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 59 industry peers in the Food Products industry. While 1KHC has a great profitability rating, there are quite some concerns on its financial health. 1KHC is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years 1KHC had a positive operating cash flow.
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.
Looking at the Return On Equity, with a value of 5.37%, 1KHC is in line with its industry, outperforming 45.00% 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 6.44%.
The last Return On Invested Capital (4.98%) for 1KHC is above the 3 year average (4.97%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 10.44%, 1KHC belongs to the best of the industry, outperforming 81.67% of the companies in the same industry.
In the last couple of years the Profit Margin of 1KHC has grown nicely.
Looking at the Operating Margin, with a value of 20.76%, 1KHC belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Operating Margin of 1KHC has remained more or less at the same level.
Looking at the Gross Margin, with a value of 34.58%, 1KHC is in line with its industry, outperforming 46.67% of the companies in the same industry.
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
1KHC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
1KHC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1KHC has less shares outstanding
Compared to 1 year ago, 1KHC has a worse debt to assets ratio.
2.2 Solvency
1KHC has an Altman-Z score of 1.03. This is a bad value and indicates that 1KHC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.03, 1KHC is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
1KHC has a debt to FCF ratio of 7.14. This is a slightly negative value and a sign of low solvency as 1KHC would need 7.14 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.14, 1KHC perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
1KHC has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.42, 1KHC is doing good in the industry, outperforming 71.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.71
WACC7.04%
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.
1KHC has a Current ratio (1.31) which is comparable to the rest of the industry.
1KHC has a Quick Ratio of 1.31. This is a bad value and indicates that 1KHC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.81, 1KHC perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
| 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.
1KHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.69% yearly.
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
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-14.56%
EPS Next 2Y-6.25%
EPS Next 3Y-2.59%
EPS Next 5Y2.2%
Revenue Next Year-3.75%
Revenue Next 2Y-1.56%
Revenue Next 3Y-0.59%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.31 indicates a reasonable valuation of 1KHC.
Based on the Price/Earnings ratio, 1KHC is valued cheaper than 81.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, 1KHC is valued rather cheaply.
1KHC is valuated reasonably with a Price/Forward Earnings ratio of 10.37.
Based on the Price/Forward Earnings ratio, 1KHC is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
1KHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1KHC is valued a bit cheaper than 61.67% of the companies in the same industry.
71.67% 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 | 10.91 | ||
| EV/EBITDA | 8.21 |
4.3 Compensation for Growth
The decent profitability rating of 1KHC may justify a higher PE ratio.
1KHC's earnings are expected to decrease with -2.59% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)6.5
EPS Next 2Y-6.25%
EPS Next 3Y-2.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.01%, 1KHC is a good candidate for dividend investing.
The stock price of 1KHC dropped by -26.13% 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.
1KHC's Dividend Yield is rather good when compared to the industry average which is at 3.21. 1KHC pays more dividend than 95.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 1KHC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.01% |
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-6.25%
EPS Next 3Y-2.59%
BIT:1KHC (5/19/2025, 7:00:00 PM)
24.675
-0.02 (-0.1%)
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 Cap29.20B
Analysts55.48
Price Target27.53 (11.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.01% |
Yearly Dividend1.42
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)-7.96%
PT rev (3m)-21.13%
EPS NQ rev (1m)-7.52%
EPS NQ rev (3m)-9.99%
EPS NY rev (1m)-3.26%
EPS NY rev (3m)-7.35%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-3.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 10.37 | ||
| P/S | 1.3 | ||
| P/FCF | 10.91 | ||
| P/OCF | 7.99 | ||
| P/B | 0.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.21 |
EPS(TTM)2.65
EY10.74%
EPS(NY)2.38
Fwd EY9.64%
FCF(TTM)2.26
FCFY9.17%
OCF(TTM)3.09
OCFY12.52%
SpS19.02
BVpS36.98
TBVpS-14.53
PEG (NY)N/A
PEG (5Y)6.5
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 | 1.03 |
F-Score6
WACC7.04%
ROIC/WACC0.71
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-14.56%
EPS Next 2Y-6.25%
EPS Next 3Y-2.59%
EPS Next 5Y2.2%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-6.43%
Revenue Next Year-3.75%
Revenue Next 2Y-1.56%
Revenue Next 3Y-0.59%
Revenue Next 5Y0.63%
EBIT growth 1Y-0.79%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year10.65%
EBIT Next 3Y4.34%
EBIT Next 5Y5.49%
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%