KELLANOVA (K) Stock Fundamental Analysis
NYSE:K - US4878361082 - Common Stock
79.485 USD
-0.39 (-0.48%)
K gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 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.
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
The Return On Assets of K (8.41%) is better than 87.50% of its industry peers.
Looking at the Return On Equity, with a value of 32.49%, K belongs to the top of the industry, outperforming 96.59% of the companies in the same industry.
K has a Return On Invested Capital of 13.24%. This is amongst the best in 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 28.74%.
The last Return On Invested Capital (13.24%) for K is above the 3 year average (11.99%), which is a sign of increasing profitability.
| 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
K has a Profit Margin of 10.56%. This is amongst the best in the industry. K outperforms 88.64% of its industry peers.
In the last couple of years the Profit Margin of K has grown nicely.
Looking at the Operating Margin, with a value of 15.05%, K belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
K's Operating Margin has improved in the last couple of years.
K has a Gross Margin of 35.99%. This is amongst the best in the industry. K outperforms 82.95% 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
K has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, K has more shares outstanding
K has more shares outstanding than it did 5 years ago.
K has a better debt/assets ratio than last year.
2.2 Solvency
K has an Altman-Z score of 3.33. This indicates that K is financially healthy and has little risk of bankruptcy at the moment.
K's Altman-Z score of 3.33 is fine compared to the rest of the industry. K outperforms 71.59% 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.
K has a Debt to FCF ratio (9.04) which is in line with its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that K has dependencies on debt financing.
With a Debt to Equity ratio value of 1.25, K is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 9.04 | ||
| Altman-Z | 3.33 |
ROIC/WACC1.67
WACC7.94%
2.3 Liquidity
A Current Ratio of 0.68 indicates that K may have some problems paying its short term obligations.
The Current ratio of K (0.68) is worse than 84.09% of its industry peers.
A Quick Ratio of 0.45 indicates that K may have some problems paying its short term obligations.
K's Quick ratio of 0.45 is on the low side compared to the rest of the industry. K is outperformed by 78.41% 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%.
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.
K shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.25% yearly.
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
The Earnings Per Share is expected to grow by 4.34% on average over the next years.
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-4.24%
EPS Next 2Y-0.07%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.66, the valuation of K can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as K.
Compared to an average S&P500 Price/Earnings ratio of 27.06, K is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.68, the valuation of K can be described as rather expensive.
K's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. K is cheaper than 63.64% 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 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.66 | ||
| Fwd PE | 20.68 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.55 | ||
| EV/EBITDA | 14.32 |
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-0.07%
EPS Next 3Y1.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.92%, K has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.71, K pays a bit more dividend than its industry peers.
K's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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 2Y-0.07%
EPS Next 3Y1.34%
NYSE:K (9/8/2025, 12:20:34 PM)
79.485
-0.39 (-0.48%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners82.33%
Inst Owner Change2.36%
Ins Owners0.44%
Ins Owner Change-5.61%
Market Cap27.66B
Analysts54.55
Price Target85.04 (6.99%)
Short Float %2.7%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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)0.11%
PT rev (3m)1.12%
EPS NQ rev (1m)-1.34%
EPS NQ rev (3m)-7%
EPS NY rev (1m)-4.15%
EPS NY rev (3m)-4.06%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.66 | ||
| Fwd PE | 20.68 | ||
| P/S | 2.19 | ||
| P/FCF | 42.55 | ||
| P/OCF | 21.2 | ||
| P/B | 6.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.32 |
EPS(TTM)3.67
EY4.62%
EPS(NY)3.84
Fwd EY4.84%
FCF(TTM)1.87
FCFY2.35%
OCF(TTM)3.75
OCFY4.72%
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 | 3.33 |
F-Score6
WACC7.94%
ROIC/WACC1.67
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-4.24%
EPS Next 2Y-0.07%
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 Year19.43%
EBIT Next 3Y8.89%
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%