KRAFT HEINZ CO/THE (KHC) Fundamental Analysis & Valuation

NASDAQ:KHC • US5007541064

Current stock price

21.21 USD
-0.36 (-1.67%)
At close:
21.2174 USD
+0.01 (+0.03%)
After Hours:

This KHC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. KHC Profitability Analysis

1.1 Basic Checks

  • KHC had positive earnings in the past year.
  • In the past year KHC had a positive cash flow from operations.
  • KHC had positive earnings in 4 of the past 5 years.
  • KHC had a positive operating cash flow in each of the past 5 years.
KHC Yearly Net Income VS EBIT VS OCF VS FCFKHC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B 10B -10B

1.2 Ratios

  • Looking at the Return On Assets, with a value of -7.15%, KHC is doing worse than 65.52% of the companies in the same industry.
  • KHC's Return On Equity of -14.03% is on the low side compared to the rest of the industry. KHC is outperformed by 65.52% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 5.10%, KHC is in the better half of the industry, outperforming 60.92% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for KHC is below the industry average of 7.17%.
Industry RankSector 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%
KHC Yearly ROA, ROE, ROICKHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10

1.3 Margins

  • KHC has a Operating Margin of 18.88%. This is amongst the best in the industry. KHC outperforms 98.85% of its industry peers.
  • KHC's Operating Margin has declined in the last couple of years.
  • KHC's Gross Margin of 33.32% is fine compared to the rest of the industry. KHC outperforms 75.86% of its industry peers.
  • KHC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
KHC Yearly Profit, Operating, Gross MarginsKHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. KHC Health Analysis

2.1 Basic Checks

  • KHC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • KHC has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, KHC has less shares outstanding
  • The debt/assets ratio for KHC is higher compared to a year ago.
KHC Yearly Shares OutstandingKHC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
KHC Yearly Total Debt VS Total AssetsKHC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • Based on the Altman-Z score of 0.82, we must say that KHC is in the distress zone and has some risk of bankruptcy.
  • KHC has a worse Altman-Z score (0.82) than 71.26% of its industry peers.
  • 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.
  • The Debt to FCF ratio of KHC (5.80) is better than 70.11% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.46
Debt/FCF 5.8
Altman-Z 0.82
ROIC/WACC0.71
WACC7.15%
KHC Yearly LT Debt VS Equity VS FCFKHC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 1.15 indicates that KHC should not have too much problems paying its short term obligations.
  • KHC's Current ratio of 1.15 is on the low side compared to the rest of the industry. KHC is outperformed by 71.26% of its industry peers.
  • 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 has a Quick ratio (0.79) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.15
Quick Ratio 0.79
KHC Yearly Current Assets VS Current LiabilitesKHC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. KHC Growth Analysis

3.1 Past

  • KHC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.36%.
  • KHC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.10% yearly.
  • KHC shows a decrease in Revenue. In the last year, the revenue decreased by -3.50%.
  • 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

  • KHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.40% yearly.
  • Based on estimates for the next years, KHC will show a small growth in Revenue. The Revenue will grow by 0.33% on average per year.
EPS Next Y-20.63%
EPS Next 2Y-8.97%
EPS Next 3Y-4.35%
EPS Next 5Y0.4%
Revenue Next Year-2.17%
Revenue Next 2Y-0.8%
Revenue Next 3Y-0.16%
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.
  • 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.
KHC Yearly Revenue VS EstimatesKHC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B 25B
KHC Yearly EPS VS EstimatesKHC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1 2 3

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Find the best growth stocksShow best growing peers

6

4. KHC Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 8.19, the valuation of KHC can be described as reasonable.
  • 87.36% of the companies in the same industry are more expensive than KHC, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of KHC to the average of the S&P500 Index (25.54), we can say KHC is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 10.32, the valuation of KHC can be described as reasonable.
  • KHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. KHC is cheaper than 82.76% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of KHC to the average of the S&P500 Index (22.70), we can say KHC is valued rather cheaply.
Industry RankSector Rank
PE 8.19
Fwd PE 10.32
KHC Price Earnings VS Forward Price EarningsKHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, KHC is valued a bit cheaper than the industry average as 73.56% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, KHC is valued cheaper than 90.80% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.86
EV/EBITDA 7.4
KHC Per share dataKHC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

4.3 Compensation for Growth

  • KHC's earnings are expected to decrease with -4.35% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.97%
EPS Next 3Y-4.35%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. KHC Dividend Analysis

5.1 Amount

  • KHC has a Yearly Dividend Yield of 7.35%, which is a nice return.
  • KHC's Dividend Yield is rather good when compared to the industry average which is at 2.48. KHC pays more dividend than 93.10% of the companies in the same industry.
  • KHC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 7.35%

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
KHC Yearly Dividends per shareKHC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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-8.97%
EPS Next 3Y-4.35%
KHC Yearly Income VS Free CF VS DividendKHC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B 10B -10B

More info and screens

Find the best dividend stocksShow peers with best dividend

KHC Fundamentals: All Metrics, Ratios and Statistics

KRAFT HEINZ CO/THE

NASDAQ:KHC (3/23/2026, 8:02:23 PM)

After market: 21.2174 +0.01 (+0.03%)

21.21

-0.36 (-1.67%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-11
Earnings (Next)04-27
Inst Owners63.58%
Inst Owner Change2.93%
Ins Owners0.29%
Ins Owner Change0.21%
Market Cap25.11B
Revenue(TTM)24.94B
Net Income(TTM)-5.85B
Analysts55.86
Price Target26.45 (24.71%)
Short Float %8.91%
Short Ratio4.55
Dividend
Industry RankSector Rank
Dividend Yield 7.35%
Yearly Dividend1.6
Dividend Growth(5Y)-0.08%
DP-32.47%
Div Incr Years0
Div Non Decr Years5
Ex-Date03-06
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)-4.61%
PT rev (3m)-5.58%
EPS NQ rev (1m)-2.2%
EPS NQ rev (3m)-16%
EPS NY rev (1m)-18.42%
EPS NY rev (3m)-19.24%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-2.36%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-2.2%
Valuation
Industry RankSector Rank
PE 8.19
Fwd PE 10.32
P/S 1.01
P/FCF 6.86
P/OCF 5.63
P/B 0.6
P/tB N/A
EV/EBITDA 7.4
EPS(TTM)2.59
EY12.21%
EPS(NY)2.06
Fwd EY9.69%
FCF(TTM)3.09
FCFY14.58%
OCF(TTM)3.77
OCFY17.77%
SpS21.07
BVpS35.2
TBVpS-15.24
PEG (NY)N/A
PEG (5Y)N/A
Graham Number45.29
Profitability
Industry RankSector 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 RankSector 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 0.82
F-Score5
WACC7.15%
ROIC/WACC0.71
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-8.97%
EPS Next 3Y-4.35%
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-2.17%
Revenue Next 2Y-0.8%
Revenue Next 3Y-0.16%
Revenue Next 5Y0.33%
EBIT growth 1Y-12.42%
EBIT growth 3Y-1.11%
EBIT growth 5Y-3.23%
EBIT Next Year3.91%
EBIT Next 3Y2.46%
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 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%.