KRAFT HEINZ CO/THE (1KHC.MI) Stock Fundamental Analysis
BIT:1KHC - Euronext Milan - US5007541064 - Common Stock - Currency: EUR
Taking everything into account, 1KHC scores 5 out of 10 in our fundamental rating. 1KHC was compared to 60 industry peers in the Food Products industry. While 1KHC is still in line with the averages on profitability rating, there are concerns on its financial health. 1KHC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1KHC was profitable.
1KHC had a positive operating cash flow in the past year.
Each year in the past 5 years 1KHC has been profitable.
1KHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.94%, 1KHC perfoms like the industry average, outperforming 51.67% of the companies in the same industry.
With a Return On Equity value of 5.37%, 1KHC perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
1KHC has a Return On Invested Capital (4.98%) which is comparable to the rest of the industry.
1KHC had an Average Return On Invested Capital over the past 3 years of 4.97%. This is in line with the industry average of 6.51%.
The 3 year average ROIC (4.97%) for 1KHC is below the current ROIC(4.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.37% | ||
| ROIC | 4.98% |
ROA(3y)2.96%
ROA(5y)2.06%
ROE(3y)5.4%
ROE(5y)3.79%
ROIC(3y)4.97%
ROIC(5y)4.89%
1.3 Margins
1KHC's Profit Margin of 10.44% is fine compared to the rest of the industry. 1KHC outperforms 80.00% of its industry peers.
1KHC's Profit Margin has improved in the last couple of years.
1KHC has a better Operating Margin (20.76%) than 96.67% of its industry peers.
1KHC's Operating Margin has been stable in the last couple of years.
1KHC has a Gross Margin (34.58%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 1KHC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.76% | ||
| PM (TTM) | 10.44% | ||
| GM | 34.58% |
OM growth 3Y1.51%
OM growth 5Y0.42%
PM growth 3Y39.8%
PM growth 5Y6.51%
GM growth 3Y1.31%
GM growth 5Y1.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1KHC is destroying value.
The number of shares outstanding for 1KHC has been reduced compared to 1 year ago.
The number of shares outstanding for 1KHC has been reduced compared to 5 years ago.
Compared to 1 year ago, 1KHC has a worse debt to assets ratio.
2.2 Solvency
1KHC has an Altman-Z score of 1.02. This is a bad value and indicates that 1KHC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of 1KHC (1.02) is worse than 80.00% of its industry peers.
The Debt to FCF ratio of 1KHC is 7.14, which is on the high side as it means it would take 1KHC, 7.14 years of fcf income to pay off all of its debts.
1KHC has a Debt to FCF ratio (7.14) which is comparable to the rest of the industry.
1KHC has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
1KHC has a better Debt to Equity ratio (0.42) than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.75
WACC6.67%
2.3 Liquidity
1KHC has a Current Ratio of 1.31. This is a normal value and indicates that 1KHC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.31, 1KHC perfoms like the industry average, outperforming 48.33% of the companies in the same industry.
A Quick Ratio of 0.81 indicates that 1KHC may have some problems paying its short term obligations.
1KHC has a Quick ratio of 0.81. This is comparable to the rest of the industry: 1KHC outperforms 48.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.34% over the past year.
Measured over the past 5 years, 1KHC shows a small growth in Earnings Per Share. The EPS has been growing by 1.43% on average per year.
Looking at the last year, 1KHC shows a decrease in Revenue. The Revenue has decreased by -4.25% in the last year.
The Revenue has been growing slightly by 0.69% on average over the past years.
EPS 1Y (TTM)0.34%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-10.14%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-6.43%
3.2 Future
Based on estimates for the next years, 1KHC will show a small growth in Earnings Per Share. The EPS will grow by 1.39% on average per year.
1KHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.23% yearly.
EPS Next Y-14.54%
EPS Next 2Y-6.24%
EPS Next 3Y-2.56%
EPS Next 5Y1.39%
Revenue Next Year-3.73%
Revenue Next 2Y-1.52%
Revenue Next 3Y-0.53%
Revenue Next 5Y0.23%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.11, which indicates a very decent valuation of 1KHC.
Compared to the rest of the industry, the Price/Earnings ratio of 1KHC indicates a rather cheap valuation: 1KHC is cheaper than 81.67% of the companies listed in the same industry.
1KHC is valuated cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.14, the valuation of 1KHC can be described as very reasonable.
71.67% of the companies in the same industry are more expensive than 1KHC, based on the Price/Forward Earnings ratio.
1KHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
1KHC's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1KHC is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.67 | ||
| EV/EBITDA | 8.09 |
4.3 Compensation for Growth
The decent profitability rating of 1KHC may justify a higher PE ratio.
A cheap valuation may be justified as 1KHC's earnings are expected to decrease with -2.56% in the coming years.
PEG (NY)N/A
PEG (5Y)6.36
EPS Next 2Y-6.24%
EPS Next 3Y-2.56%
5. Dividend
5.1 Amount
1KHC has a Yearly Dividend Yield of 5.79%, which is a nice return.
The stock price of 1KHC dropped by -25.90% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.38, 1KHC pays a better dividend. On top of this 1KHC pays more dividend than 95.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, 1KHC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1KHC pays out 72.39% of its income as dividend. This is not a sustainable payout ratio.
DP72.39%
EPS Next 2Y-6.24%
EPS Next 3Y-2.56%
BIT:1KHC (8/6/2025, 7:00:00 PM)
23.42
-0.05 (-0.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners59.62%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap27.72B
Analysts56.67
Price Target26.94 (15.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
Yearly Dividend1.37
Dividend Growth(5Y)0%
DP72.39%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.36%
Min EPS beat(2)1.8%
Max EPS beat(2)6.92%
EPS beat(4)4
Avg EPS beat(4)3.55%
Min EPS beat(4)0.43%
Max EPS beat(4)6.92%
EPS beat(8)7
Avg EPS beat(8)3.21%
EPS beat(12)11
Avg EPS beat(12)4.96%
EPS beat(16)15
Avg EPS beat(16)7.11%
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.28%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)-1.28%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)4
Avg Revenue beat(12)-0.96%
Revenue beat(16)7
Avg Revenue beat(16)-0.3%
PT rev (1m)-1.08%
PT rev (3m)-13.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.94%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-3.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 10.14 | ||
| P/S | 1.27 | ||
| P/FCF | 10.67 | ||
| P/OCF | 7.81 | ||
| P/B | 0.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.09 |
EPS(TTM)2.57
EY10.97%
EPS(NY)2.31
Fwd EY9.87%
FCF(TTM)2.2
FCFY9.37%
OCF(TTM)3
OCFY12.81%
SpS18.46
BVpS35.89
TBVpS-14.11
PEG (NY)N/A
PEG (5Y)6.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.37% | ||
| ROCE | 6.36% | ||
| ROIC | 4.98% | ||
| ROICexc | 5.15% | ||
| ROICexgc | 36.43% | ||
| OM | 20.76% | ||
| PM (TTM) | 10.44% | ||
| GM | 34.58% | ||
| FCFM | 11.89% |
ROA(3y)2.96%
ROA(5y)2.06%
ROE(3y)5.4%
ROE(5y)3.79%
ROIC(3y)4.97%
ROIC(5y)4.89%
ROICexc(3y)5.05%
ROICexc(5y)5.02%
ROICexgc(3y)48.4%
ROICexgc(5y)52.54%
ROCE(3y)6.35%
ROCE(5y)6.25%
ROICexcg growth 3Y-16.8%
ROICexcg growth 5Y-7.23%
ROICexc growth 3Y1.76%
ROICexc growth 5Y3.9%
OM growth 3Y1.51%
OM growth 5Y0.42%
PM growth 3Y39.8%
PM growth 5Y6.51%
GM growth 3Y1.31%
GM growth 5Y1.14%
F-Score6
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.14 | ||
| Debt/EBITDA | 3.36 | ||
| Cap/Depr | 116.75% | ||
| Cap/Sales | 4.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.36% | ||
| Profit Quality | 113.94% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.02 |
F-Score6
WACC6.67%
ROIC/WACC0.75
Cap/Depr(3y)108.79%
Cap/Depr(5y)97.47%
Cap/Sales(3y)3.92%
Cap/Sales(5y)3.5%
Profit Quality(3y)93.19%
Profit Quality(5y)387.46%
High Growth Momentum
Growth
EPS 1Y (TTM)0.34%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-10.14%
EPS Next Y-14.54%
EPS Next 2Y-6.24%
EPS Next 3Y-2.56%
EPS Next 5Y1.39%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-6.43%
Revenue Next Year-3.73%
Revenue Next 2Y-1.52%
Revenue Next 3Y-0.53%
Revenue Next 5Y0.23%
EBIT growth 1Y-0.79%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year10.65%
EBIT Next 3Y4.34%
EBIT Next 5Y5.07%
FCF growth 1Y101.53%
FCF growth 3Y-12.18%
FCF growth 5Y1.64%
OCF growth 1Y67.4%
OCF growth 3Y-7.95%
OCF growth 5Y3.33%