KELLANOVA (K) Stock Fundamental Analysis
USA - NYSE:K - US4878361082 - Common Stock
83.02 USD
+0.04 (+0.05%)
83.02 USD
0 (0%)
K gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. While K belongs to the best of the industry regarding profitability, there are concerns on its financial health. K does not seem to be growing, but still is valued expensively.
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.
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
The Return On Assets of K (8.41%) is better than 86.21% of its industry peers.
With an excellent Return On Equity value of 32.49%, K belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
K's Return On Invested Capital of 13.24% is amongst the best of the industry. K outperforms 91.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for K is significantly below the industry average of 28.34%.
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 87.36% of the companies in the same industry.
In the last couple of years the Profit Margin of K has grown nicely.
K has a Operating Margin of 15.05%. This is amongst the best in the industry. K outperforms 85.06% of its industry peers.
In the last couple of years the Operating Margin of K has grown nicely.
Looking at the Gross Margin, with a value of 35.99%, K belongs to the top of the industry, outperforming 81.61% of the companies in the same industry.
In the last couple of years the Gross Margin of K has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), K is creating some value.
The number of shares outstanding for K has been increased compared to 1 year ago.
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 3.38 indicates that K is not in any danger for bankruptcy at the moment.
K has a Altman-Z score of 3.38. This is in the better half of the industry: K outperforms 71.26% of its industry peers.
The Debt to FCF ratio of K is 9.04, which is on the high side as it means it would take K, 9.04 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 9.04, K is doing good in the industry, outperforming 62.07% 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.
K has a Debt to Equity ratio of 1.25. This is in the lower half of the industry: K underperforms 77.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 9.04 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.68
WACC7.86%
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 86.21% 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 77.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
K shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.18%.
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 grown by 10.71% in the past year. This is quite good.
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 4.29% yearly.
The Revenue is expected to grow by 2.11% on average over the next years.
EPS Next Y-3.98%
EPS Next 2Y0.05%
EPS Next 3Y1.34%
EPS Next 5Y4.29%
Revenue Next Year0.08%
Revenue Next 2Y1.19%
Revenue Next 3Y1.64%
Revenue Next 5Y2.11%
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
With a Price/Earnings ratio of 22.62, K is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as K.
The average S&P500 Price/Earnings ratio is at 27.57. K is around the same levels.
Based on the Price/Forward Earnings ratio of 21.54, the valuation of K can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as K.
When comparing the Price/Forward Earnings ratio of K to the average of the S&P500 Index (23.09), we can say K is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 21.54 |
4.2 Price Multiples
K's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as K.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.45 | ||
| EV/EBITDA | 14.8 |
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 2Y0.05%
EPS Next 3Y1.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.80%, K has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.09, K pays a bit more dividend than its industry peers.
K's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
5.2 History
The dividend of K has a limited annual growth rate of 1.51%.
K has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
59.03% of the earnings are spent on dividend by K. This is a bit on the high side, but may be sustainable.
The dividend of K is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.03%
EPS Next 2Y0.05%
EPS Next 3Y1.34%
83.02
+0.04 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.18%
Inst Owner Change-0.02%
Ins Owners0.44%
Ins Owner Change-4.38%
Market Cap28.89B
Revenue(TTM)12.64B
Net Income(TTM)1.33B
Analysts54.29
Price Target85.04 (2.43%)
Short Float %3.31%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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%
PT rev (3m)1.04%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-4.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 21.54 | ||
| P/S | 2.29 | ||
| P/FCF | 44.45 | ||
| P/OCF | 22.14 | ||
| P/B | 7.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.8 |
EPS(TTM)3.67
EY4.42%
EPS(NY)3.85
Fwd EY4.64%
FCF(TTM)1.87
FCFY2.25%
OCF(TTM)3.75
OCFY4.52%
SpS36.33
BVpS11.81
TBVpS-7.95
PEG (NY)N/A
PEG (5Y)N/A
Graham Number31.23
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%
ROICexgc growth 3Y9.44%
ROICexgc 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 | 3.38 |
F-Score6
WACC7.86%
ROIC/WACC1.68
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 5Y4.29%
Revenue 1Y (TTM)10.71%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%0.34%
Revenue Next Year0.08%
Revenue Next 2Y1.19%
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 5Y6.96%
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%