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 is valued expensive and it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years K has always been profitable.
Each year in the past 5 years K had a positive operating cash flow.

1.2 Ratios

K has a better Return On Assets (8.16%) than 89.77% of its industry peers.
K's Return On Equity of 30.38% is amongst the best of the industry. K outperforms 96.59% of its industry peers.
K has a better Return On Invested Capital (13.43%) than 92.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for K is significantly below the industry average of 27.79%.
The 3 year average ROIC (11.99%) for K is below the current ROIC(13.43%), indicating increased profibility in the last year.

		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

K's Profit Margin of 10.08% is amongst the best of the industry. K outperforms 87.50% of its industry peers.
In the last couple of years the Profit Margin of K has grown nicely.
K has a better Operating Margin (14.96%) than 88.64% of its industry peers.
In the last couple of years the Operating Margin of K has grown nicely.
K has a Gross Margin of 35.15%. This is in the better half of the industry: K outperforms 79.55% of its industry peers.
K's Gross Margin has improved in the last couple of years.

		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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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.
K has more shares outstanding than it did 1 year ago.
The number of shares outstanding for K has been increased compared to 5 years ago.
The debt/assets ratio for K has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.47 indicates that K is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.47, K is doing good in the industry, outperforming 75.00% of the companies in the same industry.
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 has a better Debt to FCF ratio (9.39) than 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.
K's Debt to Equity ratio of 1.16 is on the low side compared to the rest of the industry. K is outperformed by 75.00% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.16
Debt/FCF	9.39
Altman-Z	3.47

ROIC/WACC1.67

WACC8.02%

2.3 Liquidity

A Current Ratio of 0.68 indicates that K may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.68, K is doing worse than 86.36% 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: 77.27% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.68
Quick Ratio	0.44

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The earnings per share for K have decreased by -0.27% in the last year.
K shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.46% yearly.
Looking at the last year, K shows a quite strong growth in Revenue. The Revenue has grown by 18.26% in the last year.
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)-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

Based on estimates for the next years, K will show a small growth in Earnings Per Share. The EPS will grow by 4.54% on average per year.
The Revenue is expected to grow by 2.14% on average over the next years.

EPS Next Y-2.77%

EPS Next 2Y-4.12%

EPS Next 3Y-1.02%

EPS Next 5Y4.54%

Revenue Next Year1.22%

Revenue Next 2Y1.51%

Revenue Next 3Y1.9%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 22.55, which indicates a rather expensive current valuation of K.
K's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of K to the average of the S&P500 Index (27.21), we can say K is valued inline with the index average.
A Price/Forward Earnings ratio of 23.57 indicates a rather expensive valuation of K.
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 (25.98), we can say K is valued inline with the index average.

		Industry Rank	Sector Rank
PE	22.55
Fwd PE	23.57

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

The excellent profitability rating of K may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-4.12%

EPS Next 3Y-1.02%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.78%, K has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.29, K pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.81, K pays a better dividend.

		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

62.18% of the earnings are spent on dividend by K. This is not a sustainable payout ratio.
K's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP62.18%

EPS Next 2Y-4.12%

EPS Next 3Y-1.02%

More info and screens

Find the best dividend stocks

Show peers with best dividend

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 for 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.

What is the valuation of Kellanova based on its PE and PB ratios?

The Price/Earnings (PE) ratio for Kellanova (K) is 22.55 and the Price/Book (PB) ratio is 6.91.

Can you provide the dividend sustainability for K stock?

The dividend rating of Kellanova (K) is 5 / 10 and the dividend payout ratio is 62.18%.