KRAFT HEINZ CO/THE (KHC) Stock Fundamental Analysis
NASDAQ:KHC • US5007541064
23.95 USD
+0.17 (+0.71%)
At close: Feb 18, 2026
23.9966 USD
+0.05 (+0.19%)
After Hours: 2/18/2026, 6:13:39 PM
Taking everything into account, KHC scores 4 out of 10 in our fundamental rating. KHC was compared to 87 industry peers in the Food Products industry. While KHC is still in line with the averages on profitability rating, there are concerns on its financial health. KHC has a valuation in line with the averages, 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 4 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 Return On Assets of -7.15%. This is in the lower half of the industry: KHC underperforms 67.82% of its industry peers.
- KHC has a Return On Equity of -14.03%. This is in the lower half of the industry: KHC underperforms 64.37% of its industry peers.
- KHC's Return On Invested Capital of 5.10% is in line compared to the rest of the industry. KHC outperforms 59.77% 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 28.08%.
| 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
- KHC has a Operating Margin of 18.88%. This is amongst the best in the industry. KHC outperforms 97.70% of its industry peers.
- 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 74.71% 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 | 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. 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.
- KHC has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for KHC is higher compared to a year ago.
2.2 Solvency
- KHC has an Altman-Z score of 0.86. This is a bad value and indicates that KHC is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.86, KHC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- The Debt to FCF ratio of KHC is 5.80, which is a neutral value as it means it would take KHC, 5.80 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 5.80, KHC is doing good in the industry, outperforming 71.26% of the companies in the same industry.
- KHC has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of KHC (0.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.8 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.76
WACC6.68%
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.
- KHC has a Quick Ratio of 1.15. This is a bad value and indicates that KHC is not financially healthy enough and could expect problems in meeting its short term obligations.
- KHC's Quick ratio of 0.79 is in line compared to the rest of the industry. KHC outperforms 41.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- The earnings per share for KHC have decreased strongly by -15.36% in the last year.
- Measured over the past years, KHC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.10% on average per year.
- Looking at the last year, KHC shows a decrease in Revenue. The Revenue has decreased by -3.50% in the last year.
- KHC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.97% yearly.
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
- Based on estimates for the next years, KHC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.24% on average per year.
- The Revenue is expected to grow by 2.07% on average over the next years.
EPS Next Y-2.71%
EPS Next 2Y-0.11%
EPS Next 3Y4.47%
EPS Next 5Y8.24%
Revenue Next Year-1.42%
Revenue Next 2Y-0.51%
Revenue Next 3Y-0.18%
Revenue Next 5Y2.07%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 9.25 indicates a reasonable valuation of KHC.
- Compared to the rest of the industry, the Price/Earnings ratio of KHC indicates a rather cheap valuation: KHC is cheaper than 89.66% of the companies listed in the same industry.
- KHC is valuated cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 9.50 indicates a reasonable valuation of KHC.
- 96.55% of the companies in the same industry are more expensive than KHC, based on the Price/Forward Earnings ratio.
- KHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.16, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.25 | ||
| Fwd PE | 9.5 |
4.2 Price Multiples
- 74.71% of the companies in the same industry are more expensive than KHC, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KHC indicates a rather cheap valuation: KHC is cheaper than 91.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.74 | ||
| EV/EBITDA | 7.86 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.11%
EPS Next 3Y4.47%
5. Dividend
5.1 Amount
- KHC has a Yearly Dividend Yield of 6.45%, which is a nice return.
- KHC's Dividend Yield is rather good when compared to the industry average which is at 2.27. KHC pays more dividend than 88.51% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, KHC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.45% |
5.2 History
- The dividend of KHC decreases each year by -0.08%.
- KHC has been paying a dividend for at least 10 years, so it has 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 Years5
5.3 Sustainability
- KHC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-32.47%
EPS Next 2Y-0.11%
EPS Next 3Y4.47%
23.95
+0.17 (+0.71%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-11 2026-02-11/bmo
Earnings (Next)04-27 2026-04-27/bmo
Inst Owners60.65%
Inst Owner Change-0.27%
Ins Owners0.28%
Ins Owner Change0.1%
Market Cap28.35B
Revenue(TTM)24.94B
Net Income(TTM)-5.85B
Analysts56.55
Price Target27.72 (15.74%)
Short Float %9.09%
Short Ratio5.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.45% |
Yearly Dividend1.6
Dividend Growth(5Y)-0.08%
DP-32.47%
Div Incr Years0
Div Non Decr Years5
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)-1.18%
PT rev (3m)-7.49%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.25 | ||
| Fwd PE | 9.5 | ||
| P/S | 1.14 | ||
| P/FCF | 7.74 | ||
| P/OCF | 6.35 | ||
| P/B | 0.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.86 |
EPS(TTM)2.59
EY10.81%
EPS(NY)2.52
Fwd EY10.52%
FCF(TTM)3.09
FCFY12.91%
OCF(TTM)3.77
OCFY15.74%
SpS21.07
BVpS35.2
TBVpS-15.24
PEG (NY)N/A
PEG (5Y)N/A
Graham Number45.29
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 | 0.86 |
F-Score5
WACC6.68%
ROIC/WACC0.76
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-2.71%
EPS Next 2Y-0.11%
EPS Next 3Y4.47%
EPS Next 5Y8.24%
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y-1.98%
Revenue growth 5Y-0.97%
Sales Q2Q%-3.38%
Revenue Next Year-1.42%
Revenue Next 2Y-0.51%
Revenue Next 3Y-0.18%
Revenue Next 5Y2.07%
EBIT growth 1Y-12.42%
EBIT growth 3Y-1.11%
EBIT growth 5Y-3.23%
EBIT Next Year17.66%
EBIT Next 3Y8.9%
EBIT Next 5Y7.19%
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 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 of KRAFT HEINZ CO/THE (KHC) stock?
ChartMill assigns a valuation rating of 6 / 10 to KRAFT HEINZ CO/THE (KHC). This can be considered as Fairly Valued.
What is the profitability of KHC stock?
KRAFT HEINZ CO/THE (KHC) has a profitability rating of 4 / 10.
What is the financial health of KRAFT HEINZ CO/THE (KHC) stock?
The financial health rating of KRAFT HEINZ CO/THE (KHC) is 3 / 10.
How sustainable is the dividend of KRAFT HEINZ CO/THE (KHC) stock?
The dividend rating of KRAFT HEINZ CO/THE (KHC) is 6 / 10 and the dividend payout ratio is -32.47%.