KELLANOVA (K) Stock Fundamental Analysis
USA - NYSE:K - US4878361082 - Common Stock
82.92 USD
+0.13 (+0.16%)
82.92 USD
0 (0%)
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 has an excellent profitability rating, 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
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.
K had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of K (8.41%) is better than 86.21% of its industry peers.
Looking at the Return On Equity, with a value of 32.49%, K belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.24%, K belongs to the top of the industry, outperforming 91.95% of the companies in the same industry.
K had an Average Return On Invested Capital over the past 3 years of 11.99%. This is significantly below the industry average of 28.34%.
The 3 year average ROIC (11.99%) for K is below the current ROIC(13.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 32.49% | ||
| ROIC | 13.24% |
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 10.56%, K belongs to the best of the industry, outperforming 87.36% of the companies in the same industry.
K's Profit Margin has improved in the last couple of years.
K's Operating Margin of 15.05% is amongst the best of the industry. K outperforms 85.06% of its industry peers.
In the last couple of years the Operating Margin of K has grown nicely.
With an excellent Gross Margin value of 35.99%, K belongs to the best of the industry, outperforming 81.61% of the companies in the same industry.
K's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.05% | ||
| PM (TTM) | 10.56% | ||
| GM | 35.99% |
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
The number of shares outstanding for K has been increased compared to 5 years ago.
Compared to 1 year ago, K has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.38 indicates that K is not in any danger for bankruptcy at the moment.
K has a better Altman-Z score (3.38) than 70.11% of its industry peers.
The Debt to FCF ratio of K is 9.04, which is on the high side as it means it would take K, 9.04 years of fcf income to pay off all of its debts.
K's Debt to FCF ratio of 9.04 is fine compared to the rest of the industry. K outperforms 62.07% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that K has dependencies on debt financing.
K has a Debt to Equity ratio of 1.25. This is in the lower half of the industry: K underperforms 78.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 9.04 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.67
WACC7.92%
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's Current ratio of 0.68 is on the low side compared to the rest of the industry. K is outperformed by 83.91% of its industry peers.
K has a Quick 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.
Looking at the Quick ratio, with a value of 0.45, K is doing worse than 77.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for K have decreased by -4.18% in the last year.
K shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.46% yearly.
The Revenue has grown by 10.71% in the past year. This is quite good.
K shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.25% yearly.
EPS 1Y (TTM)-4.18%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%-6.93%
Revenue 1Y (TTM)10.71%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%0.34%
3.2 Future
The Earnings Per Share is expected to grow by 4.29% on average over the next years.
Based on estimates for the next years, K will show a small growth in Revenue. The Revenue will grow by 2.11% on average per year.
EPS Next Y-3.98%
EPS Next 2Y0.05%
EPS Next 3Y1.34%
EPS Next 5Y4.29%
Revenue Next Year0.08%
Revenue Next 2Y1.19%
Revenue Next 3Y1.64%
Revenue Next 5Y2.11%
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
With a Price/Earnings ratio of 22.59, K is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of K is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.29, K is valued at the same level.
The Price/Forward Earnings ratio is 21.52, which indicates a rather expensive current valuation of K.
The rest of the industry has a similar Price/Forward Earnings ratio as K.
K's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.59 | ||
| Fwd PE | 21.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of K is on the same level as its industry peers.
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 | 44.39 | ||
| EV/EBITDA | 14.79 |
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 2Y0.05%
EPS Next 3Y1.34%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 2.80%.
K's Dividend Yield is a higher than the industry average which is at 5.05.
K's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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 59.03% of its income as dividend. This is a bit on the high side, but may be sustainable.
K's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.03%
EPS Next 2Y0.05%
EPS Next 3Y1.34%
82.92
+0.13 (+0.16%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.18%
Inst Owner Change-0.03%
Ins Owners0.44%
Ins Owner Change-4.63%
Market Cap28.86B
Analysts54.29
Price Target85.04 (2.56%)
Short Float %3.31%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend2.26
Dividend Growth(5Y)1.51%
DP59.03%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.7%
Min EPS beat(2)-12.53%
Max EPS beat(2)-6.87%
EPS beat(4)2
Avg EPS beat(4)-1.39%
Min EPS beat(4)-12.53%
Max EPS beat(4)8.62%
EPS beat(8)6
Avg EPS beat(8)5.6%
EPS beat(12)10
Avg EPS beat(12)6.19%
EPS beat(16)14
Avg EPS beat(16)7.38%
Revenue beat(2)0
Avg Revenue beat(2)-3.24%
Min Revenue beat(2)-4.93%
Max Revenue beat(2)-1.54%
Revenue beat(4)1
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.37%
Revenue beat(8)3
Avg Revenue beat(8)-0.13%
Revenue beat(12)6
Avg Revenue beat(12)0.14%
Revenue beat(16)9
Avg Revenue beat(16)0.33%
PT rev (1m)0%
PT rev (3m)1.04%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-4.41%
EPS NY rev (1m)0.27%
EPS NY rev (3m)-4.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.59 | ||
| Fwd PE | 21.52 | ||
| P/S | 2.28 | ||
| P/FCF | 44.39 | ||
| P/OCF | 22.11 | ||
| P/B | 7.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.79 |
EPS(TTM)3.67
EY4.43%
EPS(NY)3.85
Fwd EY4.65%
FCF(TTM)1.87
FCFY2.25%
OCF(TTM)3.75
OCFY4.52%
SpS36.33
BVpS11.81
TBVpS-7.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 32.49% | ||
| ROCE | 18.15% | ||
| ROIC | 13.24% | ||
| ROICexc | 13.67% | ||
| ROICexgc | 36.94% | ||
| OM | 15.05% | ||
| PM (TTM) | 10.56% | ||
| GM | 35.99% | ||
| FCFM | 5.14% |
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%
ROICexcg growth 3Y9.44%
ROICexcg 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-Score6
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 9.04 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 177.51% | ||
| Cap/Sales | 5.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.44% | ||
| Profit Quality | 48.69% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 3.38 |
F-Score6
WACC7.92%
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)-4.18%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%-6.93%
EPS Next Y-3.98%
EPS Next 2Y0.05%
EPS Next 3Y1.34%
EPS Next 5Y4.29%
Revenue 1Y (TTM)10.71%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%0.34%
Revenue Next Year0.08%
Revenue Next 2Y1.19%
Revenue Next 3Y1.64%
Revenue Next 5Y2.11%
EBIT growth 1Y20.29%
EBIT growth 3Y1.56%
EBIT growth 5Y5.55%
EBIT Next Year17.18%
EBIT Next 3Y7.63%
EBIT Next 5Y6.96%
FCF growth 1Y-30.11%
FCF growth 3Y-0.47%
FCF growth 5Y13.92%
OCF growth 1Y-12.42%
OCF growth 3Y1.14%
OCF growth 5Y8.4%