KRAFT HEINZ CO/THE (1KHC.MI) Stock Fundamental Analysis
BIT:1KHC - Euronext Milan - US5007541064 - Common Stock - Currency: EUR
1KHC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 58 industry peers in the Food Products industry. There are concerns on the financial health of 1KHC while its profitability can be described as average. 1KHC is valued correctly, 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
1KHC's Return On Assets of 2.94% is in line compared to the rest of the industry. 1KHC outperforms 49.15% of its industry peers.
1KHC has a Return On Equity of 5.37%. This is comparable to the rest of the industry: 1KHC outperforms 45.76% of its industry peers.
1KHC has a Return On Invested Capital (4.98%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1KHC is in line with the industry average of 6.77%.
The 3 year average ROIC (4.97%) for 1KHC is below the current ROIC(4.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.37% | ||
| ROIC | 4.98% |
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 better Profit Margin (10.44%) than 79.66% of its industry peers.
1KHC's Profit Margin has improved in the last couple of years.
The Operating Margin of 1KHC (20.76%) is better than 94.92% of its industry peers.
In the last couple of years the Operating Margin of 1KHC has remained more or less at the same level.
1KHC has a Gross Margin of 34.58%. This is comparable to the rest of the industry: 1KHC outperforms 40.68% of its industry peers.
1KHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.76% | ||
| PM (TTM) | 10.44% | ||
| GM | 34.58% |
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.
The number of shares outstanding for 1KHC has been reduced compared to 1 year ago.
1KHC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1KHC is higher compared to a year ago.
2.2 Solvency
1KHC has an Altman-Z score of 1.00. This is a bad value and indicates that 1KHC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of 1KHC (1.00) is worse than 77.97% of its industry peers.
The Debt to FCF ratio of 1KHC is 7.14, which is on the high side as it means it would take 1KHC, 7.14 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.14, 1KHC is in line with its industry, outperforming 42.37% of the companies in the same industry.
1KHC has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
1KHC has a Debt to Equity ratio of 0.42. This is in the better half of the industry: 1KHC outperforms 71.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 1 |
ROIC/WACC0.54
WACC9.25%
2.3 Liquidity
1KHC has a Current Ratio of 1.31. 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 Current ratio (1.31) which is in line with its industry peers.
A Quick Ratio of 0.81 indicates that 1KHC may have some problems paying its short term obligations.
1KHC's Quick ratio of 0.81 is in line compared to the rest of the industry. 1KHC outperforms 47.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
1KHC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.34%.
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 -4.25%.
1KHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.69% yearly.
EPS 1Y (TTM)0.34%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-10.14%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-6.43%
3.2 Future
1KHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.39% yearly.
Based on estimates for the next years, 1KHC will show a small growth in Revenue. The Revenue will grow by 0.23% on average per year.
EPS Next Y-14.54%
EPS Next 2Y-6.24%
EPS Next 3Y-2.56%
EPS Next 5Y1.39%
Revenue Next Year-3.73%
Revenue Next 2Y-1.52%
Revenue Next 3Y-0.53%
Revenue Next 5Y0.23%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.77, the valuation of 1KHC can be described as very reasonable.
Based on the Price/Earnings ratio, 1KHC is valued a bit cheaper than 79.66% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, 1KHC is valued rather cheaply.
A Price/Forward Earnings ratio of 9.73 indicates a reasonable valuation of 1KHC.
Based on the Price/Forward Earnings ratio, 1KHC is valued a bit cheaper than 69.49% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, 1KHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 9.73 |
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 61.02% of the companies listed in the same industry.
1KHC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1KHC is cheaper than 72.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.24 | ||
| EV/EBITDA | 7.89 |
4.3 Compensation for Growth
1KHC has a very decent profitability rating, which may justify a higher PE ratio.
1KHC's earnings are expected to decrease with -2.56% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)6.13
EPS Next 2Y-6.24%
EPS Next 3Y-2.56%
5. Dividend
5.1 Amount
1KHC has a Yearly Dividend Yield of 6.20%, which is a nice return.
In the last 3 months the price of 1KHC has falen by -37.38%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
1KHC's Dividend Yield is rather good when compared to the industry average which is at 3.31. 1KHC pays more dividend than 93.22% of the companies in the same industry.
1KHC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1KHC pays out 72.39% of its income as dividend. This is not a sustainable payout ratio.
DP72.39%
EPS Next 2Y-6.24%
EPS Next 3Y-2.56%
BIT:1KHC (6/18/2025, 7:00:00 PM)
22.37
+0.24 (+1.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners59.48%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap26.48B
Analysts54.84
Price Target27.23 (21.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
Yearly Dividend1.37
Dividend Growth(5Y)0%
DP72.39%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.36%
Min EPS beat(2)1.8%
Max EPS beat(2)6.92%
EPS beat(4)4
Avg EPS beat(4)3.55%
Min EPS beat(4)0.43%
Max EPS beat(4)6.92%
EPS beat(8)7
Avg EPS beat(8)3.21%
EPS beat(12)11
Avg EPS beat(12)4.96%
EPS beat(16)15
Avg EPS beat(16)7.11%
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.28%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)-1.28%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)4
Avg Revenue beat(12)-0.96%
Revenue beat(16)7
Avg Revenue beat(16)-0.3%
PT rev (1m)-1.08%
PT rev (3m)-13.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.94%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-3.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 9.73 | ||
| P/S | 1.22 | ||
| P/FCF | 10.24 | ||
| P/OCF | 7.5 | ||
| P/B | 0.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.89 |
EPS(TTM)2.55
EY11.4%
EPS(NY)2.3
Fwd EY10.27%
FCF(TTM)2.18
FCFY9.76%
OCF(TTM)2.98
OCFY13.34%
SpS18.36
BVpS35.71
TBVpS-14.03
PEG (NY)N/A
PEG (5Y)6.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.37% | ||
| ROCE | 6.36% | ||
| ROIC | 4.98% | ||
| ROICexc | 5.15% | ||
| ROICexgc | 36.43% | ||
| OM | 20.76% | ||
| PM (TTM) | 10.44% | ||
| GM | 34.58% | ||
| FCFM | 11.89% |
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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.14 | ||
| Debt/EBITDA | 3.36 | ||
| Cap/Depr | 116.75% | ||
| Cap/Sales | 4.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.36% | ||
| Profit Quality | 113.94% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1 |
F-Score6
WACC9.25%
ROIC/WACC0.54
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)0.34%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-10.14%
EPS Next Y-14.54%
EPS Next 2Y-6.24%
EPS Next 3Y-2.56%
EPS Next 5Y1.39%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-6.43%
Revenue Next Year-3.73%
Revenue Next 2Y-1.52%
Revenue Next 3Y-0.53%
Revenue Next 5Y0.23%
EBIT growth 1Y-0.79%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year10.65%
EBIT Next 3Y4.34%
EBIT Next 5Y5.07%
FCF growth 1Y101.53%
FCF growth 3Y-12.18%
FCF growth 5Y1.64%
OCF growth 1Y67.4%
OCF growth 3Y-7.95%
OCF growth 5Y3.33%