KELLANOVA (K) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:K - US4878361082 - Common Stock
83.45 USD
+0.05 (+0.06%)
83.45 USD
0 (0%)
Taking everything into account, K scores 5 out of 10 in our fundamental rating. K was compared to 87 industry peers in the Food Products industry. K scores excellent on profitability, but there are concerns on its financial health. K has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year K was profitable.
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
Looking at the Return On Assets, with a value of 8.16%, K belongs to the top of the industry, outperforming 88.64% of the companies in the same industry.
K has a Return On Equity of 30.38%. This is amongst the best in the industry. K outperforms 96.59% of its industry peers.
K's Return On Invested Capital of 13.43% is amongst the best of the industry. K outperforms 92.05% of its industry peers.
K had an Average Return On Invested Capital over the past 3 years of 11.99%. This is significantly below the industry average of 28.38%.
The last Return On Invested Capital (13.43%) for K is above the 3 year average (11.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | 30.38% | ||
| ROIC | 13.43% |
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 10.08%, K belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of K has grown nicely.
Looking at the Operating Margin, with a value of 14.96%, K belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of K has grown nicely.
With an excellent Gross Margin value of 35.15%, K belongs to the best of the industry, outperforming 80.68% 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 | 14.96% | ||
| PM (TTM) | 10.08% | ||
| GM | 35.15% |
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.
Compared to 5 years ago, K has more shares outstanding
K has a better debt/assets ratio than last year.
2.2 Solvency
K has an Altman-Z score of 3.47. This indicates that K is financially healthy and has little risk of bankruptcy at the moment.
K has a better Altman-Z score (3.47) than 78.41% of its industry peers.
The Debt to FCF ratio of K is 9.39, which is on the high side as it means it would take K, 9.39 years of fcf income to pay off all of its debts.
K's Debt to FCF ratio of 9.39 is fine compared to the rest of the industry. K outperforms 63.64% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that K has dependencies on debt financing.
With a Debt to Equity ratio value of 1.16, K is not doing good in the industry: 76.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 9.39 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.69
WACC7.93%
2.3 Liquidity
K has a Current 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.
Looking at the Current ratio, with a value of 0.68, K is doing worse than 85.23% of the companies in the same industry.
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.
With a Quick ratio value of 0.44, K is not doing good in the industry: 73.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The earnings per share for K have decreased by -0.27% 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 18.26% in the last year.
The Revenue has been decreasing by -1.25% on average over the past years.
EPS 1Y (TTM)-0.27%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%3.3%
Revenue 1Y (TTM)18.26%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%0.84%
3.2 Future
K is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.54% yearly.
Based on estimates for the next years, K will show a small growth in Revenue. The Revenue will grow by 2.14% on average per year.
EPS Next Y-2.64%
EPS Next 2Y0.23%
EPS Next 3Y1.83%
EPS Next 5Y4.54%
Revenue Next Year0.17%
Revenue Next 2Y1.24%
Revenue Next 3Y1.78%
Revenue Next 5Y2.14%
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
Based on the Price/Earnings ratio of 22.55, the valuation of K can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of K is on the same level as its industry peers.
When comparing the Price/Earnings ratio of K to the average of the S&P500 Index (25.47), we can say K is valued inline with the index average.
A Price/Forward Earnings ratio of 21.58 indicates a rather expensive valuation of K.
K's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. K is cheaper than 60.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of K to the average of the S&P500 Index (34.42), we can say K is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 21.58 |
4.2 Price Multiples
K's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as K.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.47 | ||
| EV/EBITDA | 15.06 |
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 2Y0.23%
EPS Next 3Y1.83%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 2.78%.
K's Dividend Yield is a higher than the industry average which is at 5.20.
K's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| 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 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
K pays out 62.18% of its income as dividend. This is not a sustainable payout ratio.
The dividend of K is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.18%
EPS Next 2Y0.23%
EPS Next 3Y1.83%
83.45
+0.05 (+0.06%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.18%
Inst Owner Change3.41%
Ins Owners0.44%
Ins Owner Change-3.41%
Market Cap29.03B
Revenue(TTM)12.67B
Net Income(TTM)1.28B
Analysts54.29
Price Target85.03 (1.89%)
Short Float %3.35%
Short Ratio4.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend2.26
Dividend Growth(5Y)1.51%
DP62.18%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.35%
Min EPS beat(2)-6.87%
Max EPS beat(2)6.16%
EPS beat(4)2
Avg EPS beat(4)-1.15%
Min EPS beat(4)-12.53%
Max EPS beat(4)8.62%
EPS beat(8)6
Avg EPS beat(8)3.75%
EPS beat(12)10
Avg EPS beat(12)6.62%
EPS beat(16)14
Avg EPS beat(16)6.87%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)-1.51%
Revenue beat(4)0
Avg Revenue beat(4)-2.31%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)-1.26%
Revenue beat(8)2
Avg Revenue beat(8)-1.15%
Revenue beat(12)5
Avg Revenue beat(12)-0.18%
Revenue beat(16)8
Avg Revenue beat(16)0.22%
PT rev (1m)-0.01%
PT rev (3m)0.09%
EPS NQ rev (1m)-2.08%
EPS NQ rev (3m)-2.45%
EPS NY rev (1m)1.46%
EPS NY rev (3m)-2.55%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 21.58 | ||
| P/S | 2.29 | ||
| P/FCF | 48.47 | ||
| P/OCF | 23.14 | ||
| P/B | 6.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.06 |
EPS(TTM)3.7
EY4.43%
EPS(NY)3.87
Fwd EY4.63%
FCF(TTM)1.72
FCFY2.06%
OCF(TTM)3.61
OCFY4.32%
SpS36.42
BVpS12.08
TBVpS-7.65
PEG (NY)N/A
PEG (5Y)N/A
Graham Number31.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | 30.38% | ||
| ROCE | 17.99% | ||
| ROIC | 13.43% | ||
| ROICexc | 13.43% | ||
| ROICexgc | 35.4% | ||
| OM | 14.96% | ||
| PM (TTM) | 10.08% | ||
| GM | 35.15% | ||
| FCFM | 4.73% |
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-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 9.39 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 176.82% | ||
| Cap/Sales | 5.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.38% | ||
| Profit Quality | 46.91% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 3.47 |
F-Score5
WACC7.93%
ROIC/WACC1.69
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)-0.27%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%3.3%
EPS Next Y-2.64%
EPS Next 2Y0.23%
EPS Next 3Y1.83%
EPS Next 5Y4.54%
Revenue 1Y (TTM)18.26%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%0.84%
Revenue Next Year0.17%
Revenue Next 2Y1.24%
Revenue Next 3Y1.78%
Revenue Next 5Y2.14%
EBIT growth 1Y20.85%
EBIT growth 3Y1.56%
EBIT growth 5Y5.55%
EBIT Next Year17.18%
EBIT Next 3Y7.63%
EBIT Next 5Y7.16%
FCF growth 1Y-51.18%
FCF growth 3Y-0.47%
FCF growth 5Y13.92%
OCF growth 1Y-32.92%
OCF growth 3Y1.14%
OCF growth 5Y8.4%
KELLANOVA / K FAQ
What is the fundamental rating for K stock?
ChartMill assigns a fundamental rating of 5 / 10 to K.
What is the valuation status of KELLANOVA (K) stock?
ChartMill assigns a valuation rating of 3 / 10 to KELLANOVA (K). This can be considered as Overvalued.
How profitable is KELLANOVA (K) stock?
KELLANOVA (K) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for K stock?
The Price/Earnings (PE) ratio for KELLANOVA (K) is 22.55 and the Price/Book (PB) ratio is 6.91.
How sustainable is the dividend of KELLANOVA (K) stock?
The dividend rating of KELLANOVA (K) is 5 / 10 and the dividend payout ratio is 62.18%.