KELLANOVA (K) Stock Fundamental Analysis
USA - NYSE:K - US4878361082 - Common Stock
83.32 USD
+0.03 (+0.04%)
83.32 USD
0 (0%)
Overall K gets a fundamental rating of 5 out of 10. We evaluated K against 87 industry peers in the Food Products industry. K has an excellent profitability rating, but there are concerns on its financial health. K has a expensive valuation and it also scores bad on growth.
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.
K had positive earnings in each of the past 5 years.
In the past 5 years K always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of K (8.16%) is better than 88.37% of its industry peers.
Looking at the Return On Equity, with a value of 30.38%, K belongs to the top of the industry, outperforming 96.51% of the companies in the same industry.
K has a better Return On Invested Capital (13.43%) than 91.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for K is significantly below the industry average of 28.87%.
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
Looking at the Profit Margin, with a value of 10.08%, K belongs to the top of the industry, outperforming 87.21% of the companies in the same industry.
In the last couple of years the Profit Margin of K has grown nicely.
K's Operating Margin of 14.96% is amongst the best of the industry. K outperforms 86.05% of its industry peers.
K's Operating Margin has improved in the last couple of years.
K has a Gross Margin of 35.15%. This is amongst the best in the industry. K outperforms 80.23% of its industry peers.
K's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so K is still creating some value.
Compared to 1 year ago, K has more shares outstanding
Compared to 5 years ago, K has more shares outstanding
The debt/assets ratio for K has been reduced compared to a year ago.
2.2 Solvency
K has an Altman-Z score of 3.47. This indicates that K is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of K (3.47) is better than 77.91% of its industry peers.
The Debt to FCF ratio of K is 9.39, which is on the high side as it means it would take K, 9.39 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of K (9.39) is better than 61.63% of its industry peers.
K has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.16, K is not doing good in the industry: 75.58% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 9.39 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.68
WACC8%
2.3 Liquidity
K has a Current Ratio of 0.68. This is a bad value and indicates that K is not financially healthy enough and could expect problems in meeting its short term obligations.
K has a worse Current ratio (0.68) than 86.05% of its industry peers.
A Quick Ratio of 0.44 indicates that K may have some problems paying its short term obligations.
The Quick ratio of K (0.44) is worse than 75.58% 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%.
The Revenue has been decreasing by -1.25% on average over the past years.
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
The Earnings Per Share is expected to grow by 4.29% on average over the next years.
K is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.11% yearly.
EPS Next Y-2.64%
EPS Next 2Y0.23%
EPS Next 3Y1.83%
EPS Next 5Y4.29%
Revenue Next Year0.17%
Revenue Next 2Y1.24%
Revenue Next 3Y1.78%
Revenue Next 5Y2.11%
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.
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
A Price/Earnings ratio of 22.52 indicates a rather expensive valuation of K.
K's Price/Earnings ratio is in line with the industry average.
K is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.54, K is valued on the expensive side.
K's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of K to the average of the S&P500 Index (34.59), we can say K is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 21.54 |
4.2 Price Multiples
K's Enterprise Value to EBITDA ratio is in line with the industry average.
K's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.41 | ||
| EV/EBITDA | 15.05 |
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 2Y0.23%
EPS Next 3Y1.83%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 2.79%. Purely for dividend investing, there may be better candidates out there.
K's Dividend Yield is a higher than the industry average which is at 5.17.
Compared to an average S&P500 Dividend Yield of 2.44, K has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
The dividend of K has a limited annual growth rate of 1.51%.
K has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
K pays out 62.18% of its income as dividend. This is not a sustainable payout ratio.
K's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.18%
EPS Next 2Y0.23%
EPS Next 3Y1.83%
83.32
+0.03 (+0.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.18%
Inst Owner Change3.66%
Ins Owners0.44%
Ins Owner Change-3.68%
Market Cap29.00B
Revenue(TTM)12.67B
Net Income(TTM)1.28B
Analysts54.29
Price Target85.03 (2.05%)
Short Float %3.56%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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)-0.01%
PT rev (3m)0.09%
EPS NQ rev (1m)-2.18%
EPS NQ rev (3m)-3.88%
EPS NY rev (1m)1.4%
EPS NY rev (3m)-2.55%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 21.54 | ||
| P/S | 2.29 | ||
| P/FCF | 48.41 | ||
| P/OCF | 23.1 | ||
| P/B | 6.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.05 |
EPS(TTM)3.7
EY4.44%
EPS(NY)3.87
Fwd EY4.64%
FCF(TTM)1.72
FCFY2.07%
OCF(TTM)3.61
OCFY4.33%
SpS36.41
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%
ROIC/WACC1.68
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-2.64%
EPS Next 2Y0.23%
EPS Next 3Y1.83%
EPS Next 5Y4.29%
Revenue 1Y (TTM)18.26%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%0.84%
Revenue Next Year0.17%
Revenue Next 2Y1.24%
Revenue Next 3Y1.78%
Revenue Next 5Y2.11%
EBIT growth 1Y20.85%
EBIT growth 3Y1.56%
EBIT growth 5Y5.55%
EBIT Next Year17.18%
EBIT Next 3Y7.63%
EBIT Next 5Y6.96%
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 22.52 and the Price/Book (PB) ratio is 6.9.
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%.