# Associated British Foods plc (ABF.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Defensive / Food & Staples Retailing. Price 2048p, market value 14.3 billionp.

## Valuation
- **P/E (trailing): 15.4×** (5-yr avg 1744.9×, 3-yr avg 1421.4×). Associated British Foods plc trades at 15.4× trailing earnings, well below its own five-year average of 1744.9×: cheap by its own standards. The Consumer Defensive median in the September 2026 study was 20.1×. Forward P/E is 12.9×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.4×**. Each dollar of revenue is priced at 0.4×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.3×**. The shares trade at 1.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.4×**. Enterprise value is 3.4× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 17.9%** (5-yr avg 0.1%). Free cash flow equals 17.9% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 6.5%**. The inverse of the P/E: 6.5% of the price is earned each year.

## Profitability
- **Gross margin: 8.1%**. Associated British Foods plc keeps 8.1% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 8.2%**. 8.2% of revenue is left after running the business.
- **Net margin: 5.3%**. 5.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.3%**. 9.3% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 17.5%**. Return on all capital, debt included, is 17.5%: comfortably above what that capital costs.
- **Return on assets: 11.7%**. Each dollar of assets produces 11.7% of profit.

## Growth
- **Revenue growth (1 yr): -3.1%** (3-yr 4.6%/yr, 5-yr 6.9%/yr). Revenue fell 3.1% over the last year, against 6.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -26.8%** (3-yr 16.9%/yr, 5-yr 19.6%/yr). Earnings per share fell 26.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 44.5%/yr**. Free cash flow has compounded at 44.5% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.33**. Debt is 0.33 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.5×**. It would take 0.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 11.8×**. Operating profit covers interest 11.8× over, a safe margin.
- **Current ratio: 1.54** (quick 0.72). Current assets cover the next year's liabilities 1.54 times.
- **Altman Z-score: 3.28**. A Z-score of 3.28 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.04%** (1p per share, trailing). Associated British Foods plc yields 3.04%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 64%** (43% of free cash flow). 64% of earnings goes out as dividends, leaving room to keep raising it.
- **Shareholder yield: 10.5%**. Dividends plus net buybacks return 10.5% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (18 analysts). 18 analysts cover Associated British Foods plc; the consensus is hold, with an average price target of 1855p (-9% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -7.6%** (YTD -3.5%, 3-mo 10.1%). The shares are down 7.6% over twelve months including dividends.
- **From 52-week high: -13.2%** (18.4% above the low). Trading 13% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 51**. An RSI of 51 is neutral.
- **Beta (1 yr): 0.69** (volatility 27%). Beta of 0.69 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ABF.L · Page: https://foliofundamentals.com/stocks/abf.l

Not investment advice.