Ebro Foods
🇪🇸 EBRO.MC · Madrid · ES0112501012
Consumer
EUR 18.78 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
13.4
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: 18.78 ÷ 1.40 = 13.4
TTM period through: 2025-12-31
Forward P/E (estimated): 17.5
Based on analyst estimates
Reference: Provider P/E (Trailing): 13.4
Yield (Fwd)
4.90%
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): 3.69%
Net Debt/EBITDA (TTM)
0.5x
Latest quarter: 1.1x
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): 1.1x
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)
65.9%
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): 49.4%
Cash Flow Payout (TTM): 37.4%
FCF Coverage (TTM): 1.40x
ROE
9.8%
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
6.2x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Ebro Foods is a high-quality global leader in the essential food sector, offering highly defensive and predictable cash flows backed by dominant market positions in rice and pasta. Trading at an attractive P/E of 13.5 with a secure forward yield near 4.9%, the stock sits below our fair value estimate for typical defensive consumer monopolies. Worth considering for new positions at current levels around €18.78, providing excellent inflation-resilient income backed by an exceptionally strong balance sheet.
Sector Context
Ebro Foods is a global leader in the essential food sector, dominating the rice and pasta markets worldwide. As a consumer staple provider, the company generates highly defensive and predictable cash flows regardless of economic cycles, making it an excellent structural fit for dividend investors seeking stability during inflationary or geopolitical turbulence.
Temporary Opportunity Identified
Slight top-line revenue normalization due to post-inflationary price adjustments in the rice segment and broad geopolitical supply chain fears temporarily masking record EBITDA performance.
📊 Strategy Analysis
- • Trading at a highly attractive P/E of 13.45, sitting comfortably within the ideal 8-15x sweet spot for high-quality defensive consumer staples.
- • Exceptional balance sheet strength with a Net Debt/EBITDA ratio of 0.54x, well below the 3x threshold, providing significant downside protection.
- • Highly secure dividend supported by a conservative Cash Flow Payout ratio of 37.4% and an FCF coverage of 1.40x, ensuring long-term sustainability.
- • Operating performance remains robust, achieving record adjusted EBITDA margins of 14.2% despite a broadly deflationary environment in the rice segment.
⚠ What to Watch
- • Forward P/E estimate of 17.45 suggests market expectations for near-term earnings normalization or slower immediate growth.
- • Historical dividend trajectory features significant fluctuations (cuts in 2021 and 2022), though these were due to the non-recurrence of extraordinary payouts rather than structural weakness.
- • Inherent exposure to agricultural commodity price volatility and global shipping disruptions, particularly relevant amid current Strait of Hormuz tensions.
📊 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.