KRAFT HEINZ CO/THE (KHNZ.DE) Stock Fundamental Analysis
FRA:KHNZ - Deutsche Boerse Ag - US5007541064 - Common Stock - Currency: EUR
KHNZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 59 industry peers in the Food Products industry. While KHNZ has a great profitability rating, there are quite some concerns on its financial health. KHNZ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
KHNZ had positive earnings in the past year.
In the past year KHNZ had a positive cash flow from operations.
KHNZ had positive earnings in each of the past 5 years.
In the past 5 years KHNZ always reported a positive cash flow from operatings.
1.2 Ratios
KHNZ has a Return On Assets (2.94%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.37%, KHNZ is in line with its industry, outperforming 45.76% of the companies in the same industry.
KHNZ's Return On Invested Capital of 4.98% is in line compared to the rest of the industry. KHNZ outperforms 54.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KHNZ is in line with the industry average of 6.44%.
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
With an excellent Profit Margin value of 10.44%, KHNZ belongs to the best of the industry, outperforming 83.05% of the companies in the same industry.
In the last couple of years the Profit Margin of KHNZ has grown nicely.
Looking at the Operating Margin, with a value of 20.76%, KHNZ belongs to the top of the industry, outperforming 96.61% of the companies in the same industry.
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 47.46% of its industry peers.
KHNZ's Gross Margin has been stable in the last couple of years.
| 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
KHNZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, KHNZ has less shares outstanding
The number of shares outstanding for KHNZ has been reduced compared to 5 years ago.
The debt/assets ratio for KHNZ is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.01, we must say that KHNZ is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of KHNZ (1.01) is worse than 77.97% 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.
With a Debt to FCF ratio value of 7.14, KHNZ perfoms like the industry average, outperforming 45.76% of the companies in the same industry.
KHNZ has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
KHNZ has a better Debt to Equity ratio (0.42) than 72.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.71
WACC6.99%
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 of 1.31. This is comparable to the rest of the industry: KHNZ outperforms 44.07% of its industry peers.
A Quick Ratio of 0.81 indicates that KHNZ may have some problems paying its short term obligations.
KHNZ's Quick ratio of 0.81 is in line compared to the rest of the industry. KHNZ outperforms 42.37% of its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 1.43% on average over the past years.
KHNZ shows a decrease in Revenue. In the last year, the revenue decreased by -4.25%.
KHNZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.69% yearly.
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
Based on estimates for the next years, KHNZ will show a small growth in Earnings Per Share. The EPS will grow by 2.20% on average per year.
The Revenue is expected to grow by 0.63% on average over the next years.
EPS Next Y-14.56%
EPS Next 2Y-6.25%
EPS Next 3Y-2.59%
EPS Next 5Y2.2%
Revenue Next Year-3.75%
Revenue Next 2Y-1.56%
Revenue Next 3Y-0.59%
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 8.96 indicates a reasonable valuation of KHNZ.
KHNZ's Price/Earnings ratio is rather cheap when compared to the industry. KHNZ is cheaper than 81.36% 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 26.35.
The Price/Forward Earnings ratio is 9.98, which indicates a very decent valuation of KHNZ.
KHNZ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KHNZ is cheaper than 72.88% of the companies in the same industry.
KHNZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 9.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KHNZ is valued a bit cheaper than 61.02% of the companies in the same industry.
76.27% of the companies in the same industry are more expensive than KHNZ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.5 | ||
| EV/EBITDA | 8.03 |
4.3 Compensation for Growth
The decent profitability rating of KHNZ may justify a higher PE ratio.
A cheap valuation may be justified as KHNZ's earnings are expected to decrease with -2.59% in the coming years.
PEG (NY)N/A
PEG (5Y)6.26
EPS Next 2Y-6.25%
EPS Next 3Y-2.59%
5. Dividend
5.1 Amount
KHNZ has a Yearly Dividend Yield of 6.01%, which is a nice return.
In the last 3 months the price of KHNZ has falen by -20.26%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.21, KHNZ pays a better dividend. On top of this KHNZ pays more dividend than 93.22% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, KHNZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.01% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
KHNZ pays out 72.39% of its income as dividend. This is not a sustainable payout ratio.
DP72.39%
EPS Next 2Y-6.25%
EPS Next 3Y-2.59%
FRA:KHNZ (5/27/2025, 5:19:34 PM)
23.57
-0.07 (-0.3%)
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 Cap27.90B
Analysts55.48
Price Target27.56 (16.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.01% |
Yearly Dividend1.42
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)-1.79%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.28%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)-1.28%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)4
Avg Revenue beat(12)-0.96%
Revenue beat(16)7
Avg Revenue beat(16)-0.3%
PT rev (1m)-8.45%
PT rev (3m)-21.05%
EPS NQ rev (1m)-7.52%
EPS NQ rev (3m)-9.99%
EPS NY rev (1m)-3.26%
EPS NY rev (3m)-3.52%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 9.98 | ||
| P/S | 1.25 | ||
| P/FCF | 10.5 | ||
| P/OCF | 7.68 | ||
| P/B | 0.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.03 |
EPS(TTM)2.63
EY11.16%
EPS(NY)2.36
Fwd EY10.02%
FCF(TTM)2.25
FCFY9.53%
OCF(TTM)3.07
OCFY13.02%
SpS18.88
BVpS36.72
TBVpS-14.43
PEG (NY)N/A
PEG (5Y)6.26
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 | 1.01 |
F-Score6
WACC6.99%
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-14.56%
EPS Next 2Y-6.25%
EPS Next 3Y-2.59%
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-3.75%
Revenue Next 2Y-1.56%
Revenue Next 3Y-0.59%
Revenue Next 5Y0.63%
EBIT growth 1Y-0.79%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year10.65%
EBIT Next 3Y4.34%
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%