24.51 USD
-0.24 (-0.97%)
24.5599 USD
+0.05 (+0.2%)
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. KHC has a medium profitability rating, but doesn't score so well on its financial health evaluation. KHC has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year KHC was profitable.
KHC had a positive operating cash flow in the past year.
Each year in the past 5 years KHC has been profitable.
In the past 5 years KHC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -5.34%, KHC is doing worse than 65.91% of the companies in the same industry.
Looking at the Return On Equity, with a value of -10.53%, KHC is doing worse than 65.91% of the companies in the same industry.
The Return On Invested Capital of KHC (5.32%) is better than 62.50% of its industry peers.
KHC had an Average Return On Invested Capital over the past 3 years of 4.97%. This is significantly below the industry average of 28.52%.
The 3 year average ROIC (4.97%) for KHC is below the current ROIC(5.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.34% | ||
| ROE | -10.53% | ||
| ROIC | 5.32% |
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
In the last couple of years the Profit Margin of KHC has grown nicely.
KHC has a Operating Margin of 19.67%. This is amongst the best in the industry. KHC outperforms 97.73% of its industry peers.
In the last couple of years the Operating Margin of KHC has remained more or less at the same level.
The Gross Margin of KHC (33.75%) is better than 75.00% of its industry peers.
KHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.67% | ||
| PM (TTM) | N/A | ||
| GM | 33.75% |
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.
Compared to 1 year ago, KHC has less shares outstanding
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
KHC has an Altman-Z score of 0.87. This is a bad value and indicates that KHC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.87, KHC is doing worse than 72.73% of the companies in the same industry.
KHC has a debt to FCF ratio of 5.84. This is a neutral value as KHC would need 5.84 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.84, KHC is in the better half of the industry, outperforming 78.41% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that KHC is not too dependend on debt financing.
KHC's Debt to Equity ratio of 0.47 is in line compared to the rest of the industry. KHC outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.78
WACC6.83%
2.3 Liquidity
A Current Ratio of 1.13 indicates that KHC should not have too much problems paying its short term obligations.
KHC has a worse Current ratio (1.13) than 71.59% of its industry peers.
KHC has a Quick Ratio of 1.13. 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 worse Quick ratio (0.73) than 61.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
KHC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.00%.
The Earnings Per Share has been growing slightly by 1.43% on average over the past years.
The Revenue has decreased by -3.70% in the past year.
The Revenue has been growing slightly by 0.69% on average over the past years.
EPS 1Y (TTM)-8%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-18.67%
Revenue 1Y (TTM)-3.7%
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 0.77% on average over the next years.
Based on estimates for the next years, KHC will show a small growth in Revenue. The Revenue will grow by 0.12% on average per year.
EPS Next Y-16.46%
EPS Next 2Y-8.8%
EPS Next 3Y-4.97%
EPS Next 5Y0.77%
Revenue Next Year-3.82%
Revenue Next 2Y-1.93%
Revenue Next 3Y-1.09%
Revenue Next 5Y0.12%
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 decreasing.
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
With a Price/Earnings ratio of 8.88, the valuation of KHC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of KHC indicates a rather cheap valuation: KHC is cheaper than 89.77% of the companies listed in the same industry.
KHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.39.
The Price/Forward Earnings ratio is 9.63, which indicates a very decent valuation of KHC.
92.05% of the companies in the same industry are more expensive than KHC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.84. KHC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 9.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KHC indicates a somewhat cheap valuation: KHC is cheaper than 73.86% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KHC indicates a rather cheap valuation: KHC is cheaper than 89.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.99 | ||
| EV/EBITDA | 7.8 |
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 -4.97% in the coming years.
PEG (NY)N/A
PEG (5Y)6.2
EPS Next 2Y-8.8%
EPS Next 3Y-4.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.46%, KHC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.34, KHC pays a better dividend. On top of this KHC pays more dividend than 88.64% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, KHC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
5.2 History
KHC has been paying a dividend for at least 10 years, so it has 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-43.59%
EPS Next 2Y-8.8%
EPS Next 3Y-4.97%
24.51
-0.24 (-0.97%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners60.54%
Inst Owner Change0.9%
Ins Owners0.31%
Ins Owner Change0.04%
Market Cap29.01B
Revenue(TTM)25.16B
Net Income(TTM)-4.37B
Analysts65.38
Price Target28.01 (14.28%)
Short Float %6.36%
Short Ratio3.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
Yearly Dividend1.6
Dividend Growth(5Y)0%
DP-43.59%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.94%
Min EPS beat(2)4.38%
Max EPS beat(2)7.5%
EPS beat(4)4
Avg EPS beat(4)5.15%
Min EPS beat(4)1.8%
Max EPS beat(4)7.5%
EPS beat(8)7
Avg EPS beat(8)3.28%
EPS beat(12)11
Avg EPS beat(12)4.86%
EPS beat(16)15
Avg EPS beat(16)6.71%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)0.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)0.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.51%
Revenue beat(12)3
Avg Revenue beat(12)-1.39%
Revenue beat(16)7
Avg Revenue beat(16)-0.57%
PT rev (1m)-6.54%
PT rev (3m)-8.41%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-12.51%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-2.57%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 9.63 | ||
| P/S | 1.15 | ||
| P/FCF | 7.99 | ||
| P/OCF | 6.48 | ||
| P/B | 0.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.8 |
EPS(TTM)2.76
EY11.26%
EPS(NY)2.55
Fwd EY10.38%
FCF(TTM)3.07
FCFY12.52%
OCF(TTM)3.78
OCFY15.42%
SpS21.26
BVpS35.02
TBVpS-15.43
PEG (NY)N/A
PEG (5Y)6.2
Graham Number46.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.34% | ||
| ROE | -10.53% | ||
| ROCE | 6.8% | ||
| ROIC | 5.32% | ||
| ROICexc | 5.56% | ||
| ROICexgc | 38.83% | ||
| OM | 19.67% | ||
| PM (TTM) | N/A | ||
| GM | 33.75% | ||
| FCFM | 14.43% |
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 | 5.84 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 88.64% | ||
| Cap/Sales | 3.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.82% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 0.87 |
F-Score5
WACC6.83%
ROIC/WACC0.78
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-16.46%
EPS Next 2Y-8.8%
EPS Next 3Y-4.97%
EPS Next 5Y0.77%
Revenue 1Y (TTM)-3.7%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-2.29%
Revenue Next Year-3.82%
Revenue Next 2Y-1.93%
Revenue Next 3Y-1.09%
Revenue Next 5Y0.12%
EBIT growth 1Y-7.16%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year7.36%
EBIT Next 3Y2.31%
EBIT Next 5Y4.28%
FCF growth 1Y44.72%
FCF growth 3Y-12.18%
FCF growth 5Y1.64%
OCF growth 1Y25.25%
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 4 / 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 8.88 and the Price/Book (PB) ratio is 0.7.
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 -16.46% in the next year.