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%)
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
In the past year K was profitable.
K had a positive operating cash flow in the past year.
In the past 5 years K has always been profitable.
In the past 5 years K always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.16%, K belongs to the best of the industry, outperforming 89.77% of the companies in the same industry.
K's Return On Equity of 30.38% is amongst the best of the industry. K outperforms 96.59% of its industry peers.
K's Return On Invested Capital of 13.43% is amongst the best of the industry. K outperforms 92.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for K is significantly below the industry average of 28.50%.
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
With an excellent Profit Margin value of 10.08%, K belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of K has grown nicely.
K has a Operating Margin of 14.96%. This is amongst the best in the industry. K outperforms 88.64% of its industry peers.
In the last couple of years the Operating Margin of K has grown nicely.
The Gross Margin of K (35.15%) is better than 79.55% 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.
Compared to 1 year ago, K has more shares outstanding
K has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, K has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.47 indicates that K is not in any danger for bankruptcy at the moment.
The Altman-Z score of K (3.47) is better than 75.00% 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.
K's Debt to FCF ratio of 9.39 is fine compared to the rest of the industry. K outperforms 63.64% 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.
K's Debt to Equity ratio of 1.16 is on the low side compared to the rest of the industry. K is outperformed by 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.
K has a Current ratio of 0.68. This is amonst the worse of the industry: K underperforms 86.36% of its industry peers.
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%.
K shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.46% yearly.
K shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.26%.
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
K is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.54% yearly.
The Revenue is expected to grow by 2.14% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 ratio is in line with the industry average.
K's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.84.
With a Price/Forward Earnings ratio of 23.57, K is valued on the expensive side.
K's Price/Forward 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/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 23.57 |
4.2 Price Multiples
K's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of K is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.47 | ||
| EV/EBITDA | 15.06 |
4.3 Compensation for Growth
K has an outstanding profitability rating, which 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
With a Yearly Dividend Yield of 2.78%, K has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.42, K pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, 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
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 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-5804.11%
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%.