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 56 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year KHNZ was profitable.
KHNZ had a positive operating cash flow in the past year.
KHNZ had positive earnings in each of the past 5 years.
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 comparable to the rest of the industry.
KHNZ has a Return On Equity of 5.58%. This is in the lower half of the industry: KHNZ underperforms 60.71% of its industry peers.
The Return On Invested Capital of KHNZ (5.20%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for KHNZ is below the industry average of 7.10%.
The 3 year average ROIC (4.97%) for KHNZ is below the current ROIC(5.20%), indicating increased profibility in the last year.
| 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
KHNZ has a better Profit Margin (10.62%) than 80.36% of its industry peers.
KHNZ's Profit Margin has improved in the last couple of years.
KHNZ's Operating Margin of 20.81% is amongst the best of the industry. KHNZ outperforms 94.64% of its industry peers.
KHNZ's Operating Margin has been stable in the last couple of years.
KHNZ has a Gross Margin of 34.73%. This is comparable to the rest of the industry: KHNZ outperforms 44.64% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KHNZ is destroying value.
KHNZ has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KHNZ has less shares outstanding
Compared to 1 year ago, KHNZ has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that KHNZ is in the distress zone and has some risk of bankruptcy.
KHNZ has a worse Altman-Z score (1.08) than 76.79% 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.
The Debt to FCF ratio of KHNZ (6.58) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.39 indicates that KHNZ is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.39, KHNZ is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.74
WACC7.01%
2.3 Liquidity
A Current Ratio of 1.06 indicates that KHNZ should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.06, KHNZ is doing worse than 69.64% of the companies in the same industry.
KHNZ has a Quick Ratio of 1.06. This is a bad value and indicates that KHNZ is not financially healthy enough and could expect problems in meeting its short term obligations.
KHNZ's Quick ratio of 0.59 is on the low side compared to the rest of the industry. KHNZ is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
KHNZ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.03%.
KHNZ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.43% yearly.
The Revenue has decreased by -2.98% in the past year.
The Revenue has been growing slightly by 0.69% on average over the past years.
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 2.20% on average per year.
The Revenue is expected to grow by 0.63% on average over the next years.
EPS Next Y-11.68%
EPS Next 2Y-4.07%
EPS Next 3Y-1.34%
EPS Next 5Y2.2%
Revenue Next Year-3.62%
Revenue Next 2Y-1.31%
Revenue Next 3Y-0.31%
Revenue Next 5Y0.63%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.67 indicates a reasonable valuation of KHNZ.
Based on the Price/Earnings ratio, KHNZ is valued a bit cheaper than the industry average as 78.57% 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 28.92.
KHNZ is valuated reasonably with a Price/Forward Earnings ratio of 10.95.
Based on the Price/Forward Earnings ratio, KHNZ is valued a bit cheaper than the industry average as 66.07% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.65. KHNZ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
KHNZ's Enterprise Value to EBITDA is on the same level as the industry average.
67.86% of the companies in the same industry are more expensive than KHNZ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.7 | ||
| EV/EBITDA | 8.54 |
4.3 Compensation for Growth
The decent profitability rating of KHNZ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.75
EPS Next 2Y-4.07%
EPS Next 3Y-1.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.43%, KHNZ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.23, KHNZ pays a better dividend. On top of this KHNZ pays more dividend than 91.07% 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 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
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-4.07%
EPS Next 3Y-1.34%
FRA:KHNZ (4/25/2025, 3:33:40 PM)
26.02
-0.13 (-0.5%)
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 Cap31.05B
Analysts65.71
Price Target30.11 (15.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
Yearly Dividend1.41
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)-4.15%
PT rev (3m)-16.67%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-13.43%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-12.82%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-5%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 10.95 | ||
| P/S | 1.37 | ||
| P/FCF | 11.7 | ||
| P/OCF | 8.44 | ||
| P/B | 0.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.54 |
EPS(TTM)2.69
EY10.34%
EPS(NY)2.38
Fwd EY9.13%
FCF(TTM)2.22
FCFY8.55%
OCF(TTM)3.08
OCFY11.84%
SpS19.04
BVpS36.23
TBVpS-14.43
PEG (NY)N/A
PEG (5Y)6.75
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 | 1.08 |
F-Score6
WACC7.01%
ROIC/WACC0.74
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-11.68%
EPS Next 2Y-4.07%
EPS Next 3Y-1.34%
EPS Next 5Y2.2%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-4.14%
Revenue Next Year-3.62%
Revenue Next 2Y-1.31%
Revenue Next 3Y-0.31%
Revenue Next 5Y0.63%
EBIT growth 1Y2.59%
EBIT growth 3Y1.26%
EBIT growth 5Y1.11%
EBIT Next Year13.63%
EBIT Next 3Y5.59%
EBIT Next 5Y5.49%
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%