KELLANOVA (K)
US4878361082 - Common Stock
Overall K gets a fundamental rating of 5 out of 10. We evaluated K against 93 industry peers in the Food Products industry. While K belongs to the best of the industry regarding profitability, there are concerns on its financial health. K has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year K was profitable.
K had a positive operating cash flow in the past year.
In the past 5 years K has always been profitable.
Each year in the past 5 years K had a positive operating cash flow.
1.2 Ratios
K has a Return On Assets of 6.01%. This is in the better half of the industry: K outperforms 71.74% of its industry peers.
Looking at the Return On Equity, with a value of 29.19%, K belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
K has a Return On Invested Capital of 12.27%. This is amongst the best in the industry. K outperforms 90.22% of its industry peers.
K had an Average Return On Invested Capital over the past 3 years of 11.02%. This is above the industry average of 7.69%.
The last Return On Invested Capital (12.27%) for K is above the 3 year average (11.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 29.19% | ||
| ROIC | 12.27% |
ROA(3y)6.49%
ROA(5y)6.38%
ROE(3y)31.44%
ROE(5y)33.89%
ROIC(3y)11.02%
ROIC(5y)10.52%
1.3 Margins
K has a better Profit Margin (7.50%) than 77.17% of its industry peers.
K's Profit Margin has declined in the last couple of years.
The Operating Margin of K (12.95%) is better than 82.61% of its industry peers.
In the last couple of years the Operating Margin of K has remained more or less at the same level.
K has a better Gross Margin (34.27%) than 82.61% of its industry peers.
K's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.95% | ||
| PM (TTM) | 7.5% | ||
| GM | 34.27% |
OM growth 3Y-3.39%
OM growth 5Y-1.09%
PM growth 3Y-7.26%
PM growth 5Y-5.97%
GM growth 3Y-1.67%
GM growth 5Y-0.9%
2. Health
2.1 Basic Checks
K 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 K has been reduced compared to 1 year ago.
K has less shares outstanding than it did 5 years ago.
The debt/assets ratio for K is higher compared to a year ago.
2.2 Solvency
K has an Altman-Z score of 2.83. This is not the best score and indicates that K is in the grey zone with still only limited risk for bankruptcy at the moment.
K's Altman-Z score of 2.83 is fine compared to the rest of the industry. K outperforms 67.39% of its industry peers.
K has a debt to FCF ratio of 5.38. This is a neutral value as K would need 5.38 years to pay back of all of its debts.
K's Debt to FCF ratio of 5.38 is fine compared to the rest of the industry. K outperforms 69.57% of its industry peers.
K has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
K has a worse Debt to Equity ratio (1.47) than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 5.38 | ||
| Altman-Z | 2.83 |
ROIC/WACC1.57
WACC7.79%
2.3 Liquidity
A Current Ratio of 0.62 indicates that K may have some problems paying its short term obligations.
K's Current ratio of 0.62 is on the low side compared to the rest of the industry. K is outperformed by 92.39% of its industry peers.
K has a Quick Ratio of 0.62. This is a bad value and indicates that K is not financially healthy enough and could expect problems in meeting its short term obligations.
K's Quick ratio of 0.41 is on the low side compared to the rest of the industry. K is outperformed by 88.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
K shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.78%.
Measured over the past years, K shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.84% on average per year.
The Revenue for K has decreased by -21.83% in the past year. This is quite bad
The Revenue has been decreasing by -0.64% on average over the past years.
EPS 1Y (TTM)-3.78%
EPS 3Y1.32%
EPS 5Y-0.84%
EPS growth Q2Q-8.18%
Revenue 1Y (TTM)-21.83%
Revenue growth 3Y-1.59%
Revenue growth 5Y-0.64%
Revenue growth Q2Q-21.05%
3.2 Future
K is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.22% yearly.
The Revenue is expected to decrease by -0.72% on average over the next years.
EPS Next Y-12.18%
EPS Next 2Y-3.35%
EPS Next 3Y-0.38%
EPS Next 5Y2.22%
Revenue Next Year-12.55%
Revenue Next 2Y-5.05%
Revenue Next 3Y-2.58%
Revenue Next 5Y-0.72%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.13, the valuation of K can be described as correct.
Based on the Price/Earnings ratio, K is valued a bit cheaper than the industry average as 79.35% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.60. K is valued slightly cheaper when compared to this.
K is valuated correctly with a Price/Forward Earnings ratio of 15.84.
K's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. K is cheaper than 73.91% of the companies in the same industry.
K's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 15.84 |
4.2 Price Multiples
K's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. K is cheaper than 60.87% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of K indicates a somewhat cheap valuation: K is cheaper than 72.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.06 | ||
| EV/EBITDA | 13.4 |
4.3 Compensation for Growth
K has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.35%
EPS Next 3Y-0.38%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 3.60%.
K's Dividend Yield is rather good when compared to the industry average which is at 3.51. K pays more dividend than 85.87% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, K pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
5.2 History
The dividend of K has a limited annual growth rate of 3.40%.
K has paid a dividend for at least 10 years, which is a reliable track record.
K has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.4%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
K pays out 85.76% of its income as dividend. This is not a sustainable payout ratio.
K's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP85.76%
EPS Next 2Y-3.35%
EPS Next 3Y-0.38%
KELLANOVA
NYSE:K (5/17/2024, 7:09:09 PM)
After market: 61.28 -0.28 (-0.45%)61.56
-0.58 (-0.93%)
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 Cap21.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 15.13 | ||
| Fwd PE | 15.84 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 29.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.95% | ||
| PM (TTM) | 7.5% | ||
| GM | 34.27% | ||
| 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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.41 | ||
| 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)-3.78%
EPS 3Y1.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.83%
Revenue growth 3Y-1.59%
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