25.51 USD
-0.09 (-0.35%)
25.43 USD
-0.08 (-0.31%)
Overall KHC gets a fundamental rating of 4 out of 10. We evaluated KHC against 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
KHC had positive earnings in the past year.
KHC had a positive operating cash flow in the past year.
KHC had positive earnings in each of the past 5 years.
KHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KHC (-5.34%) is worse than 67.82% of its industry peers.
Looking at the Return On Equity, with a value of -10.53%, KHC is doing worse than 67.82% of the companies in the same industry.
The Return On Invested Capital of KHC (5.32%) is better than 62.07% 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 28.38%.
The last Return On Invested Capital (5.32%) for KHC is above the 3 year average (4.97%), which is a sign of increasing profitability.
| 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's Operating Margin of 19.67% is amongst the best of the industry. KHC outperforms 97.70% of its industry peers.
KHC's Operating Margin has been stable in the last couple of years.
The Gross Margin of KHC (33.75%) is better than 75.86% 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 | 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.
KHC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that KHC is in the distress zone and has some risk of bankruptcy.
KHC has a Altman-Z score of 0.89. This is in the lower half of the industry: KHC underperforms 73.56% of its industry peers.
The Debt to FCF ratio of KHC is 5.84, which is a neutral value as it means it would take KHC, 5.84 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.84, KHC is doing good in the industry, outperforming 75.86% 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 44.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.8
WACC6.62%
2.3 Liquidity
A Current Ratio of 1.13 indicates that KHC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.13, KHC is not doing good in the industry: 74.71% of the companies in the same industry are doing better.
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 Quick ratio of 0.73. This is in the lower half of the industry: KHC underperforms 63.22% 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.
Looking at the last year, KHC shows a decrease in Revenue. The Revenue has decreased by -3.70% in the last year.
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)-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 0.83% 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 0.28% yearly.
EPS Next Y-16.27%
EPS Next 2Y-8.7%
EPS Next 3Y-4.8%
EPS Next 5Y0.83%
Revenue Next Year-3.7%
Revenue Next 2Y-1.83%
Revenue Next 3Y-0.96%
Revenue Next 5Y0.28%
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
A Price/Earnings ratio of 9.24 indicates a reasonable valuation of KHC.
89.66% of the companies in the same industry are more expensive than KHC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.15. KHC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.00, the valuation of KHC can be described as very reasonable.
KHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. KHC is cheaper than 89.66% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. KHC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.24 | ||
| Fwd PE | 10 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KHC is valued a bit cheaper than 72.41% of the companies in the same industry.
88.51% 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 | 8.32 | ||
| EV/EBITDA | 8.02 |
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 -4.80% in the coming years.
PEG (NY)N/A
PEG (5Y)6.45
EPS Next 2Y-8.7%
EPS Next 3Y-4.8%
5. Dividend
5.1 Amount
KHC has a Yearly Dividend Yield of 6.41%, which is a nice return.
Compared to an average industry Dividend Yield of 5.21, KHC pays a better dividend. On top of this KHC pays more dividend than 87.36% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, KHC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.41% |
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-43.59%
EPS Next 2Y-8.7%
EPS Next 3Y-4.8%
25.51
-0.09 (-0.35%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners59.55%
Inst Owner Change0.78%
Ins Owners0.31%
Ins Owner Change0.04%
Market Cap30.19B
Revenue(TTM)25.16B
Net Income(TTM)-4.37B
Analysts65.38
Price Target28.06 (10%)
Short Float %6.35%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.41% |
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)-8.41%
PT rev (3m)-10.09%
EPS NQ rev (1m)-11.36%
EPS NQ rev (3m)-12.52%
EPS NY rev (1m)-1.81%
EPS NY rev (3m)-2.36%
Revenue NQ rev (1m)-2.76%
Revenue NQ rev (3m)-2.73%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.24 | ||
| Fwd PE | 10 | ||
| P/S | 1.2 | ||
| P/FCF | 8.32 | ||
| P/OCF | 6.75 | ||
| P/B | 0.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.02 |
EPS(TTM)2.76
EY10.82%
EPS(NY)2.55
Fwd EY10%
FCF(TTM)3.07
FCFY12.03%
OCF(TTM)3.78
OCFY14.82%
SpS21.26
BVpS35.02
TBVpS-15.43
PEG (NY)N/A
PEG (5Y)6.45
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 | 0.89 |
F-Score5
WACC6.62%
ROIC/WACC0.8
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-16.27%
EPS Next 2Y-8.7%
EPS Next 3Y-4.8%
EPS Next 5Y0.83%
Revenue 1Y (TTM)-3.7%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-2.29%
Revenue Next Year-3.7%
Revenue Next 2Y-1.83%
Revenue Next 3Y-0.96%
Revenue Next 5Y0.28%
EBIT growth 1Y-7.16%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year9.95%
EBIT Next 3Y4.24%
EBIT Next 5Y4.56%
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 9.24 and the Price/Book (PB) ratio is 0.73.
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 -16.27% in the next year.