KELLANOVA (K)
US4878361082 - Common Stock
We assign a fundamental rating of 5 out of 10 to K. K was compared to 92 industry peers in the Food Products industry. K has an excellent profitability rating, but there are some minor 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
In the past year K was profitable.
K had a positive operating cash flow in the past year.
Each year in the past 5 years K has been profitable.
In the past 5 years K always reported a positive cash flow from operatings.
1.2 Ratios
K's Return On Assets of 5.93% is fine compared to the rest of the industry. K outperforms 67.03% of its industry peers.
K has a better Return On Equity (27.43%) than 95.60% of its industry peers.
K has a better Return On Invested Capital (11.41%) than 86.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for K is above the industry average of 8.95%.
The last Return On Invested Capital (11.41%) for K is above the 3 year average (11.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 27.43% | ||
| ROIC | 11.41% |
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
The Profit Margin of K (7.94%) is better than 78.02% of its industry peers.
K's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 13.85%, K belongs to the best of the industry, outperforming 83.52% of the companies in the same industry.
K's Operating Margin has been stable in the last couple of years.
K has a Gross Margin of 35.39%. This is amongst the best in the industry. K outperforms 82.42% of its industry peers.
In the last couple of years the Gross Margin of K has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.85% | ||
| PM (TTM) | 7.94% | ||
| GM | 35.39% |
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.
K has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, K has less shares outstanding
Compared to 1 year ago, K has a worse debt to assets ratio.
2.2 Solvency
K has an Altman-Z score of 3.20. This indicates that K is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of K (3.20) is better than 75.82% of its industry peers.
The Debt to FCF ratio of K is 5.30, which is a neutral value as it means it would take K, 5.30 years of fcf income to pay off all of its debts.
K's Debt to FCF ratio of 5.30 is fine compared to the rest of the industry. K outperforms 68.13% of its industry peers.
K has a Debt/Equity ratio of 1.58. This is a high value indicating a heavy dependency on external financing.
K has a worse Debt to Equity ratio (1.58) than 82.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.58 | ||
| Debt/FCF | 5.3 | ||
| Altman-Z | 3.2 |
ROIC/WACC1.44
WACC7.93%
2.3 Liquidity
K has a Current Ratio of 0.73. 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 Current ratio of 0.73. This is amonst the worse of the industry: K underperforms 80.22% of its industry peers.
A Quick Ratio of 0.48 indicates that K may have some problems paying its short term obligations.
The Quick ratio of K (0.48) is worse than 80.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
K shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.93%.
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 -28.05% in the last year.
The Revenue has been decreasing by -0.64% on average over the past years.
EPS 1Y (TTM)-10.93%
EPS 3Y1.32%
EPS 5Y-0.84%
EPS Q2Q%-19.2%
Revenue 1Y (TTM)-28.05%
Revenue growth 3Y-1.59%
Revenue growth 5Y-0.64%
Sales Q2Q%-21.01%
3.2 Future
The Earnings Per Share is expected to grow by 3.17% on average over the next years.
Based on estimates for the next years, K will show a decrease in Revenue. The Revenue will decrease by -0.49% on average per year.
EPS Next Y-9.14%
EPS Next 2Y-2.19%
EPS Next 3Y0.2%
EPS Next 5Y3.17%
Revenue Next Year-13.44%
Revenue Next 2Y-5.72%
Revenue Next 3Y-2.94%
Revenue Next 5Y-0.49%
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
The Price/Earnings ratio is 21.04, which indicates a rather expensive current valuation of K.
K's Price/Earnings ratio is a bit cheaper when compared to the industry. K is cheaper than 60.44% of the companies in the same industry.
When comparing the Price/Earnings ratio of K to the average of the S&P500 Index (31.09), we can say K is valued slightly cheaper.
With a Price/Forward Earnings ratio of 20.25, K is valued on the expensive side.
K's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. K is cheaper than 63.74% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.57. K is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.04 | ||
| Fwd PE | 20.25 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as K.
Based on the Price/Free Cash Flow ratio, K is valued a bit cheaper than the industry average as 62.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.12 | ||
| EV/EBITDA | 16.96 |
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 2Y-2.19%
EPS Next 3Y0.2%
5. Dividend
5.1 Amount
K has a Yearly Dividend Yield of 2.81%.
K's Dividend Yield is a higher than the industry average which is at 3.58.
Compared to an average S&P500 Dividend Yield of 2.21, K pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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 85.89% 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.
DP85.89%
EPS Next 2Y-2.19%
EPS Next 3Y0.2%
KELLANOVA
NYSE:K (10/28/2024, 8:26:36 PM)
After market: 80.68 +0.08 (+0.1%)80.6
-0.28 (-0.35%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap27.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.04 | ||
| Fwd PE | 20.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 27.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.85% | ||
| PM (TTM) | 7.94% | ||
| GM | 35.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-10.93%
EPS 3Y1.32%
EPS 5Y
EPS Q2Q%
EPS Next Y-9.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-28.05%
Revenue growth 3Y-1.59%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y