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 57 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1KHC was profitable.
In the past year 1KHC had a positive cash flow from operations.
In the past 5 years 1KHC has always been profitable.
1KHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1KHC has a Return On Assets of 2.94%. This is comparable to the rest of the industry: 1KHC outperforms 49.15% of its industry peers.
Looking at the Return On Equity, with a value of 5.37%, 1KHC is in line with its industry, outperforming 45.76% of the companies in the same industry.
With a Return On Invested Capital value of 4.98%, 1KHC perfoms like the industry average, outperforming 49.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1KHC is below the industry average of 6.98%.
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 79.66% of its industry peers.
1KHC's Profit Margin has improved in the last couple of years.
1KHC has a Operating Margin of 20.76%. This is amongst the best in the industry. 1KHC outperforms 94.92% 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 comparable to the rest of the 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1KHC is destroying value.
Compared to 1 year ago, 1KHC has less shares outstanding
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 1.00. 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 1.00 is on the low side compared to the rest of the industry. 1KHC is outperformed by 77.97% of its industry peers.
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.
1KHC has a Debt to FCF ratio of 7.14. This is comparable to the rest of the industry: 1KHC outperforms 42.37% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that 1KHC is not too dependend on debt financing.
1KHC's Debt to Equity ratio of 0.42 is fine compared to the rest of the industry. 1KHC outperforms 71.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 1 |
ROIC/WACC0.54
WACC9.25%
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.
1KHC has a Quick ratio of 0.81. This is comparable to the rest of the industry: 1KHC outperforms 47.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
1KHC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.34%.
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.
1KHC shows a decrease in Revenue. In the last year, the revenue decreased by -4.25%.
Measured over the past years, 1KHC shows a small growth in Revenue. The Revenue has been growing by 0.69% on average per year.
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
The Earnings Per Share is expected to grow by 1.39% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 8.77, which indicates a very decent valuation of 1KHC.
1KHC's Price/Earnings ratio is a bit cheaper when compared to the industry. 1KHC is cheaper than 79.66% of the companies in the same industry.
1KHC is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.73 indicates a reasonable valuation of 1KHC.
Based on the Price/Forward Earnings ratio, 1KHC is valued a bit cheaper than the industry average as 69.49% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 1KHC to the average of the S&P500 Index (36.44), we can say 1KHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 9.73 |
4.2 Price Multiples
61.02% of the companies in the same industry are more expensive than 1KHC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1KHC is valued a bit cheaper than the industry average as 72.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.24 | ||
| EV/EBITDA | 7.89 |
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)6.13
EPS Next 2Y-6.24%
EPS Next 3Y-2.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.20%, 1KHC is a good candidate for dividend investing.
In the last 3 months the price of 1KHC has falen by -37.38%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.34, 1KHC pays a better dividend. On top of this 1KHC pays more dividend than 93.22% of the companies listed in the same industry.
1KHC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
72.39% of the earnings are spent on dividend by 1KHC. This is not a sustainable payout ratio.
DP72.39%
EPS Next 2Y-6.24%
EPS Next 3Y-2.56%
BIT:1KHC (6/18/2025, 7:00:00 PM)
22.37
+0.24 (+1.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners59.48%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap26.48B
Analysts54.84
Price Target27.23 (21.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
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 | 8.77 | ||
| Fwd PE | 9.73 | ||
| P/S | 1.22 | ||
| P/FCF | 10.24 | ||
| P/OCF | 7.5 | ||
| P/B | 0.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.89 |
EPS(TTM)2.55
EY11.4%
EPS(NY)2.3
Fwd EY10.27%
FCF(TTM)2.18
FCFY9.76%
OCF(TTM)2.98
OCFY13.34%
SpS18.36
BVpS35.71
TBVpS-14.03
PEG (NY)N/A
PEG (5Y)6.13
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 |
F-Score6
WACC9.25%
ROIC/WACC0.54
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%