KRAFT HEINZ CO/THE (1KHC.MI) Stock Fundamental Analysis
BIT:1KHC - Euronext Milan - US5007541064 - Common Stock - Currency: EUR
Taking everything into account, 1KHC scores 5 out of 10 in our fundamental rating. 1KHC was compared to 57 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.
1KHC had a positive operating cash flow in the past year.
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
1KHC has a Return On Assets (3.11%) which is comparable to the rest of the industry.
The Return On Equity of 1KHC (5.58%) is worse than 63.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.20%, 1KHC is in line with its industry, outperforming 46.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1KHC is below the industry average of 7.01%.
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 has a Profit Margin of 10.62%. This is amongst the best in the industry. 1KHC outperforms 82.76% of its industry peers.
In the last couple of years the Profit Margin of 1KHC has grown nicely.
1KHC has a Operating Margin of 20.81%. This is amongst the best in the industry. 1KHC outperforms 94.83% of its industry peers.
1KHC's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 34.73%, 1KHC perfoms like the industry average, outperforming 48.28% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1KHC is destroying value.
Compared to 1 year ago, 1KHC has less shares outstanding
1KHC has less shares outstanding than it did 5 years ago.
1KHC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that 1KHC is in the distress zone and has some risk of bankruptcy.
1KHC's Altman-Z score of 1.12 is on the low side compared to the rest of the industry. 1KHC is outperformed by 77.59% of its industry peers.
The Debt to FCF ratio of 1KHC is 6.58, which is on the high side as it means it would take 1KHC, 6.58 years of fcf income to pay off all of its debts.
1KHC has a Debt to FCF ratio (6.58) which is in line with its industry peers.
A Debt/Equity ratio of 0.39 indicates that 1KHC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.39, 1KHC is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.72
WACC7.25%
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 70.69% of its industry peers.
A Quick Ratio of 0.59 indicates that 1KHC may have some problems paying its short term obligations.
The Quick ratio of 1KHC (0.59) is worse than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.03% over the past year.
The Earnings Per Share has been growing slightly by 1.43% on average over the past years.
1KHC shows a decrease in Revenue. In the last year, the revenue decreased by -2.98%.
1KHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.69% yearly.
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 7.30% yearly.
The Revenue is expected to grow by 3.16% on average over the next years.
EPS Next Y-11.44%
EPS Next 2Y-3.67%
EPS Next 3Y-0.85%
EPS Next 5Y7.3%
Revenue Next Year-3.65%
Revenue Next 2Y-1.32%
Revenue Next 3Y-0.36%
Revenue Next 5Y3.16%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.48, 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 75.86% 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 29.35.
With a Price/Forward Earnings ratio of 11.84, the valuation of 1KHC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1KHC is on the same level as its industry peers.
1KHC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.48 | ||
| Fwd PE | 11.84 |
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.
Based on the Price/Free Cash Flow ratio, 1KHC is valued a bit cheaper than the industry average as 67.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.7 | ||
| EV/EBITDA | 8.99 |
4.3 Compensation for Growth
The decent profitability rating of 1KHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.32
EPS Next 2Y-3.67%
EPS Next 3Y-0.85%
5. Dividend
5.1 Amount
1KHC has a Yearly Dividend Yield of 5.12%, which is a nice return.
1KHC's Dividend Yield is rather good when compared to the industry average which is at 3.35. 1KHC pays more dividend than 89.66% of the companies in the same industry.
1KHC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1KHC pays out 70.37% of its income as dividend. This is not a sustainable payout ratio.
DP70.37%
EPS Next 2Y-3.67%
EPS Next 3Y-0.85%
BIT:1KHC (3/7/2025, 7:00:00 PM)
29.565
-0.66 (-2.18%)
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 Cap35.33B
Analysts66.67
Price Target31.35 (6.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
Yearly Dividend1.47
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)-10.19%
PT rev (3m)-12.72%
EPS NQ rev (1m)-10.88%
EPS NQ rev (3m)-15.86%
EPS NY rev (1m)-12.2%
EPS NY rev (3m)-12.65%
Revenue NQ rev (1m)-3.59%
Revenue NQ rev (3m)-7.47%
Revenue NY rev (1m)-3.42%
Revenue NY rev (3m)-4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.48 | ||
| Fwd PE | 11.84 | ||
| P/S | 1.48 | ||
| P/FCF | 12.7 | ||
| P/OCF | 9.17 | ||
| P/B | 0.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.99 |
EPS(TTM)2.82
EY9.54%
EPS(NY)2.5
Fwd EY8.44%
FCF(TTM)2.33
FCFY7.87%
OCF(TTM)3.22
OCFY10.91%
SpS19.92
BVpS37.91
TBVpS-15.1
PEG (NY)N/A
PEG (5Y)7.32
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 | 1.12 |
F-Score6
WACC7.25%
ROIC/WACC0.72
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-11.44%
EPS Next 2Y-3.67%
EPS Next 3Y-0.85%
EPS Next 5Y7.3%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-4.14%
Revenue Next Year-3.65%
Revenue Next 2Y-1.32%
Revenue Next 3Y-0.36%
Revenue Next 5Y3.16%
EBIT growth 1Y2.59%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year18.78%
EBIT Next 3Y9.2%
EBIT Next 5Y6.87%
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%