KELLANOVA (K) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:K - US4878361082 - Common Stock
83.14 USD
-0.01 (-0.01%)
83.14 USD
0 (0%)
Taking everything into account, K scores 5 out of 10 in our fundamental rating. K was compared to 86 industry peers in the Food Products industry. While K has a great profitability rating, there are quite some concerns on its financial health. K does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year K was profitable.
In the past year K had a positive cash flow from operations.
In the past 5 years K has always been profitable.
K had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
K has a Return On Assets of 8.16%. This is amongst the best in the industry. K outperforms 88.51% of its industry peers.
K has a better Return On Equity (30.38%) than 96.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.43%, K belongs to the top of the industry, outperforming 91.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for K is significantly below the industry average of 28.77%.
The last Return On Invested Capital (13.43%) for K is above the 3 year average (11.99%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 10.08%. This is amongst the best in the industry. K outperforms 87.36% of its industry peers.
K's Profit Margin has improved in the last couple of years.
The Operating Margin of K (14.96%) is better than 87.36% of its industry peers.
K's Operating Margin has improved in the last couple of years.
K's Gross Margin of 35.15% is amongst the best of the industry. K outperforms 80.46% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), K is creating some value.
K has more shares outstanding than it did 1 year ago.
K has more shares outstanding than it did 5 years ago.
The debt/assets ratio for K has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.47 indicates that K is not in any danger for bankruptcy at the moment.
K's Altman-Z score of 3.47 is fine compared to the rest of the industry. K outperforms 77.01% 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.
With a decent Debt to FCF ratio value of 9.39, K is doing good in the industry, outperforming 62.07% 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.
Looking at the Debt to Equity ratio, with a value of 1.16, K is doing worse than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 9.39 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.68
WACC8%
2.3 Liquidity
A Current Ratio of 0.68 indicates that K may have some problems paying its short term obligations.
K's Current ratio of 0.68 is on the low side compared to the rest of the industry. K is outperformed by 86.21% 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 75.86% 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.
Looking at the last year, K shows a quite strong growth in Revenue. The Revenue has grown by 18.26% in the last year.
K shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.25% yearly.
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
Based on estimates for the next years, K will show a small growth in Earnings Per Share. The EPS will grow by 4.54% on average per year.
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-2.46%
EPS Next 2Y0%
EPS Next 3Y1.52%
EPS Next 5Y4.54%
Revenue Next Year0.27%
Revenue Next 2Y1.3%
Revenue Next 3Y1.78%
Revenue Next 5Y2.14%
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
Based on the Price/Earnings ratio of 22.47, the valuation of K can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of K is on the same level as its industry peers.
K's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.49.
K is valuated rather expensively with a Price/Forward Earnings ratio of 21.60.
The rest of the industry has a similar Price/Forward Earnings ratio as K.
The average S&P500 Price/Forward Earnings ratio is at 23.69. K is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 21.6 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as K.
K's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.29 | ||
| EV/EBITDA | 15.02 |
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%
EPS Next 3Y1.52%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 2.79%.
K's Dividend Yield is a higher than the industry average which is at 5.10.
K's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| 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.
The dividend of K is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.18%
EPS Next 2Y0%
EPS Next 3Y1.52%
83.14
-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 Change3.45%
Ins Owners0.44%
Ins Owner Change-3.16%
Market Cap28.93B
Revenue(TTM)12.67B
Net Income(TTM)1.28B
Analysts54.29
Price Target85.03 (2.27%)
Short Float %2.96%
Short Ratio3.8
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%
PT rev (3m)-0.01%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-2.23%
EPS NY rev (1m)0.18%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 21.6 | ||
| P/S | 2.28 | ||
| P/FCF | 48.29 | ||
| P/OCF | 23.05 | ||
| P/B | 6.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.02 |
EPS(TTM)3.7
EY4.45%
EPS(NY)3.85
Fwd EY4.63%
FCF(TTM)1.72
FCFY2.07%
OCF(TTM)3.61
OCFY4.34%
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%
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-2.46%
EPS Next 2Y0%
EPS Next 3Y1.52%
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 Year0.27%
Revenue Next 2Y1.3%
Revenue Next 3Y1.78%
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 22.47 and the Price/Book (PB) ratio is 6.88.
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%.