KRAFT HEINZ CO/THE (1KHC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1KHC - US5007541064 - Common Stock
20.195 EUR
-0.6 (-2.89%)
Taking everything into account, 1KHC scores 4 out of 10 in our fundamental rating. 1KHC was compared to 64 industry peers in the Food Products industry. Both the profitability and the financial health of 1KHC get a neutral evaluation. Nothing too spectacular is happening here. 1KHC is valued correctly, but it does not seem to be growing.
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.
- Each year in the past 5 years 1KHC has been profitable.
- In the past 5 years 1KHC always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of 1KHC (-5.34%) is worse than 79.69% of its industry peers.
- 1KHC has a worse Return On Equity (-10.53%) than 78.13% of its industry peers.
- 1KHC has a Return On Invested Capital (5.32%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1KHC is below the industry average of 7.95%.
- The last Return On Invested Capital (5.32%) for 1KHC is above the 3 year average (4.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.34% | ||
| ROE | -10.53% | ||
| ROIC | 5.32% |
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.
- 1KHC has a better Operating Margin (19.67%) than 98.44% of its industry peers.
- 1KHC's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 33.75%, 1KHC is in line with its industry, outperforming 46.88% 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 | 19.67% | ||
| PM (TTM) | N/A | ||
| GM | 33.75% |
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.
- 1KHC has less shares outstanding than it did 1 year ago.
- 1KHC has less shares outstanding than it did 5 years ago.
- 1KHC has a worse debt/assets ratio than last year.
2.2 Solvency
- 1KHC has an Altman-Z score of 0.85. 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 0.85 is on the low side compared to the rest of the industry. 1KHC is outperformed by 78.13% of its industry peers.
- The Debt to FCF ratio of 1KHC is 5.84, which is a neutral value as it means it would take 1KHC, 5.84 years of fcf income to pay off all of its debts.
- 1KHC has a better Debt to FCF ratio (5.84) than 65.63% of its industry peers.
- A Debt/Equity ratio of 0.47 indicates that 1KHC is not too dependend on debt financing.
- 1KHC has a better Debt to Equity ratio (0.47) than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.79
WACC6.71%
2.3 Liquidity
- 1KHC has a Current Ratio of 1.13. 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 (1.13) which is comparable to the rest of the industry.
- A Quick Ratio of 0.73 indicates that 1KHC may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.73, 1KHC is in line with its industry, outperforming 42.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- 1KHC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.00%.
- 1KHC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.43% yearly.
- The Revenue has decreased by -3.70% in the past year.
- The Revenue has been growing slightly by 0.69% on average over the past years.
EPS 1Y (TTM)-8%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-18.67%
Revenue 1Y (TTM)-3.7%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-2.29%
3.2 Future
- 1KHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.77% yearly.
- Based on estimates for the next years, 1KHC will show a small growth in Revenue. The Revenue will grow by 0.12% on average per year.
EPS Next Y-16.46%
EPS Next 2Y-9.05%
EPS Next 3Y-5.09%
EPS Next 5Y0.77%
Revenue Next Year-3.84%
Revenue Next 2Y-1.99%
Revenue Next 3Y-1.1%
Revenue Next 5Y0.12%
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 decreasing.
- 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
- A Price/Earnings ratio of 8.49 indicates a reasonable valuation of 1KHC.
- Compared to the rest of the industry, the Price/Earnings ratio of 1KHC indicates a rather cheap valuation: 1KHC is cheaper than 92.19% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of 1KHC to the average of the S&P500 Index (27.21), we can say 1KHC is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.27 indicates a reasonable valuation of 1KHC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1KHC indicates a rather cheap valuation: 1KHC is cheaper than 84.38% of the companies listed in the same industry.
- 1KHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.49 | ||
| Fwd PE | 9.27 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1KHC is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, 1KHC is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.65 | ||
| EV/EBITDA | 7.59 |
4.3 Compensation for Growth
- A cheap valuation may be justified as 1KHC's earnings are expected to decrease with -5.09% in the coming years.
PEG (NY)N/A
PEG (5Y)5.93
EPS Next 2Y-9.05%
EPS Next 3Y-5.09%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.60%, 1KHC is a good candidate for dividend investing.
- The stock price of 1KHC dropped by -27.98% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- 1KHC's Dividend Yield is rather good when compared to the industry average which is at 2.42. 1KHC pays more dividend than 93.75% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 1KHC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
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-43.59%
EPS Next 2Y-9.05%
EPS Next 3Y-5.09%
KRAFT HEINZ CO/THE / 1KHC.MI FAQ
What is the ChartMill fundamental rating of KRAFT HEINZ CO/THE (1KHC.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1KHC.MI.
What is the valuation status for 1KHC stock?
ChartMill assigns a valuation rating of 6 / 10 to KRAFT HEINZ CO/THE (1KHC.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for KRAFT HEINZ CO/THE?
KRAFT HEINZ CO/THE (1KHC.MI) has a profitability rating of 5 / 10.
Can you provide the financial health for 1KHC stock?
The financial health rating of KRAFT HEINZ CO/THE (1KHC.MI) is 4 / 10.
Can you provide the dividend sustainability for 1KHC stock?
The dividend rating of KRAFT HEINZ CO/THE (1KHC.MI) is 5 / 10 and the dividend payout ratio is -43.59%.