KRAFT HEINZ CO/THE (KHC)
US5007541064 - Common Stock
Overall KHC gets a fundamental rating of 5 out of 10. We evaluated KHC against 92 industry peers in the Food Products industry. There are concerns on the financial health of KHC while its profitability can be described as average. KHC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KHC was profitable.
KHC had a positive operating cash flow in the past year.
In the past 5 years KHC has always been profitable.
In the past 5 years KHC always reported a positive cash flow from operatings.
1.2 Ratios
KHC has a Return On Assets (3.16%) which is comparable to the rest of the industry.
The Return On Equity of KHC (5.76%) is comparable to the rest of the industry.
KHC has a Return On Invested Capital (5.04%) which is in line with its industry peers.
KHC had an Average Return On Invested Capital over the past 3 years of 5.10%. This is below the industry average of 7.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 5.76% | ||
| ROIC | 5.04% |
ROA(3y)2.28%
ROA(5y)1.82%
ROE(3y)4.22%
ROE(5y)3.43%
ROIC(3y)5.1%
ROIC(5y)4.88%
1.3 Margins
KHC's Profit Margin of 10.72% is amongst the best of the industry. KHC outperforms 84.62% of its industry peers.
In the last couple of years the Profit Margin of KHC has grown nicely.
With an excellent Operating Margin value of 19.68%, KHC belongs to the best of the industry, outperforming 97.80% of the companies in the same industry.
In the last couple of years the Operating Margin of KHC has remained more or less at the same level.
KHC's Gross Margin of 33.72% is amongst the best of the industry. KHC outperforms 83.52% 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 | 19.68% | ||
| PM (TTM) | 10.72% | ||
| GM | 33.72% |
OM growth 3Y1.81%
OM growth 5Y-0.59%
PM growth 3Y99.02%
PM growth 5YN/A
GM growth 3Y-1.21%
GM growth 5Y-0.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KHC is destroying value.
KHC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for KHC remains at a similar level compared to 5 years ago.
Compared to 1 year ago, KHC has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.19, we must say that KHC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of KHC (1.19) is worse than 68.13% of its industry peers.
KHC has a debt to FCF ratio of 6.76. This is a slightly negative value and a sign of low solvency as KHC would need 6.76 years to pay back of all of its debts.
KHC has a Debt to FCF ratio of 6.76. This is in the better half of the industry: KHC outperforms 62.64% of its industry peers.
KHC has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
KHC has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: KHC outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 6.76 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.67
WACC7.53%
2.3 Liquidity
KHC has a Current Ratio of 0.99. This is a bad value and indicates that KHC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.99, KHC is not doing good in the industry: 74.73% of the companies in the same industry are doing better.
KHC has a Quick Ratio of 0.99. 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 (0.54) than 74.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.83% over the past year.
The Earnings Per Share has been decreasing by -3.29% on average over the past years.
The Revenue has been growing slightly by 0.59% in the past year.
Measured over the past years, KHC shows a small growth in Revenue. The Revenue has been growing by 0.28% on average per year.
EPS 1Y (TTM)6.83%
EPS 3Y1.03%
EPS 5Y-3.29%
EPS growth Q2Q-8.24%
Revenue 1Y (TTM)0.59%
Revenue growth 3Y0.58%
Revenue growth 5Y0.28%
Revenue growth Q2Q-7.06%
3.2 Future
The Earnings Per Share is expected to grow by 6.44% 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 2.66% yearly.
EPS Next Y3.43%
EPS Next 2Y4.47%
EPS Next 3Y4.85%
EPS Next 5Y6.44%
Revenue Next Year0.35%
Revenue Next 2Y1.13%
Revenue Next 3Y1.35%
Revenue Next 5Y2.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.82, the valuation of KHC can be described as correct.
KHC's Price/Earnings ratio is rather cheap when compared to the industry. KHC is cheaper than 83.52% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.95. KHC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.39 indicates a correct valuation of KHC.
KHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. KHC is cheaper than 83.52% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.40, KHC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 12.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KHC is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, KHC is valued a bit cheaper than 75.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.62 | ||
| EV/EBITDA | 10.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of KHC may justify a higher PE ratio.
PEG (NY)3.73
PEG (5Y)N/A
EPS Next 2Y4.47%
EPS Next 3Y4.85%
5. Dividend
5.1 Amount
KHC has a Yearly Dividend Yield of 4.31%, which is a nice return.
Compared to an average industry Dividend Yield of 3.58, KHC pays a better dividend. On top of this KHC pays more dividend than 90.11% of the companies listed in the same industry.
KHC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
5.2 History
The dividend of KHC decreases each year by -9.23%.
KHC has paid a dividend for at least 10 years, which is a reliable track record.
KHC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.23%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
KHC pays out 68.83% of its income as dividend. This is not a sustainable payout ratio.
DP68.83%
EPS Next 2Y4.47%
EPS Next 3Y4.85%
KRAFT HEINZ CO/THE
NASDAQ:KHC (4/23/2024, 4:20:02 PM)
After market: 37.96 -0.11 (-0.29%)38.07
-0.08 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap46.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 12.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 5.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.68% | ||
| PM (TTM) | 10.72% | ||
| GM | 33.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.83%
EPS 3Y1.03%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.59%
Revenue growth 3Y0.58%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y