WK KELLOGG CO (KLG) Stock Fundamental Analysis
NYSE:KLG - US92942W1071 - Common Stock
23.02 USD
+0.02 (+0.09%)
23.1 USD
+0.08 (+0.35%)
Taking everything into account, KLG scores 3 out of 10 in our fundamental rating. KLG was compared to 90 industry peers in the Food Products industry. KLG has a medium profitability rating, but doesn't score so well on its financial health evaluation. KLG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
KLG had positive earnings in the past year.
In the past year KLG had a positive cash flow from operations.
KLG had positive earnings in 4 of the past 5 years.
KLG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.60%, KLG perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
KLG's Return On Equity of 9.86% is fine compared to the rest of the industry. KLG outperforms 67.78% of its industry peers.
KLG has a Return On Invested Capital of 9.68%. This is amongst the best in the industry. KLG outperforms 82.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KLG is significantly below the industry average of 27.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 9.86% | ||
| ROIC | 9.68% |
ROA(3y)2.58%
ROA(5y)7.05%
ROE(3y)18.58%
ROE(5y)24.2%
ROIC(3y)10.53%
ROIC(5y)12.48%
1.3 Margins
KLG has a Profit Margin (1.31%) which is in line with its industry peers.
In the last couple of years the Profit Margin of KLG has declined.
The Operating Margin of KLG (6.49%) is better than 66.67% of its industry peers.
KLG's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 30.40%, KLG is doing good in the industry, outperforming 68.89% of the companies in the same industry.
In the last couple of years the Gross Margin of KLG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.49% | ||
| PM (TTM) | 1.31% | ||
| GM | 30.4% |
OM growth 3Y62.88%
OM growth 5YN/A
PM growth 3Y-26.09%
PM growth 5YN/A
GM growth 3Y8.37%
GM growth 5YN/A
2. Health
2.1 Basic Checks
KLG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for KLG has been increased compared to 1 year ago.
KLG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.17 indicates that KLG is not a great score, but indicates only limited risk for bankruptcy at the moment.
KLG has a Altman-Z score (2.17) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.05 is on the high side and indicates that KLG has dependencies on debt financing.
The Debt to Equity ratio of KLG (2.05) is worse than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.17 |
ROIC/WACC1.18
WACC8.19%
2.3 Liquidity
KLG has a Current Ratio of 0.99. This is a bad value and indicates that KLG is not financially healthy enough and could expect problems in meeting its short term obligations.
KLG has a worse Current ratio (0.99) than 76.67% of its industry peers.
A Quick Ratio of 0.47 indicates that KLG may have some problems paying its short term obligations.
KLG has a Quick ratio of 0.47. This is in the lower half of the industry: KLG underperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The earnings per share for KLG have decreased by -0.07% in the last year.
The earnings per share for KLG have been decreasing by -23.66% on average. This is quite bad
The Revenue has decreased by -4.30% in the past year.
KLG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.25% yearly.
EPS 1Y (TTM)-0.07%
EPS 3Y-23.66%
EPS 5YN/A
EPS Q2Q%-40.91%
Revenue 1Y (TTM)-4.3%
Revenue growth 3Y3.25%
Revenue growth 5YN/A
Sales Q2Q%-8.78%
3.2 Future
KLG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.93% yearly.
The Revenue is expected to decrease by -0.80% on average over the next years.
EPS Next Y-5.74%
EPS Next 2Y-1.29%
EPS Next 3Y4.91%
EPS Next 5Y12.93%
Revenue Next Year-4.05%
Revenue Next 2Y-3.55%
Revenue Next 3Y-2.39%
Revenue Next 5Y-0.8%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.55, which indicates a correct valuation of KLG.
Based on the Price/Earnings ratio, KLG is valued a bit cheaper than the industry average as 68.89% of the companies are valued more expensively.
KLG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.14.
Based on the Price/Forward Earnings ratio of 15.34, the valuation of KLG can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KLG indicates a somewhat cheap valuation: KLG is cheaper than 68.89% of the companies listed in the same industry.
KLG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 15.34 |
4.2 Price Multiples
KLG's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.26 |
4.3 Compensation for Growth
KLG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.29%
EPS Next 3Y4.91%
5. Dividend
5.1 Amount
KLG has a Yearly Dividend Yield of 2.87%. Purely for dividend investing, there may be better candidates out there.
KLG's Dividend Yield is a higher than the industry average which is at 4.61.
Compared to an average S&P500 Dividend Yield of 2.34, KLG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
5.2 History
KLG has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
164.71% of the earnings are spent on dividend by KLG. This is not a sustainable payout ratio.
DP164.71%
EPS Next 2Y-1.29%
EPS Next 3Y4.91%
23.02
+0.02 (+0.09%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners100.64%
Inst Owner ChangeN/A
Ins Owners7.59%
Ins Owner Change0.4%
Market Cap1.99B
Analysts50.67
Price Target22.61 (-1.78%)
Short Float %8.82%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP164.71%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.01%
Min EPS beat(2)8.16%
Max EPS beat(2)21.87%
EPS beat(4)4
Avg EPS beat(4)27.7%
Min EPS beat(4)8.16%
Max EPS beat(4)62.95%
EPS beat(8)6
Avg EPS beat(8)23.42%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.92%
Min Revenue beat(2)-3.39%
Max Revenue beat(2)-2.44%
Revenue beat(4)1
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-3.39%
Max Revenue beat(4)0.75%
Revenue beat(8)3
Avg Revenue beat(8)-0.56%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.35%
PT rev (3m)26.8%
EPS NQ rev (1m)9.74%
EPS NQ rev (3m)-4.41%
EPS NY rev (1m)-8.7%
EPS NY rev (3m)4.13%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)-2.23%
Revenue NY rev (3m)-2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 15.34 | ||
| P/S | 0.76 | ||
| P/FCF | N/A | ||
| P/OCF | 25.18 | ||
| P/B | 5.77 | ||
| P/tB | 8.47 | ||
| EV/EBITDA | 10.26 |
EPS(TTM)1.48
EY6.43%
EPS(NY)1.5
Fwd EY6.52%
FCF(TTM)-1.47
FCFYN/A
OCF(TTM)0.91
OCFY3.97%
SpS30.14
BVpS3.99
TBVpS2.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 9.86% | ||
| ROCE | 12.29% | ||
| ROIC | 9.68% | ||
| ROICexc | 10.59% | ||
| ROICexgc | 11.59% | ||
| OM | 6.49% | ||
| PM (TTM) | 1.31% | ||
| GM | 30.4% | ||
| FCFM | N/A |
ROA(3y)2.58%
ROA(5y)7.05%
ROE(3y)18.58%
ROE(5y)24.2%
ROIC(3y)10.53%
ROIC(5y)12.48%
ROICexc(3y)10.95%
ROICexc(5y)12.73%
ROICexgc(3y)12.41%
ROICexgc(5y)14.97%
ROCE(3y)13.36%
ROCE(5y)15.69%
ROICexcg growth 3Y38.76%
ROICexcg growth 5YN/A
ROICexc growth 3Y42.18%
ROICexc growth 5YN/A
OM growth 3Y62.88%
OM growth 5YN/A
PM growth 3Y-26.09%
PM growth 5YN/A
GM growth 3Y8.37%
GM growth 5YN/A
F-Score5
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 248.19% | ||
| Cap/Sales | 7.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 31.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 2.17 |
F-Score5
WACC8.19%
ROIC/WACC1.18
Cap/Depr(3y)165.69%
Cap/Depr(5y)146.69%
Cap/Sales(3y)4.28%
Cap/Sales(5y)3.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.07%
EPS 3Y-23.66%
EPS 5YN/A
EPS Q2Q%-40.91%
EPS Next Y-5.74%
EPS Next 2Y-1.29%
EPS Next 3Y4.91%
EPS Next 5Y12.93%
Revenue 1Y (TTM)-4.3%
Revenue growth 3Y3.25%
Revenue growth 5YN/A
Sales Q2Q%-8.78%
Revenue Next Year-4.05%
Revenue Next 2Y-3.55%
Revenue Next 3Y-2.39%
Revenue Next 5Y-0.8%
EBIT growth 1Y3.05%
EBIT growth 3Y68.18%
EBIT growth 5YN/A
EBIT Next Year33.93%
EBIT Next 3Y20.28%
EBIT Next 5Y14.53%
FCF growth 1Y-382.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-46.98%
OCF growth 3Y142.64%
OCF growth 5YN/A