reasonable for its growth.
- The share count fell by 12.1% in 2 years: the company buys back its own shares.
- Pay in shares is only 2.9% of free cash flow.
Next earnings report: 2026-11-04
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Questions
What grade does Nomad Foods Limited (NOMD) have?
In our weekly check, Nomad Foods Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 8, red flags: 5. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of NOMD stock?
This week's biggest flags for Nomad Foods Limited: High debt, Weak interest cover, Margins falling. In total 13 of 25 checks show a warning or a red flag.
What does Nomad Foods Limited do?
Nomad Foods Limited is a Consumer Defensive company (Packaged Foods) based in the United Kingdom, listed on NYSE as NOMD.
When does Nomad Foods Limited report earnings next?
The next earnings report is expected on 2026-11-04. 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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