NOMDNomad Foods Limited
Is the business good?
The checks split: earnings fully cash-backed (1.1×), but margins compressing.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
A balanced mix of margins, efficiency, and leverage. ROE 8% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NOMD?
Nomad Foods Limited earns 5.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.6 points below what the capital costs: growth destroys value
- Operating margin
- 11%
Operating margin · Packaged Foods median 7.6% · 12 months to Q4 2025
- Cash conversion
- 1.08×
Cash conversion · 1.38× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 27%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 14% |
| FY2021 | 13% |
| FY2022 | 13% |
| FY2023 | 11% |
| FY2024 | 12% |
| FY2025 | 11% |
Details›
- Gross margin12 months to Q4 2025
- 27%
- Operating margin12 months to Q4 2025
- 11%
- Net margin12 months to Q4 2025
- 4.5%
- Free cash flow margin
- 8.3%
- Revenue, trailing twelve months
- $3.03B
- Free cash flow, trailing twelve months
- $252M
- Net income, trailing twelve months
- $137M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.