KELLANOVA (K)
US4878361082 - Common Stock
Overall K gets a fundamental rating of 5 out of 10. We evaluated K against 92 industry peers in the Food Products industry. K has an excellent profitability rating, but there are concerns on its financial health. K has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years K has been profitable.
K had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
K has a better Return On Assets (6.01%) than 72.53% of its industry peers.
The Return On Equity of K (29.19%) is better than 94.51% of its industry peers.
With an excellent Return On Invested Capital value of 12.27%, K belongs to the best of the industry, outperforming 89.01% of the companies in the same industry.
K had an Average Return On Invested Capital over the past 3 years of 11.02%. This is above the industry average of 8.76%.
The 3 year average ROIC (11.02%) for K is below the current ROIC(12.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 29.19% | ||
| ROIC | 12.27% |
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 7.50%, K is in the better half of the industry, outperforming 75.82% of the companies in the same industry.
K's Profit Margin has declined in the last couple of years.
K has a better Operating Margin (12.95%) than 81.32% of its industry peers.
K's Operating Margin has been stable in the last couple of years.
The Gross Margin of K (34.27%) is better than 82.42% of its industry peers.
In the last couple of years the Gross Margin of K has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.95% | ||
| PM (TTM) | 7.5% | ||
| GM | 34.27% |
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
K has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
K has less shares outstanding than it did 1 year ago.
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
K has an Altman-Z score of 2.76. This is not the best score and indicates that K is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.76, K perfoms like the industry average, outperforming 58.24% of the companies in the same industry.
K has a debt to FCF ratio of 5.38. This is a neutral value as K would need 5.38 years to pay back of all of its debts.
K has a Debt to FCF ratio of 5.38. This is in the better half of the industry: K outperforms 69.23% of its industry peers.
K has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
K's Debt to Equity ratio of 1.47 is on the low side compared to the rest of the industry. K is outperformed by 79.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 5.38 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.61
WACC7.64%
2.3 Liquidity
A Current Ratio of 0.62 indicates that K may have some problems paying its short term obligations.
K's Current ratio of 0.62 is on the low side compared to the rest of the industry. K is outperformed by 87.91% of its industry peers.
A Quick Ratio of 0.41 indicates that K may have some problems paying its short term obligations.
The Quick ratio of K (0.41) is worse than 82.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
K shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.78%.
The Earnings Per Share has been decreasing by -0.84% on average over the past years.
The Revenue for K has decreased by -21.83% in the past year. This is quite bad
K shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.64% yearly.
EPS 1Y (TTM)-3.78%
EPS 3Y1.32%
EPS 5Y-0.84%
EPS Q2Q%-8.18%
Revenue 1Y (TTM)-21.83%
Revenue growth 3Y-1.59%
Revenue growth 5Y-0.64%
Sales Q2Q%-21.05%
3.2 Future
The Earnings Per Share is expected to grow by 3.17% on average over the next years.
K is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.49% yearly.
EPS Next Y-11.16%
EPS Next 2Y-2.92%
EPS Next 3Y0.11%
EPS Next 5Y3.17%
Revenue Next Year-13.35%
Revenue Next 2Y-5.59%
Revenue Next 3Y-2.69%
Revenue Next 5Y-0.49%
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 accelerating.
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
With a Price/Earnings ratio of 14.12, K is valued correctly.
Based on the Price/Earnings ratio, K is valued a bit cheaper than the industry average as 75.82% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.41. K is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.66, the valuation of K can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of K indicates a somewhat cheap valuation: K is cheaper than 74.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, K is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 14.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, K is valued a bit cheaper than the industry average as 60.44% of the companies are valued more expensively.
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 | 17.8 | ||
| EV/EBITDA | 12.66 |
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-2.92%
EPS Next 3Y0.11%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 3.81%.
Compared to an average industry Dividend Yield of 3.74, K pays a better dividend. On top of this K pays more dividend than 85.71% 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
The dividend of K has a limited annual growth rate of 3.40%.
K has been paying a dividend for at least 10 years, so it has 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 85.76% of its income as dividend. This is not a sustainable payout ratio.
The dividend of K is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP85.76%
EPS Next 2Y-2.92%
EPS Next 3Y0.11%
KELLANOVA
NYSE:K (7/26/2024, 7:04:00 PM)
After market: 56.9 -0.57 (-0.99%)57.47
+0.19 (+0.33%)
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 Cap19.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
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 | 14.12 | ||
| Fwd PE | 14.66 | ||
| 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 | 6.01% | ||
| ROE | 29.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.95% | ||
| PM (TTM) | 7.5% | ||
| GM | 34.27% | ||
| 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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.62 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-3.78%
EPS 3Y1.32%
EPS 5Y
EPS Q2Q%
EPS Next Y-11.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.83%
Revenue growth 3Y-1.59%
Revenue growth 5Y
Sales 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