NESN:CHE - Embedded Expectations Analysis - 2018 03 13
Nestlé S.A. (NESN:CHE) currently trades near recent highs relative to UAFRS-based (Uniform) Earnings, with a 26.5x Uniform P/E, implying bullish expectations for the firm. Moreover, management is confident about their divestitures and consumer trendsSpecifically, management generated an excitement marker when talking about the disposal of their U.S. confectionery business. Furthermore, they are confident that the U.S. confectionery disposal will lift up their average organic growth because the confectionery's organic growth profile had suffered in previous years, particularly in the second half of 2017, and that a tight process, as well as great deliberation and great care, is what is needed for portfolio management, which led to good results such as the U.S. confectionery sale. They are also confident that the consumer is more interested than ever in the health benefits of nutrition, and that the underlying projects they have in place, particularly in their petcare and ice cream segments, will pay benefits in the years '18 and '19
Nestle is a holding company which is based in Switzerland. Through its subsidiaries and allied companies, Co. is engaged in the food processing industry. Co.'s product portfolio has seven categories, Powder and Liquid Beverages, Nutritional and Health Science, Milk products and ice cream, Prepared dishes and cooking aids, PetCare, Confectionery and Water.
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