KELLANOVA (K) Stock Fundamental Analysis
NYSE:K - New York Stock Exchange, Inc. - US4878361082 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to K. K was compared to 89 industry peers in the Food Products industry. While K has a great profitability rating, there are quite some 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.
In the past year K had a positive cash flow from operations.
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
With an excellent Return On Assets value of 8.41%, K belongs to the best of the industry, outperforming 86.52% of the companies in the same industry.
K has a Return On Equity of 32.49%. This is amongst the best in the industry. K outperforms 96.63% of its industry peers.
The Return On Invested Capital of K (13.24%) is better than 92.13% 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 29.14%.
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
The Profit Margin of K (10.56%) is better than 88.76% of its industry peers.
In the last couple of years the Profit Margin of K has grown nicely.
K has a better Operating Margin (15.05%) than 86.52% of its industry peers.
K's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 35.99%, K belongs to the best of the industry, outperforming 80.90% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so K is still 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
An Altman-Z score of 3.33 indicates that K is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.33, K is doing good in the industry, outperforming 74.16% of the companies in the same industry.
K has a debt to FCF ratio of 9.04. This is a negative value and a sign of low solvency as K would need 9.04 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 9.04, K is doing good in the industry, outperforming 64.04% 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 worse Debt to Equity ratio (1.25) than 76.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 9.04 | ||
| Altman-Z | 3.33 |
ROIC/WACC1.65
WACC8.05%
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.
The Current ratio of K (0.68) is worse than 83.15% 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 78.65% 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%.
The Earnings Per Share has been decreasing by -0.46% on average over the past years.
Looking at the last year, K shows a quite strong growth in Revenue. The Revenue has grown by 10.71% in the last year.
The Revenue has been decreasing by -1.25% on average over the past years.
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 4.63% on average over the next years.
The Revenue is expected to grow by 2.24% on average over the next years.
EPS Next Y-0.1%
EPS Next 2Y2.12%
EPS Next 3Y3.03%
EPS Next 5Y4.63%
Revenue Next Year0.48%
Revenue Next 2Y1.44%
Revenue Next 3Y2%
Revenue Next 5Y2.24%
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
With a Price/Earnings ratio of 21.82, K is valued on the expensive side.
K's Price/Earnings is on the same level as the industry average.
K's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.93.
With a Price/Forward Earnings ratio of 19.95, K is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of K indicates a somewhat cheap valuation: K is cheaper than 62.92% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.31, K is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.82 | ||
| Fwd PE | 19.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of K is on the same level as its industry peers.
K's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.74 | ||
| 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 2Y2.12%
EPS Next 3Y3.03%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 2.90%. Purely for dividend investing, there may be better candidates out there.
K's Dividend Yield is a higher than the industry average which is at 4.71.
K's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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.
Dividend Growth(5Y)1.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
K pays out 59.03% of its income as dividend. 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.
DP59.03%
EPS Next 2Y2.12%
EPS Next 3Y3.03%
80.08
-0.12 (-0.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners82.33%
Inst Owner Change-0.51%
Ins Owners0.44%
Ins Owner Change-5.19%
Market Cap27.78B
Analysts54.55
Price Target84.95 (6.08%)
Short Float %3.03%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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)0.93%
PT rev (3m)1.01%
EPS NQ rev (1m)-3.24%
EPS NQ rev (3m)-5.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.54%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.82 | ||
| Fwd PE | 19.95 | ||
| P/S | 2.2 | ||
| P/FCF | 42.74 | ||
| P/OCF | 21.29 | ||
| P/B | 6.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.32 |
EPS(TTM)3.67
EY4.58%
EPS(NY)4.01
Fwd EY5.01%
FCF(TTM)1.87
FCFY2.34%
OCF(TTM)3.76
OCFY4.7%
SpS36.44
BVpS11.84
TBVpS-7.97
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
WACC8.05%
ROIC/WACC1.65
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-0.1%
EPS Next 2Y2.12%
EPS Next 3Y3.03%
EPS Next 5Y4.63%
Revenue 1Y (TTM)10.71%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%0.34%
Revenue Next Year0.48%
Revenue Next 2Y1.44%
Revenue Next 3Y2%
Revenue Next 5Y2.24%
EBIT growth 1Y20.29%
EBIT growth 3Y1.56%
EBIT growth 5Y5.55%
EBIT Next Year19.43%
EBIT Next 3Y8.89%
EBIT Next 5Y7.16%
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%