No. of Recommendations: 7
Nestlé released its full-year results today. I believe their turnaround is well underway. They achieved organic sales growth of 3.5%, which is respectable. I also like that the new CEO is restructuring aggressively and implementing a culture of performance and accountability.
ROE is high (above 30%), but ROCE remains depressed as the balance sheet is highly leveraged (due to debt accumulated since 2016). They offer a dividend yield of 3.x% (in Swiss Francs!) and a forward P/E below 20, which is historically low for Nestlé. In my opinion, the turnaround is not fully accomplished yet, but I am willing to dip a toe in the water. Not a screaming buy, but could become a solid core holding again.
https://www.nestle.com/sites/default/files/2026-02... 