KELLANOVA (K)

US4878361082 - Common Stock

58.75  +0.61 (+1.05%)

After market: 58.75 0 (0%)

Fundamental Rating

5

K gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 92 industry peers in the Food Products industry. While K has a great profitability rating, there are quite some concerns on its financial health. K has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally K also has an excellent dividend rating.



8

1. Profitability

1.1 Basic Checks

In the past year K was profitable.
K had a positive operating cash flow in the past year.
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

K has a better Return On Assets (6.09%) than 70.33% of its industry peers.
K has a better Return On Equity (29.95%) than 95.60% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.12%, K belongs to the top of the industry, outperforming 87.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for K is above the industry average of 7.56%.
The 3 year average ROIC (11.02%) for K is below the current ROIC(11.12%), indicating increased profibility in the last year.
Industry RankSector 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

K's Profit Margin of 7.25% is fine compared to the rest of the industry. K outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of K has declined.
The Operating Margin of K (11.69%) is better than 81.32% of its industry peers.
K's Operating Margin has been stable in the last couple of years.
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.
In the last couple of years the Gross Margin of K has remained more or less at the same level.
Industry RankSector 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%

3

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.
Compared to 1 year ago, K has a worse debt to assets ratio.

2.2 Solvency

K has an Altman-Z score of 2.79. 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.
Looking at the Altman-Z score, with a value of 2.79, K is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
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.
K has a better Debt to FCF ratio (6.07) 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.
Looking at the Debt to Equity ratio, with a value of 1.64, K is doing worse than 85.71% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.64
Debt/FCF 6.07
Altman-Z 2.79
ROIC/WACC1.4
WACC7.92%

2.3 Liquidity

A Current Ratio of 0.66 indicates that K may have some problems paying 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.
K's Quick ratio of 0.41 is on the low side compared to the rest of the industry. K is outperformed by 86.81% of its industry peers.
Industry RankSector Rank
Current Ratio 0.66
Quick Ratio 0.41

3

3. Growth

3.1 Past

The earnings per share for K have decreased by -1.65% in the last year.
The Earnings Per Share has been decreasing by -0.84% on average over the past years.
K shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.32%.
Measured over the past years, K shows a decrease in Revenue. The Revenue has been decreasing by -0.64% on average per year.
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

Based on estimates for the next years, K will show a small growth in Earnings Per Share. The EPS will grow by 5.77% on average per year.
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

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

K is valuated correctly with a Price/Earnings ratio of 14.12.
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 25.25, K is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.08, K is valued correctly.
Based on the Price/Forward Earnings ratio, K is valued a bit cheaper than the industry average as 78.02% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, K is valued a bit cheaper.
Industry RankSector Rank
PE 14.12
Fwd PE 16.08

4.2 Price Multiples

62.64% of the companies in the same industry are more expensive than K, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, K is valued a bit cheaper than the industry average as 65.93% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 20.74
EV/EBITDA 13.09

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%

7

5. Dividend

5.1 Amount

K has a Yearly Dividend Yield of 3.96%. Purely for dividend investing, there may be better candidates out there.
K's Dividend Yield is rather good when compared to the industry average which is at 3.58. K pays more dividend than 89.01% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, K pays a better dividend.
Industry RankSector 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

84.12% of the earnings are spent on dividend by K. 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 (4/24/2024, 7:12:35 PM)

After market: 58.75 0 (0%)

58.75

+0.61 (+1.05%)

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 Cap20.08B
Analysts
Price Target
Dividend
Industry RankSector 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 RankSector Rank
PE 14.12
Fwd PE 16.08
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 RankSector 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 RankSector 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