KELLANOVA (K)
US4878361082 - Common Stock
K gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 92 industry peers in the Food Products industry. K has an excellent profitability rating, but there are concerns on its financial health. K is valued correctly, but it does not seem to be growing. K also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
K had positive earnings in the past year.
In the past year K had a positive cash flow from operations.
In the past 5 years K has always been profitable.
Each year in the past 5 years K had a positive operating cash flow.
1.2 Ratios
K has a Return On Assets of 6.09%. This is in the better half of the industry: K outperforms 70.33% of its industry peers.
The Return On Equity of K (29.95%) is better than 95.60% of its industry peers.
K has a better Return On Invested Capital (11.12%) than 87.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for K is above the industry average of 7.56%.
The last Return On Invested Capital (11.12%) for K is above the 3 year average (11.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 29.95% | ||
| ROIC | 11.12% |
ROA(3y)6.49%
ROA(5y)6.38%
ROE(3y)31.44%
ROE(5y)33.89%
ROIC(3y)11.02%
ROIC(5y)10.52%
1.3 Margins
Looking at the Profit Margin, with a value of 7.25%, K is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Profit Margin of K has declined.
K has a better Operating Margin (11.69%) than 81.32% of its industry peers.
In the last couple of years the Operating Margin of K has remained more or less at the same level.
With an excellent Gross Margin value of 32.64%, K belongs to the best of the industry, outperforming 80.22% of the companies in the same industry.
K's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.69% | ||
| PM (TTM) | 7.25% | ||
| GM | 32.64% |
OM growth 3Y-3.39%
OM growth 5Y-1.09%
PM growth 3Y-7.26%
PM growth 5Y-5.97%
GM growth 3Y-1.67%
GM growth 5Y-0.9%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), K is creating some value.
Compared to 1 year ago, K has less shares outstanding
K has less shares outstanding than it did 5 years ago.
The debt/assets ratio for K is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.78 indicates that K is not a great score, but indicates only limited risk for bankruptcy at the moment.
K has a better Altman-Z score (2.78) than 61.54% of its industry peers.
K has a debt to FCF ratio of 6.07. This is a slightly negative value and a sign of low solvency as K would need 6.07 years to pay back of all of its debts.
The Debt to FCF ratio of K (6.07) is better than 68.13% of its industry peers.
A Debt/Equity ratio of 1.64 is on the high side and indicates that K has dependencies on debt financing.
K's Debt to Equity ratio of 1.64 is on the low side compared to the rest of the industry. K is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 6.07 | ||
| Altman-Z | 2.78 |
ROIC/WACC1.4
WACC7.92%
2.3 Liquidity
K has a Current Ratio of 0.66. This is a bad value and indicates that K is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.66, K is doing worse than 90.11% of the companies in the same industry.
K has a Quick Ratio of 0.66. This is a bad value and indicates that K is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.41, K is not doing good in the industry: 86.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The earnings per share for K have decreased by -1.65% in the last year.
Measured over the past years, K shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.84% on average per year.
The Revenue for K has decreased by -14.32% in the past year. This is quite bad
The Revenue has been decreasing by -0.64% on average over the past years.
EPS 1Y (TTM)-1.65%
EPS 3Y1.32%
EPS 5Y-0.84%
EPS growth Q2Q-17.02%
Revenue 1Y (TTM)-14.32%
Revenue growth 3Y-1.59%
Revenue growth 5Y-0.64%
Revenue growth Q2Q-71.59%
3.2 Future
K is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.77% yearly.
Based on estimates for the next years, K will show a small growth in Revenue. The Revenue will grow by 0.66% on average per year.
EPS Next Y-12.18%
EPS Next 2Y-3.35%
EPS Next 3Y-0.38%
EPS Next 5Y5.77%
Revenue Next Year-12.55%
Revenue Next 2Y-5.05%
Revenue Next 3Y-2.58%
Revenue Next 5Y0.66%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.98, the valuation of K can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of K indicates a rather cheap valuation: K is cheaper than 80.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.20, K is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.91, K is valued correctly.
76.92% of the companies in the same industry are more expensive than K, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.60. K is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.98 | ||
| Fwd PE | 15.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of K indicates a somewhat cheap valuation: K is cheaper than 62.64% of the companies listed in the same industry.
65.93% of the companies in the same industry are more expensive than K, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.53 | ||
| EV/EBITDA | 12.95 |
4.3 Compensation for Growth
K has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.35%
EPS Next 3Y-0.38%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 3.96%.
Compared to an average industry Dividend Yield of 3.58, K pays a better dividend. On top of this K pays more dividend than 89.01% of the companies listed in the same industry.
K's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
The dividend of K has a limited annual growth rate of 3.40%.
K has paid a dividend for at least 10 years, which is a reliable track record.
K has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.4%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
K pays out 84.12% of its income as dividend. This is not a sustainable payout ratio.
K's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP84.12%
EPS Next 2Y-3.35%
EPS Next 3Y-0.38%
KELLANOVA
NYSE:K (4/23/2024, 7:08:55 PM)
After market: 57.6 -0.54 (-0.93%)58.14
+0.16 (+0.28%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.98 | ||
| Fwd PE | 15.91 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 29.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.69% | ||
| PM (TTM) | 7.25% | ||
| GM | 32.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.65%
EPS 3Y1.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.32%
Revenue growth 3Y-1.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y