We Think Koninklijke Ahold Delhaize’s (AMS:AD) Robust Earnings Are Conservative

Simply Wall St

Thu, February 19, 2026 at 1:01 PM GMT+9 3 min read

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Koninklijke Ahold Delhaize N.V. (AMS:AD) recently posted some strong earnings, and the market responded positively. We did some digging and found some further encouraging factors that investors will like.

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ENXTAM:AD Earnings and Revenue History February 19th 2026

Zooming In On Koninklijke Ahold Delhaize’s Earnings

Many investors haven’t heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company’s profit is backed up by free cash flow (FCF) during a given period. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. This ratio tells us how much of a company’s profit is not backed by free cashflow.

Therefore, it’s actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. That is not intended to imply we should worry about a positive accrual ratio, but it’s worth noting where the accrual ratio is rather high. That’s because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth.

For the year to December 2025, Koninklijke Ahold Delhaize had an accrual ratio of -0.12. Therefore, its statutory earnings were quite a lot less than its free cashflow. Indeed, in the last twelve months it reported free cash flow of €4.4b, well over the €2.26b it reported in profit. Koninklijke Ahold Delhaize’s free cash flow improved over the last year, which is generally good to see.

That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

Our Take On Koninklijke Ahold Delhaize’s Profit Performance

As we discussed above, Koninklijke Ahold Delhaize has perfectly satisfactory free cash flow relative to profit. Because of this, we think Koninklijke Ahold Delhaize’s earnings potential is at least as good as it seems, and maybe even better! And the EPS is up 32% over the last twelve months. Of course, we’ve only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. So while earnings quality is important, it’s equally important to consider the risks facing Koninklijke Ahold Delhaize at this point in time. At Simply Wall St, we found 2 warning signs for Koninklijke Ahold Delhaize and we think they deserve your attention.

Story Continues  

Today we’ve zoomed in on a single data point to better understand the nature of Koninklijke Ahold Delhaize’s profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.

Have feedback on this article? Concerned about the content? Get in touch** with us directly.**_ Alternatively, email editorial-team (at) simplywallst.com._

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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