KRAFT HEINZ CO/THE (KHNZ.DE) Stock Fundamental Analysis
FRA:KHNZ - Deutsche Boerse Ag - US5007541064 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to KHNZ. KHNZ was compared to 57 industry peers in the Food Products industry. There are concerns on the financial health of KHNZ while its profitability can be described as average. KHNZ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KHNZ was profitable.
In the past year KHNZ had a positive cash flow from operations.
In the past 5 years KHNZ has always been profitable.
In the past 5 years KHNZ always reported a positive cash flow from operatings.
1.2 Ratios
KHNZ's Return On Assets of 2.94% is in line compared to the rest of the industry. KHNZ outperforms 44.83% of its industry peers.
KHNZ's Return On Equity of 5.37% is on the low side compared to the rest of the industry. KHNZ is outperformed by 60.34% of its industry peers.
KHNZ has a Return On Invested Capital (4.98%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for KHNZ is below the industry average of 7.04%.
The last Return On Invested Capital (4.98%) for KHNZ is above the 3 year average (4.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.37% | ||
| ROIC | 4.98% |
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
KHNZ's Profit Margin of 10.44% is fine compared to the rest of the industry. KHNZ outperforms 77.59% of its industry peers.
KHNZ's Profit Margin has improved in the last couple of years.
KHNZ has a better Operating Margin (20.76%) than 94.83% of its industry peers.
KHNZ's Operating Margin has been stable in the last couple of years.
KHNZ's Gross Margin of 34.58% is in line compared to the rest of the industry. KHNZ outperforms 44.83% of its industry peers.
In the last couple of years the Gross Margin of KHNZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.76% | ||
| PM (TTM) | 10.44% | ||
| GM | 34.58% |
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), KHNZ is destroying value.
KHNZ has less shares outstanding than it did 1 year ago.
The number of shares outstanding for KHNZ has been reduced compared to 5 years ago.
KHNZ has a worse debt/assets ratio than last year.
2.2 Solvency
KHNZ has an Altman-Z score of 1.04. This is a bad value and indicates that KHNZ is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of KHNZ (1.04) is worse than 74.14% of its industry peers.
The Debt to FCF ratio of KHNZ is 7.14, which is on the high side as it means it would take KHNZ, 7.14 years of fcf income to pay off all of its debts.
KHNZ has a Debt to FCF ratio of 7.14. This is comparable to the rest of the industry: KHNZ outperforms 41.38% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that KHNZ is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.42, KHNZ is doing good in the industry, outperforming 70.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.71
WACC6.97%
2.3 Liquidity
KHNZ has a Current Ratio of 1.31. This is a normal value and indicates that KHNZ is financially healthy and should not expect problems in meeting its short term obligations.
KHNZ has a Current ratio (1.31) which is in line with its industry peers.
A Quick Ratio of 0.81 indicates that KHNZ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.81, KHNZ is in line with its industry, outperforming 44.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
KHNZ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.34%.
Measured over the past 5 years, KHNZ 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 -4.25% in the past year.
Measured over the past years, KHNZ shows a small growth in Revenue. The Revenue has been growing by 0.69% on average per year.
EPS 1Y (TTM)0.34%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-10.14%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-6.43%
3.2 Future
KHNZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.20% yearly.
Based on estimates for the next years, KHNZ will show a small growth in Revenue. The Revenue will grow by 0.63% on average per year.
EPS Next Y-11.68%
EPS Next 2Y-4.07%
EPS Next 3Y-1.34%
EPS Next 5Y2.2%
Revenue Next Year-3.65%
Revenue Next 2Y-1.39%
Revenue Next 3Y-0.41%
Revenue Next 5Y0.63%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.57 indicates a reasonable valuation of KHNZ.
KHNZ's Price/Earnings ratio is a bit cheaper when compared to the industry. KHNZ is cheaper than 77.59% of the companies in the same industry.
KHNZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.18.
KHNZ is valuated reasonably with a Price/Forward Earnings ratio of 10.18.
Based on the Price/Forward Earnings ratio, KHNZ is valued a bit cheaper than 72.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KHNZ to the average of the S&P500 Index (20.81), we can say KHNZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.57 | ||
| Fwd PE | 10.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KHNZ is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KHNZ indicates a somewhat cheap valuation: KHNZ is cheaper than 68.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.21 | ||
| EV/EBITDA | 8.36 |
4.3 Compensation for Growth
KHNZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.68
EPS Next 2Y-4.07%
EPS Next 3Y-1.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.61%, KHNZ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.20, KHNZ pays a better dividend. On top of this KHNZ pays more dividend than 96.55% of the companies listed in the same industry.
KHNZ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
72.39% of the earnings are spent on dividend by KHNZ. This is not a sustainable payout ratio.
DP72.39%
EPS Next 2Y-4.07%
EPS Next 3Y-1.34%
FRA:KHNZ (4/30/2025, 3:35:22 PM)
25.265
-0.39 (-1.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners59.39%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap29.90B
Analysts55.48
Price Target28.06 (11.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
Yearly Dividend1.41
Dividend Growth(5Y)0%
DP72.39%
Div Incr Years0
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.36%
Min EPS beat(2)1.8%
Max EPS beat(2)6.92%
EPS beat(4)4
Avg EPS beat(4)3.55%
Min EPS beat(4)0.43%
Max EPS beat(4)6.92%
EPS beat(8)7
Avg EPS beat(8)3.21%
EPS beat(12)11
Avg EPS beat(12)4.96%
EPS beat(16)15
Avg EPS beat(16)7.11%
Revenue beat(2)0
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-1.83%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)-1.35%
Revenue beat(8)0
Avg Revenue beat(8)-2.1%
Revenue beat(12)4
Avg Revenue beat(12)-0.97%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)-6.16%
PT rev (3m)-19.64%
EPS NQ rev (1m)-6.78%
EPS NQ rev (3m)-17.31%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-12.44%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-2.63%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-3.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.57 | ||
| Fwd PE | 10.18 | ||
| P/S | 1.33 | ||
| P/FCF | 11.21 | ||
| P/OCF | 8.21 | ||
| P/B | 0.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.36 |
EPS(TTM)2.64
EY10.45%
EPS(NY)2.48
Fwd EY9.83%
FCF(TTM)2.25
FCFY8.92%
OCF(TTM)3.08
OCFY12.19%
SpS18.95
BVpS36.84
TBVpS-14.48
PEG (NY)N/A
PEG (5Y)6.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.37% | ||
| ROCE | 6.36% | ||
| ROIC | 4.98% | ||
| ROICexc | 5.15% | ||
| ROICexgc | 36.43% | ||
| OM | 20.76% | ||
| PM (TTM) | 10.44% | ||
| GM | 34.58% | ||
| FCFM | 11.89% |
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%
ROICexcg growth 3Y-16.8%
ROICexcg 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-Score6
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.14 | ||
| Debt/EBITDA | 3.36 | ||
| Cap/Depr | 116.75% | ||
| Cap/Sales | 4.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.36% | ||
| Profit Quality | 113.94% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.04 |
F-Score6
WACC6.97%
ROIC/WACC0.71
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)0.34%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-10.14%
EPS Next Y-11.68%
EPS Next 2Y-4.07%
EPS Next 3Y-1.34%
EPS Next 5Y2.2%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-6.43%
Revenue Next Year-3.65%
Revenue Next 2Y-1.39%
Revenue Next 3Y-0.41%
Revenue Next 5Y0.63%
EBIT growth 1Y-0.79%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year13.63%
EBIT Next 3Y5.59%
EBIT Next 5Y5.49%
FCF growth 1Y101.53%
FCF growth 3Y-12.18%
FCF growth 5Y1.64%
OCF growth 1Y67.4%
OCF growth 3Y-7.95%
OCF growth 5Y3.33%