KRAFT HEINZ CO/THE (1KHC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1KHC - US5007541064 - Common Stock
20.195 EUR
-0.83 (-3.95%)
Taking everything into account, 1KHC scores 4 out of 10 in our fundamental rating. 1KHC was compared to 60 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
1KHC had positive earnings in the past year.
In the past year 1KHC had a positive cash flow from operations.
Each year in the past 5 years 1KHC has been profitable.
Each year in the past 5 years 1KHC had a positive operating cash flow.
1.2 Ratios
1KHC has a Return On Assets of -5.34%. This is in the lower half of the industry: 1KHC underperforms 77.78% of its industry peers.
The Return On Equity of 1KHC (-10.53%) is worse than 76.19% of its industry peers.
With a Return On Invested Capital value of 5.32%, 1KHC perfoms like the industry average, outperforming 57.14% 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 6.36%.
The 3 year average ROIC (4.97%) for 1KHC is below the current ROIC(5.32%), indicating increased profibility in the last year.
| 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 Operating Margin of 19.67%. This is amongst the best in the industry. 1KHC outperforms 98.41% of its industry peers.
1KHC's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 33.75%, 1KHC perfoms like the industry average, outperforming 47.62% 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 | 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
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.
Compared to 5 years ago, 1KHC has less shares outstanding
The debt/assets ratio for 1KHC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that 1KHC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.86, 1KHC is not doing good in the industry: 79.37% of the companies in the same industry are doing better.
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 Debt to FCF ratio of 5.84. This is in the better half of the industry: 1KHC outperforms 68.25% of 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 has a better Debt to Equity ratio (0.47) than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.78
WACC6.81%
2.3 Liquidity
A Current Ratio of 1.13 indicates that 1KHC should not have too much problems paying its short term obligations.
1KHC has a Current ratio (1.13) which is in line with its industry peers.
1KHC has a Quick Ratio of 1.13. This is a bad value and indicates that 1KHC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.73, 1KHC is in line with its industry, outperforming 41.27% 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%.
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 -3.70%.
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
Based on estimates for the next years, 1KHC will show a small growth in Earnings Per Share. The EPS will grow by 0.77% on average per year.
The Revenue is expected to grow by 0.12% on average over the next years.
EPS Next Y-16.46%
EPS Next 2Y-8.8%
EPS Next 3Y-4.97%
EPS Next 5Y0.77%
Revenue Next Year-3.82%
Revenue Next 2Y-1.93%
Revenue Next 3Y-1.09%
Revenue Next 5Y0.12%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.56, the valuation of 1KHC can be described as very reasonable.
Based on the Price/Earnings ratio, 1KHC is valued cheaply inside the industry as 85.71% 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 27.19.
Based on the Price/Forward Earnings ratio of 9.29, the valuation of 1KHC can be described as reasonable.
Based on the Price/Forward Earnings ratio, 1KHC is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, 1KHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.56 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than 1KHC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1KHC is valued cheaper than 87.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.71 | ||
| EV/EBITDA | 7.77 |
4.3 Compensation for Growth
1KHC's earnings are expected to decrease with -4.97% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5.98
EPS Next 2Y-8.8%
EPS Next 3Y-4.97%
5. Dividend
5.1 Amount
1KHC has a Yearly Dividend Yield of 6.46%, which is a nice return.
In the last 3 months the price of 1KHC has falen by -25.84%. 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 2.29, 1KHC pays a better dividend. On top of this 1KHC pays more dividend than 93.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.90, 1KHC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1KHC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-43.59%
EPS Next 2Y-8.8%
EPS Next 3Y-4.97%
BIT:1KHC (1/6/2026, 7:00:00 PM)
20.195
-0.83 (-3.95%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners60.54%
Inst Owner ChangeN/A
Ins Owners0.31%
Ins Owner ChangeN/A
Market Cap23.90B
Revenue(TTM)25.16B
Net Income(TTM)-4.37B
Analysts65.38
Price Target24.19 (19.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
Yearly Dividend1.37
Dividend Growth(5Y)0%
DP-43.59%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.94%
Min EPS beat(2)4.38%
Max EPS beat(2)7.5%
EPS beat(4)4
Avg EPS beat(4)5.15%
Min EPS beat(4)1.8%
Max EPS beat(4)7.5%
EPS beat(8)7
Avg EPS beat(8)3.28%
EPS beat(12)11
Avg EPS beat(12)4.86%
EPS beat(16)15
Avg EPS beat(16)6.71%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)0.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)0.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.51%
Revenue beat(12)3
Avg Revenue beat(12)-1.39%
Revenue beat(16)7
Avg Revenue beat(16)-0.57%
PT rev (1m)-9.75%
PT rev (3m)-9.75%
EPS NQ rev (1m)-12.51%
EPS NQ rev (3m)-12.51%
EPS NY rev (1m)-2.57%
EPS NY rev (3m)-2.57%
Revenue NQ rev (1m)-2.92%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)-0.98%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.56 | ||
| Fwd PE | 9.29 | ||
| P/S | 1.11 | ||
| P/FCF | 7.71 | ||
| P/OCF | 6.26 | ||
| P/B | 0.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.77 |
EPS(TTM)2.36
EY11.69%
EPS(NY)2.17
Fwd EY10.76%
FCF(TTM)2.62
FCFY12.97%
OCF(TTM)3.23
OCFY15.98%
SpS18.15
BVpS29.9
TBVpS-13.17
PEG (NY)N/A
PEG (5Y)5.98
Graham Number39.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.34% | ||
| ROE | -10.53% | ||
| ROCE | 6.8% | ||
| ROIC | 5.32% | ||
| ROICexc | 5.56% | ||
| ROICexgc | 38.83% | ||
| OM | 19.67% | ||
| PM (TTM) | N/A | ||
| GM | 33.75% | ||
| FCFM | 14.43% |
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%
ROICexgc growth 3Y-16.8%
ROICexgc 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 | 5.84 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 88.64% | ||
| Cap/Sales | 3.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.82% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 0.86 |
F-Score5
WACC6.81%
ROIC/WACC0.78
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)-8%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-18.67%
EPS Next Y-16.46%
EPS Next 2Y-8.8%
EPS Next 3Y-4.97%
EPS Next 5Y0.77%
Revenue 1Y (TTM)-3.7%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-2.29%
Revenue Next Year-3.82%
Revenue Next 2Y-1.93%
Revenue Next 3Y-1.09%
Revenue Next 5Y0.12%
EBIT growth 1Y-7.16%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year7.36%
EBIT Next 3Y2.31%
EBIT Next 5Y4.28%
FCF growth 1Y44.72%
FCF growth 3Y-12.18%
FCF growth 5Y1.64%
OCF growth 1Y25.25%
OCF growth 3Y-7.95%
OCF growth 5Y3.33%
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 3 / 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%.