KRAFT HEINZ CO/THE (KHNZ.DE) Stock Fundamental Analysis
FRA:KHNZ - Deutsche Boerse Ag - US5007541064 - Common Stock - Currency: EUR
Overall KHNZ gets a fundamental rating of 5 out of 10. We evaluated KHNZ against 57 industry peers in the Food Products industry. While KHNZ is still in line with the averages on profitability rating, there are concerns on its financial health. KHNZ has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
KHNZ had positive earnings in the past year.
In the past year KHNZ had a positive cash flow from operations.
Each year in the past 5 years KHNZ has been profitable.
Each year in the past 5 years KHNZ had a positive operating cash flow.
1.2 Ratios
KHNZ has a Return On Assets (3.11%) which is in line with its industry peers.
KHNZ has a Return On Equity of 5.58%. This is in the lower half of the industry: KHNZ underperforms 65.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.20%, KHNZ is in line with its industry, outperforming 44.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KHNZ is below the industry average of 7.01%.
The last Return On Invested Capital (5.20%) for KHNZ is above the 3 year average (4.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.58% | ||
| ROIC | 5.2% |
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
With an excellent Profit Margin value of 10.62%, KHNZ belongs to the best of the industry, outperforming 81.03% of the companies in the same industry.
KHNZ's Profit Margin has improved in the last couple of years.
KHNZ has a Operating Margin of 20.81%. This is amongst the best in the industry. KHNZ outperforms 93.10% of its industry peers.
In the last couple of years the Operating Margin of KHNZ has remained more or less at the same level.
KHNZ's Gross Margin of 34.73% is in line compared to the rest of the industry. KHNZ outperforms 46.55% of its industry peers.
In the last couple of years the Gross Margin of KHNZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.81% | ||
| PM (TTM) | 10.62% | ||
| GM | 34.73% |
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
KHNZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, KHNZ has less shares outstanding
KHNZ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KHNZ is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that KHNZ is in the distress zone and has some risk of bankruptcy.
KHNZ has a Altman-Z score of 1.12. This is in the lower half of the industry: KHNZ underperforms 75.86% of its industry peers.
The Debt to FCF ratio of KHNZ is 6.58, which is on the high side as it means it would take KHNZ, 6.58 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.58, KHNZ perfoms like the industry average, outperforming 44.83% of the companies in the same industry.
KHNZ has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of KHNZ (0.39) is better than 70.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.73
WACC7.11%
2.3 Liquidity
A Current Ratio of 1.06 indicates that KHNZ should not have too much problems paying its short term obligations.
KHNZ has a worse Current ratio (1.06) than 72.41% of its industry peers.
A Quick Ratio of 0.59 indicates that KHNZ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.59, KHNZ is doing worse than 74.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.03% over the past year.
KHNZ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.43% yearly.
Looking at the last year, KHNZ shows a decrease in Revenue. The Revenue has decreased by -2.98% in the last year.
KHNZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.69% yearly.
EPS 1Y (TTM)3.03%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%7.69%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-4.14%
3.2 Future
Based on estimates for the next years, KHNZ will show a small growth in Earnings Per Share. The EPS will grow by 7.30% on average per year.
The Revenue is expected to grow by 3.16% on average over the next years.
EPS Next Y-11.44%
EPS Next 2Y-3.67%
EPS Next 3Y-0.85%
EPS Next 5Y7.3%
Revenue Next Year-3.65%
Revenue Next 2Y-1.32%
Revenue Next 3Y-0.36%
Revenue Next 5Y3.16%
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
Based on the Price/Earnings ratio of 10.50, the valuation of KHNZ can be described as reasonable.
Based on the Price/Earnings ratio, KHNZ is valued a bit cheaper than the industry average as 74.14% of the companies are valued more expensively.
KHNZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
A Price/Forward Earnings ratio of 11.86 indicates a reasonable valuation of KHNZ.
KHNZ's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, KHNZ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 11.86 |
4.2 Price Multiples
KHNZ's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, KHNZ is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.72 | ||
| EV/EBITDA | 9 |
4.3 Compensation for Growth
KHNZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.33
EPS Next 2Y-3.67%
EPS Next 3Y-0.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.12%, KHNZ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.35, KHNZ pays a better dividend. On top of this KHNZ pays more dividend than 91.38% of the companies listed in the same industry.
KHNZ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
KHNZ pays out 70.37% of its income as dividend. This is not a sustainable payout ratio.
DP70.37%
EPS Next 2Y-3.67%
EPS Next 3Y-0.85%
FRA:KHNZ (2/26/2025, 3:37:02 PM)
29.61
+0.8 (+2.79%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners59.39%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap35.38B
Analysts66.67
Price Target31.41 (6.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
Yearly Dividend1.47
Dividend Growth(5Y)0%
DP70.37%
Div Incr Years0
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.67%
Min EPS beat(2)0.43%
Max EPS beat(2)6.92%
EPS beat(4)3
Avg EPS beat(4)2.97%
Min EPS beat(4)-0.52%
Max EPS beat(4)6.92%
EPS beat(8)7
Avg EPS beat(8)4.58%
EPS beat(12)11
Avg EPS beat(12)5.78%
EPS beat(16)15
Avg EPS beat(16)8.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)-1.26%
Revenue beat(8)1
Avg Revenue beat(8)-1.88%
Revenue beat(12)5
Avg Revenue beat(12)-0.63%
Revenue beat(16)8
Avg Revenue beat(16)-0.13%
PT rev (1m)-10.03%
PT rev (3m)-12.57%
EPS NQ rev (1m)-10.88%
EPS NQ rev (3m)-12.62%
EPS NY rev (1m)-12.2%
EPS NY rev (3m)-12.57%
Revenue NQ rev (1m)-3.59%
Revenue NQ rev (3m)-4.64%
Revenue NY rev (1m)-3.42%
Revenue NY rev (3m)-4.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 11.86 | ||
| P/S | 1.49 | ||
| P/FCF | 12.72 | ||
| P/OCF | 9.18 | ||
| P/B | 0.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9 |
EPS(TTM)2.82
EY9.52%
EPS(NY)2.5
Fwd EY8.43%
FCF(TTM)2.33
FCFY7.86%
OCF(TTM)3.22
OCFY10.89%
SpS19.92
BVpS37.91
TBVpS-15.1
PEG (NY)N/A
PEG (5Y)7.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.58% | ||
| ROCE | 6.64% | ||
| ROIC | 5.2% | ||
| ROICexc | 5.29% | ||
| ROICexgc | 38.55% | ||
| OM | 20.81% | ||
| PM (TTM) | 10.62% | ||
| GM | 34.73% | ||
| FCFM | 11.68% |
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%
ROICexcg growth 3Y-16.8%
ROICexcg 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-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 6.58 | ||
| Debt/EBITDA | 3.04 | ||
| Cap/Depr | 122.79% | ||
| Cap/Sales | 4.5% | ||
| Interest Coverage | 5.94 | ||
| Cash Conversion | 66.14% | ||
| Profit Quality | 110.06% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.12 |
F-Score6
WACC7.11%
ROIC/WACC0.73
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)3.03%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%7.69%
EPS Next Y-11.44%
EPS Next 2Y-3.67%
EPS Next 3Y-0.85%
EPS Next 5Y7.3%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-4.14%
Revenue Next Year-3.65%
Revenue Next 2Y-1.32%
Revenue Next 3Y-0.36%
Revenue Next 5Y3.16%
EBIT growth 1Y2.59%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year18.78%
EBIT Next 3Y9.2%
EBIT Next 5Y6.87%
FCF growth 1Y1.92%
FCF growth 3Y-12.18%
FCF growth 5Y1.64%
OCF growth 1Y5.23%
OCF growth 3Y-7.95%
OCF growth 5Y3.33%