KRAFT HEINZ CO/THE (KHC) Fundamental Analysis & Valuation
NASDAQ:KHC • US5007541064
Current stock price
21.94 USD
-0.03 (-0.14%)
At close:
21.9265 USD
-0.01 (-0.06%)
After Hours:
This KHC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. KHC Profitability Analysis
1.1 Basic Checks
- In the past year KHC was profitable.
- In the past year KHC had a positive cash flow from operations.
- Of the past 5 years KHC 4 years were profitable.
- Each year in the past 5 years KHC had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of KHC (-7.15%) is worse than 65.52% of its industry peers.
- KHC has a worse Return On Equity (-14.03%) than 64.37% of its industry peers.
- KHC has a Return On Invested Capital (5.10%) which is comparable to the rest of the industry.
- KHC had an Average Return On Invested Capital over the past 3 years of 5.14%. This is in line with the industry average of 6.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.15% | ||
| ROE | -14.03% | ||
| ROIC | 5.1% |
ROA(3y)-0.29%
ROA(5y)0.56%
ROE(3y)-0.9%
ROE(5y)0.84%
ROIC(3y)5.14%
ROIC(5y)5%
1.3 Margins
- Looking at the Operating Margin, with a value of 18.88%, KHC belongs to the top of the industry, outperforming 98.85% of the companies in the same industry.
- KHC's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 33.32%, KHC is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
- KHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.88% | ||
| PM (TTM) | N/A | ||
| GM | 33.32% |
OM growth 3Y0.89%
OM growth 5Y-2.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.33%
GM growth 5Y-0.96%
2. KHC Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KHC is destroying value.
- KHC has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for KHC has been reduced compared to 5 years ago.
- Compared to 1 year ago, KHC has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.83, we must say that KHC is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.83, KHC is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
- KHC has a debt to FCF ratio of 5.80. This is a neutral value as KHC would need 5.80 years to pay back of all of its debts.
- KHC has a Debt to FCF ratio of 5.80. This is in the better half of the industry: KHC outperforms 72.41% of its industry peers.
- A Debt/Equity ratio of 0.46 indicates that KHC is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.46, KHC perfoms like the industry average, outperforming 49.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.8 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.74
WACC6.92%
2.3 Liquidity
- KHC has a Current Ratio of 1.15. This is a normal value and indicates that KHC is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.15, KHC is not doing good in the industry: 70.11% of the companies in the same industry are doing better.
- A Quick Ratio of 0.79 indicates that KHC may have some problems paying its short term obligations.
- KHC has a Quick ratio (0.79) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.79 |
3. KHC Growth Analysis
3.1 Past
- The earnings per share for KHC have decreased strongly by -15.36% in the last year.
- The Earnings Per Share has been decreasing by -2.10% on average over the past years.
- Looking at the last year, KHC shows a decrease in Revenue. The Revenue has decreased by -3.50% in the last year.
- Measured over the past years, KHC shows a decrease in Revenue. The Revenue has been decreasing by -0.97% on average per year.
EPS 1Y (TTM)-15.36%
EPS 3Y-2.33%
EPS 5Y-2.1%
EPS Q2Q%-20.24%
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y-1.98%
Revenue growth 5Y-0.97%
Sales Q2Q%-3.38%
3.2 Future
- KHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.40% yearly.
- The Revenue is expected to grow by 0.33% on average over the next years.
EPS Next Y-20.63%
EPS Next 2Y-9.08%
EPS Next 3Y-4.38%
EPS Next 5Y0.4%
Revenue Next Year-2.2%
Revenue Next 2Y-0.82%
Revenue Next 3Y-0.18%
Revenue Next 5Y0.33%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. KHC Valuation Analysis
4.1 Price/Earnings Ratio
- KHC is valuated reasonably with a Price/Earnings ratio of 8.47.
- Based on the Price/Earnings ratio, KHC is valued cheaply inside the industry as 88.51% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.42, KHC is valued rather cheaply.
- A Price/Forward Earnings ratio of 10.67 indicates a reasonable valuation of KHC.
- Based on the Price/Forward Earnings ratio, KHC is valued cheaply inside the industry as 83.91% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.24, KHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 10.67 |
4.2 Price Multiples
- 75.86% of the companies in the same industry are more expensive than KHC, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, KHC is valued cheaply inside the industry as 85.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.11 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
- KHC's earnings are expected to decrease with -4.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.08%
EPS Next 3Y-4.38%
5. KHC Dividend Analysis
5.1 Amount
- KHC has a Yearly Dividend Yield of 7.28%, which is a nice return.
- KHC's Dividend Yield is rather good when compared to the industry average which is at 2.22. KHC pays more dividend than 87.36% of the companies in the same industry.
- KHC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.28% |
5.2 History
- The dividend of KHC decreases each year by -0.08%.
- KHC has paid a dividend for at least 10 years, which is a reliable track record.
- KHC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-0.08%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
- The earnings of KHC are negative and hence is the payout ratio. KHC will probably not be able to sustain this dividend level.
DP-32.47%
EPS Next 2Y-9.08%
EPS Next 3Y-4.38%
KHC Fundamentals: All Metrics, Ratios and Statistics
21.94
-0.03 (-0.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-11 2026-02-11/bmo
Earnings (Next)05-06 2026-05-06/bmo
Inst Owners63.65%
Inst Owner Change-1.32%
Ins Owners0.25%
Ins Owner Change0.21%
Market Cap26.02B
Revenue(TTM)24.94B
Net Income(TTM)-5.85B
Analysts54.48
Price Target24.89 (13.45%)
Short Float %8.4%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.28% |
Yearly Dividend1.6
Dividend Growth(5Y)-0.08%
DP-32.47%
Div Incr Years0
Div Non Decr Years6
Ex-Date03-06 2026-03-06 (0.4)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.51%
Min EPS beat(2)4.38%
Max EPS beat(2)8.65%
EPS beat(4)4
Avg EPS beat(4)5.58%
Min EPS beat(4)1.8%
Max EPS beat(4)8.65%
EPS beat(8)7
Avg EPS beat(8)4.28%
EPS beat(12)11
Avg EPS beat(12)4.92%
EPS beat(16)15
Avg EPS beat(16)5.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-1.32%
Max Revenue beat(2)-1.3%
Revenue beat(4)1
Avg Revenue beat(4)-0.86%
Min Revenue beat(4)-1.32%
Max Revenue beat(4)0.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.33%
Revenue beat(12)2
Avg Revenue beat(12)-1.54%
Revenue beat(16)6
Avg Revenue beat(16)-0.69%
PT rev (1m)-5.89%
PT rev (3m)-11.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.78%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 10.67 | ||
| P/S | 1.04 | ||
| P/FCF | 7.11 | ||
| P/OCF | 5.83 | ||
| P/B | 0.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.49 |
EPS(TTM)2.59
EY11.8%
EPS(NY)2.06
Fwd EY9.37%
FCF(TTM)3.09
FCFY14.07%
OCF(TTM)3.76
OCFY17.15%
SpS21.03
BVpS35.14
TBVpS-15.22
PEG (NY)N/A
PEG (5Y)N/A
Graham Number45.2505 (106.25%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.15% | ||
| ROE | -14.03% | ||
| ROCE | 6.45% | ||
| ROIC | 5.1% | ||
| ROICexc | 5.37% | ||
| ROICexgc | 38.66% | ||
| OM | 18.88% | ||
| PM (TTM) | N/A | ||
| GM | 33.32% | ||
| FCFM | 14.68% |
ROA(3y)-0.29%
ROA(5y)0.56%
ROE(3y)-0.9%
ROE(5y)0.84%
ROIC(3y)5.14%
ROIC(5y)5%
ROICexc(3y)5.29%
ROICexc(5y)5.14%
ROICexgc(3y)43.29%
ROICexgc(5y)50.52%
ROCE(3y)6.51%
ROCE(5y)6.33%
ROICexgc growth 3Y-11.2%
ROICexgc growth 5Y-5.38%
ROICexc growth 3Y3.92%
ROICexc growth 5Y1.58%
OM growth 3Y0.89%
OM growth 5Y-2.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.33%
GM growth 5Y-0.96%
F-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.8 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | 82.75% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 5.22 | ||
| Cash Conversion | 78.58% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 0.83 |
F-Score5
WACC6.92%
ROIC/WACC0.74
Cap/Depr(3y)103.65%
Cap/Depr(5y)101.71%
Cap/Sales(3y)3.84%
Cap/Sales(5y)3.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.36%
EPS 3Y-2.33%
EPS 5Y-2.1%
EPS Q2Q%-20.24%
EPS Next Y-20.63%
EPS Next 2Y-9.08%
EPS Next 3Y-4.38%
EPS Next 5Y0.4%
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y-1.98%
Revenue growth 5Y-0.97%
Sales Q2Q%-3.38%
Revenue Next Year-2.2%
Revenue Next 2Y-0.82%
Revenue Next 3Y-0.18%
Revenue Next 5Y0.33%
EBIT growth 1Y-12.42%
EBIT growth 3Y-1.11%
EBIT growth 5Y-3.23%
EBIT Next Year3.85%
EBIT Next 3Y2.44%
EBIT Next 5Y4.94%
FCF growth 1Y21.23%
FCF growth 3Y33.09%
FCF growth 5Y-3.31%
OCF growth 1Y6.64%
OCF growth 3Y21.81%
OCF growth 5Y-1.97%
KRAFT HEINZ CO/THE / KHC Fundamental Analysis FAQ
What is the ChartMill fundamental rating of KRAFT HEINZ CO/THE (KHC) stock?
ChartMill assigns a fundamental rating of 4 / 10 to KHC.
What is the valuation status for KHC stock?
ChartMill assigns a valuation rating of 6 / 10 to KRAFT HEINZ CO/THE (KHC). This can be considered as Fairly Valued.
How profitable is KRAFT HEINZ CO/THE (KHC) stock?
KRAFT HEINZ CO/THE (KHC) has a profitability rating of 4 / 10.
How financially healthy is KRAFT HEINZ CO/THE?
The financial health rating of KRAFT HEINZ CO/THE (KHC) is 3 / 10.
What is the earnings growth outlook for KRAFT HEINZ CO/THE?
The Earnings per Share (EPS) of KRAFT HEINZ CO/THE (KHC) is expected to decline by -20.63% in the next year.