KELLANOVA (K) Stock Fundamental Analysis
NYSE:K - New York Stock Exchange, Inc. - US4878361082 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to K. K was compared to 91 industry peers in the Food Products industry. While K has a great profitability rating, there are quite some concerns on its financial health. K is valued expensive and it does not seem to be growing. K also has an excellent dividend rating.
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.
K had positive earnings in each of the past 5 years.
K had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.59%, K belongs to the top of the industry, outperforming 87.06% of the companies in the same industry.
K has a better Return On Equity (35.58%) than 97.65% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.13%, K belongs to the top of the industry, outperforming 90.59% of the companies in the same industry.
K had an Average Return On Invested Capital over the past 3 years of 11.95%. This is above the industry average of 9.02%.
The last Return On Invested Capital (14.13%) for K is above the 3 year average (11.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.59% | ||
| ROE | 35.58% | ||
| ROIC | 14.13% |
ROA(3y)6.62%
ROA(5y)7%
ROE(3y)29.96%
ROE(5y)34.02%
ROIC(3y)11.95%
ROIC(5y)11.55%
1.3 Margins
Looking at the Profit Margin, with a value of 10.53%, K belongs to the top of the industry, outperforming 84.71% of the companies in the same industry.
K's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.66%, K belongs to the top of the industry, outperforming 84.71% of the companies in the same industry.
K's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 36.61%, K belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
In the last couple of years the Gross Margin of K has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.66% | ||
| PM (TTM) | 10.53% | ||
| GM | 36.61% |
OM growth 3Y4.88%
OM growth 5Y6.68%
PM growth 3Y0.13%
PM growth 5Y8.3%
GM growth 3Y3.16%
GM growth 5Y2.19%
2. Health
2.1 Basic Checks
K has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for K has been increased compared to 1 year ago.
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
K has an Altman-Z score of 3.44. This indicates that K is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.44, K is doing good in the industry, outperforming 76.47% of the companies in the same industry.
The Debt to FCF ratio of K is 5.07, which is a neutral value as it means it would take K, 5.07 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.07, K is doing good in the industry, outperforming 65.88% of the companies in the same industry.
A Debt/Equity ratio of 1.35 is on the high side and indicates that K has dependencies on debt financing.
K has a worse Debt to Equity ratio (1.35) than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.72
WACC8.23%
2.3 Liquidity
A Current Ratio of 0.81 indicates that K may have some problems paying its short term obligations.
K has a worse Current ratio (0.81) than 80.00% of its industry peers.
K has a Quick Ratio of 0.81. 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 Quick ratio of 0.56. This is in the lower half of the industry: K underperforms 72.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for K have decreased by -7.45% 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.
Looking at the last year, K shows a decrease in Revenue. The Revenue has decreased by -2.84% 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)-7.45%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%17.95%
Revenue 1Y (TTM)-2.84%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%-1.58%
3.2 Future
K is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.66% yearly.
K is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.01% yearly.
EPS Next Y3.72%
EPS Next 2Y4.7%
EPS Next 3Y5.06%
EPS Next 5Y7.66%
Revenue Next Year2.35%
Revenue Next 2Y2.44%
Revenue Next 3Y2.76%
Revenue Next 5Y4.01%
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
A Price/Earnings ratio of 21.38 indicates a rather expensive valuation of K.
K's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 30.43. K is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 20.61 indicates a rather expensive valuation of K.
K's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. K is cheaper than 63.53% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. K is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.38 | ||
| Fwd PE | 20.61 |
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 | 25.09 | ||
| EV/EBITDA | 14.09 |
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.
The excellent profitability rating of K may justify a higher PE ratio.
PEG (NY)5.74
PEG (5Y)N/A
EPS Next 2Y4.7%
EPS Next 3Y5.06%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 2.77%. Purely for dividend investing, there may be better candidates out there.
K's Dividend Yield is a higher than the industry average which is at 3.94.
Compared to an average S&P500 Dividend Yield of 2.30, K pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
5.2 History
The dividend of K has a limited annual growth rate of 1.52%.
K has been paying a dividend for at least 10 years, so it has a reliable track record.
K has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.52%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
57.78% 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.
DP57.78%
EPS Next 2Y4.7%
EPS Next 3Y5.06%
KELLANOVA
NYSE:K (2/18/2025, 8:04:00 PM)
After market: 82.32 0 (0%)82.32
+0.06 (+0.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.3%
Inst Owner Change-0.54%
Ins Owners0.72%
Ins Owner Change-5.39%
Market Cap28.40B
Analysts66.67
Price Target82.64 (0.39%)
Short Float %2.23%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend2.26
Dividend Growth(5Y)1.52%
DP57.78%
Div Incr Years0
Div Non Decr Years19
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.91%
Min EPS beat(2)5.21%
Max EPS beat(2)8.62%
EPS beat(4)4
Avg EPS beat(4)9.97%
Min EPS beat(4)5.21%
Max EPS beat(4)16.18%
EPS beat(8)8
Avg EPS beat(8)10.44%
EPS beat(12)12
Avg EPS beat(12)9.99%
EPS beat(16)16
Avg EPS beat(16)9.96%
Revenue beat(2)1
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)0.37%
Revenue beat(4)1
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)0.37%
Revenue beat(8)4
Avg Revenue beat(8)0.4%
Revenue beat(12)8
Avg Revenue beat(12)1.05%
Revenue beat(16)11
Avg Revenue beat(16)1.09%
PT rev (1m)0%
PT rev (3m)1.29%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)-1.82%
Revenue NQ rev (3m)-2.61%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.38 | ||
| Fwd PE | 20.61 | ||
| P/S | 2.23 | ||
| P/FCF | 25.09 | ||
| P/OCF | 16.14 | ||
| P/B | 7.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.09 |
EPS(TTM)3.85
EY4.68%
EPS(NY)3.99
Fwd EY4.85%
FCF(TTM)3.28
FCFY3.99%
OCF(TTM)5.1
OCFY6.2%
SpS36.95
BVpS10.94
TBVpS-8.66
PEG (NY)5.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.59% | ||
| ROE | 35.58% | ||
| ROCE | 18.21% | ||
| ROIC | 14.13% | ||
| ROICexc | 15.07% | ||
| ROICexgc | 43.21% | ||
| OM | 15.66% | ||
| PM (TTM) | 10.53% | ||
| GM | 36.61% | ||
| FCFM | 8.88% |
ROA(3y)6.62%
ROA(5y)7%
ROE(3y)29.96%
ROE(5y)34.02%
ROIC(3y)11.95%
ROIC(5y)11.55%
ROICexc(3y)12.44%
ROICexc(5y)11.97%
ROICexgc(3y)36.6%
ROICexgc(5y)35.05%
ROCE(3y)15.54%
ROCE(5y)14.96%
ROICexcg growth 3Y9.07%
ROICexcg growth 5Y7.76%
ROICexc growth 3Y8.28%
ROICexc growth 5Y9.31%
OM growth 3Y4.88%
OM growth 5Y6.68%
PM growth 3Y0.13%
PM growth 5Y8.3%
GM growth 3Y3.16%
GM growth 5Y2.19%
F-Score7
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 5.07 | ||
| Debt/EBITDA | 2.16 | ||
| Cap/Depr | 171.12% | ||
| Cap/Sales | 4.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.45% | ||
| Profit Quality | 84.29% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 3.44 |
F-Score7
WACC8.23%
ROIC/WACC1.72
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)-7.45%
EPS 3Y-2.63%
EPS 5Y-0.46%
EPS Q2Q%17.95%
EPS Next Y3.72%
EPS Next 2Y4.7%
EPS Next 3Y5.06%
EPS Next 5Y7.66%
Revenue 1Y (TTM)-2.84%
Revenue growth 3Y-3.49%
Revenue growth 5Y-1.25%
Sales Q2Q%-1.58%
Revenue Next Year2.35%
Revenue Next 2Y2.44%
Revenue Next 3Y2.76%
Revenue Next 5Y4.01%
EBIT growth 1Y30.18%
EBIT growth 3Y1.22%
EBIT growth 5Y5.34%
EBIT Next Year26.19%
EBIT Next 3Y10.6%
EBIT Next 5Y9.37%
FCF growth 1Y16.94%
FCF growth 3Y-0.47%
FCF growth 5Y13.92%
OCF growth 1Y6.99%
OCF growth 3Y1.14%
OCF growth 5Y8.4%