KRAFT HEINZ CO/THE (KHC)
US5007541064 - Common Stock
Overall KHC gets a fundamental rating of 5 out of 10. We evaluated KHC against 91 industry peers in the Food Products industry. KHC has a medium profitability rating, but doesn't score so well on its financial health evaluation. KHC has a valuation in line with the averages, 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.
Each year in the past 5 years KHC had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.55%, KHC perfoms like the industry average, outperforming 45.56% of the companies in the same industry.
With a Return On Equity value of 2.83%, KHC perfoms like the industry average, outperforming 45.56% of the companies in the same industry.
KHC's Return On Invested Capital of 5.22% is in line compared to the rest of the industry. KHC outperforms 54.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KHC is below the industry average of 8.82%.
The last Return On Invested Capital (5.22%) for KHC is above the 3 year average (4.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 2.83% | ||
| ROIC | 5.22% |
ROA(3y)2.28%
ROA(5y)1.82%
ROE(3y)4.22%
ROE(5y)3.43%
ROIC(3y)4.89%
ROIC(5y)4.75%
1.3 Margins
The Profit Margin of KHC (5.24%) is better than 70.00% of its industry peers.
In the last couple of years the Profit Margin of KHC has grown nicely.
KHC's Operating Margin of 20.41% is amongst the best of the industry. KHC outperforms 96.67% of its industry peers.
KHC's Operating Margin has declined in the last couple of years.
The Gross Margin of KHC (34.66%) is better than 80.00% 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 | 20.41% | ||
| PM (TTM) | 5.24% | ||
| GM | 34.66% |
OM growth 3Y-2.11%
OM growth 5Y-2.9%
PM growth 3Y99.02%
PM growth 5YN/A
GM growth 3Y-1.21%
GM growth 5Y-0.58%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KHC is destroying value.
Compared to 1 year ago, KHC has less shares outstanding
Compared to 5 years ago, KHC has about the same amount of shares outstanding.
The debt/assets ratio for KHC has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.06, we must say that KHC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of KHC (1.06) is worse than 71.11% of its industry peers.
The Debt to FCF ratio of KHC is 6.69, which is on the high side as it means it would take KHC, 6.69 years of fcf income to pay off all of its debts.
KHC has a Debt to FCF ratio of 6.69. This is comparable to the rest of the industry: KHC outperforms 57.78% of its industry peers.
KHC has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
KHC has a Debt to Equity ratio (0.40) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.72
WACC7.21%
2.3 Liquidity
KHC has a Current Ratio of 1.06. This is a normal value and indicates that KHC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.06, KHC is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
KHC has a Quick Ratio of 1.06. This is a bad value and indicates that KHC is not financially healthy enough and could expect problems in meeting its short term obligations.
KHC has a Quick ratio of 0.56. This is in the lower half of the industry: KHC underperforms 67.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for KHC have decreased by -1.32% in the last year.
KHC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.29% yearly.
KHC shows a decrease in Revenue. In the last year, the revenue decreased by -3.80%.
Measured over the past years, KHC shows a small growth in Revenue. The Revenue has been growing by 0.28% on average per year.
EPS 1Y (TTM)-1.32%
EPS 3Y1.03%
EPS 5Y-3.29%
EPS Q2Q%4.17%
Revenue 1Y (TTM)-3.8%
Revenue growth 3Y0.58%
Revenue growth 5Y0.28%
Sales Q2Q%-2.85%
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 4.57% on average per year.
The Revenue is expected to grow by 0.82% on average over the next years.
EPS Next Y2.22%
EPS Next 2Y2.17%
EPS Next 3Y3.18%
EPS Next 5Y4.57%
Revenue Next Year-2.92%
Revenue Next 2Y-1.27%
Revenue Next 3Y-0.25%
Revenue Next 5Y0.82%
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
KHC is valuated reasonably with a Price/Earnings ratio of 10.17.
Based on the Price/Earnings ratio, KHC is valued cheaper than 88.89% of the companies in the same industry.
When comparing the Price/Earnings ratio of KHC to the average of the S&P500 Index (27.20), we can say KHC is valued rather cheaply.
KHC is valuated reasonably with a Price/Forward Earnings ratio of 9.84.
94.44% of the companies in the same industry are more expensive than KHC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.73. KHC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 9.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KHC is valued a bit cheaper than the industry average as 74.44% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, KHC is valued a bit cheaper than 74.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.3 | ||
| EV/EBITDA | 8.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.57
PEG (5Y)N/A
EPS Next 2Y2.17%
EPS Next 3Y3.18%
5. Dividend
5.1 Amount
KHC has a Yearly Dividend Yield of 5.32%, which is a nice return.
Compared to an average industry Dividend Yield of 3.83, KHC pays a better dividend. On top of this KHC pays more dividend than 91.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, KHC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
5.2 History
The dividend of KHC decreases each year by -9.23%.
KHC has been paying a dividend for at least 10 years, so it has 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)-9.23%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
141.82% of the earnings are spent on dividend by KHC. This is not a sustainable payout ratio.
DP141.82%
EPS Next 2Y2.17%
EPS Next 3Y3.18%
KRAFT HEINZ CO/THE
NASDAQ:KHC (12/20/2024, 8:21:14 PM)
After market: 30.6 +0.08 (+0.26%)30.52
+0.42 (+1.4%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners56.7%
Inst Owner Change2.49%
Ins Owners0.26%
Ins Owner Change-0.01%
Market Cap36.90B
Analysts71.85
Price Target37.78 (23.79%)
Short Float %4.44%
Short Ratio4.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
Dividend Growth(5Y)-9.23%
DP141.82%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.75%
Min EPS beat(2)0.43%
Max EPS beat(2)5.06%
EPS beat(4)3
Avg EPS beat(4)1.4%
Min EPS beat(4)-0.52%
Max EPS beat(4)5.06%
EPS beat(8)7
Avg EPS beat(8)4.72%
EPS beat(12)11
Avg EPS beat(12)7.23%
EPS beat(16)15
Avg EPS beat(16)8.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.84%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-2.76%
Max Revenue beat(4)-1.26%
Revenue beat(8)2
Avg Revenue beat(8)-1.53%
Revenue beat(12)6
Avg Revenue beat(12)-0.4%
Revenue beat(16)9
Avg Revenue beat(16)0.05%
PT rev (1m)-4.05%
PT rev (3m)-2.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.2%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.51%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 9.84 | ||
| P/S | 1.41 | ||
| P/FCF | 12.3 | ||
| P/OCF | 8.89 | ||
| P/B | 0.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.85 |
EPS(TTM)3
EY9.83%
EPS(NY)3.1
Fwd EY10.16%
FCF(TTM)2.48
FCFY8.13%
OCF(TTM)3.43
OCFY11.25%
SpS21.61
BVpS39.97
TBVpS-18.54
PEG (NY)4.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 2.83% | ||
| ROCE | 6.6% | ||
| ROIC | 5.22% | ||
| ROICexc | 5.3% | ||
| ROICexgc | 47.82% | ||
| OM | 20.41% | ||
| PM (TTM) | 5.24% | ||
| GM | 34.66% | ||
| FCFM | 11.48% |
ROA(3y)2.28%
ROA(5y)1.82%
ROE(3y)4.22%
ROE(5y)3.43%
ROIC(3y)4.89%
ROIC(5y)4.75%
ROICexc(3y)5.01%
ROICexc(5y)4.88%
ROICexgc(3y)58.42%
ROICexgc(5y)56.59%
ROCE(3y)6.19%
ROCE(5y)6.01%
ROICexcg growth 3Y0.88%
ROICexcg growth 5Y-0.57%
ROICexc growth 3Y1.39%
ROICexc growth 5Y0.52%
OM growth 3Y-2.11%
OM growth 5Y-2.9%
PM growth 3Y99.02%
PM growth 5YN/A
GM growth 3Y-1.21%
GM growth 5Y-0.58%
F-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 6.69 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 119.28% | ||
| Cap/Sales | 4.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.94% | ||
| Profit Quality | 219.05% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.06 |
F-Score5
WACC7.21%
ROIC/WACC0.72
Cap/Depr(3y)101.01%
Cap/Depr(5y)88.36%
Cap/Sales(3y)3.58%
Cap/Sales(5y)3.22%
Profit Quality(3y)203.37%
Profit Quality(5y)394.23%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.32%
EPS 3Y1.03%
EPS 5Y-3.29%
EPS Q2Q%4.17%
EPS Next Y2.22%
EPS Next 2Y2.17%
EPS Next 3Y3.18%
EPS Next 5Y4.57%
Revenue 1Y (TTM)-3.8%
Revenue growth 3Y0.58%
Revenue growth 5Y0.28%
Sales Q2Q%-2.85%
Revenue Next Year-2.92%
Revenue Next 2Y-1.27%
Revenue Next 3Y-0.25%
Revenue Next 5Y0.82%
EBIT growth 1Y3.21%
EBIT growth 3Y-1.55%
EBIT growth 5Y-2.63%
EBIT Next Year22.59%
EBIT Next 3Y8.29%
EBIT Next 5Y6.79%
FCF growth 1Y-15.49%
FCF growth 3Y-11.9%
FCF growth 5Y11.13%
OCF growth 1Y-6.34%
OCF growth 3Y-6.91%
OCF growth 5Y9.09%