Kellanova (K) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:K - US4878361082 - Common Stock
83.44 USD
-0.01 (-0.01%)
83.4799 USD
+0.04 (+0.05%)
Taking everything into account, K scores 5 out of 10 in our fundamental rating. K was compared to 87 industry peers in the Food Products industry. K scores excellent on profitability, but there are concerns on its financial health. K is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
K had positive earnings in the past year.
K had a positive operating cash flow in the past year.
In the past 5 years K has always been profitable.
Each year in the past 5 years K had a positive operating cash flow.
1.2 Ratios
K has a better Return On Assets (8.16%) than 89.77% of its industry peers.
K has a Return On Equity of 30.38%. This is amongst the best in the industry. K outperforms 96.59% of its industry peers.
K has a better Return On Invested Capital (13.43%) than 92.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for K is significantly below the industry average of 28.50%.
The 3 year average ROIC (11.99%) for K is below the current ROIC(13.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | 30.38% | ||
| ROIC | 13.43% |
ROA(3y)6.62%
ROA(5y)7%
ROE(3y)29.96%
ROE(5y)34.02%
ROIC(3y)11.99%
ROIC(5y)11.58%
1.3 Margins
K's Profit Margin of 10.08% is amongst the best of the industry. K outperforms 87.50% of its industry peers.
K's Profit Margin has improved in the last couple of years.
K's Operating Margin of 14.96% is amongst the best of the industry. K outperforms 88.64% of its industry peers.
K's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 35.15%, K is doing good in the industry, outperforming 79.55% of the companies in the same industry.
In the last couple of years the Gross Margin of K has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.96% | ||
| PM (TTM) | 10.08% | ||
| GM | 35.15% |
OM growth 3Y5.23%
OM growth 5Y6.89%
PM growth 3Y0.13%
PM growth 5Y8.3%
GM growth 3Y3.3%
GM growth 5Y2.28%
2. Health
2.1 Basic Checks
K has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
K has more shares outstanding than it did 1 year ago.
The number of shares outstanding for K has been increased compared to 5 years ago.
K has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.47 indicates that K is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.47, K is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
K has a debt to FCF ratio of 9.39. This is a negative value and a sign of low solvency as K would need 9.39 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.39, K is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 1.16 is on the high side and indicates that K has dependencies on debt financing.
K has a worse Debt to Equity ratio (1.16) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 9.39 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.67
WACC8.02%
2.3 Liquidity
A Current Ratio of 0.68 indicates that K may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.68, K is doing worse than 86.36% of the companies in the same industry.
A Quick Ratio of 0.44 indicates that K may have some problems paying its short term obligations.
K has a Quick ratio of 0.44. This is in the lower half of the industry: K underperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
K shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.27%.
Measured over the past years, K shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.46% on average per year.
K shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.26%.
Measured over the past years, K shows a decrease in Revenue. The Revenue has been decreasing by -1.25% on average per year.
EPS 1Y (TTM)-0.27%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%3.3%
Revenue 1Y (TTM)18.26%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%0.84%
3.2 Future
K is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.54% yearly.
Based on estimates for the next years, K will show a small growth in Revenue. The Revenue will grow by 2.14% on average per year.
EPS Next Y-2.77%
EPS Next 2Y-4.12%
EPS Next 3Y-1.02%
EPS Next 5Y4.54%
Revenue Next Year1.22%
Revenue Next 2Y1.51%
Revenue Next 3Y1.9%
Revenue Next 5Y2.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.55, the valuation of K can be described as rather expensive.
K's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.61. K is around the same levels.
Based on the Price/Forward Earnings ratio of 23.57, the valuation of K can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as K.
The average S&P500 Price/Forward Earnings ratio is at 24.01. K is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 23.57 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as K.
The rest of the industry has a similar Price/Free Cash Flow ratio as K.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.47 | ||
| EV/EBITDA | 15.06 |
4.3 Compensation for Growth
The excellent profitability rating of K may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.12%
EPS Next 3Y-1.02%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 2.78%.
Compared to an average industry Dividend Yield of 2.36, K pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, K pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
The dividend of K has a limited annual growth rate of 1.51%.
K has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
62.18% of the earnings are spent on dividend by K. This is not a sustainable payout ratio.
The dividend of K is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.18%
EPS Next 2Y-4.12%
EPS Next 3Y-1.02%
83.44
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.65%
Inst Owner Change3.44%
Ins Owners0.44%
Ins Owner Change-5818.19%
Market Cap29.03B
Revenue(TTM)12.67B
Net Income(TTM)1.28B
Analysts54.29
Price Target85.17 (2.07%)
Short Float %3.03%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend2.26
Dividend Growth(5Y)1.51%
DP62.18%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.35%
Min EPS beat(2)-6.87%
Max EPS beat(2)6.16%
EPS beat(4)2
Avg EPS beat(4)-1.15%
Min EPS beat(4)-12.53%
Max EPS beat(4)8.62%
EPS beat(8)6
Avg EPS beat(8)3.75%
EPS beat(12)10
Avg EPS beat(12)6.62%
EPS beat(16)14
Avg EPS beat(16)6.87%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)-1.51%
Revenue beat(4)0
Avg Revenue beat(4)-2.31%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)-1.26%
Revenue beat(8)2
Avg Revenue beat(8)-1.15%
Revenue beat(12)5
Avg Revenue beat(12)-0.18%
Revenue beat(16)8
Avg Revenue beat(16)0.22%
PT rev (1m)0.16%
PT rev (3m)0.15%
EPS NQ rev (1m)-1.56%
EPS NQ rev (3m)-3.75%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)2.38%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 23.57 | ||
| P/S | 2.29 | ||
| P/FCF | 48.47 | ||
| P/OCF | 23.13 | ||
| P/B | 6.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.06 |
EPS(TTM)3.7
EY4.43%
EPS(NY)3.54
Fwd EY4.24%
FCF(TTM)1.72
FCFY2.06%
OCF(TTM)3.61
OCFY4.32%
SpS36.42
BVpS12.08
TBVpS-7.65
PEG (NY)N/A
PEG (5Y)N/A
Graham Number31.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | 30.38% | ||
| ROCE | 17.99% | ||
| ROIC | 13.43% | ||
| ROICexc | 13.43% | ||
| ROICexgc | 35.4% | ||
| OM | 14.96% | ||
| PM (TTM) | 10.08% | ||
| GM | 35.15% | ||
| FCFM | 4.73% |
ROA(3y)6.62%
ROA(5y)7%
ROE(3y)29.96%
ROE(5y)34.02%
ROIC(3y)11.99%
ROIC(5y)11.58%
ROICexc(3y)12.48%
ROICexc(5y)11.99%
ROICexgc(3y)36.74%
ROICexgc(5y)35.13%
ROCE(3y)15.6%
ROCE(5y)14.99%
ROICexgc growth 3Y9.44%
ROICexgc growth 5Y7.97%
ROICexc growth 3Y8.64%
ROICexc growth 5Y9.53%
OM growth 3Y5.23%
OM growth 5Y6.89%
PM growth 3Y0.13%
PM growth 5Y8.3%
GM growth 3Y3.3%
GM growth 5Y2.28%
F-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 9.39 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 176.82% | ||
| Cap/Sales | 5.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.38% | ||
| Profit Quality | 46.91% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 3.47 |
F-Score5
WACC8.02%
ROIC/WACC1.67
Cap/Depr(3y)144.93%
Cap/Depr(5y)131.73%
Cap/Sales(3y)4.42%
Cap/Sales(5y)4.17%
Profit Quality(3y)102.41%
Profit Quality(5y)100.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.27%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%3.3%
EPS Next Y-2.77%
EPS Next 2Y-4.12%
EPS Next 3Y-1.02%
EPS Next 5Y4.54%
Revenue 1Y (TTM)18.26%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%0.84%
Revenue Next Year1.22%
Revenue Next 2Y1.51%
Revenue Next 3Y1.9%
Revenue Next 5Y2.14%
EBIT growth 1Y20.85%
EBIT growth 3Y1.56%
EBIT growth 5Y5.55%
EBIT Next Year19.91%
EBIT Next 3Y8.52%
EBIT Next 5Y7.16%
FCF growth 1Y-51.18%
FCF growth 3Y-0.47%
FCF growth 5Y13.92%
OCF growth 1Y-32.92%
OCF growth 3Y1.14%
OCF growth 5Y8.4%
Kellanova / K FAQ
What is the fundamental rating for K stock?
ChartMill assigns a fundamental rating of 5 / 10 to K.
What is the valuation status of Kellanova (K) stock?
ChartMill assigns a valuation rating of 3 / 10 to Kellanova (K). This can be considered as Overvalued.
How profitable is Kellanova (K) stock?
Kellanova (K) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for K stock?
The Price/Earnings (PE) ratio for Kellanova (K) is 22.55 and the Price/Book (PB) ratio is 6.91.
How sustainable is the dividend of Kellanova (K) stock?
The dividend rating of Kellanova (K) is 5 / 10 and the dividend payout ratio is 62.18%.