KELLANOVA (K) Stock Fundamental Analysis
NYSE:K - New York Stock Exchange, Inc. - US4878361082 - Common Stock - Currency: USD
K gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 91 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 valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years K has been profitable.
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 8.92%, K belongs to the top of the industry, outperforming 87.91% of the companies in the same industry.
The Return On Equity of K (35.25%) is better than 97.80% of its industry peers.
The Return On Invested Capital of K (13.11%) is better than 92.31% of its industry peers.
K had an Average Return On Invested Capital over the past 3 years of 11.99%. This is significantly below the industry average of 28.40%.
The 3 year average ROIC (11.99%) for K is below the current ROIC(13.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.92% | ||
| ROE | 35.25% | ||
| ROIC | 13.11% |
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 10.92%, K belongs to the top of the industry, outperforming 87.91% of the companies in the same industry.
K's Profit Margin has improved in the last couple of years.
K's Operating Margin of 15.51% is amongst the best of the industry. K outperforms 86.81% of its industry peers.
In the last couple of years the Operating Margin of K has grown nicely.
K's Gross Margin of 36.59% is amongst the best of the industry. K outperforms 81.32% of its industry peers.
K's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.51% | ||
| PM (TTM) | 10.92% | ||
| GM | 36.59% |
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.
K has more shares outstanding than it did 1 year ago.
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 73.63% of its industry peers.
The Debt to FCF ratio of K is 6.51, which is on the high side as it means it would take K, 6.51 years of fcf income to pay off all of its debts.
K has a Debt to FCF ratio of 6.51. This is in the better half of the industry: K outperforms 73.63% of its industry peers.
K has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.43, K is not doing good in the industry: 81.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 6.51 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.33
WACC9.86%
2.3 Liquidity
K has a Current Ratio of 0.80. 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 (0.80) than 78.02% of its industry peers.
K has a Quick Ratio of 0.80. This is a bad value and indicates that K is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of K (0.52) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for K have decreased by -8.11% in the last year.
The Earnings Per Share has been decreasing by -0.46% on average over the past years.
K shows a small growth in Revenue. In the last year, the Revenue has grown by 2.96%.
K shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.25% yearly.
EPS 1Y (TTM)-8.11%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%-10.89%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%-3.66%
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 4.63% on average per year.
K is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.24% yearly.
EPS Next Y0.16%
EPS Next 2Y2.19%
EPS Next 3Y2.96%
EPS Next 5Y4.63%
Revenue Next Year0.59%
Revenue Next 2Y1.38%
Revenue Next 3Y1.95%
Revenue Next 5Y2.24%
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.
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
The Price/Earnings ratio is 21.39, which indicates a rather expensive current valuation of K.
K's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, K is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 19.90, the valuation of K can be described as rather expensive.
Based on the Price/Forward Earnings ratio, K is valued a bit cheaper than 65.93% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of K to the average of the S&P500 Index (21.90), we can say K is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 19.9 |
4.2 Price Multiples
K's Enterprise Value to EBITDA ratio is in line with the industry average.
61.54% of the companies in the same industry are more expensive than K, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.16 | ||
| EV/EBITDA | 13.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates K does not grow enough to justify the current Price/Earnings ratio.
K has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)129.8
PEG (5Y)N/A
EPS Next 2Y2.19%
EPS Next 3Y2.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.89%, K has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.75, K pays a bit more dividend than its industry peers.
K's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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
56.67% of the earnings are spent on dividend by K. This is a bit on the high side, but may be sustainable.
The dividend of K is growing, but earnings are growing more, so the dividend growth is sustainable.
DP56.67%
EPS Next 2Y2.19%
EPS Next 3Y2.96%
80
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners82.54%
Inst Owner Change0.27%
Ins Owners0.44%
Ins Owner Change-4.87%
Market Cap27.76B
Analysts54.78
Price Target84.17 (5.21%)
Short Float %2.78%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend2.26
Dividend Growth(5Y)1.51%
DP56.67%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.95%
Min EPS beat(2)-12.53%
Max EPS beat(2)8.62%
EPS beat(4)3
Avg EPS beat(4)2.8%
Min EPS beat(4)-12.53%
Max EPS beat(4)9.89%
EPS beat(8)7
Avg EPS beat(8)7.81%
EPS beat(12)11
Avg EPS beat(12)7.62%
EPS beat(16)15
Avg EPS beat(16)8.34%
Revenue beat(2)0
Avg Revenue beat(2)-3.1%
Min Revenue beat(2)-4.93%
Max Revenue beat(2)-1.26%
Revenue beat(4)1
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.37%
Revenue beat(8)3
Avg Revenue beat(8)-0.28%
Revenue beat(12)7
Avg Revenue beat(12)0.61%
Revenue beat(16)10
Avg Revenue beat(16)0.52%
PT rev (1m)0.07%
PT rev (3m)1.85%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-2.93%
EPS NY rev (1m)0.35%
EPS NY rev (3m)-3.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 19.9 | ||
| P/S | 2.2 | ||
| P/FCF | 32.16 | ||
| P/OCF | 18.36 | ||
| P/B | 7.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.92 |
EPS(TTM)3.74
EY4.68%
EPS(NY)4.02
Fwd EY5.03%
FCF(TTM)2.49
FCFY3.11%
OCF(TTM)4.36
OCFY5.45%
SpS36.41
BVpS11.28
TBVpS-8.3
PEG (NY)129.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.92% | ||
| ROE | 35.25% | ||
| ROCE | 17.6% | ||
| ROIC | 13.11% | ||
| ROICexc | 13.49% | ||
| ROICexgc | 33.43% | ||
| OM | 15.51% | ||
| PM (TTM) | 10.92% | ||
| GM | 36.59% | ||
| FCFM | 6.83% |
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-Score7
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 6.51 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 174% | ||
| Cap/Sales | 5.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.84% | ||
| Profit Quality | 62.54% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 3.47 |
F-Score7
WACC9.86%
ROIC/WACC1.33
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)-8.11%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%-10.89%
EPS Next Y0.16%
EPS Next 2Y2.19%
EPS Next 3Y2.96%
EPS Next 5Y4.63%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%-3.66%
Revenue Next Year0.59%
Revenue Next 2Y1.38%
Revenue Next 3Y1.95%
Revenue Next 5Y2.24%
EBIT growth 1Y23.29%
EBIT growth 3Y1.56%
EBIT growth 5Y5.55%
EBIT Next Year19.54%
EBIT Next 3Y9.19%
EBIT Next 5Y7.16%
FCF growth 1Y-17.57%
FCF growth 3Y-0.47%
FCF growth 5Y13.92%
OCF growth 1Y-5.5%
OCF growth 3Y1.14%
OCF growth 5Y8.4%