KRAFT HEINZ CO/THE (1KHC.MI) Stock Fundamental Analysis
BIT:1KHC - Euronext Milan - US5007541064 - Common Stock - Currency: EUR
Overall 1KHC gets a fundamental rating of 5 out of 10. We evaluated 1KHC against 58 industry peers in the Food Products industry. 1KHC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1KHC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1KHC had positive earnings in the past year.
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 3.11%, 1KHC perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
With a Return On Equity value of 5.58%, 1KHC perfoms like the industry average, outperforming 41.07% of the companies in the same industry.
1KHC has a Return On Invested Capital (5.20%) 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 below the industry average of 7.19%.
The last Return On Invested Capital (5.20%) for 1KHC is above the 3 year average (4.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.58% | ||
| ROIC | 5.2% |
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
Looking at the Profit Margin, with a value of 10.62%, 1KHC belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
In the last couple of years the Profit Margin of 1KHC has grown nicely.
1KHC has a better Operating Margin (20.81%) than 94.64% of its industry peers.
1KHC's Operating Margin has been stable in the last couple of years.
1KHC has a Gross Margin (34.73%) which is comparable to the rest of the industry.
1KHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.81% | ||
| PM (TTM) | 10.62% | ||
| GM | 34.73% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1KHC is destroying value.
1KHC has less shares outstanding than it did 1 year ago.
1KHC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1KHC is higher compared to a year ago.
2.2 Solvency
1KHC has an Altman-Z score of 1.07. This is a bad value and indicates that 1KHC is not financially healthy and even has some risk of bankruptcy.
1KHC's Altman-Z score of 1.07 is on the low side compared to the rest of the industry. 1KHC is outperformed by 75.00% of its industry peers.
The Debt to FCF ratio of 1KHC is 6.58, which is on the high side as it means it would take 1KHC, 6.58 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1KHC (6.58) is comparable to the rest of the industry.
1KHC has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.39, 1KHC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.74
WACC7%
2.3 Liquidity
A Current Ratio of 1.06 indicates that 1KHC should not have too much problems paying its short term obligations.
The Current ratio of 1KHC (1.06) is worse than 69.64% of its industry peers.
1KHC has a Quick Ratio of 1.06. This is a bad value and indicates that 1KHC is not financially healthy enough and could expect problems in meeting its short term obligations.
1KHC's Quick ratio of 0.59 is on the low side compared to the rest of the industry. 1KHC is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.03% over the past year.
The Earnings Per Share has been growing slightly by 1.43% on average over the past years.
1KHC shows a decrease in Revenue. In the last year, the revenue decreased by -2.98%.
The Revenue has been growing slightly by 0.69% on average over the past years.
EPS 1Y (TTM)3.03%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%7.69%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-4.14%
3.2 Future
1KHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.20% yearly.
Based on estimates for the next years, 1KHC will show a small growth in Revenue. The Revenue will grow by 0.63% on average per year.
EPS Next Y-11.68%
EPS Next 2Y-4.07%
EPS Next 3Y-1.34%
EPS Next 5Y2.2%
Revenue Next Year-3.62%
Revenue Next 2Y-1.31%
Revenue Next 3Y-0.31%
Revenue Next 5Y0.63%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1KHC is valuated reasonably with a Price/Earnings ratio of 9.52.
1KHC's Price/Earnings ratio is a bit cheaper when compared to the industry. 1KHC is cheaper than 78.57% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1KHC to the average of the S&P500 Index (28.22), we can say 1KHC is valued rather cheaply.
1KHC is valuated reasonably with a Price/Forward Earnings ratio of 10.77.
Based on the Price/Forward Earnings ratio, 1KHC is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
1KHC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.52 | ||
| Fwd PE | 10.77 |
4.2 Price Multiples
1KHC's Enterprise Value to EBITDA ratio is in line with the industry average.
69.64% of the companies in the same industry are more expensive than 1KHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.5 | ||
| EV/EBITDA | 8.43 |
4.3 Compensation for Growth
The decent profitability rating of 1KHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.65
EPS Next 2Y-4.07%
EPS Next 3Y-1.34%
5. Dividend
5.1 Amount
1KHC has a Yearly Dividend Yield of 5.43%, which is a nice return.
1KHC's Dividend Yield is rather good when compared to the industry average which is at 3.09. 1KHC pays more dividend than 89.29% of the companies in the same industry.
1KHC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
70.37% of the earnings are spent on dividend by 1KHC. This is not a sustainable payout ratio.
DP70.37%
EPS Next 2Y-4.07%
EPS Next 3Y-1.34%
BIT:1KHC (4/30/2025, 7:00:00 PM)
25.615
-2.65 (-9.38%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners59.39%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap30.57B
Analysts65.71
Price Target29.91 (16.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
Yearly Dividend1.41
Dividend Growth(5Y)0%
DP70.37%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.67%
Min EPS beat(2)0.43%
Max EPS beat(2)6.92%
EPS beat(4)3
Avg EPS beat(4)2.97%
Min EPS beat(4)-0.52%
Max EPS beat(4)6.92%
EPS beat(8)7
Avg EPS beat(8)4.58%
EPS beat(12)11
Avg EPS beat(12)5.78%
EPS beat(16)15
Avg EPS beat(16)8.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)-1.26%
Revenue beat(8)1
Avg Revenue beat(8)-1.88%
Revenue beat(12)5
Avg Revenue beat(12)-0.63%
Revenue beat(16)8
Avg Revenue beat(16)-0.13%
PT rev (1m)-4.58%
PT rev (3m)-16.98%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-13.43%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-12.82%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-5%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.52 | ||
| Fwd PE | 10.77 | ||
| P/S | 1.34 | ||
| P/FCF | 11.5 | ||
| P/OCF | 8.3 | ||
| P/B | 0.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.43 |
EPS(TTM)2.69
EY10.5%
EPS(NY)2.38
Fwd EY9.29%
FCF(TTM)2.23
FCFY8.7%
OCF(TTM)3.09
OCFY12.05%
SpS19.06
BVpS36.28
TBVpS-14.45
PEG (NY)N/A
PEG (5Y)6.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.58% | ||
| ROCE | 6.64% | ||
| ROIC | 5.2% | ||
| ROICexc | 5.29% | ||
| ROICexgc | 38.55% | ||
| OM | 20.81% | ||
| PM (TTM) | 10.62% | ||
| GM | 34.73% | ||
| FCFM | 11.68% |
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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 6.58 | ||
| Debt/EBITDA | 3.04 | ||
| Cap/Depr | 122.79% | ||
| Cap/Sales | 4.5% | ||
| Interest Coverage | 5.94 | ||
| Cash Conversion | 66.14% | ||
| Profit Quality | 110.06% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.07 |
F-Score6
WACC7%
ROIC/WACC0.74
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)3.03%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%7.69%
EPS Next Y-11.68%
EPS Next 2Y-4.07%
EPS Next 3Y-1.34%
EPS Next 5Y2.2%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-4.14%
Revenue Next Year-3.62%
Revenue Next 2Y-1.31%
Revenue Next 3Y-0.31%
Revenue Next 5Y0.63%
EBIT growth 1Y2.59%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year13.63%
EBIT Next 3Y5.59%
EBIT Next 5Y5.49%
FCF growth 1Y1.92%
FCF growth 3Y-12.18%
FCF growth 5Y1.64%
OCF growth 1Y5.23%
OCF growth 3Y-7.95%
OCF growth 5Y3.33%