KRAFT HEINZ CO/THE (KHNZ.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:KHNZ - US5007541064 - Common Stock
19.552 EUR
+0.23 (+1.18%)
KHNZ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 64 industry peers in the Food Products industry. Both the profitability and the financial health of KHNZ get a neutral evaluation. Nothing too spectacular is happening here. KHNZ is valued correctly, but it does not seem to be growing.
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.
- In the past 5 years KHNZ has always been profitable.
- KHNZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of KHNZ (-5.34%) is worse than 79.69% of its industry peers.
- With a Return On Equity value of -10.53%, KHNZ is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
- KHNZ has a Return On Invested Capital of 5.32%. This is comparable to the rest of the industry: KHNZ outperforms 51.56% of its industry peers.
- KHNZ had an Average Return On Invested Capital over the past 3 years of 4.97%. This is below the industry average of 7.95%.
- The last Return On Invested Capital (5.32%) for KHNZ is above the 3 year average (4.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.34% | ||
| ROE | -10.53% | ||
| ROIC | 5.32% |
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's Profit Margin has improved in the last couple of years.
- KHNZ has a better Operating Margin (19.67%) than 96.88% of its industry peers.
- KHNZ's Operating Margin has been stable in the last couple of years.
- KHNZ has a Gross Margin of 33.75%. This is comparable to the rest of the industry: KHNZ outperforms 43.75% of its industry peers.
- KHNZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.67% | ||
| PM (TTM) | N/A | ||
| GM | 33.75% |
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.
- Compared to 1 year ago, KHNZ has less shares outstanding
- KHNZ has less shares outstanding than it did 5 years ago.
- KHNZ has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.83, we must say that KHNZ is in the distress zone and has some risk of bankruptcy.
- KHNZ's Altman-Z score of 0.83 is on the low side compared to the rest of the industry. KHNZ is outperformed by 76.56% of its industry peers.
- The Debt to FCF ratio of KHNZ is 5.84, which is a neutral value as it means it would take KHNZ, 5.84 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.84, KHNZ is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- A Debt/Equity ratio of 0.47 indicates that KHNZ is not too dependend on debt financing.
- KHNZ has a better Debt to Equity ratio (0.47) than 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.8
WACC6.68%
2.3 Liquidity
- KHNZ has a Current Ratio of 1.13. This is a normal value and indicates that KHNZ is financially healthy and should not expect problems in meeting its short term obligations.
- KHNZ has a Current ratio (1.13) which is comparable to the rest of the industry.
- KHNZ has a Quick Ratio of 1.13. 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 has a Quick ratio of 0.73. This is comparable to the rest of the industry: KHNZ outperforms 42.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- KHNZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.00%.
- Measured over the past 5 years, KHNZ shows a small growth in Earnings Per Share. The EPS has been growing by 1.43% on average per year.
- Looking at the last year, KHNZ shows a decrease in Revenue. The Revenue has decreased by -3.70% in the last year.
- Measured over the past years, KHNZ shows a small growth in Revenue. The Revenue has been growing by 0.69% on average per year.
EPS 1Y (TTM)-8%
EPS 3Y1.34%
EPS 5Y1.43%
EPS Q2Q%-18.67%
Revenue 1Y (TTM)-3.7%
Revenue growth 3Y-0.25%
Revenue growth 5Y0.69%
Sales Q2Q%-2.29%
3.2 Future
- KHNZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.77% yearly.
- The Revenue is expected to grow by 0.12% on average over the next years.
EPS Next Y-16.46%
EPS Next 2Y-9.05%
EPS Next 3Y-5.09%
EPS Next 5Y0.77%
Revenue Next Year-3.84%
Revenue Next 2Y-1.99%
Revenue Next 3Y-1.1%
Revenue Next 5Y0.12%
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 decreasing.
- 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
- Based on the Price/Earnings ratio of 8.28, the valuation of KHNZ can be described as reasonable.
- KHNZ's Price/Earnings ratio is rather cheap when compared to the industry. KHNZ is cheaper than 92.19% of the companies in the same industry.
- When comparing the Price/Earnings ratio of KHNZ to the average of the S&P500 Index (27.30), we can say KHNZ is valued rather cheaply.
- The Price/Forward Earnings ratio is 9.04, which indicates a very decent valuation of KHNZ.
- Based on the Price/Forward Earnings ratio, KHNZ is valued cheaper than 84.38% of the companies in the same industry.
- KHNZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 9.04 |
4.2 Price Multiples
- 67.19% of the companies in the same industry are more expensive than KHNZ, based on the Enterprise Value to EBITDA ratio.
- KHNZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KHNZ is cheaper than 89.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.46 | ||
| EV/EBITDA | 7.42 |
4.3 Compensation for Growth
- KHNZ's earnings are expected to decrease with -5.09% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5.79
EPS Next 2Y-9.05%
EPS Next 3Y-5.09%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.60%, KHNZ is a good candidate for dividend investing.
- KHNZ's Dividend Yield is rather good when compared to the industry average which is at 2.42. KHNZ pays more dividend than 93.75% of the companies in the same industry.
- KHNZ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
- The earnings of KHNZ are negative and hence is the payout ratio. KHNZ will probably not be able to sustain this dividend level.
DP-43.59%
EPS Next 2Y-9.05%
EPS Next 3Y-5.09%
KRAFT HEINZ CO/THE / KHNZ.DE FAQ
Can you provide the ChartMill fundamental rating for KRAFT HEINZ CO/THE?
ChartMill assigns a fundamental rating of 4 / 10 to KHNZ.DE.
What is the valuation status for KHNZ stock?
ChartMill assigns a valuation rating of 6 / 10 to KRAFT HEINZ CO/THE (KHNZ.DE). This can be considered as Fairly Valued.
What is the profitability of KHNZ stock?
KRAFT HEINZ CO/THE (KHNZ.DE) has a profitability rating of 5 / 10.
How financially healthy is KRAFT HEINZ CO/THE?
The financial health rating of KRAFT HEINZ CO/THE (KHNZ.DE) is 4 / 10.
Can you provide the dividend sustainability for KHNZ stock?
The dividend rating of KRAFT HEINZ CO/THE (KHNZ.DE) is 5 / 10 and the dividend payout ratio is -43.59%.