KELLANOVA (K) Stock Fundamental Analysis
NYSE:K - New York Stock Exchange, Inc. - US4878361082 - Common Stock - Currency: USD
K gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 89 industry peers in the Food Products industry. K has an excellent profitability rating, but there are concerns on its financial health. K is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
K had positive earnings in the past year.
K had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 8.59%, K belongs to the best of the industry, outperforming 86.52% of the companies in the same industry.
K has a better Return On Equity (35.58%) than 96.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.28%, K belongs to the top of the industry, outperforming 92.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for K is above the industry average of 9.00%.
The 3 year average ROIC (11.99%) for K is below the current ROIC(14.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.59% | ||
| ROE | 35.58% | ||
| ROIC | 14.28% |
ROA(3y)6.62%
ROA(5y)7%
ROE(3y)29.96%
ROE(5y)34.02%
ROIC(3y)11.99%
ROIC(5y)11.58%
1.3 Margins
K has a better Profit Margin (10.53%) than 85.39% of its industry peers.
In the last couple of years the Profit Margin of K has grown nicely.
The Operating Margin of K (15.83%) is better than 88.76% of its industry peers.
K's Operating Margin has improved in the last couple of years.
K has a better Gross Margin (36.78%) than 80.90% of its industry peers.
In the last couple of years the Gross Margin of K has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.83% | ||
| PM (TTM) | 10.53% | ||
| GM | 36.78% |
OM growth 3Y5.23%
OM growth 5Y6.89%
PM growth 3Y0.13%
PM growth 5Y8.3%
GM growth 3Y3.3%
GM growth 5Y2.28%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so K is still creating some value.
K has more shares outstanding than it did 1 year ago.
K has more shares outstanding than it did 5 years ago.
K has a better debt/assets ratio than last year.
2.2 Solvency
K has an Altman-Z score of 3.46. This indicates that K is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of K (3.46) is better than 76.40% of its industry peers.
K has a debt to FCF ratio of 5.07. This is a neutral value as K would need 5.07 years to pay back of all of its debts.
K has a better Debt to FCF ratio (5.07) than 69.66% of its industry peers.
A Debt/Equity ratio of 1.35 is on the high side and indicates that K has dependencies on debt financing.
K has a worse Debt to Equity ratio (1.35) than 78.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 3.46 |
ROIC/WACC1.78
WACC8.03%
2.3 Liquidity
K has a Current Ratio of 0.81. This is a bad value and indicates that K is not financially healthy enough and could expect problems in meeting its short term obligations.
K has a worse Current ratio (0.81) than 77.53% of its industry peers.
K has a Quick Ratio of 0.81. This is a bad value and indicates that K is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of K (0.56) is worse than 71.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
K shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.45%.
Measured over the past years, K shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.46% on average per year.
Looking at the last year, K shows a decrease in Revenue. The Revenue has decreased by -2.84% in the last year.
Measured over the past years, K shows a decrease in Revenue. The Revenue has been decreasing by -1.25% on average per year.
EPS 1Y (TTM)-7.45%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%17.95%
Revenue 1Y (TTM)-2.84%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%-1.58%
3.2 Future
The Earnings Per Share is expected to grow by 5.30% on average over the next years.
K is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.40% yearly.
EPS Next Y3.57%
EPS Next 2Y4.39%
EPS Next 3Y5.02%
EPS Next 5Y5.3%
Revenue Next Year1.33%
Revenue Next 2Y1.94%
Revenue Next 3Y2.43%
Revenue Next 5Y2.4%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.51, which indicates a rather expensive current valuation of K.
K's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of K to the average of the S&P500 Index (27.85), we can say K is valued slightly cheaper.
K is valuated rather expensively with a Price/Forward Earnings ratio of 20.77.
Based on the Price/Forward Earnings ratio, K is valued a bit cheaper than the industry average as 64.04% of the companies are valued more expensively.
K is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.51 | ||
| Fwd PE | 20.77 |
4.2 Price Multiples
K's Enterprise Value to EBITDA is on the same level as the industry average.
K's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.25 | ||
| EV/EBITDA | 14.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
K has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.03
PEG (5Y)N/A
EPS Next 2Y4.39%
EPS Next 3Y5.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.76%, K has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.32, K pays a bit more dividend than its industry peers.
K's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
The dividend of K has a limited annual growth rate of 1.51%.
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)1.51%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
57.78% of the earnings are spent on dividend by K. This is a bit on the high side, but may be sustainable.
K's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.78%
EPS Next 2Y4.39%
EPS Next 3Y5.02%
82.8
+0.03 (+0.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners82.7%
Inst Owner Change0.25%
Ins Owners0.72%
Ins Owner Change-4.78%
Market Cap28.58B
Analysts54.55
Price Target83.02 (0.27%)
Short Float %2.16%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend2.26
Dividend Growth(5Y)1.51%
DP57.78%
Div Incr Years0
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.91%
Min EPS beat(2)5.21%
Max EPS beat(2)8.62%
EPS beat(4)4
Avg EPS beat(4)9.97%
Min EPS beat(4)5.21%
Max EPS beat(4)16.18%
EPS beat(8)8
Avg EPS beat(8)10.44%
EPS beat(12)12
Avg EPS beat(12)9.99%
EPS beat(16)16
Avg EPS beat(16)9.96%
Revenue beat(2)1
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)0.37%
Revenue beat(4)1
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)0.37%
Revenue beat(8)4
Avg Revenue beat(8)0.4%
Revenue beat(12)8
Avg Revenue beat(12)1.05%
Revenue beat(16)11
Avg Revenue beat(16)1.09%
PT rev (1m)0.46%
PT rev (3m)0.46%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-3.11%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.51 | ||
| Fwd PE | 20.77 | ||
| P/S | 2.24 | ||
| P/FCF | 25.25 | ||
| P/OCF | 16.24 | ||
| P/B | 7.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.05 |
EPS(TTM)3.85
EY4.65%
EPS(NY)3.99
Fwd EY4.82%
FCF(TTM)3.28
FCFY3.96%
OCF(TTM)5.1
OCFY6.16%
SpS36.93
BVpS10.94
TBVpS-8.66
PEG (NY)6.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.59% | ||
| ROE | 35.58% | ||
| ROCE | 18.4% | ||
| ROIC | 14.28% | ||
| ROICexc | 15.23% | ||
| ROICexgc | 43.66% | ||
| OM | 15.83% | ||
| PM (TTM) | 10.53% | ||
| GM | 36.78% | ||
| FCFM | 8.88% |
ROA(3y)6.62%
ROA(5y)7%
ROE(3y)29.96%
ROE(5y)34.02%
ROIC(3y)11.99%
ROIC(5y)11.58%
ROICexc(3y)12.48%
ROICexc(5y)11.99%
ROICexgc(3y)36.74%
ROICexgc(5y)35.13%
ROCE(3y)15.6%
ROCE(5y)14.99%
ROICexcg growth 3Y9.44%
ROICexcg growth 5Y7.97%
ROICexc growth 3Y8.64%
ROICexc growth 5Y9.53%
OM growth 3Y5.23%
OM growth 5Y6.89%
PM growth 3Y0.13%
PM growth 5Y8.3%
GM growth 3Y3.3%
GM growth 5Y2.28%
F-Score7
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 5.07 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 171.12% | ||
| Cap/Sales | 4.93% | ||
| Interest Coverage | 6.66 | ||
| Cash Conversion | 73.79% | ||
| Profit Quality | 84.29% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 3.46 |
F-Score7
WACC8.03%
ROIC/WACC1.78
Cap/Depr(3y)144.93%
Cap/Depr(5y)131.73%
Cap/Sales(3y)4.42%
Cap/Sales(5y)4.17%
Profit Quality(3y)102.41%
Profit Quality(5y)100.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.45%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%17.95%
EPS Next Y3.57%
EPS Next 2Y4.39%
EPS Next 3Y5.02%
EPS Next 5Y5.3%
Revenue 1Y (TTM)-2.84%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%-1.58%
Revenue Next Year1.33%
Revenue Next 2Y1.94%
Revenue Next 3Y2.43%
Revenue Next 5Y2.4%
EBIT growth 1Y31.55%
EBIT growth 3Y1.56%
EBIT growth 5Y5.55%
EBIT Next Year25.67%
EBIT Next 3Y10.8%
EBIT Next 5Y7.6%
FCF growth 1Y16.94%
FCF growth 3Y-0.47%
FCF growth 5Y13.92%
OCF growth 1Y6.99%
OCF growth 3Y1.14%
OCF growth 5Y8.4%