There were 22 new supporters for 52 weeks on the New York Stock Exchange on Tuesday, compared to 69 new levels in 52 weeks. Of the 22 companies reaching their lowest levels, Frozen Foods Foods Foods (NOMD) caught my attention.
The company, which includes its frozen brands of Birds Eye, Findus and IGLO, slipped to its lowest level in 52 weeks on Tuesday. The last time this was circulated in October 2023.
It has been circulated publicly since 2014, and the shares ranged between $ 10 and $ 31.85 (May 31, 2021, the highest level ever). Although the company has struggled over the past year, as its shares drop by 25 %, the company’s shares should attract investors looking for the deal for several reasons.
This is why I feel this way.
NOMAD became public in April 2014 as a SPAC (a private purpose acquisition company), which raised 500 million dollars in its first year offering, and traded on the London Stock Exchange. Like most Spacs, it has been formed to gain operational business within a specific time frame.
SPAC acquired the qualifiers in June 2015, which paid 2.6 billion euros (3.04 billion dollars) for Iglo food Holdings Limited, a leading company in the field of frozen European food. Which brought birds brands and IGLO brands to the barn.
Late five months in November 2015, it acquired the Findus Group for 500 million British pounds (677 million dollars), and for 415 million British pounds ($ 562 million) cash and 8.38 million shares of its shares. Which brought the Findus brand to the growing frozen business.
NOMAD released the initial SPAC shares at $ 10 in April 2014. It was deleted in London on January 11, 2016, where they replaced their list to New York the next day. The share price closed at 12.30 dollars. It has only 15 % in the contract since then. Fortunately, for the first investors, it has paid attractive profits, or that the annual return will be bad.
However, one of the founders of SPAC was Martin Franklin, known as the CEO who grew Jarden Corp from anything over 14 years, who sold it to NEWELLLDS (NWL) in April 2016 for $ 15.4 billion ($ 60 a share), which included $ 2.2 billion in open debts.
Franklin may have received more than $ 21 per share for the cash part of the deal, given the current performance of the NEWELL share over the years. However, he sold his shares in 2017 and 2018 when it was much higher than today, due to the differences with the administration and the council.
I always liked the way Franklin thinks. He participated in the founding of Nomad Spac and still has 6.7 % of his shares and works as a co -chair of the Council. This is a good thing.
Nomad delivered Q2 2025 results in early August.
Not anything they were writing at home with sales drop 0.8 % to 747 million euros (875 million dollars) from 753 million euros (882 million dollars) in the previous year. Meanwhile, its operating profit amounted to 88 million euros ($ 103 million), which is 13 % less than 101 million euros ($ 118 million) in the second quarter of 2024.
Looking at the end of 2025, the company reviewed its upper and lower lines alike as a result of the difficult first half of the year. It is now expected that organic sales will range from a decrease in sales on an annual basis to a few percentage points. Previously, the guidance was flat to 2 % higher. At the minimum, the EPS estimate of NOMAD 2025 is 1.70 euros ($ 1.99) per share in the middle of the direction, a decrease of 1.86 euros per share ($ 2.18) previously.
Despite the decrease in guidance, it is still expected that 90 % of its modified profits are still converted into a cash flow in 2025. According to 152.6 million suspended shares, or about $ 304 million in a modified free cash flow.
Between Q3 2022 and Q2 2025, the company’s net debt remained in a narrow range between 2.15 billion euros (2.52 billion dollars) and 1.74 billion euros ($ 2.04 billion). He ended the second quarter with 1.84 billion euros ($ 2.16 billion), as part of historical standards.
Meanwhile, the net debt is 3.5 times the Ebitda (pre -interest, taxes, consumption and firefighting), which is a relatively low double on the company’s history for 10 years as a public company. Financially, although the 1.40 ALTMAN ZS-SCORE, according to the S & P Global market Intelligence- The result indicates that the company’s possibility of bankruptcy procedures in the next 24 months-is one of the highest rates since its inserts on the New York Stock Exchange in 2016.
Financial, it is a head above water.
The company faced many opposite winds in the first half of 2025, which hindered its organic growth. One of these opposite winds is exceptionally warm weather in most Europe. In the United Kingdom, for example, the spring temperatures were 18 % higher this year than historical averages. This led to a decrease in consumption of frozen foods.
However, the frozen food market is expected to be one of the most reliable areas of growth in food business in the coming years.
“The frozen category has exceeded the total food industry by about one percentage over the past decade, and in our first four markets where we can reach the total industry data, and not only frozen food data, we have seen that the total sales are in the total volume of classification in the last quarter of 60 basis points.
The value of the current institution for Nomad is $ 4.28 billion, 1.31 times its last 12 months. This multiplier was not less. The same thing for any financial scales that focus on profits. They are also at the lowest historical levels.
For every argument it is presented about the frozen foods that are not healthy for you, there is a opposite argument, especially with the fruits, which you keep in the fields more than the nutrients more than the so -called “fresh” products that you find in the grocery store.
Although I am not an expert, I do not see frozen foods go away any time soon.
On September 3, NOMAD announced the efficiency program over the next three years, which will witness an annual operational savings of 200 million euros (234 million dollars) by the end of 2028. In addition to the annual growth of 1-3 % in the average EBITDA and 15 % growth in free cash flow, the current evaluation appears to be exceptionally low.
Provided that NOMAD meets its plans for the next three years, as it receives approximately 5 % profit dividends while waiting for them to reach its mid -term goals as a reasonable presentation of the risks/bonus.
At the lowest level in 52 weeks, Nomad Stock is a purchase.
On the date of publication, Will Ashworth did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com
