Koninklijke Ahold Delhaize NV
🇳🇱 AD.AS · Amsterdam · NL0011794037
Consumer
EUR 41.73 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
16.8
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 41.73 ÷ 2.48 = 16.8
TTM period through: 2025-12-31
Forward P/E (estimated): 15.3
Based on analyst estimates
Reference: Provider P/E (Trailing): 16.7
Yield (Fwd)
3.50%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 3.01%
Net Debt/EBITDA (TTM)
0.1x
Latest quarter: 0.5x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 0.5x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
58.8%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 47.6%
Cash Flow Payout (TTM): 15.3%
FCF Coverage (TTM): 6.53x
ROE
15.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
7.0x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Koninklijke Ahold Delhaize is a premier global grocery retailer operating a highly defensive, essential business model with an exceptionally strong balance sheet. While the company offers stellar free cash flow generation that thoroughly secures its dividend, the current valuation around €41.70 (P/E 16.8) offers limited upside. Existing shareholders should maintain positions given the reliable 3% yield, but new investors may want to wait for a better entry point.
Sector Context
Koninklijke Ahold Delhaize is a leading global food retailer operating supermarkets, convenience stores, and online delivery services across Europe and the United States. In the context of dividend investing, the grocery sector provides highly defensive, recession-resistant cash flows due to the essential nature of food consumption, allowing for reliable capital returns despite characteristically thin profit margins.
Temporary Opportunity Identified
Short-term margin pressures from rising global oil prices and logistics costs, coupled with mild uncertainty regarding the upcoming U.S. CEO transition.
📊 Strategy Analysis
- • Stellar free cash flow generation with a low cash flow payout ratio of 15.3%, providing excellent coverage for the 3.01% dividend yield.
- • Fortress balance sheet featuring a Net Debt/EBITDA ratio of 0.14x, offering significant financial stability.
- • Essential, highly defensive grocery retail business model that has delivered steady revenue growth and stable margins over the past decade.
⚠ What to Watch
- • Current valuation with a P/E of 16.81 exceeds the strategy's ideal 8-15x target range, limiting the margin of safety.
- • The upcoming departure of the Ahold Delhaize USA CEO in June 2026 introduces slight management transition uncertainty in the company's largest market.
- • Global inflationary pressures and elevated oil prices could temporarily squeeze logistics and operational margins.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.