KRAFT HEINZ CO/THE (KHC) Stock Fundamental Analysis
NASDAQ:KHC - Nasdaq - US5007541064 - Common Stock - Currency: USD
Overall KHC gets a fundamental rating of 5 out of 10. We evaluated KHC against 91 industry peers in the Food Products industry. KHC has an excellent profitability rating, but there are concerns on its financial health. KHC is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
KHC had positive earnings in the past year.
KHC had a positive operating cash flow in the past year.
In the past 5 years KHC has always been profitable.
In the past 5 years KHC always reported a positive cash flow from operatings.
1.2 Ratios
KHC has a Return On Assets (2.94%) which is comparable to the rest of the industry.
With a Return On Equity value of 5.37%, KHC perfoms like the industry average, outperforming 47.25% of the companies in the same industry.
The Return On Invested Capital of KHC (4.98%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for KHC is significantly below the industry average of 28.19%.
The last Return On Invested Capital (4.98%) for KHC is above the 3 year average (4.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.37% | ||
| ROIC | 4.98% |
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
With an excellent Profit Margin value of 10.44%, KHC belongs to the best of the industry, outperforming 87.91% of the companies in the same industry.
KHC's Profit Margin has improved in the last couple of years.
The Operating Margin of KHC (20.76%) is better than 96.70% of its industry peers.
KHC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 34.58%, KHC is in the better half of the industry, outperforming 75.82% of the companies in the same industry.
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 | 20.76% | ||
| PM (TTM) | 10.44% | ||
| GM | 34.58% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KHC is destroying value.
KHC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KHC has less shares outstanding
Compared to 1 year ago, KHC has a worse debt to assets ratio.
2.2 Solvency
KHC has an Altman-Z score of 1.02. This is a bad value and indicates that KHC is not financially healthy and even has some risk of bankruptcy.
KHC's Altman-Z score of 1.02 is on the low side compared to the rest of the industry. KHC is outperformed by 69.23% of its industry peers.
KHC has a debt to FCF ratio of 7.14. This is a slightly negative value and a sign of low solvency as KHC would need 7.14 years to pay back of all of its debts.
KHC has a Debt to FCF ratio of 7.14. This is in the better half of the industry: KHC outperforms 69.23% of its industry peers.
KHC has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.42, KHC is in line with its industry, outperforming 52.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.72
WACC6.94%
2.3 Liquidity
KHC has a Current Ratio of 1.31. 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 Current ratio of 1.31. This is in the lower half of the industry: KHC underperforms 60.44% of its industry peers.
A Quick Ratio of 0.81 indicates that KHC may have some problems paying its short term obligations.
KHC's Quick ratio of 0.81 is in line compared to the rest of the industry. KHC outperforms 48.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for KHC have decreased by -2.36% in the last year.
The Earnings Per Share has been growing slightly by 1.43% on average over the past years.
The Revenue has decreased by -2.98% in the past year.
Measured over the past years, KHC shows a small growth in Revenue. The Revenue has been growing by 0.69% on average per year.
EPS 1Y (TTM)-2.36%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-11.54%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-1.91%
3.2 Future
KHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.39% yearly.
The Revenue is expected to grow by 0.23% on average over the next years.
EPS Next Y-14.59%
EPS Next 2Y-6.3%
EPS Next 3Y-2.61%
EPS Next 5Y1.39%
Revenue Next Year-3.67%
Revenue Next 2Y-1.46%
Revenue Next 3Y-0.48%
Revenue Next 5Y0.23%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.43, which indicates a very decent valuation of KHC.
Based on the Price/Earnings ratio, KHC is valued cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of KHC to the average of the S&P500 Index (27.25), we can say KHC is valued rather cheaply.
The Price/Forward Earnings ratio is 10.18, which indicates a very decent valuation of KHC.
KHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. KHC is cheaper than 87.91% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.80, KHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 10.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KHC is valued a bit cheaper than 71.43% of the companies in the same industry.
82.42% of the companies in the same industry are more expensive than KHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.7 | ||
| EV/EBITDA | 8.13 |
4.3 Compensation for Growth
KHC has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as KHC's earnings are expected to decrease with -2.61% in the coming years.
PEG (NY)N/A
PEG (5Y)6.59
EPS Next 2Y-6.3%
EPS Next 3Y-2.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.62%, KHC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.67, KHC pays a better dividend. On top of this KHC pays more dividend than 86.81% of the companies listed in the same industry.
KHC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
5.2 History
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%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
KHC pays out 72.39% of its income as dividend. This is not a sustainable payout ratio.
DP72.39%
EPS Next 2Y-6.3%
EPS Next 3Y-2.61%
NASDAQ:KHC (8/1/2025, 3:52:08 PM)
27.3601
-0.1 (-0.36%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners59.48%
Inst Owner Change-0.2%
Ins Owners0.28%
Ins Owner Change0.06%
Market Cap32.38B
Analysts54.84
Price Target30.94 (13.08%)
Short Float %6.52%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
Yearly Dividend1.6
Dividend Growth(5Y)0%
DP72.39%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.36%
Min EPS beat(2)1.8%
Max EPS beat(2)6.92%
EPS beat(4)4
Avg EPS beat(4)3.55%
Min EPS beat(4)0.43%
Max EPS beat(4)6.92%
EPS beat(8)7
Avg EPS beat(8)3.21%
EPS beat(12)11
Avg EPS beat(12)4.96%
EPS beat(16)15
Avg EPS beat(16)7.11%
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.28%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)-1.28%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)4
Avg Revenue beat(12)-0.96%
Revenue beat(16)7
Avg Revenue beat(16)-0.3%
PT rev (1m)-0.31%
PT rev (3m)-3.46%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-7.67%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-3.3%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 10.18 | ||
| P/S | 1.27 | ||
| P/FCF | 10.7 | ||
| P/OCF | 7.83 | ||
| P/B | 0.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.13 |
EPS(TTM)2.9
EY10.6%
EPS(NY)2.69
Fwd EY9.82%
FCF(TTM)2.56
FCFY9.34%
OCF(TTM)3.49
OCFY12.76%
SpS21.49
BVpS41.79
TBVpS-16.43
PEG (NY)N/A
PEG (5Y)6.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.37% | ||
| ROCE | 6.36% | ||
| ROIC | 4.98% | ||
| ROICexc | 5.15% | ||
| ROICexgc | 36.43% | ||
| OM | 20.76% | ||
| PM (TTM) | 10.44% | ||
| GM | 34.58% | ||
| FCFM | 11.89% |
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%
ROICexcg growth 3Y-16.8%
ROICexcg 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-Score6
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.14 | ||
| Debt/EBITDA | 3.36 | ||
| Cap/Depr | 116.75% | ||
| Cap/Sales | 4.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.36% | ||
| Profit Quality | 113.94% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.02 |
F-Score6
WACC6.94%
ROIC/WACC0.72
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)-2.36%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-11.54%
EPS Next Y-14.59%
EPS Next 2Y-6.3%
EPS Next 3Y-2.61%
EPS Next 5Y1.39%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-1.91%
Revenue Next Year-3.67%
Revenue Next 2Y-1.46%
Revenue Next 3Y-0.48%
Revenue Next 5Y0.23%
EBIT growth 1Y-0.79%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year10.65%
EBIT Next 3Y4.34%
EBIT Next 5Y5.07%
FCF growth 1Y101.53%
FCF growth 3Y-12.18%
FCF growth 5Y1.64%
OCF growth 1Y67.4%
OCF growth 3Y-7.95%
OCF growth 5Y3.33%