One-glance verdict
Undervalued
$107.35 our estimate vs market $36.05
Wall Street consensus: $48.40 (-54.9% lower than our fair-value estimate)
66% below our estimate, below the bear case
Fundamentals snapshot
Koninklijke Ahold Delhaize N.V.
ADRNY · OQX · Consumer Defensive · Grocery Stores
Current price
$36.05
52-week range
$32.25 - $50.02
Market cap
$31.50B
Balance sheet
Stretched
3.74x Stretched
Net debt $18.62B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.4% last year.
- Reward Returns 15.7% on equity, ahead of 33% of its peers.
- Risk Net debt grew 2.2% over 3 years.
- Risk Insider ownership is only 0.0% (peer median: 1.2%).
What this company does
Koninklijke Ahold Delhaize N.V.
This company owns many of the grocery stores you might see every day, including Food Lion, Stop & Shop, and Hannaford in the United States. It makes most of its money selling groceries and household essentials, which tends to be a stable business because people need to buy food no matter how the economy is doing. Its large size allows it to buy goods in bulk, which helps protect its profit margins (the small slice of each dollar in sales that the company gets to keep as profit).
How the company got here
Koninklijke Ahold Delhaize was formed in 2016 through the merger of two long-standing European grocery companies: Ahold from the Netherlands and Delhaize Group from Belgium. Ahold's story began in 1887 when Albert Heijn opened a small grocery store in the Netherlands, which grew into the country's largest supermarket chain. Delhaize was founded even earlier, in 1867, by the Delhaize brothers in Belgium. Both companies expanded internationally over the years, particularly into the United States, before joining forces to create the global food retail group that exists today.
What it actually does
Ahold Delhaize is a major player in the grocery store business, operating a large family of well-known supermarket brands primarily in the United States and Europe. Shoppers at their stores can find a wide variety of food products, including fresh produce, meat, dairy, baked goods, and pantry staples, as well as non-food items like health and beauty products and general household goods. The company also runs online grocery shopping and delivery services, convenience stores, and liquor stores under its various brand names.
U.S. Business
This is the company's largest segment, making up the majority of its sales. In the United States, Ahold Delhaize operates several well-known supermarket chains located mostly on the East Coast, including Food Lion, Stop & Shop, The GIANT Company, Hannaford, and Giant Food. These stores are where millions of American shoppers buy their weekly groceries. The company makes money by selling products in these physical stores and through their growing online grocery delivery services.
Europe Business
This segment includes the company's operations in several European countries, with a strong presence in the Netherlands and Belgium where the company originated. Key European brands include Albert Heijn (a major supermarket in the Netherlands), Delhaize in Belgium, and other chains like Albert, Mega Image, and Gall & Gall. This part of the business earns revenue by selling groceries and other goods through its physical supermarkets, smaller convenience stores, and a very popular online retailer in the Netherlands and Belgium called bol.
What management is betting on now
The company's current strategy, called "Growing Together," focuses on strengthening its local brands and improving the customer experience. A key part of this is expanding their own-brand products (items with the store's name on them), which offer good value to customers and are only available at their stores. They are also investing heavily in technology, like artificial intelligence (AI), to make their operations more efficient and to improve their online shopping and delivery services. Management is also focused on sustainability, with initiatives aimed at promoting healthier eating and reducing the company's environmental impact.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $107.35 vs current price $36.05
Wall Street consensus is the average analyst price target: $48.40 (-54.9% lower than our fair-value estimate).
Our most-likely fair value is $107.35 a share — about 197.8% above today's price of $36.05, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $18.6B. Interest coverage 3.7x.
Net debt
$18.62B
Interest coverage
3.74x
Koninklijke Ahold Delhaize N.V.'s profit covers its interest bill about 3.7 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
ADRNY
BASELINE
Koninklijke Ahold Delhaize N.V.
Total debt $22.34B Interest coverage 3.74x This is the baseline the peer rows are being compared against.
Total debt $24.19B Interest coverage 2.96x -21% vs ADRNY Carries about 1.3x less debt cushion than ADRNY.
Total debt $15.70B Interest coverage 1.46x -61% vs ADRNY Carries about 2.6x less debt cushion than ADRNY.
Total debt $75.09B Interest coverage 10.66x +185% vs ADRNY Carries about 2.8x more debt cushion than ADRNY.
Total debt $10.23B Interest coverage 67.42x +1,700% vs ADRNY Carries about 18.0x more debt cushion than ADRNY.
Total debt $19.20B Interest coverage 11.50x +207% vs ADRNY Carries about 3.1x more debt cushion than ADRNY.
What you should know
The case for and against ADRNY
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.4% last year.
-
Returns 15.7% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 2.2% over 3 years.
-
Insider ownership is only 0.0% (peer median: 1.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
12.35x
Forward P/E
10.70x
P/B
1.88x
P/S
0.34x
EV/EBITDA
8.82x
PEG ratio
2.04x
Profitability
How much profit each dollar creates
Gross margin
26.6%
Operating margin
4.0%
Net margin
2.4%
ROE
15.7%
ROA
4.7%
Health
Liquidity and balance-sheet strength
Debt / equity
1.33x
Current ratio
0.71x
Quick ratio
0.36x
Total debt
$22.34B
Total cash
$3.72B
Growth
How the business has been compounding
Revenue TTM
$106.05B
Revenue 5Y CAGR
2.0%
EPS TTM
2.92
EPS 5Y CAGR
-0.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$8.11B
Free CF TTM
$5.13B
FCF margin
4.8%
Dividend
Shareholder payout
Yield
4.0%
Payout ratio
49.6%
Last ex-div date
2026-08-17