Stock Analysis

Why I like to own Ahold Delhaize stock so much

Ahold Delhaize Stock

If you like to own stable and boring businesses as part of your dividend growth portfolio then definitely have a look at Ahold Delhaize stock. Ahold is a Dutch grocery chain with a large presence in both the BeNeLux and the United States.

You can actually just consider it the Dutch version of Walmart.

Like Walmart in the US, Ahold Delhaize has a leading market position in the Netherlands and Belgium and it owns a large digital ecommerce business: bol.com.

Not that long ago I shared my thoughts about Ahold Delhaize stock on social media and in my March watchlist. To my surprise there were a lot of people that were not so familiar yet with this company.

But it makes sense, because within Europe it isn’t really recognized outside of the Netherlands and Belgium although it owns multiple large brands in other European countries. Just to name a few:

  • Czech Republic: Albert
  • Greece: Alfa Beta Vassilopoulos
  • Portugal: Pingo Doce
  • Romania: Mega Image
  • Serbia: Maxi

Besides that it also owns multiple brands in the United States, i.e. Food Lion, Stop & Shop and their most recent acquisition Fresh Direct.

Having said that, I like Ahold Delhaize a lot and I own already quite a position in it.

But is now the right time to add some more Ahold Delhaize shares to my portfolio? That’s always the million dollar question, because price is what you pay and value is what you get (W. Buffet’s famous quote)

Hence, that’s why I decided to create this video: to explain a bit more about why I like owning Ahold Delhaize stock so much.

This video includes a brief overview of the company, a look at their latest results and finally a fair value assessment using a Discounted Cash Flow approach.

I hope you enjoy this video!

PS: don’t forget to subscribe and hit the like button. I’m trying to get to 1000 subscribers this year and every little bit helps to achieve my goals ๐Ÿ™



Yours Truly,

European Dividend Growth Investor

Disclosure: I own shares in AMS:AD (Ahold Delhaize)


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Iโ€™m not a certified financial planner/advisor nor a certified financial analyst nor an economist nor a CPA nor an accountant nor a lawyer. Iโ€™m not a finance professional through formal education. Iโ€™m a person who believes and takes pride in a sense of freedom, satisfaction, fulfillment and empowerment that I get from being financially competent and being conscious managing my personal money. The contents on this blog are for informational and entertainment purposes only and does not constitute financial, accounting, or legal advice. I canโ€™t promise that the information shared on my blog is appropriate for you or anyone else. By reading this blog, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information provided on this blog.

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It's my desire to retire early via Dividend Growth Investing as a passive income stream. This is not easy and especially when living in Europe. That's why I started this blog and share my journey: to give you a European perspective.

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Investing101
Investing101
2 months ago

Hi EDGI I agree AD is a good choice if you want an exposure to the food retail business both in the US and in Europe with a highly successful online business. As far as the valuation is concerned I am afraid that under IFRS 16 the debt from lease / rent will need to be paid back in the same way the loans will need to be paid back e.g. from the same free cash flow. For that reason the almost 9B debt from leases, by no means a negligible amount, has to be subtracted from the intrinsic value… Read more »

Mark
Mark
2 months ago

Interesting that you mention Jumbo as #1 competitor while the NL business is far smaller than the US. Biggest threat in my mind is competition / price and margin pressure in the US with more aggressive discounters and a less strong market position for Ahold. Personally long on the solid free cash flow generation and the option value of bol.com (not fully appreciated in my opinion) – but closely watching margins and performance in the US.

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