KRAFT HEINZ CO/THE (KHC) Stock Fundamental Analysis
USA - NASDAQ:KHC - US5007541064 - Common Stock
25.52 USD
-0.07 (-0.27%)
25.45 USD
-0.07 (-0.27%)
Taking everything into account, KHC scores 5 out of 10 in our fundamental rating. KHC was compared to 86 industry peers in the Food Products industry. There are concerns on the financial health of KHC while its profitability can be described as average. KHC is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KHC had positive earnings in the past year.
In the past year KHC had a positive cash flow from operations.
In the past 5 years KHC has always been profitable.
In the past 5 years KHC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -6.46%, KHC is doing worse than 69.77% of the companies in the same industry.
Looking at the Return On Equity, with a value of -12.74%, KHC is doing worse than 68.60% of the companies in the same industry.
KHC's Return On Invested Capital of 5.58% is fine compared to the rest of the industry. KHC outperforms 62.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KHC is significantly below the industry average of 28.75%.
The last Return On Invested Capital (5.58%) for KHC is above the 3 year average (4.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | -12.74% | ||
| ROIC | 5.58% |
ROA(3y)2.96%
ROA(5y)2.06%
ROE(3y)5.4%
ROE(5y)3.79%
ROIC(3y)4.97%
ROIC(5y)4.89%
1.3 Margins
KHC's Profit Margin has improved in the last couple of years.
The Operating Margin of KHC (20.52%) is better than 97.67% of its industry peers.
In the last couple of years the Operating Margin of KHC has remained more or less at the same level.
KHC has a Gross Margin of 34.31%. This is in the better half of the industry: KHC outperforms 76.74% of its industry peers.
In the last couple of years the Gross Margin of KHC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.52% | ||
| PM (TTM) | N/A | ||
| GM | 34.31% |
OM growth 3Y1.51%
OM growth 5Y0.42%
PM growth 3Y39.8%
PM growth 5Y6.51%
GM growth 3Y1.31%
GM growth 5Y1.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KHC is destroying value.
Compared to 1 year ago, KHC has less shares outstanding
The number of shares outstanding for KHC has been reduced compared to 5 years ago.
Compared to 1 year ago, KHC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that KHC is in the distress zone and has some risk of bankruptcy.
KHC has a worse Altman-Z score (0.88) than 72.09% of its industry peers.
The Debt to FCF ratio of KHC is 6.07, which is on the high side as it means it would take KHC, 6.07 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.07, KHC is doing good in the industry, outperforming 75.58% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that KHC is not too dependend on debt financing.
KHC has a Debt to Equity ratio (0.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.07 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.84
WACC6.63%
2.3 Liquidity
KHC has a Current Ratio of 1.07. This is a normal value and indicates that KHC is financially healthy and should not expect problems in meeting its short term obligations.
KHC has a worse Current ratio (1.07) than 75.58% of its industry peers.
KHC has a Quick Ratio of 1.07. This is a bad value and indicates that KHC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.66, KHC is not doing good in the industry: 70.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The earnings per share for KHC have decreased by -2.36% in the last year.
The Earnings Per Share has been growing slightly by 1.43% on average over the past years.
KHC shows a decrease in Revenue. In the last year, the revenue decreased by -3.83%.
The Revenue has been growing slightly by 0.69% on average over the past years.
EPS 1Y (TTM)-2.36%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-11.54%
Revenue 1Y (TTM)-3.83%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-1.91%
3.2 Future
Based on estimates for the next years, KHC will show a small growth in Earnings Per Share. The EPS will grow by 1.33% on average per year.
KHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.45% yearly.
EPS Next Y-14.73%
EPS Next 2Y-6.54%
EPS Next 3Y-2.85%
EPS Next 5Y1.33%
Revenue Next Year-3.03%
Revenue Next 2Y-1.14%
Revenue Next 3Y-0.34%
Revenue Next 5Y0.45%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KHC is valuated reasonably with a Price/Earnings ratio of 8.80.
KHC's Price/Earnings ratio is rather cheap when compared to the industry. KHC is cheaper than 87.21% of the companies in the same industry.
KHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.08.
With a Price/Forward Earnings ratio of 9.55, the valuation of KHC can be described as very reasonable.
91.86% of the companies in the same industry are more expensive than KHC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, KHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.8 | ||
| Fwd PE | 9.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KHC indicates a somewhat cheap valuation: KHC is cheaper than 72.09% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KHC indicates a rather cheap valuation: KHC is cheaper than 87.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.64 | ||
| EV/EBITDA | 7.8 |
4.3 Compensation for Growth
The decent profitability rating of KHC may justify a higher PE ratio.
A cheap valuation may be justified as KHC's earnings are expected to decrease with -2.85% in the coming years.
PEG (NY)N/A
PEG (5Y)6.14
EPS Next 2Y-6.54%
EPS Next 3Y-2.85%
5. Dividend
5.1 Amount
KHC has a Yearly Dividend Yield of 6.30%, which is a nice return.
Compared to an average industry Dividend Yield of 5.10, KHC pays a better dividend. On top of this KHC pays more dividend than 88.37% of the companies listed in the same industry.
KHC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.3% |
5.2 History
KHC has paid a dividend for at least 10 years, which is a reliable track record.
As KHC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
KHC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-36.29%
EPS Next 2Y-6.54%
EPS Next 3Y-2.85%
25.52
-0.07 (-0.27%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners59.55%
Inst Owner Change0.19%
Ins Owners0.31%
Ins Owner Change0.06%
Market Cap30.21B
Revenue(TTM)25.31B
Net Income(TTM)-5271000000
Analysts65.38
Price Target30.63 (20.02%)
Short Float %6.42%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.3% |
Yearly Dividend1.6
Dividend Growth(5Y)0%
DP-36.29%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.65%
Min EPS beat(2)1.8%
Max EPS beat(2)7.5%
EPS beat(4)4
Avg EPS beat(4)4.16%
Min EPS beat(4)0.43%
Max EPS beat(4)7.5%
EPS beat(8)7
Avg EPS beat(8)3.78%
EPS beat(12)11
Avg EPS beat(12)5.46%
EPS beat(16)15
Avg EPS beat(16)7.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)0.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)0.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.74%
Revenue beat(12)4
Avg Revenue beat(12)-1.05%
Revenue beat(16)8
Avg Revenue beat(16)-0.27%
PT rev (1m)0.17%
PT rev (3m)-1.01%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)-8.55%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.8 | ||
| Fwd PE | 9.55 | ||
| P/S | 1.19 | ||
| P/FCF | 8.64 | ||
| P/OCF | 6.86 | ||
| P/B | 0.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.8 |
EPS(TTM)2.9
EY11.36%
EPS(NY)2.67
Fwd EY10.47%
FCF(TTM)2.95
FCFY11.57%
OCF(TTM)3.72
OCFY14.57%
SpS21.38
BVpS34.94
TBVpS-15.76
PEG (NY)N/A
PEG (5Y)6.14
Graham Number47.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | -12.74% | ||
| ROCE | 7.12% | ||
| ROIC | 5.58% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 39.17% | ||
| OM | 20.52% | ||
| PM (TTM) | N/A | ||
| GM | 34.31% | ||
| FCFM | 13.8% |
ROA(3y)2.96%
ROA(5y)2.06%
ROE(3y)5.4%
ROE(5y)3.79%
ROIC(3y)4.97%
ROIC(5y)4.89%
ROICexc(3y)5.05%
ROICexc(5y)5.02%
ROICexgc(3y)48.4%
ROICexgc(5y)52.54%
ROCE(3y)6.35%
ROCE(5y)6.25%
ROICexgc growth 3Y-16.8%
ROICexgc growth 5Y-7.23%
ROICexc growth 3Y1.76%
ROICexc growth 5Y3.9%
OM growth 3Y1.51%
OM growth 5Y0.42%
PM growth 3Y39.8%
PM growth 5Y6.51%
GM growth 3Y1.31%
GM growth 5Y1.14%
F-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.07 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 95.27% | ||
| Cap/Sales | 3.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.88 |
F-Score5
WACC6.63%
ROIC/WACC0.84
Cap/Depr(3y)108.79%
Cap/Depr(5y)97.47%
Cap/Sales(3y)3.92%
Cap/Sales(5y)3.5%
Profit Quality(3y)93.19%
Profit Quality(5y)387.46%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.36%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-11.54%
EPS Next Y-14.73%
EPS Next 2Y-6.54%
EPS Next 3Y-2.85%
EPS Next 5Y1.33%
Revenue 1Y (TTM)-3.83%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-1.91%
Revenue Next Year-3.03%
Revenue Next 2Y-1.14%
Revenue Next 3Y-0.34%
Revenue Next 5Y0.45%
EBIT growth 1Y-2.9%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year9.95%
EBIT Next 3Y4.24%
EBIT Next 5Y4.56%
FCF growth 1Y53.51%
FCF growth 3Y-12.18%
FCF growth 5Y1.64%
OCF growth 1Y34.76%
OCF growth 3Y-7.95%
OCF growth 5Y3.33%
KRAFT HEINZ CO/THE / KHC FAQ
What is the ChartMill fundamental rating of KRAFT HEINZ CO/THE (KHC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to KHC.
Can you provide the valuation status for KRAFT HEINZ CO/THE?
ChartMill assigns a valuation rating of 7 / 10 to KRAFT HEINZ CO/THE (KHC). This can be considered as Undervalued.
What is the profitability of KHC stock?
KRAFT HEINZ CO/THE (KHC) has a profitability rating of 6 / 10.
What is the valuation of KRAFT HEINZ CO/THE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KRAFT HEINZ CO/THE (KHC) is 8.8 and the Price/Book (PB) ratio is 0.73.
Can you provide the expected EPS growth for KHC stock?
The Earnings per Share (EPS) of KRAFT HEINZ CO/THE (KHC) is expected to decline by -14.73% in the next year.