KELLANOVA (K) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:K - US4878361082 - Common Stock
83.07 USD
-0.57 (-0.68%)
83.07 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to K. K was compared to 87 industry peers in the Food Products industry. K scores excellent on profitability, 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
K had positive earnings in the past year.
K had a positive operating cash flow in the past year.
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 8.16%, K belongs to the top of the industry, outperforming 88.51% of the companies in the same industry.
K's Return On Equity of 30.38% is amongst the best of the industry. K outperforms 96.55% of its industry peers.
K has a Return On Invested Capital of 13.43%. This is amongst the best in the industry. K outperforms 91.95% 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 28.38%.
The 3 year average ROIC (11.99%) for K is below the current ROIC(13.43%), indicating increased profibility in the last year.
| 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
K has a Profit Margin of 10.08%. This is amongst the best in the industry. K outperforms 87.36% of its industry peers.
In the last couple of years the Profit Margin of K has grown nicely.
With an excellent Operating Margin value of 14.96%, K belongs to the best of the industry, outperforming 87.36% of the companies in the same industry.
In the last couple of years the Operating Margin of K has grown nicely.
Looking at the Gross Margin, with a value of 35.15%, K belongs to the top of the industry, outperforming 80.46% 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 | 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
K has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
K has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, K has more shares outstanding
Compared to 1 year ago, K has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.48 indicates that K is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.48, K is doing good in the industry, outperforming 78.16% of the companies in the same industry.
K has a debt to FCF ratio of 9.39. This is a negative value and a sign of low solvency as K would need 9.39 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.39, K is in the better half of the industry, outperforming 63.22% of the companies in the same industry.
K has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
K has a worse Debt to Equity ratio (1.16) than 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 9.39 | ||
| Altman-Z | 3.48 |
ROIC/WACC1.7
WACC7.9%
2.3 Liquidity
A Current Ratio of 0.68 indicates that K may have some problems paying its short term obligations.
With a Current ratio value of 0.68, K is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.44, K is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The earnings per share for K have decreased by -0.27% in the last year.
Measured over the past years, K shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.46% on average per year.
Looking at the last year, K shows a quite strong growth in Revenue. The Revenue has grown by 18.26% 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)-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.
K is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.14% yearly.
EPS Next Y-2.64%
EPS Next 2Y0.23%
EPS Next 3Y1.83%
EPS Next 5Y4.54%
Revenue Next Year0.17%
Revenue Next 2Y1.24%
Revenue Next 3Y1.78%
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
The Price/Earnings ratio is 22.45, which indicates a rather expensive current valuation of K.
K's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. K is around the same levels.
A Price/Forward Earnings ratio of 21.48 indicates a rather expensive valuation of K.
K's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of K to the average of the S&P500 Index (36.56), we can say K is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 21.48 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as K.
The rest of the industry has a similar Price/Free Cash Flow ratio as K.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.25 | ||
| EV/EBITDA | 15.09 |
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 2Y0.23%
EPS Next 3Y1.83%
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 5.06, K pays a bit more dividend than its industry peers.
K's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| 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 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
62.18% of the earnings are spent on dividend by K. This is not a sustainable payout ratio.
The dividend of K is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.18%
EPS Next 2Y0.23%
EPS Next 3Y1.83%
83.07
-0.57 (-0.68%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.18%
Inst Owner Change3.41%
Ins Owners0.44%
Ins Owner Change-3.16%
Market Cap28.90B
Revenue(TTM)12.67B
Net Income(TTM)1.28B
Analysts54.29
Price Target85.03 (2.36%)
Short Float %3.35%
Short Ratio4.24
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%
PT rev (3m)-0.38%
EPS NQ rev (1m)-2.08%
EPS NQ rev (3m)-2.45%
EPS NY rev (1m)1.46%
EPS NY rev (3m)1.67%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 21.48 | ||
| P/S | 2.28 | ||
| P/FCF | 48.25 | ||
| P/OCF | 23.03 | ||
| P/B | 6.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.09 |
EPS(TTM)3.7
EY4.45%
EPS(NY)3.87
Fwd EY4.66%
FCF(TTM)1.72
FCFY2.07%
OCF(TTM)3.61
OCFY4.34%
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 | 3.48 |
F-Score5
WACC7.9%
ROIC/WACC1.7
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-2.64%
EPS Next 2Y0.23%
EPS Next 3Y1.83%
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 Year0.17%
Revenue Next 2Y1.24%
Revenue Next 3Y1.78%
Revenue Next 5Y2.14%
EBIT growth 1Y20.85%
EBIT growth 3Y1.56%
EBIT growth 5Y5.55%
EBIT Next Year17.18%
EBIT Next 3Y7.63%
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 22.45 and the Price/Book (PB) ratio is 6.88.
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%.