KELLANOVA (K) Stock Fundamental Analysis
USA - NYSE:K - US4878361082 - Common Stock
77.94 USD
+0.87 (+1.13%)
81.6 USD
+3.66 (+4.7%)
Taking everything into account, K scores 5 out of 10 in our fundamental rating. K was compared to 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
In the past year K was profitable.
In the past year K had a positive cash flow from operations.
In the past 5 years K has always been profitable.
In the past 5 years K always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of K (8.41%) is better than 86.52% of its industry peers.
K's Return On Equity of 32.49% is amongst the best of the industry. K outperforms 96.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.24%, K belongs to the top of the industry, outperforming 92.13% of the companies in the same industry.
K had an Average Return On Invested Capital over the past 3 years of 11.99%. This is significantly below the industry average of 27.78%.
The 3 year average ROIC (11.99%) for K is below the current ROIC(13.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 32.49% | ||
| ROIC | 13.24% |
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
With an excellent Profit Margin value of 10.56%, K belongs to the best of the industry, outperforming 88.76% of the companies in the same industry.
K's Profit Margin has improved in the last couple of years.
K has a better Operating Margin (15.05%) than 86.52% of its industry peers.
In the last couple of years the Operating Margin of K has grown nicely.
K's Gross Margin of 35.99% is amongst the best of the industry. K outperforms 83.15% of its industry peers.
K's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.05% | ||
| PM (TTM) | 10.56% | ||
| GM | 35.99% |
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.
Compared to 5 years ago, K has more shares outstanding
Compared to 1 year ago, K has an improved debt to assets ratio.
2.2 Solvency
K has an Altman-Z score of 3.29. This indicates that K is financially healthy and has little risk of bankruptcy at the moment.
K has a Altman-Z score of 3.29. This is in the better half of the industry: K outperforms 69.66% of its industry peers.
K has a debt to FCF ratio of 9.04. This is a negative value and a sign of low solvency as K would need 9.04 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.04, K is in line with its industry, outperforming 59.55% of the companies in the same industry.
K has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.25, K is not doing good in the industry: 77.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 9.04 | ||
| Altman-Z | 3.29 |
ROIC/WACC1.66
WACC8%
2.3 Liquidity
A Current Ratio of 0.68 indicates that K may have some problems paying its short term obligations.
K has a Current ratio of 0.68. This is amonst the worse of the industry: K underperforms 84.27% of its industry peers.
K has a Quick Ratio of 0.68. 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 Quick ratio of 0.45. This is in the lower half of the industry: K underperforms 78.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for K have decreased by -4.18% in the last year.
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 quite strong growth in Revenue. The Revenue has grown by 10.71% 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)-4.18%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%-6.93%
Revenue 1Y (TTM)10.71%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%0.34%
3.2 Future
K is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.34% yearly.
K is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.11% yearly.
EPS Next Y-3.98%
EPS Next 2Y0.05%
EPS Next 3Y1.34%
EPS Next 5Y4.34%
Revenue Next Year0.11%
Revenue Next 2Y1.26%
Revenue Next 3Y1.64%
Revenue Next 5Y2.11%
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
K is valuated rather expensively with a Price/Earnings ratio of 21.24.
The rest of the industry has a similar Price/Earnings ratio as K.
K's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.54.
With a Price/Forward Earnings ratio of 20.22, K is valued on the expensive side.
Based on the Price/Forward Earnings ratio, K is valued a bit cheaper than the industry average as 60.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, K is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.24 | ||
| Fwd PE | 20.22 |
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 | 41.73 | ||
| EV/EBITDA | 14.03 |
4.3 Compensation for Growth
The excellent profitability rating of K may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.05%
EPS Next 3Y1.34%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 3.01%. Purely for dividend investing, there may be better candidates out there.
K's Dividend Yield is a higher than the industry average which is at 5.12.
K's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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 59.03% 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.
DP59.03%
EPS Next 2Y0.05%
EPS Next 3Y1.34%
77.94
+0.87 (+1.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.18%
Inst Owner Change2.36%
Ins Owners0.44%
Ins Owner Change-4.87%
Market Cap27.12B
Analysts54.55
Price Target85.04 (9.11%)
Short Float %2.55%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
Yearly Dividend2.26
Dividend Growth(5Y)1.51%
DP59.03%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.7%
Min EPS beat(2)-12.53%
Max EPS beat(2)-6.87%
EPS beat(4)2
Avg EPS beat(4)-1.39%
Min EPS beat(4)-12.53%
Max EPS beat(4)8.62%
EPS beat(8)6
Avg EPS beat(8)5.6%
EPS beat(12)10
Avg EPS beat(12)6.19%
EPS beat(16)14
Avg EPS beat(16)7.38%
Revenue beat(2)0
Avg Revenue beat(2)-3.24%
Min Revenue beat(2)-4.93%
Max Revenue beat(2)-1.54%
Revenue beat(4)1
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.37%
Revenue beat(8)3
Avg Revenue beat(8)-0.13%
Revenue beat(12)6
Avg Revenue beat(12)0.14%
Revenue beat(16)9
Avg Revenue beat(16)0.33%
PT rev (1m)-0.37%
PT rev (3m)1.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.72%
EPS NY rev (1m)0.27%
EPS NY rev (3m)-4.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.24 | ||
| Fwd PE | 20.22 | ||
| P/S | 2.15 | ||
| P/FCF | 41.73 | ||
| P/OCF | 20.78 | ||
| P/B | 6.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.03 |
EPS(TTM)3.67
EY4.71%
EPS(NY)3.85
Fwd EY4.94%
FCF(TTM)1.87
FCFY2.4%
OCF(TTM)3.75
OCFY4.81%
SpS36.33
BVpS11.81
TBVpS-7.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 32.49% | ||
| ROCE | 18.15% | ||
| ROIC | 13.24% | ||
| ROICexc | 13.67% | ||
| ROICexgc | 36.94% | ||
| OM | 15.05% | ||
| PM (TTM) | 10.56% | ||
| GM | 35.99% | ||
| FCFM | 5.14% |
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-Score6
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 9.04 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 177.51% | ||
| Cap/Sales | 5.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.44% | ||
| Profit Quality | 48.69% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 3.29 |
F-Score6
WACC8%
ROIC/WACC1.66
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)-4.18%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%-6.93%
EPS Next Y-3.98%
EPS Next 2Y0.05%
EPS Next 3Y1.34%
EPS Next 5Y4.34%
Revenue 1Y (TTM)10.71%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%0.34%
Revenue Next Year0.11%
Revenue Next 2Y1.26%
Revenue Next 3Y1.64%
Revenue Next 5Y2.11%
EBIT growth 1Y20.29%
EBIT growth 3Y1.56%
EBIT growth 5Y5.55%
EBIT Next Year17.18%
EBIT Next 3Y7.63%
EBIT Next 5Y6.99%
FCF growth 1Y-30.11%
FCF growth 3Y-0.47%
FCF growth 5Y13.92%
OCF growth 1Y-12.42%
OCF growth 3Y1.14%
OCF growth 5Y8.4%