KRAFT HEINZ CO/THE (1KHC.MI) Stock Fundamental Analysis
BIT:1KHC - Borsa Italiana Milan - US5007541064 - Common Stock - Currency: EUR
Overall 1KHC gets a fundamental rating of 4 out of 10. We evaluated 1KHC against 60 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1KHC was profitable.
In the past year 1KHC had a positive cash flow from operations.
1KHC had positive earnings in each of the past 5 years.
In the past 5 years 1KHC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1KHC (1.55%) is worse than 66.67% of its industry peers.
With a Return On Equity value of 2.83%, 1KHC is not doing good in the industry: 70.18% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 5.22%, 1KHC perfoms like the industry average, outperforming 45.61% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1KHC is in line with the industry average of 6.86%.
The last Return On Invested Capital (5.22%) for 1KHC is above the 3 year average (4.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 2.83% | ||
| ROIC | 5.22% |
ROA(3y)2.28%
ROA(5y)1.82%
ROE(3y)4.22%
ROE(5y)3.43%
ROIC(3y)4.89%
ROIC(5y)4.75%
1.3 Margins
1KHC has a Profit Margin (5.24%) which is in line with its industry peers.
1KHC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.41%, 1KHC belongs to the best of the industry, outperforming 92.98% of the companies in the same industry.
1KHC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 34.66%, 1KHC is in line with its industry, outperforming 43.86% 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 | 20.41% | ||
| PM (TTM) | 5.24% | ||
| GM | 34.66% |
OM growth 3Y-2.11%
OM growth 5Y-2.9%
PM growth 3Y99.02%
PM growth 5YN/A
GM growth 3Y-1.21%
GM growth 5Y-0.58%
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.
1KHC has about the same amout of shares outstanding than it did 5 years ago.
1KHC has about the same debt/assets ratio as last year.
2.2 Solvency
1KHC has an Altman-Z score of 1.05. This is a bad value and indicates that 1KHC is not financially healthy and even has some risk of bankruptcy.
1KHC's Altman-Z score of 1.05 is on the low side compared to the rest of the industry. 1KHC is outperformed by 80.70% of its industry peers.
The Debt to FCF ratio of 1KHC is 6.69, which is on the high side as it means it would take 1KHC, 6.69 years of fcf income to pay off all of its debts.
1KHC's Debt to FCF ratio of 6.69 is in line compared to the rest of the industry. 1KHC outperforms 49.12% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that 1KHC is not too dependend on debt financing.
1KHC has a better Debt to Equity ratio (0.40) than 71.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.73
WACC7.17%
2.3 Liquidity
A Current Ratio of 1.06 indicates that 1KHC should not have too much problems paying its short term obligations.
1KHC's Current ratio of 1.06 is on the low side compared to the rest of the industry. 1KHC is outperformed by 71.93% of its industry peers.
A Quick Ratio of 0.56 indicates that 1KHC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.56, 1KHC is doing worse than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for 1KHC have decreased by -1.32% in the last year.
1KHC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.29% yearly.
1KHC shows a decrease in Revenue. In the last year, the revenue decreased by -3.80%.
The Revenue has been growing slightly by 0.28% on average over the past years.
EPS 1Y (TTM)-1.32%
EPS 3Y1.03%
EPS 5Y-3.29%
EPS Q2Q%4.17%
Revenue 1Y (TTM)-3.8%
Revenue growth 3Y0.58%
Revenue growth 5Y0.28%
Sales Q2Q%-2.85%
3.2 Future
1KHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.34% yearly.
1KHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.73% yearly.
EPS Next Y2.21%
EPS Next 2Y1.94%
EPS Next 3Y3.04%
EPS Next 5Y4.34%
Revenue Next Year-2.92%
Revenue Next 2Y-1.43%
Revenue Next 3Y-0.35%
Revenue Next 5Y0.73%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.97, which indicates a very decent valuation of 1KHC.
Based on the Price/Earnings ratio, 1KHC is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1KHC to the average of the S&P500 Index (28.47), we can say 1KHC is valued rather cheaply.
1KHC is valuated reasonably with a Price/Forward Earnings ratio of 9.68.
66.67% of the companies in the same industry are more expensive than 1KHC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 92.74. 1KHC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 9.68 |
4.2 Price Multiples
1KHC's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1KHC is valued a bit cheaper than the industry average as 64.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.04 | ||
| EV/EBITDA | 8.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1KHC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.51
PEG (5Y)N/A
EPS Next 2Y1.94%
EPS Next 3Y3.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.29%, 1KHC is a good candidate for dividend investing.
1KHC's Dividend Yield is rather good when compared to the industry average which is at 3.24. 1KHC pays more dividend than 92.98% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, 1KHC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
5.2 History
The dividend of 1KHC decreases each year by -9.23%.
Dividend Growth(5Y)-9.23%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
141.82% of the earnings are spent on dividend by 1KHC. This is not a sustainable payout ratio.
DP141.82%
EPS Next 2Y1.94%
EPS Next 3Y3.04%
KRAFT HEINZ CO/THE
BIT:1KHC (1/31/2025, 7:00:00 PM)
28.92
+0.08 (+0.26%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners56.7%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap34.97B
Analysts71.85
Price Target34.91 (20.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
Yearly Dividend1.61
Dividend Growth(5Y)-9.23%
DP141.82%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.75%
Min EPS beat(2)0.43%
Max EPS beat(2)5.06%
EPS beat(4)3
Avg EPS beat(4)1.4%
Min EPS beat(4)-0.52%
Max EPS beat(4)5.06%
EPS beat(8)7
Avg EPS beat(8)4.72%
EPS beat(12)11
Avg EPS beat(12)7.23%
EPS beat(16)15
Avg EPS beat(16)8.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.84%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-2.76%
Max Revenue beat(4)-1.26%
Revenue beat(8)2
Avg Revenue beat(8)-1.53%
Revenue beat(12)6
Avg Revenue beat(12)-0.4%
Revenue beat(16)9
Avg Revenue beat(16)0.05%
PT rev (1m)-2.81%
PT rev (3m)-3.79%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-6.51%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-4.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 9.68 | ||
| P/S | 1.38 | ||
| P/FCF | 12.04 | ||
| P/OCF | 8.7 | ||
| P/B | 0.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.72 |
EPS(TTM)2.9
EY10.03%
EPS(NY)2.99
Fwd EY10.33%
FCF(TTM)2.4
FCFY8.3%
OCF(TTM)3.32
OCFY11.49%
SpS20.91
BVpS38.67
TBVpS-17.94
PEG (NY)4.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 2.83% | ||
| ROCE | 6.6% | ||
| ROIC | 5.22% | ||
| ROICexc | 5.3% | ||
| ROICexgc | 47.82% | ||
| OM | 20.41% | ||
| PM (TTM) | 5.24% | ||
| GM | 34.66% | ||
| FCFM | 11.48% |
ROA(3y)2.28%
ROA(5y)1.82%
ROE(3y)4.22%
ROE(5y)3.43%
ROIC(3y)4.89%
ROIC(5y)4.75%
ROICexc(3y)5.01%
ROICexc(5y)4.88%
ROICexgc(3y)58.42%
ROICexgc(5y)56.59%
ROCE(3y)6.19%
ROCE(5y)6.01%
ROICexcg growth 3Y0.88%
ROICexcg growth 5Y-0.57%
ROICexc growth 3Y1.39%
ROICexc growth 5Y0.52%
OM growth 3Y-2.11%
OM growth 5Y-2.9%
PM growth 3Y99.02%
PM growth 5YN/A
GM growth 3Y-1.21%
GM growth 5Y-0.58%
F-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 6.69 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 119.28% | ||
| Cap/Sales | 4.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.94% | ||
| Profit Quality | 219.05% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.05 |
F-Score5
WACC7.17%
ROIC/WACC0.73
Cap/Depr(3y)101.01%
Cap/Depr(5y)88.36%
Cap/Sales(3y)3.58%
Cap/Sales(5y)3.22%
Profit Quality(3y)203.37%
Profit Quality(5y)394.23%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.32%
EPS 3Y1.03%
EPS 5Y-3.29%
EPS Q2Q%4.17%
EPS Next Y2.21%
EPS Next 2Y1.94%
EPS Next 3Y3.04%
EPS Next 5Y4.34%
Revenue 1Y (TTM)-3.8%
Revenue growth 3Y0.58%
Revenue growth 5Y0.28%
Sales Q2Q%-2.85%
Revenue Next Year-2.92%
Revenue Next 2Y-1.43%
Revenue Next 3Y-0.35%
Revenue Next 5Y0.73%
EBIT growth 1Y3.21%
EBIT growth 3Y-1.55%
EBIT growth 5Y-2.63%
EBIT Next Year22.71%
EBIT Next 3Y8.21%
EBIT Next 5Y6.79%
FCF growth 1Y-15.49%
FCF growth 3Y-11.9%
FCF growth 5Y11.13%
OCF growth 1Y-6.34%
OCF growth 3Y-6.91%
OCF growth 5Y9.09%