KELLANOVA (K) Stock Fundamental Analysis
NYSE:K - New York Stock Exchange, Inc. - US4878361082 - Common Stock - Currency: USD
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
K had positive earnings in the past year.
In the past year K had a positive cash flow from operations.
In the past 5 years K has always been profitable.
K had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of K (8.92%) is better than 88.76% of its industry peers.
K has a better Return On Equity (35.25%) than 96.63% of its industry peers.
With an excellent Return On Invested Capital value of 13.11%, K belongs to the best of the industry, outperforming 92.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for K is above the industry average of 8.83%.
The 3 year average ROIC (11.99%) for K is below the current ROIC(13.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.92% | ||
| ROE | 35.25% | ||
| ROIC | 13.11% |
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
K's Profit Margin of 10.92% is amongst the best of the industry. K outperforms 88.76% of its industry peers.
K's Profit Margin has improved in the last couple of years.
The Operating Margin of K (15.51%) is better than 87.64% of its industry peers.
K's Operating Margin has improved in the last couple of years.
K has a Gross Margin of 36.59%. This is amongst the best in the industry. K outperforms 82.02% of its industry peers.
K's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.51% | ||
| PM (TTM) | 10.92% | ||
| GM | 36.59% |
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
The debt/assets ratio for K has been reduced compared to a year ago.
2.2 Solvency
K has an Altman-Z score of 3.50. This indicates that K is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of K (3.50) is better than 76.40% of its industry peers.
The Debt to FCF ratio of K is 6.51, which is on the high side as it means it would take K, 6.51 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.51, K is in the better half of the industry, outperforming 66.29% of the companies in the same industry.
K has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
K has a worse Debt to Equity ratio (1.43) than 82.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 6.51 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.59
WACC8.24%
2.3 Liquidity
K has a Current Ratio of 0.80. This is a bad value and indicates that K is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of K (0.80) is worse than 78.65% of its industry peers.
A Quick Ratio of 0.52 indicates that K may have some problems paying its short term obligations.
K's Quick ratio of 0.52 is on the low side compared to the rest of the industry. K is outperformed by 74.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
K shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.45%.
K shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.46% yearly.
K shows a small growth in Revenue. In the last year, the Revenue has grown by 2.96%.
The Revenue has been decreasing by -1.25% on average over the past years.
EPS 1Y (TTM)-7.45%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%12.23%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%-3.66%
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 5.30% on average per year.
K is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.40% yearly.
EPS Next Y3.57%
EPS Next 2Y4.39%
EPS Next 3Y5.02%
EPS Next 5Y5.3%
Revenue Next Year0.45%
Revenue Next 2Y1.38%
Revenue Next 3Y1.95%
Revenue Next 5Y2.4%
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
A Price/Earnings ratio of 21.33 indicates a rather expensive valuation of K.
K's Price/Earnings ratio is in line with the industry average.
K is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.57, the valuation of K can be described as rather expensive.
Based on the Price/Forward Earnings ratio, K is valued a bit cheaper than 61.80% of the companies in the same industry.
K is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.33 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
K's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of K is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.85 | ||
| EV/EBITDA | 14.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates K does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of K may justify a higher PE ratio.
PEG (NY)5.98
PEG (5Y)N/A
EPS Next 2Y4.39%
EPS Next 3Y5.02%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 2.76%.
Compared to an average industry Dividend Yield of 4.63, K pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, K has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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.
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)1.51%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
56.67% of the earnings are spent on dividend by K. 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.
DP56.67%
EPS Next 2Y4.39%
EPS Next 3Y5.02%
82.11
-0.19 (-0.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners82.7%
Inst Owner Change0.69%
Ins Owners0.72%
Ins Owner Change-4.79%
Market Cap28.35B
Analysts54.55
Price Target84.1 (2.42%)
Short Float %3.09%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend2.26
Dividend Growth(5Y)1.51%
DP56.67%
Div Incr Years0
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.1%
Min Revenue beat(2)-4.93%
Max Revenue beat(2)-1.26%
Revenue beat(4)1
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.37%
Revenue beat(8)3
Avg Revenue beat(8)-0.28%
Revenue beat(12)7
Avg Revenue beat(12)0.61%
Revenue beat(16)10
Avg Revenue beat(16)0.52%
PT rev (1m)1.31%
PT rev (3m)1.77%
EPS NQ rev (1m)-1.59%
EPS NQ rev (3m)-3.8%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.33 | ||
| Fwd PE | 19.57 | ||
| P/S | 2.24 | ||
| P/FCF | 32.85 | ||
| P/OCF | 18.75 | ||
| P/B | 7.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.17 |
EPS(TTM)3.85
EY4.69%
EPS(NY)4.2
Fwd EY5.11%
FCF(TTM)2.5
FCFY3.04%
OCF(TTM)4.38
OCFY5.33%
SpS36.59
BVpS11.34
TBVpS-8.34
PEG (NY)5.98
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.92% | ||
| ROE | 35.25% | ||
| ROCE | 17.6% | ||
| ROIC | 13.11% | ||
| ROICexc | 13.49% | ||
| ROICexgc | 33.43% | ||
| OM | 15.51% | ||
| PM (TTM) | 10.92% | ||
| GM | 36.59% | ||
| FCFM | 6.83% |
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-Score7
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 6.51 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 174% | ||
| Cap/Sales | 5.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.84% | ||
| Profit Quality | 62.54% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 3.5 |
F-Score7
WACC8.24%
ROIC/WACC1.59
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)-7.45%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%12.23%
EPS Next Y3.57%
EPS Next 2Y4.39%
EPS Next 3Y5.02%
EPS Next 5Y5.3%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%-3.66%
Revenue Next Year0.45%
Revenue Next 2Y1.38%
Revenue Next 3Y1.95%
Revenue Next 5Y2.4%
EBIT growth 1Y23.29%
EBIT growth 3Y1.56%
EBIT growth 5Y5.55%
EBIT Next Year25.67%
EBIT Next 3Y10.8%
EBIT Next 5Y7.6%
FCF growth 1Y-17.57%
FCF growth 3Y-0.47%
FCF growth 5Y13.92%
OCF growth 1Y-5.5%
OCF growth 3Y1.14%
OCF growth 5Y8.4%