KRAFT HEINZ CO/THE (1KHC.MI) Stock Fundamental Analysis
Europe - BIT:1KHC - US5007541064 - Common Stock
23.685 EUR
-0.1 (-0.42%)
We assign a fundamental rating of 4 out of 10 to 1KHC. 1KHC was compared to 58 industry peers in the Food Products industry. 1KHC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1KHC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year 1KHC was profitable.
1KHC had a positive operating cash flow in the past year.
Each year in the past 5 years 1KHC has been profitable.
1KHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1KHC has a worse Return On Assets (-6.46%) than 83.33% of its industry peers.
1KHC's Return On Equity of -12.74% is on the low side compared to the rest of the industry. 1KHC is outperformed by 80.00% of its industry peers.
1KHC has a Return On Invested Capital (5.58%) 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 7.05%.
The last Return On Invested Capital (5.58%) for 1KHC is above the 3 year average (4.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | -12.74% | ||
| ROIC | 5.58% |
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
In the last couple of years the Profit Margin of 1KHC has grown nicely.
Looking at the Operating Margin, with a value of 20.52%, 1KHC belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
1KHC's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 34.31%, 1KHC perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
In the last couple of years the Gross Margin of 1KHC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.52% | ||
| PM (TTM) | N/A | ||
| GM | 34.31% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1KHC is destroying value.
Compared to 1 year ago, 1KHC has less shares outstanding
The number of shares outstanding for 1KHC has been reduced compared to 5 years ago.
1KHC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that 1KHC is in the distress zone and has some risk of bankruptcy.
1KHC's Altman-Z score of 0.92 is on the low side compared to the rest of the industry. 1KHC is outperformed by 80.00% of its industry peers.
The Debt to FCF ratio of 1KHC is 6.07, which is on the high side as it means it would take 1KHC, 6.07 years of fcf income to pay off all of its debts.
1KHC has a Debt to FCF ratio (6.07) which is in line with its industry peers.
1KHC has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
1KHC's Debt to Equity ratio of 0.47 is in line compared to the rest of the industry. 1KHC outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.07 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.84
WACC6.66%
2.3 Liquidity
1KHC has a Current Ratio of 1.07. This is a normal value and indicates that 1KHC is financially healthy and should not expect problems in meeting its short term obligations.
1KHC has a worse Current ratio (1.07) than 66.67% of its industry peers.
1KHC has a Quick Ratio of 1.07. This is a bad value and indicates that 1KHC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.66, 1KHC is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
1KHC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.36%.
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.
The Revenue has decreased by -3.83% in the past year.
1KHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.69% yearly.
EPS 1Y (TTM)-2.36%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-11.54%
Revenue 1Y (TTM)-3.83%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-1.91%
3.2 Future
1KHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.71% yearly.
Based on estimates for the next years, 1KHC will show a small growth in Revenue. The Revenue will grow by 0.45% on average per year.
EPS Next Y-14.25%
EPS Next 2Y-6.31%
EPS Next 3Y-2.81%
EPS Next 5Y1.71%
Revenue Next Year-2.88%
Revenue Next 2Y-1.03%
Revenue Next 3Y-0.29%
Revenue Next 5Y0.45%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
1KHC is valuated reasonably with a Price/Earnings ratio of 9.51.
Compared to the rest of the industry, the Price/Earnings ratio of 1KHC indicates a somewhat cheap valuation: 1KHC is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. 1KHC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.28, which indicates a very decent valuation of 1KHC.
1KHC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1KHC is cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, 1KHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 10.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1KHC indicates a somewhat cheap valuation: 1KHC is cheaper than 61.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1KHC is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.35 | ||
| EV/EBITDA | 8.19 |
4.3 Compensation for Growth
1KHC's earnings are expected to decrease with -2.81% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)6.64
EPS Next 2Y-6.31%
EPS Next 3Y-2.81%
5. Dividend
5.1 Amount
1KHC has a Yearly Dividend Yield of 5.79%, which is a nice return.
In the last 3 months the price of 1KHC has falen by -23.83%. 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 3.27, 1KHC pays a better dividend. On top of this 1KHC pays more dividend than 93.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 1KHC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of 1KHC are negative and hence is the payout ratio. 1KHC will probably not be able to sustain this dividend level.
DP-36.29%
EPS Next 2Y-6.31%
EPS Next 3Y-2.81%
BIT:1KHC (8/19/2025, 7:00:00 PM)
23.685
-0.1 (-0.42%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners59.62%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap28.03B
Analysts56.67
Price Target26.81 (13.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
Yearly Dividend1.37
Dividend Growth(5Y)0%
DP-36.29%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.65%
Min EPS beat(2)1.8%
Max EPS beat(2)7.5%
EPS beat(4)4
Avg EPS beat(4)4.16%
Min EPS beat(4)0.43%
Max EPS beat(4)7.5%
EPS beat(8)7
Avg EPS beat(8)3.78%
EPS beat(12)11
Avg EPS beat(12)5.46%
EPS beat(16)15
Avg EPS beat(16)7.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)0.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)0.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.74%
Revenue beat(12)4
Avg Revenue beat(12)-1.05%
Revenue beat(16)8
Avg Revenue beat(16)-0.27%
PT rev (1m)-1.57%
PT rev (3m)-2.63%
EPS NQ rev (1m)-7.11%
EPS NQ rev (3m)-11.23%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)1.21%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)0.88%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 10.28 | ||
| P/S | 1.29 | ||
| P/FCF | 9.35 | ||
| P/OCF | 7.43 | ||
| P/B | 0.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.19 |
EPS(TTM)2.49
EY10.51%
EPS(NY)2.3
Fwd EY9.73%
FCF(TTM)2.53
FCFY10.69%
OCF(TTM)3.19
OCFY13.46%
SpS18.34
BVpS29.97
TBVpS-13.52
PEG (NY)N/A
PEG (5Y)6.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | -12.74% | ||
| ROCE | 7.12% | ||
| ROIC | 5.58% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 39.17% | ||
| OM | 20.52% | ||
| PM (TTM) | N/A | ||
| GM | 34.31% | ||
| FCFM | 13.8% |
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-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.07 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 95.27% | ||
| Cap/Sales | 3.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.92 |
F-Score5
WACC6.66%
ROIC/WACC0.84
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)-2.36%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-11.54%
EPS Next Y-14.25%
EPS Next 2Y-6.31%
EPS Next 3Y-2.81%
EPS Next 5Y1.71%
Revenue 1Y (TTM)-3.83%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-1.91%
Revenue Next Year-2.88%
Revenue Next 2Y-1.03%
Revenue Next 3Y-0.29%
Revenue Next 5Y0.45%
EBIT growth 1Y-2.9%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year10.04%
EBIT Next 3Y4.36%
EBIT Next 5Y5.07%
FCF growth 1Y53.51%
FCF growth 3Y-12.18%
FCF growth 5Y1.64%
OCF growth 1Y34.76%
OCF growth 3Y-7.95%
OCF growth 5Y3.33%