KELLANOVA (K) Stock Fundamental Analysis
NYSE:K - New York Stock Exchange, Inc. - US4878361082 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to K. K was compared to 89 industry peers in the Food Products industry. K scores excellent on profitability, but there are concerns on its financial health. K is valued correctly, but it does not seem to be growing.
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.
K had positive earnings in each of the past 5 years.
K had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
K's Return On Assets of 8.92% is amongst the best of the industry. K outperforms 88.76% of its industry peers.
K's Return On Equity of 35.25% is amongst the best of the industry. K outperforms 97.75% of its industry peers.
K has a better Return On Invested Capital (13.11%) than 93.26% of its industry peers.
K had an Average Return On Invested Capital over the past 3 years of 11.99%. This is above the industry average of 7.60%.
The 3 year average ROIC (11.99%) for K is below the current ROIC(13.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.92% | ||
| ROE | 35.25% | ||
| ROIC | 13.11% |
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
Looking at the Profit Margin, with a value of 10.92%, K belongs to the top of the industry, outperforming 87.64% of the companies in the same industry.
In the last couple of years the Profit Margin of K has grown nicely.
The Operating Margin of K (15.51%) is better than 87.64% of its industry peers.
K's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 36.59%, K belongs to the best of the industry, outperforming 82.02% of the companies in the same industry.
K's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.51% | ||
| PM (TTM) | 10.92% | ||
| GM | 36.59% |
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
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 more shares outstanding
K has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, K has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.47 indicates that K is not in any danger for bankruptcy at the moment.
K has a Altman-Z score of 3.47. This is in the better half of the industry: K outperforms 76.40% of its industry peers.
K has a debt to FCF ratio of 6.51. This is a slightly negative value and a sign of low solvency as K would need 6.51 years to pay back of all of its debts.
K's Debt to FCF ratio of 6.51 is fine compared to the rest of the industry. K outperforms 76.40% of its industry peers.
A Debt/Equity ratio of 1.43 is on the high side and indicates that K has dependencies on debt financing.
K's Debt to Equity ratio of 1.43 is on the low side compared to the rest of the industry. K is outperformed by 83.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 6.51 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.31
WACC10.02%
2.3 Liquidity
A Current Ratio of 0.80 indicates that K may have some problems paying its short term obligations.
K has a Current ratio of 0.80. This is in the lower half of the industry: K underperforms 77.53% of its industry peers.
A Quick Ratio of 0.52 indicates that K may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, K is not doing good in the industry: 70.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for K have decreased by -8.11% in the last year.
K shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.46% yearly.
The Revenue has been growing slightly by 2.96% in the past 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)-8.11%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%-10.89%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%-3.66%
3.2 Future
The Earnings Per Share is expected to grow by 4.63% on average over the next years.
The Revenue is expected to grow by 2.24% on average over the next years.
EPS Next Y-0.18%
EPS Next 2Y2.2%
EPS Next 3Y2.96%
EPS Next 5Y4.63%
Revenue Next Year0.45%
Revenue Next 2Y1.38%
Revenue Next 3Y1.95%
Revenue Next 5Y2.24%
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
K is valuated rather expensively with a Price/Earnings ratio of 21.36.
Compared to the rest of the industry, the Price/Earnings ratio of K is on the same level as its industry peers.
K is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.87, the valuation of K can be described as rather expensive.
Based on the Price/Forward Earnings ratio, K is valued a bit cheaper than 62.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, K is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 19.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of K is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of K indicates a somewhat cheap valuation: K is cheaper than 60.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.11 | ||
| EV/EBITDA | 13.95 |
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 2Y2.2%
EPS Next 3Y2.96%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.69, K pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, K has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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.
Dividend Growth(5Y)1.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
K pays out 56.67% of its income as dividend. 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.
DP56.67%
EPS Next 2Y2.2%
EPS Next 3Y2.96%
79.88
-0.34 (-0.42%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners82.7%
Inst Owner Change0.27%
Ins Owners0.72%
Ins Owner Change-4.83%
Market Cap27.71B
Analysts54.78
Price Target84.17 (5.37%)
Short Float %2.73%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend2.26
Dividend Growth(5Y)1.51%
DP56.67%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.95%
Min EPS beat(2)-12.53%
Max EPS beat(2)8.62%
EPS beat(4)3
Avg EPS beat(4)2.8%
Min EPS beat(4)-12.53%
Max EPS beat(4)9.89%
EPS beat(8)7
Avg EPS beat(8)7.81%
EPS beat(12)11
Avg EPS beat(12)7.62%
EPS beat(16)15
Avg EPS beat(16)8.34%
Revenue beat(2)0
Avg Revenue beat(2)-3.1%
Min Revenue beat(2)-4.93%
Max Revenue beat(2)-1.26%
Revenue beat(4)1
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.37%
Revenue beat(8)3
Avg Revenue beat(8)-0.28%
Revenue beat(12)7
Avg Revenue beat(12)0.61%
Revenue beat(16)10
Avg Revenue beat(16)0.52%
PT rev (1m)0.07%
PT rev (3m)1.85%
EPS NQ rev (1m)-1.08%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)-3.62%
EPS NY rev (3m)-4.01%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 19.87 | ||
| P/S | 2.19 | ||
| P/FCF | 32.11 | ||
| P/OCF | 18.33 | ||
| P/B | 7.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.95 |
EPS(TTM)3.74
EY4.68%
EPS(NY)4.02
Fwd EY5.03%
FCF(TTM)2.49
FCFY3.11%
OCF(TTM)4.36
OCFY5.46%
SpS36.41
BVpS11.28
TBVpS-8.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.92% | ||
| ROE | 35.25% | ||
| ROCE | 17.6% | ||
| ROIC | 13.11% | ||
| ROICexc | 13.49% | ||
| ROICexgc | 33.43% | ||
| OM | 15.51% | ||
| PM (TTM) | 10.92% | ||
| GM | 36.59% | ||
| FCFM | 6.83% |
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 | 1.43 | ||
| Debt/FCF | 6.51 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 174% | ||
| Cap/Sales | 5.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.84% | ||
| Profit Quality | 62.54% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 3.47 |
F-Score7
WACC10.02%
ROIC/WACC1.31
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)-8.11%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%-10.89%
EPS Next Y-0.18%
EPS Next 2Y2.2%
EPS Next 3Y2.96%
EPS Next 5Y4.63%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%-3.66%
Revenue Next Year0.45%
Revenue Next 2Y1.38%
Revenue Next 3Y1.95%
Revenue Next 5Y2.24%
EBIT growth 1Y23.29%
EBIT growth 3Y1.56%
EBIT growth 5Y5.55%
EBIT Next Year19.54%
EBIT Next 3Y9.19%
EBIT Next 5Y7.16%
FCF growth 1Y-17.57%
FCF growth 3Y-0.47%
FCF growth 5Y13.92%
OCF growth 1Y-5.5%
OCF growth 3Y1.14%
OCF growth 5Y8.4%