KRAFT HEINZ CO/THE (KHC) Stock Fundamental Analysis
USA - NASDAQ:KHC - US5007541064 - Common Stock
24.73 USD
+0.15 (+0.61%)
24.6675 USD
-0.06 (-0.25%)
We assign a fundamental rating of 5 out of 10 to KHC. KHC was compared to 86 industry peers in the Food Products industry. KHC has a medium profitability rating, but doesn't score so well on its financial health evaluation. KHC is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year KHC was profitable.
In the past year KHC had a positive cash flow from operations.
KHC had positive earnings in each of the past 5 years.
Each year in the past 5 years KHC had a positive operating cash flow.
1.2 Ratios
KHC has a worse Return On Assets (-6.46%) than 69.77% of its industry peers.
KHC has a worse Return On Equity (-12.74%) than 68.60% of its industry peers.
KHC's Return On Invested Capital of 5.58% is fine compared to the rest of the industry. KHC outperforms 62.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KHC is significantly below the industry average of 28.73%.
The last Return On Invested Capital (5.58%) for KHC is above the 3 year average (4.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | -12.74% | ||
| ROIC | 5.58% |
ROA(3y)2.96%
ROA(5y)2.06%
ROE(3y)5.4%
ROE(5y)3.79%
ROIC(3y)4.97%
ROIC(5y)4.89%
1.3 Margins
KHC's Profit Margin has improved in the last couple of years.
KHC has a better Operating Margin (20.52%) than 97.67% of its industry peers.
KHC's Operating Margin has been stable in the last couple of years.
KHC's Gross Margin of 34.31% is fine compared to the rest of the industry. KHC outperforms 76.74% of its industry peers.
In the last couple of years the Gross Margin of KHC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.52% | ||
| PM (TTM) | N/A | ||
| GM | 34.31% |
OM growth 3Y1.51%
OM growth 5Y0.42%
PM growth 3Y39.8%
PM growth 5Y6.51%
GM growth 3Y1.31%
GM growth 5Y1.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KHC is destroying value.
The number of shares outstanding for KHC has been reduced compared to 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 0.86, we must say that KHC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.86, KHC is not doing good in the industry: 70.93% of the companies in the same industry are doing better.
The Debt to FCF ratio of KHC is 6.07, which is on the high side as it means it would take KHC, 6.07 years of fcf income to pay off all of its debts.
KHC's Debt to FCF ratio of 6.07 is fine compared to the rest of the industry. KHC outperforms 75.58% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that KHC is not too dependend on debt financing.
KHC has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: KHC outperforms 46.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.07 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.84
WACC6.64%
2.3 Liquidity
KHC has a Current Ratio of 1.07. This is a normal value and indicates that KHC is financially healthy and should not expect problems in meeting its short term obligations.
KHC has a worse Current ratio (1.07) than 75.58% of its industry peers.
A Quick Ratio of 0.66 indicates that KHC may have some problems paying its short term obligations.
With a Quick ratio value of 0.66, KHC is not doing good in the industry: 70.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The earnings per share for KHC have decreased by -8.00% in the last year.
Measured over the past 5 years, KHC shows a small growth in Earnings Per Share. The EPS has been growing by 1.43% on average per year.
KHC shows a decrease in Revenue. In the last year, the revenue decreased by -2.98%.
KHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.69% yearly.
EPS 1Y (TTM)-8%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-18.67%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-2.29%
3.2 Future
The Earnings Per Share is expected to grow by 1.33% on average over the next years.
KHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.45% yearly.
EPS Next Y-14.73%
EPS Next 2Y-6.54%
EPS Next 3Y-2.85%
EPS Next 5Y1.33%
Revenue Next Year-3.03%
Revenue Next 2Y-1.14%
Revenue Next 3Y-0.34%
Revenue Next 5Y0.45%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.96, the valuation of KHC can be described as reasonable.
KHC's Price/Earnings ratio is rather cheap when compared to the industry. KHC is cheaper than 87.21% of the companies in the same industry.
When comparing the Price/Earnings ratio of KHC to the average of the S&P500 Index (26.10), we can say KHC is valued rather cheaply.
A Price/Forward Earnings ratio of 9.25 indicates a reasonable valuation of KHC.
Based on the Price/Forward Earnings ratio, KHC is valued cheaper than 93.02% of the companies in the same industry.
KHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 9.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KHC is valued a bit cheaper than the industry average as 74.42% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, KHC is valued cheaper than 87.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.38 | ||
| EV/EBITDA | 7.61 |
4.3 Compensation for Growth
KHC has a very decent profitability rating, which may justify a higher PE ratio.
KHC's earnings are expected to decrease with -2.85% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)6.26
EPS Next 2Y-6.54%
EPS Next 3Y-2.85%
5. Dividend
5.1 Amount
KHC has a Yearly Dividend Yield of 6.56%, which is a nice return.
KHC's Dividend Yield is rather good when compared to the industry average which is at 5.11. KHC pays more dividend than 88.37% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, KHC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.56% |
5.2 History
KHC has paid a dividend for at least 10 years, which is a reliable track record.
As KHC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years5
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-36.29%
EPS Next 2Y-6.54%
EPS Next 3Y-2.85%
24.73
+0.15 (+0.61%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners59.55%
Inst Owner Change0.19%
Ins Owners0.31%
Ins Owner Change0.06%
Market Cap29.27B
Revenue(TTM)25.85B
Net Income(TTM)-5271000000
Analysts65.38
Price Target29.97 (21.19%)
Short Float %6.42%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.56% |
Yearly Dividend1.6
Dividend Growth(5Y)0%
DP-36.29%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.65%
Min EPS beat(2)1.8%
Max EPS beat(2)7.5%
EPS beat(4)4
Avg EPS beat(4)4.16%
Min EPS beat(4)0.43%
Max EPS beat(4)7.5%
EPS beat(8)7
Avg EPS beat(8)3.78%
EPS beat(12)11
Avg EPS beat(12)5.46%
EPS beat(16)15
Avg EPS beat(16)7.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)0.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)0.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.74%
Revenue beat(12)4
Avg Revenue beat(12)-1.05%
Revenue beat(16)8
Avg Revenue beat(16)-0.27%
PT rev (1m)0.17%
PT rev (3m)-1.01%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)-8.55%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 9.25 | ||
| P/S | 1.16 | ||
| P/FCF | 8.38 | ||
| P/OCF | 6.65 | ||
| P/B | 0.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.61 |
EPS(TTM)2.76
EY11.16%
EPS(NY)2.67
Fwd EY10.81%
FCF(TTM)2.95
FCFY11.94%
OCF(TTM)3.72
OCFY15.03%
SpS21.38
BVpS34.94
TBVpS-15.76
PEG (NY)N/A
PEG (5Y)6.26
Graham Number46.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | -12.74% | ||
| ROCE | 7.12% | ||
| ROIC | 5.58% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 39.17% | ||
| OM | 20.52% | ||
| PM (TTM) | N/A | ||
| GM | 34.31% | ||
| FCFM | 13.8% |
ROA(3y)2.96%
ROA(5y)2.06%
ROE(3y)5.4%
ROE(5y)3.79%
ROIC(3y)4.97%
ROIC(5y)4.89%
ROICexc(3y)5.05%
ROICexc(5y)5.02%
ROICexgc(3y)48.4%
ROICexgc(5y)52.54%
ROCE(3y)6.35%
ROCE(5y)6.25%
ROICexgc growth 3Y-16.8%
ROICexgc growth 5Y-7.23%
ROICexc growth 3Y1.76%
ROICexc growth 5Y3.9%
OM growth 3Y1.51%
OM growth 5Y0.42%
PM growth 3Y39.8%
PM growth 5Y6.51%
GM growth 3Y1.31%
GM growth 5Y1.14%
F-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.07 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 95.27% | ||
| Cap/Sales | 3.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.86 |
F-Score5
WACC6.64%
ROIC/WACC0.84
Cap/Depr(3y)108.79%
Cap/Depr(5y)97.47%
Cap/Sales(3y)3.92%
Cap/Sales(5y)3.5%
Profit Quality(3y)93.19%
Profit Quality(5y)387.46%
High Growth Momentum
Growth
EPS 1Y (TTM)-8%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-18.67%
EPS Next Y-14.73%
EPS Next 2Y-6.54%
EPS Next 3Y-2.85%
EPS Next 5Y1.33%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-2.29%
Revenue Next Year-3.03%
Revenue Next 2Y-1.14%
Revenue Next 3Y-0.34%
Revenue Next 5Y0.45%
EBIT growth 1Y-2.9%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year9.95%
EBIT Next 3Y4.24%
EBIT Next 5Y4.56%
FCF growth 1Y53.51%
FCF growth 3Y-12.18%
FCF growth 5Y1.64%
OCF growth 1Y34.76%
OCF growth 3Y-7.95%
OCF growth 5Y3.33%
KRAFT HEINZ CO/THE / KHC FAQ
What is the ChartMill fundamental rating of KRAFT HEINZ CO/THE (KHC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to KHC.
Can you provide the valuation status for KRAFT HEINZ CO/THE?
ChartMill assigns a valuation rating of 7 / 10 to KRAFT HEINZ CO/THE (KHC). This can be considered as Undervalued.
What is the profitability of KHC stock?
KRAFT HEINZ CO/THE (KHC) has a profitability rating of 6 / 10.
What is the valuation of KRAFT HEINZ CO/THE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KRAFT HEINZ CO/THE (KHC) is 8.96 and the Price/Book (PB) ratio is 0.71.
Can you provide the expected EPS growth for KHC stock?
The Earnings per Share (EPS) of KRAFT HEINZ CO/THE (KHC) is expected to decline by -14.73% in the next year.