KRAFT HEINZ CO/THE (KHNZ.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:KHNZ - US5007541064 - Common Stock
19.76 EUR
-0.02 (-0.1%)
We assign a fundamental rating of 4 out of 10 to KHNZ. KHNZ was compared to 62 industry peers in the Food Products industry. KHNZ has only an average score on both its financial health and profitability. 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.
- KHNZ had a positive operating cash flow in the past year.
- 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 80.65% of its industry peers.
- With a Return On Equity value of -10.53%, KHNZ is not doing good in the industry: 79.03% of the companies in the same industry are doing better.
- Looking at the Return On Invested Capital, with a value of 5.32%, KHNZ is in line with its industry, outperforming 54.84% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for KHNZ is below the industry average of 7.38%.
- The 3 year average ROIC (4.97%) for KHNZ is below the current ROIC(5.32%), indicating increased profibility in the last year.
| 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
- In the last couple of years the Profit Margin of KHNZ has grown nicely.
- With an excellent Operating Margin value of 19.67%, KHNZ belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
- In the last couple of years the Operating Margin of KHNZ has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 33.75%, KHNZ is in line with its industry, outperforming 46.77% of the companies in the same industry.
- 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
- KHNZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- KHNZ has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for KHNZ has been reduced compared to 5 years ago.
- KHNZ has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.85, we must say that KHNZ is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of KHNZ (0.85) is worse than 79.03% of its industry peers.
- KHNZ has a debt to FCF ratio of 5.84. This is a neutral value as KHNZ would need 5.84 years to pay back of all of its debts.
- KHNZ's Debt to FCF ratio of 5.84 is fine compared to the rest of the industry. KHNZ outperforms 64.52% of its industry peers.
- A Debt/Equity ratio of 0.47 indicates that KHNZ is not too dependend on debt financing.
- KHNZ's Debt to Equity ratio of 0.47 is fine compared to the rest of the industry. KHNZ outperforms 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.79
WACC6.73%
2.3 Liquidity
- A Current Ratio of 1.13 indicates that KHNZ should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.13, KHNZ perfoms like the industry average, outperforming 41.94% of the companies in the same industry.
- A Quick Ratio of 0.73 indicates that KHNZ may have some problems paying its short term obligations.
- KHNZ's Quick ratio of 0.73 is in line compared to the rest of the industry. KHNZ outperforms 41.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- The earnings per share for KHNZ have decreased by -8.00% in the last year.
- 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 -3.70% in the past 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
- The Earnings Per Share is expected to grow by 0.77% on average over the next years.
- KHNZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.12% yearly.
EPS Next Y-16.51%
EPS Next 2Y-9.11%
EPS Next 3Y-5.19%
EPS Next 5Y0.77%
Revenue Next Year-3.85%
Revenue Next 2Y-2%
Revenue Next 3Y-1.15%
Revenue Next 5Y0.12%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.48, the valuation of KHNZ can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of KHNZ indicates a rather cheap valuation: KHNZ is cheaper than 88.71% of the companies listed in the same industry.
- KHNZ is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 9.25, the valuation of KHNZ can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KHNZ indicates a rather cheap valuation: KHNZ is cheaper than 85.48% of the companies listed in the same industry.
- KHNZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 9.25 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KHNZ is valued a bit cheaper than the industry average as 66.13% of the companies are valued more expensively.
- 88.71% 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 | 7.62 | ||
| EV/EBITDA | 7.58 |
4.3 Compensation for Growth
- KHNZ's earnings are expected to decrease with -5.19% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5.92
EPS Next 2Y-9.11%
EPS Next 3Y-5.19%
5. Dividend
5.1 Amount
- KHNZ has a Yearly Dividend Yield of 7.04%, which is a nice return.
- KHNZ's Dividend Yield is rather good when compared to the industry average which is at 2.38. KHNZ pays more dividend than 98.39% 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 | 7.04% |
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-9.11%
EPS Next 3Y-5.19%
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%.