KELLANOVA (K) Stock Fundamental Analysis
USA - NYSE:K - US4878361082 - Common Stock
82.935 USD
-0.11 (-0.13%)
We assign a fundamental rating of 5 out of 10 to K. 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.
In the past year K had a positive cash flow from operations.
K had positive earnings in each of the past 5 years.
Each year in the past 5 years K had a positive operating cash flow.
1.2 Ratios
The Return On Assets of K (8.41%) is better than 86.21% 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 96.55% of the companies in the same industry.
The Return On Invested Capital of K (13.24%) is better than 91.95% 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 28.34%.
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 87.36% of its industry peers.
In the last couple of years the Profit Margin of K has grown nicely.
K's Operating Margin of 15.05% is amongst the best of the industry. K outperforms 85.06% of its industry peers.
K's Operating Margin has improved in the last couple of years.
K's Gross Margin of 35.99% is amongst the best of the industry. K outperforms 81.61% of its industry peers.
In the last couple of years the Gross Margin of K has grown nicely.
| 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.
K has more shares outstanding than it did 1 year ago.
K has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, K has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.38 indicates that K is not in any danger for bankruptcy at the moment.
The Altman-Z score of K (3.38) is better than 71.26% of its industry peers.
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 62.07% 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.
With a Debt to Equity ratio value of 1.25, K is not doing good in the industry: 77.01% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 9.04 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.68
WACC7.9%
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.
With a Current ratio value of 0.68, K is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
A Quick Ratio of 0.45 indicates that K may have some problems paying its short term obligations.
The Quick ratio of K (0.45) is worse than 77.01% 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%.
K shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.46% yearly.
The Revenue has grown by 10.71% in the past year. This is quite good.
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 4.29% on average over the next years.
The Revenue is expected to grow by 2.11% on average over the next years.
EPS Next Y-3.98%
EPS Next 2Y0.05%
EPS Next 3Y1.34%
EPS Next 5Y4.29%
Revenue Next Year0.08%
Revenue Next 2Y1.19%
Revenue Next 3Y1.64%
Revenue Next 5Y2.11%
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
The Price/Earnings ratio is 22.60, which indicates a rather expensive current valuation of K.
Compared to the rest of the industry, the Price/Earnings ratio of K is on the same level as its industry peers.
K is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.52, K is valued on the expensive side.
K's Price/Forward Earnings ratio is in line with the industry average.
K's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.6 | ||
| Fwd PE | 21.52 |
4.2 Price Multiples
K's Enterprise Value to EBITDA ratio is in line with the industry average.
K's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.4 | ||
| EV/EBITDA | 14.81 |
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 2Y0.05%
EPS Next 3Y1.34%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 2.80%. 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 5.09.
K's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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 2Y0.05%
EPS Next 3Y1.34%
NYSE:K (10/21/2025, 9:55:10 AM)
82.935
-0.11 (-0.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.18%
Inst Owner Change-0.02%
Ins Owners0.44%
Ins Owner Change-4.38%
Market Cap28.86B
Analysts54.29
Price Target85.04 (2.54%)
Short Float %3.31%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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%
PT rev (3m)1.04%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-4.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.6 | ||
| Fwd PE | 21.52 | ||
| P/S | 2.28 | ||
| P/FCF | 44.4 | ||
| P/OCF | 22.12 | ||
| P/B | 7.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.81 |
EPS(TTM)3.67
EY4.43%
EPS(NY)3.85
Fwd EY4.65%
FCF(TTM)1.87
FCFY2.25%
OCF(TTM)3.75
OCFY4.52%
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 | 3.38 |
F-Score6
WACC7.9%
ROIC/WACC1.68
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-3.98%
EPS Next 2Y0.05%
EPS Next 3Y1.34%
EPS Next 5Y4.29%
Revenue 1Y (TTM)10.71%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%0.34%
Revenue Next Year0.08%
Revenue Next 2Y1.19%
Revenue Next 3Y1.64%
Revenue Next 5Y2.11%
EBIT growth 1Y20.29%
EBIT growth 3Y1.56%
EBIT growth 5Y5.55%
EBIT Next Year17.18%
EBIT Next 3Y7.63%
EBIT Next 5Y6.96%
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%