KRAFT HEINZ CO/THE (1KHC.MI) Stock Fundamental Analysis
BIT:1KHC - Euronext Milan - US5007541064 - Common Stock - Currency: EUR
Overall 1KHC gets a fundamental rating of 5 out of 10. We evaluated 1KHC against 58 industry peers in the Food Products industry. While 1KHC is still in line with the averages on profitability rating, there are concerns on its financial health. 1KHC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1KHC had positive earnings in the past year.
In the past year 1KHC had a positive cash flow from operations.
In the past 5 years 1KHC has always been profitable.
In the past 5 years 1KHC always reported a positive cash flow from operatings.
1.2 Ratios
1KHC has a Return On Assets of 3.11%. This is comparable to the rest of the industry: 1KHC outperforms 46.43% of its industry peers.
1KHC has a Return On Equity (5.58%) which is comparable to the rest of the industry.
1KHC has a Return On Invested Capital (5.20%) which is comparable to the rest of the industry.
1KHC had an Average Return On Invested Capital over the past 3 years of 4.97%. This is below the industry average of 7.19%.
The 3 year average ROIC (4.97%) for 1KHC is below the current ROIC(5.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.58% | ||
| ROIC | 5.2% |
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
1KHC's Profit Margin of 10.62% is amongst the best of the industry. 1KHC outperforms 82.14% of its industry peers.
1KHC's Profit Margin has improved in the last couple of years.
The Operating Margin of 1KHC (20.81%) is better than 94.64% of its industry peers.
In the last couple of years the Operating Margin of 1KHC has remained more or less at the same level.
With a Gross Margin value of 34.73%, 1KHC perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
1KHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.81% | ||
| PM (TTM) | 10.62% | ||
| GM | 34.73% |
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
1KHC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for 1KHC has been reduced compared to 1 year ago.
The number of shares outstanding for 1KHC has been reduced compared to 5 years ago.
Compared to 1 year ago, 1KHC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.07, we must say that 1KHC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.07, 1KHC is doing worse than 75.00% of the companies in the same industry.
1KHC has a debt to FCF ratio of 6.58. This is a slightly negative value and a sign of low solvency as 1KHC would need 6.58 years to pay back of all of its debts.
The Debt to FCF ratio of 1KHC (6.58) is comparable to the rest of the industry.
1KHC has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
1KHC has a Debt to Equity ratio of 0.39. This is in the better half of the industry: 1KHC outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.74
WACC7%
2.3 Liquidity
A Current Ratio of 1.06 indicates that 1KHC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.06, 1KHC is not doing good in the industry: 69.64% of the companies in the same industry are doing better.
1KHC has a Quick Ratio of 1.06. This is a bad value and indicates that 1KHC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1KHC (0.59) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
1KHC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.03%.
Measured over the past 5 years, 1KHC shows a small growth in Earnings Per Share. The EPS has been growing by 1.43% on average per year.
Looking at the last year, 1KHC shows a decrease in Revenue. The Revenue has decreased by -2.98% in the last year.
The Revenue has been growing slightly by 0.69% on average over the past years.
EPS 1Y (TTM)3.03%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%7.69%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-4.14%
3.2 Future
1KHC 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, 1KHC 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-3.62%
Revenue Next 2Y-1.31%
Revenue Next 3Y-0.31%
Revenue Next 5Y0.63%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 9.54, the valuation of 1KHC can be described as reasonable.
Based on the Price/Earnings ratio, 1KHC is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
1KHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
A Price/Forward Earnings ratio of 10.79 indicates a reasonable valuation of 1KHC.
67.86% of the companies in the same industry are more expensive than 1KHC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1KHC to the average of the S&P500 Index (21.38), we can say 1KHC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1KHC is on the same level as its industry peers.
1KHC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1KHC is cheaper than 69.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.52 | ||
| EV/EBITDA | 8.43 |
4.3 Compensation for Growth
The decent profitability rating of 1KHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.66
EPS Next 2Y-4.07%
EPS Next 3Y-1.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.43%, 1KHC is a good candidate for dividend investing.
1KHC's Dividend Yield is rather good when compared to the industry average which is at 3.09. 1KHC pays more dividend than 89.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, 1KHC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
70.37% of the earnings are spent on dividend by 1KHC. This is not a sustainable payout ratio.
DP70.37%
EPS Next 2Y-4.07%
EPS Next 3Y-1.34%
BIT:1KHC (4/10/2025, 7:00:00 PM)
25.66
-2.61 (-9.22%)
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 Cap30.62B
Analysts65.71
Price Target29.91 (16.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
Yearly Dividend1.41
Dividend Growth(5Y)0%
DP70.37%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.67%
Min EPS beat(2)0.43%
Max EPS beat(2)6.92%
EPS beat(4)3
Avg EPS beat(4)2.97%
Min EPS beat(4)-0.52%
Max EPS beat(4)6.92%
EPS beat(8)7
Avg EPS beat(8)4.58%
EPS beat(12)11
Avg EPS beat(12)5.78%
EPS beat(16)15
Avg EPS beat(16)8.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)-1.26%
Revenue beat(8)1
Avg Revenue beat(8)-1.88%
Revenue beat(12)5
Avg Revenue beat(12)-0.63%
Revenue beat(16)8
Avg Revenue beat(16)-0.13%
PT rev (1m)-4.58%
PT rev (3m)-16.98%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-13.43%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-12.82%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-5%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 10.79 | ||
| P/S | 1.35 | ||
| P/FCF | 11.52 | ||
| P/OCF | 8.31 | ||
| P/B | 0.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.43 |
EPS(TTM)2.69
EY10.48%
EPS(NY)2.38
Fwd EY9.27%
FCF(TTM)2.23
FCFY8.68%
OCF(TTM)3.09
OCFY12.03%
SpS19.06
BVpS36.28
TBVpS-14.45
PEG (NY)N/A
PEG (5Y)6.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.58% | ||
| ROCE | 6.64% | ||
| ROIC | 5.2% | ||
| ROICexc | 5.29% | ||
| ROICexgc | 38.55% | ||
| OM | 20.81% | ||
| PM (TTM) | 10.62% | ||
| GM | 34.73% | ||
| FCFM | 11.68% |
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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 6.58 | ||
| Debt/EBITDA | 3.04 | ||
| Cap/Depr | 122.79% | ||
| Cap/Sales | 4.5% | ||
| Interest Coverage | 5.94 | ||
| Cash Conversion | 66.14% | ||
| Profit Quality | 110.06% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.07 |
F-Score6
WACC7%
ROIC/WACC0.74
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)3.03%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%7.69%
EPS Next Y-11.68%
EPS Next 2Y-4.07%
EPS Next 3Y-1.34%
EPS Next 5Y2.2%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-4.14%
Revenue Next Year-3.62%
Revenue Next 2Y-1.31%
Revenue Next 3Y-0.31%
Revenue Next 5Y0.63%
EBIT growth 1Y2.59%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year13.63%
EBIT Next 3Y5.59%
EBIT Next 5Y5.49%
FCF growth 1Y1.92%
FCF growth 3Y-12.18%
FCF growth 5Y1.64%
OCF growth 1Y5.23%
OCF growth 3Y-7.95%
OCF growth 5Y3.33%