KRAFT HEINZ CO/THE (KHNZ.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:KHNZ - US5007541064 - Common Stock
19.432 EUR
+0.11 (+0.56%)
Overall KHNZ gets a fundamental rating of 4 out of 10. We evaluated KHNZ against 64 industry peers in the Food Products industry. KHNZ has an average financial health and profitability rating. KHNZ has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year KHNZ was profitable.
- In the past year KHNZ had a positive cash flow from operations.
- In the past 5 years KHNZ has always been profitable.
- Each year in the past 5 years KHNZ had a positive operating cash flow.
1.2 Ratios
- KHNZ's Return On Assets of -5.34% is on the low side compared to the rest of the industry. KHNZ is outperformed by 79.69% of its industry peers.
- The Return On Equity of KHNZ (-10.53%) is worse than 78.13% of its industry peers.
- KHNZ has a Return On Invested Capital (5.32%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for KHNZ 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 Operating Margin of 19.67%. This is amongst the best in the industry. KHNZ outperforms 96.88% 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 has a Gross Margin (33.75%) which is comparable to the rest of the industry.
- 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 | 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
- KHNZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for KHNZ has been reduced compared to 1 year ago.
- The number of shares outstanding for KHNZ has been reduced compared to 5 years ago.
- The debt/assets ratio for KHNZ is higher compared to a year ago.
2.2 Solvency
- KHNZ has an Altman-Z score of 0.83. This is a bad value and indicates that KHNZ is not financially healthy and even has some risk of bankruptcy.
- KHNZ has a Altman-Z score of 0.83. This is in the lower half of the industry: KHNZ underperforms 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.
- KHNZ's Debt to FCF ratio of 5.84 is fine compared to the rest of the industry. KHNZ outperforms 62.50% of its industry peers.
- KHNZ has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
- KHNZ has a Debt to Equity ratio of 0.47. This is in the better half of the industry: KHNZ outperforms 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
WACC6.69%
2.3 Liquidity
- A Current Ratio of 1.13 indicates that KHNZ should not have too much problems paying 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 (0.73) which is in line with 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.
- The Revenue has been growing slightly by 0.69% on average over the past years.
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
- Based on estimates for the next years, KHNZ will show a small growth in Earnings Per Share. The EPS will grow by 0.77% on average per year.
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 8.23 indicates a reasonable valuation of KHNZ.
- 92.19% of the companies in the same industry are more expensive than KHNZ, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, KHNZ is valued rather cheaply.
- KHNZ is valuated reasonably with a Price/Forward Earnings ratio of 8.99.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KHNZ indicates a rather cheap valuation: KHNZ is cheaper than 84.38% of the companies listed in the same industry.
- KHNZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 8.99 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KHNZ is valued a bit cheaper than the industry average as 67.19% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, KHNZ is valued cheaper than 89.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.42 | ||
| 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)5.75
EPS Next 2Y-9.05%
EPS Next 3Y-5.09%
5. Dividend
5.1 Amount
- KHNZ has a Yearly Dividend Yield of 6.60%, which is a nice return.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.82, KHNZ pays a better dividend.
| 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%.