KELLANOVA (K)
US4878361082 - Common Stock
K gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 92 industry peers in the Food Products industry. While K belongs to the best of the industry regarding profitability, 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.
K had positive earnings in each of the past 5 years.
Each year in the past 5 years K had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.38%, K is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.53%, K belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
The Return On Invested Capital of K (11.12%) is better than 83.72% of its industry peers.
K had an Average Return On Invested Capital over the past 3 years of 11.02%. This is above the industry average of 8.99%.
The 3 year average ROIC (11.02%) for K is below the current ROIC(11.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 27.53% | ||
| ROIC | 11.12% |
ROA(3y)6.49%
ROA(5y)6.38%
ROE(3y)31.44%
ROE(5y)33.89%
ROIC(3y)11.02%
ROIC(5y)10.52%
1.3 Margins
K's Profit Margin of 9.38% is amongst the best of the industry. K outperforms 83.72% of its industry peers.
K's Profit Margin has declined in the last couple of years.
The Operating Margin of K (14.64%) is better than 83.72% of its industry peers.
In the last couple of years the Operating Margin of K has remained more or less at the same level.
Looking at the Gross Margin, with a value of 36.28%, K belongs to the top of the industry, outperforming 80.23% of the companies in the same industry.
K's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.64% | ||
| PM (TTM) | 9.38% | ||
| GM | 36.28% |
OM growth 3Y-3.39%
OM growth 5Y-1.09%
PM growth 3Y-7.26%
PM growth 5Y-5.97%
GM growth 3Y-1.67%
GM growth 5Y-0.9%
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.
The number of shares outstanding for K has been reduced compared to 1 year ago.
The number of shares outstanding for K has been reduced compared to 5 years ago.
Compared to 1 year ago, K has a worse debt to assets ratio.
2.2 Solvency
K has an Altman-Z score of 3.13. This indicates that K is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of K (3.13) is better than 73.26% of its industry peers.
The Debt to FCF ratio of K is 6.31, which is on the high side as it means it would take K, 6.31 years of fcf income to pay off all of its debts.
K has a Debt to FCF ratio (6.31) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.42 is on the high side and indicates that K has dependencies on debt financing.
K's Debt to Equity ratio of 1.42 is on the low side compared to the rest of the industry. K is outperformed by 82.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 6.31 | ||
| Altman-Z | 3.13 |
ROIC/WACC1.33
WACC8.38%
2.3 Liquidity
A Current Ratio of 0.77 indicates that K may have some problems paying its short term obligations.
K has a Current ratio of 0.77. This is amonst the worse of the industry: K underperforms 80.23% of its industry peers.
K has a Quick Ratio of 0.77. 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 Quick ratio of 0.53 is on the low side compared to the rest of the industry. K is outperformed by 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The earnings per share for K have decreased strongly by -14.12% in the last year.
Measured over the past years, K shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.84% on average per year.
Looking at the last year, K shows a very negative growth in Revenue. The Revenue has decreased by -32.47% in the last year.
K shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.64% yearly.
EPS 1Y (TTM)-14.12%
EPS 3Y1.32%
EPS 5Y-0.84%
EPS Q2Q%-11.65%
Revenue 1Y (TTM)-32.47%
Revenue growth 3Y-1.59%
Revenue growth 5Y-0.64%
Sales Q2Q%-17.92%
3.2 Future
K is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.06% yearly.
Based on estimates for the next years, K will show a decrease in Revenue. The Revenue will decrease by -0.39% on average per year.
EPS Next Y-7.71%
EPS Next 2Y-1.92%
EPS Next 3Y0.26%
EPS Next 5Y3.06%
Revenue Next Year-13.17%
Revenue Next 2Y-5.69%
Revenue Next 3Y-3.07%
Revenue Next 5Y-0.39%
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
With a Price/Earnings ratio of 21.95, K is valued on the expensive side.
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 27.28, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.35, which indicates a rather expensive current valuation of K.
K's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. K is cheaper than 62.79% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of K to the average of the S&P500 Index (23.53), we can say K is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 20.35 |
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 | 30.28 | ||
| EV/EBITDA | 17.3 |
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-1.92%
EPS Next 3Y0.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.80%, K has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.85, K pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, K has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
5.2 History
The dividend of K has a limited annual growth rate of 3.40%.
K has paid a dividend for at least 10 years, which is a reliable track record.
K has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.4%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
K pays out 76.62% of its income as dividend. This is not a sustainable payout ratio.
The dividend of K is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP76.62%
EPS Next 2Y-1.92%
EPS Next 3Y0.26%
KELLANOVA
NYSE:K (1/14/2025, 8:04:00 PM)
After market: 81.2587 -0.17 (-0.21%)81.43
-0.08 (-0.1%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.3%
Inst Owner Change-0.04%
Ins Owners0.72%
Ins Owner Change-4.96%
Market Cap28.07B
Analysts66.67
Price Target82.64 (1.49%)
Short Float %1.99%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Dividend Growth(5Y)3.4%
DP76.62%
Div Incr Years0
Div Non Decr Years19
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.55%
Min EPS beat(2)5.21%
Max EPS beat(2)9.89%
EPS beat(4)4
Avg EPS beat(4)8.66%
Min EPS beat(4)3.35%
Max EPS beat(4)16.18%
EPS beat(8)8
Avg EPS beat(8)10.51%
EPS beat(12)12
Avg EPS beat(12)9.54%
EPS beat(16)15
Avg EPS beat(16)9.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-0.65%
Max Revenue beat(2)0.37%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-0.81%
Max Revenue beat(4)1.15%
Revenue beat(8)5
Avg Revenue beat(8)0.88%
Revenue beat(12)8
Avg Revenue beat(12)1.06%
Revenue beat(16)11
Avg Revenue beat(16)0.98%
PT rev (1m)0%
PT rev (3m)2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.19%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 20.35 | ||
| P/S | 2.62 | ||
| P/FCF | 30.28 | ||
| P/OCF | 18.25 | ||
| P/B | 7.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.3 |
EPS(TTM)3.71
EY4.56%
EPS(NY)4
Fwd EY4.91%
FCF(TTM)2.69
FCFY3.3%
OCF(TTM)4.46
OCFY5.48%
SpS31.08
BVpS10.59
TBVpS-9.27
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 27.53% | ||
| ROCE | 14.53% | ||
| ROIC | 11.12% | ||
| ROICexc | 11.73% | ||
| ROICexgc | 34.69% | ||
| OM | 14.64% | ||
| PM (TTM) | 9.38% | ||
| GM | 36.28% | ||
| FCFM | 8.65% |
ROA(3y)6.49%
ROA(5y)6.38%
ROE(3y)31.44%
ROE(5y)33.89%
ROIC(3y)11.02%
ROIC(5y)10.52%
ROICexc(3y)11.29%
ROICexc(5y)10.81%
ROICexgc(3y)33.08%
ROICexgc(5y)32.11%
ROCE(3y)14.53%
ROCE(5y)13.8%
ROICexcg growth 3Y2.31%
ROICexcg growth 5Y0.42%
ROICexc growth 3Y0.85%
ROICexc growth 5Y2.92%
OM growth 3Y-3.39%
OM growth 5Y-1.09%
PM growth 3Y-7.26%
PM growth 5Y-5.97%
GM growth 3Y-1.67%
GM growth 5Y-0.9%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 6.31 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 172.6% | ||
| Cap/Sales | 5.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.02% | ||
| Profit Quality | 92.24% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 3.13 |
F-Score6
WACC8.38%
ROIC/WACC1.33
Cap/Depr(3y)127.36%
Cap/Depr(5y)121.72%
Cap/Sales(3y)4.08%
Cap/Sales(5y)4.05%
Profit Quality(3y)100.03%
Profit Quality(5y)95.99%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.12%
EPS 3Y1.32%
EPS 5Y-0.84%
EPS Q2Q%-11.65%
EPS Next Y-7.71%
EPS Next 2Y-1.92%
EPS Next 3Y0.26%
EPS Next 5Y3.06%
Revenue 1Y (TTM)-32.47%
Revenue growth 3Y-1.59%
Revenue growth 5Y-0.64%
Sales Q2Q%-17.92%
Revenue Next Year-13.17%
Revenue Next 2Y-5.69%
Revenue Next 3Y-3.07%
Revenue Next 5Y-0.39%
EBIT growth 1Y-11.21%
EBIT growth 3Y-4.93%
EBIT growth 5Y-1.71%
EBIT Next Year15.86%
EBIT Next 3Y8.13%
EBIT Next 5Y6.5%
FCF growth 1Y-25.3%
FCF growth 3Y-13.22%
FCF growth 5Y0.21%
OCF growth 1Y-11.41%
OCF growth 3Y-6.09%
OCF growth 5Y1.38%