Koninklijke Ahold Delhaize NV ADR ADRNY

Morningstar Rating
$34.11 −0.49 (1.42%)
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Company Report

Ahold Delhaize's Strong Local Positions Should Support Future Growth

Koninklijke Ahold Delhaize is one of the largest grocers in the United States with almost $60 billion in sales across the country. It holds the number-one or number-two position in most of its markets with Albert Heijn in the Netherlands the group's most prized asset, commanding over 37% of Dutch market share, accounting for 55% of total European sales. The company has generally managed its expansion and operations prudently, with low levels of financial leverage and a strategy of financing its dividend and share buybacks using its free cash flow.

Price vs Fair Value

ADRNY is trading at a 415% premium.
Price
$34.11
Fair Value
$56.00
Uncertainty
Medium
1-Star Price
$18.80
5-Star Price
$37.80
Economic Moat
Znnjy
Capital Allocation
Ysdgjjd

Bulls Say, Bears Say

Bulls

Albert Heijn boasts an undisputed leading market position in the Netherlands in online grocery and food retail (37% share).

Bears

The grocer needs to keep investing in automation and fulfilment efficiency in order to streamline the still poor economics of the online channel.

News

Trading Information

Previous Close Price
$34.60
Day Range
$33.9834.17
52-Week Range
$27.5134.94
Bid/Ask
$33.87 / $34.29
Market Cap
$31.72 Bil
Volume/Avg
17,695 / 51,025

Key Statistics

Price/Earnings (Normalized)
12.20
Price/Sales
0.34
Dividend Yield (Trailing)
3.54%
Dividend Yield (Forward)
3.54%
Total Yield
6.68%

Company Profile

Ahold Delhaize is the product of the July 2016 merger between Netherlands-based Ahold and Belgium's Delhaize, forming the fourth-largest grocer in the US and a top player in many parts of Europe. The US is the largest market, accounting for over 60% of group sales, with Ahold Delhaize the leading grocer on the Eastern Seaboard. The US store network stretches from Maine to Georgia and includes such banners as Stop & Shop, The Giant Company, Giant Food, Food Lion, and Hannaford. The Netherlands, Belgium, and Central and SouthEastern Europe, including the Czech Republic, Greece, Romania, and Serbia, account for slightly less than 40% of sales. Ahold Delhaize holds the number-one and number-two positions in almost all of these countries.
Sector
Consumer Defensive
Industry
Grocery Stores
Stock Style Box
Large Value
Total Number of Employees
400,000

Competitors

Valuation

Metric
ADRNY
CA
KR
Price/Earnings (Normalized)
12.208.7512.09
Price/Book Value
1.960.983.23
Price/Sales
0.340.130.27
Price/Cash Flow
4.833.265.61
Price/Earnings
ADRNY
CA
KR

Financial Strength

Metric
ADRNY
CA
KR
Quick Ratio
0.530.540.37
Current Ratio
0.850.850.87
Interest Coverage
3.752.599.95
Quick Ratio
ADRNY
CA
KR

Profitability

Metric
ADRNY
CA
KR
Return on Assets (Normalized)
4.87%2.27%
Return on Equity (Normalized)
16.02%11.24%
Return on Invested Capital (Normalized)
12.55%5.72%
Return on Assets
ADRNY
CA
KR

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