25.23 USD
-0.06 (-0.24%)
25.23 USD
0 (0%)
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 is valued quite cheap, but it does not seem to be growing.
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 each of the past 5 years.
KHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -5.34%, KHC is not doing good in the industry: 67.82% of the companies in the same industry are doing better.
KHC has a Return On Equity of -10.53%. This is in the lower half of the industry: KHC underperforms 67.82% of its industry peers.
KHC's Return On Invested Capital of 5.32% is fine compared to the rest of the industry. KHC outperforms 62.07% 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 28.38%.
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.
KHC has a better Gross Margin (33.75%) than 77.01% 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
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 0.88. 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 0.88, KHC is not doing good in the industry: 73.56% of the companies in the same industry are doing better.
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.
KHC has a better Debt to FCF ratio (5.84) than 75.86% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that KHC is not too dependend on debt financing.
KHC has a Debt to Equity ratio of 0.47. This is comparable 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 | 0.88 |
ROIC/WACC0.8
WACC6.64%
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 Current ratio of 1.13. This is in the lower half of the industry: KHC underperforms 74.71% of its industry peers.
A Quick Ratio of 0.73 indicates that KHC may have some problems paying its short term obligations.
KHC has a worse Quick ratio (0.73) than 63.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The earnings per share for KHC have decreased by -8.00% in the last year.
Measured over the past 5 years, KHC shows a small growth in Earnings Per Share. The EPS has been growing by 1.43% on average per year.
The Revenue has decreased by -3.70% 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)-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
KHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.83% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 9.14 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 25.65. KHC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.89 indicates a reasonable valuation of KHC.
87.36% 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 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 9.89 |
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 73.56% 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 88.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.22 | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
The decent profitability rating of KHC may justify a higher PE ratio.
KHC's earnings are expected to decrease with -4.80% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)6.38
EPS Next 2Y-8.7%
EPS Next 3Y-4.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.41%, KHC is a good candidate for dividend investing.
KHC's Dividend Yield is rather good when compared to the industry average which is at 5.20. KHC pays more dividend than 87.36% of the companies in the same industry.
KHC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| 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.
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
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%
25.23
-0.06 (-0.24%)
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 Cap29.86B
Revenue(TTM)25.16B
Net Income(TTM)-4.37B
Analysts65.38
Price Target28.06 (11.22%)
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 | 9.14 | ||
| Fwd PE | 9.89 | ||
| P/S | 1.19 | ||
| P/FCF | 8.22 | ||
| P/OCF | 6.67 | ||
| P/B | 0.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.95 |
EPS(TTM)2.76
EY10.94%
EPS(NY)2.55
Fwd EY10.11%
FCF(TTM)3.07
FCFY12.16%
OCF(TTM)3.78
OCFY14.98%
SpS21.26
BVpS35.02
TBVpS-15.43
PEG (NY)N/A
PEG (5Y)6.38
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 | 0.88 |
F-Score5
WACC6.64%
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 9.14 and the Price/Book (PB) ratio is 0.72.
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.