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WK KELLOGG CO (KLG) Stock Fundamental Analysis

NYSE:KLG - New York Stock Exchange, Inc. - US92942W1071 - Common Stock - Currency: USD

19.8  -0.04 (-0.2%)

After market: 19.76 -0.04 (-0.2%)

Fundamental Rating

4

Taking everything into account, KLG scores 4 out of 10 in our fundamental rating. KLG was compared to 91 industry peers in the Food Products industry. While KLG has a great profitability rating, there are quite some concerns on its financial health. KLG has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year KLG was profitable.
In the past year KLG had a positive cash flow from operations.
KLG had positive earnings in 4 of the past 5 years.
Each year in the past 5 years KLG had a positive operating cash flow.
KLG Yearly Net Income VS EBIT VS OCF VS FCFKLG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 2024 0 100M 200M 300M 400M

1.2 Ratios

With a Return On Assets value of 3.67%, KLG perfoms like the industry average, outperforming 56.47% of the companies in the same industry.
With an excellent Return On Equity value of 22.71%, KLG belongs to the best of the industry, outperforming 92.94% of the companies in the same industry.
KLG's Return On Invested Capital of 12.19% is amongst the best of the industry. KLG outperforms 88.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KLG is in line with the industry average of 9.02%.
The last Return On Invested Capital (12.19%) for KLG is above the 3 year average (10.56%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.67%
ROE 22.71%
ROIC 12.19%
ROA(3y)2.58%
ROA(5y)7.05%
ROE(3y)18.58%
ROE(5y)24.2%
ROIC(3y)10.56%
ROIC(5y)12.49%
KLG Yearly ROA, ROE, ROICKLG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 2024 0 10 20 30

1.3 Margins

The Profit Margin of KLG (2.66%) is comparable to the rest of the industry.
KLG's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 6.57%, KLG is doing good in the industry, outperforming 63.53% of the companies in the same industry.
KLG's Operating Margin has improved in the last couple of years.
The Gross Margin of KLG (29.87%) is better than 67.06% of its industry peers.
KLG's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 6.57%
PM (TTM) 2.66%
GM 29.87%
OM growth 3Y63.19%
OM growth 5YN/A
PM growth 3Y-26.09%
PM growth 5YN/A
GM growth 3Y8.42%
GM growth 5YN/A
KLG Yearly Profit, Operating, Gross MarginsKLG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 2024 0 10 20

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1

2. Health

2.1 Basic Checks

KLG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, KLG has more shares outstanding
Compared to 1 year ago, KLG has a worse debt to assets ratio.
KLG Yearly Shares OutstandingKLG Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 20M 40M 60M 80M
KLG Yearly Total Debt VS Total AssetsKLG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

KLG has an Altman-Z score of 2.18. This is not the best score and indicates that KLG is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.18, KLG is in line with its industry, outperforming 50.59% of the companies in the same industry.
KLG has a Debt/Equity ratio of 1.61. This is a high value indicating a heavy dependency on external financing.
KLG has a Debt to Equity ratio of 1.61. This is amonst the worse of the industry: KLG underperforms 85.88% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.61
Debt/FCF N/A
Altman-Z 2.18
ROIC/WACC1.53
WACC7.97%
KLG Yearly LT Debt VS Equity VS FCFKLG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

KLG has a Current Ratio of 0.74. This is a bad value and indicates that KLG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of KLG (0.74) is worse than 84.71% of its industry peers.
A Quick Ratio of 0.32 indicates that KLG may have some problems paying its short term obligations.
KLG's Quick ratio of 0.32 is on the low side compared to the rest of the industry. KLG is outperformed by 89.41% of its industry peers.
Industry RankSector Rank
Current Ratio 0.74
Quick Ratio 0.32
KLG Yearly Current Assets VS Current LiabilitesKLG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 200M 400M 600M 800M

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2

3. Growth

3.1 Past

The earnings per share for KLG have decreased strongly by -36.26% in the last year.
The earnings per share for KLG have been decreasing by -24.06% on average. This is quite bad
Looking at the last year, KLG shows a decrease in Revenue. The Revenue has decreased by -1.99% in the last year.
Measured over the past years, KLG shows a small growth in Revenue. The Revenue has been growing by 3.25% on average per year.
EPS 1Y (TTM)-36.26%
EPS 3Y-24.06%
EPS 5YN/A
EPS Q2Q%133.33%
Revenue 1Y (TTM)-1.99%
Revenue growth 3Y3.25%
Revenue growth 5YN/A
Sales Q2Q%-1.69%

3.2 Future

The Earnings Per Share is expected to grow by 14.80% on average over the next years. This is quite good.
The Revenue is expected to decrease by -0.34% on average over the next years.
EPS Next Y2.83%
EPS Next 2Y9.93%
EPS Next 3Y8.38%
EPS Next 5Y14.8%
Revenue Next Year-0.26%
Revenue Next 2Y-1.05%
Revenue Next 3Y-0.54%
Revenue Next 5Y-0.34%

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 decreasing.
KLG Yearly Revenue VS EstimatesKLG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B 1.5B 2B 2.5B
KLG Yearly EPS VS EstimatesKLG Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 2 3

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4

4. Valuation

4.1 Price/Earnings Ratio

KLG is valuated correctly with a Price/Earnings ratio of 12.86.
KLG's Price/Earnings ratio is a bit cheaper when compared to the industry. KLG is cheaper than 74.12% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.30, KLG is valued rather cheaply.
A Price/Forward Earnings ratio of 12.50 indicates a correct valuation of KLG.
Based on the Price/Forward Earnings ratio, KLG is valued cheaply inside the industry as 81.18% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.06. KLG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 12.86
Fwd PE 12.5
KLG Price Earnings VS Forward Price EarningsKLG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

KLG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KLG is cheaper than 74.12% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 8.41
KLG Per share dataKLG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of KLG may justify a higher PE ratio.
PEG (NY)4.55
PEG (5Y)N/A
EPS Next 2Y9.93%
EPS Next 3Y8.38%

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3

5. Dividend

5.1 Amount

KLG has a Yearly Dividend Yield of 3.33%.
Compared to an average industry Dividend Yield of 3.94, KLG pays a bit more dividend than its industry peers.
KLG's Dividend Yield is a higher than the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 3.33%

5.2 History

KLG has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
KLG Yearly Dividends per shareKLG Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

KLG pays out 76.39% of its income as dividend. This is not a sustainable payout ratio.
DP76.39%
EPS Next 2Y9.93%
EPS Next 3Y8.38%
KLG Yearly Income VS Free CF VS DividendKLG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2020 2021 2022 2023 2024 0 200M 400M 600M
KLG Dividend Payout.KLG Dividend Payout, showing the Payout Ratio.KLG Dividend Payout.PayoutRetained Earnings

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WK KELLOGG CO

NYSE:KLG (2/20/2025, 5:29:21 PM)

After market: 19.76 -0.04 (-0.2%)

19.8

-0.04 (-0.2%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-11 2025-02-11/bmo
Earnings (Next)05-05 2025-05-05/bmo
Inst Owners85.79%
Inst Owner ChangeN/A
Ins Owners6.77%
Ins Owner Change0%
Market Cap1.70B
Analysts47.5
Price Target17.52 (-11.52%)
Short Float %16.2%
Short Ratio11.31
Dividend
Industry RankSector Rank
Dividend Yield 3.33%
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP76.39%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-28 2025-02-28 (0.165)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)40.39%
Min EPS beat(2)17.82%
Max EPS beat(2)62.95%
EPS beat(4)3
Avg EPS beat(4)21.3%
Min EPS beat(4)-2.38%
Max EPS beat(4)62.95%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.25%
Min Revenue beat(2)-1.25%
Max Revenue beat(2)0.75%
Revenue beat(4)2
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-1.25%
Max Revenue beat(4)0.75%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.79%
PT rev (3m)4.07%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)-11.49%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)4.7%
Revenue NQ rev (1m)-1.1%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.07%
Valuation
Industry RankSector Rank
PE 12.86
Fwd PE 12.5
P/S 0.63
P/FCF N/A
P/OCF 17.05
P/B 5.38
P/tB 8.24
EV/EBITDA 8.41
EPS(TTM)1.54
EY7.78%
EPS(NY)1.58
Fwd EY8%
FCF(TTM)-0.34
FCFYN/A
OCF(TTM)1.16
OCFY5.87%
SpS31.45
BVpS3.68
TBVpS2.4
PEG (NY)4.55
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.67%
ROE 22.71%
ROCE 15.88%
ROIC 12.19%
ROICexc 12.62%
ROICexgc 13.98%
OM 6.57%
PM (TTM) 2.66%
GM 29.87%
FCFM N/A
ROA(3y)2.58%
ROA(5y)7.05%
ROE(3y)18.58%
ROE(5y)24.2%
ROIC(3y)10.56%
ROIC(5y)12.49%
ROICexc(3y)10.98%
ROICexc(5y)12.74%
ROICexgc(3y)12.43%
ROICexgc(5y)14.98%
ROCE(3y)13.39%
ROCE(5y)15.7%
ROICexcg growth 3Y39.02%
ROICexcg growth 5YN/A
ROICexc growth 3Y42.45%
ROICexc growth 5YN/A
OM growth 3Y63.19%
OM growth 5YN/A
PM growth 3Y-26.09%
PM growth 5YN/A
GM growth 3Y8.42%
GM growth 5YN/A
F-Score5
Asset Turnover1.38
Health
Industry RankSector Rank
Debt/Equity 1.61
Debt/FCF N/A
Debt/EBITDA 2
Cap/Depr 165.39%
Cap/Sales 4.76%
Interest Coverage 250
Cash Conversion 39.06%
Profit Quality N/A
Current Ratio 0.74
Quick Ratio 0.32
Altman-Z 2.18
F-Score5
WACC7.97%
ROIC/WACC1.53
Cap/Depr(3y)165.69%
Cap/Depr(5y)146.69%
Cap/Sales(3y)4.28%
Cap/Sales(5y)3.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.26%
EPS 3Y-24.06%
EPS 5YN/A
EPS Q2Q%133.33%
EPS Next Y2.83%
EPS Next 2Y9.93%
EPS Next 3Y8.38%
EPS Next 5Y14.8%
Revenue 1Y (TTM)-1.99%
Revenue growth 3Y3.25%
Revenue growth 5YN/A
Sales Q2Q%-1.69%
Revenue Next Year-0.26%
Revenue Next 2Y-1.05%
Revenue Next 3Y-0.54%
Revenue Next 5Y-0.34%
EBIT growth 1Y1.71%
EBIT growth 3Y68.5%
EBIT growth 5YN/A
EBIT Next Year49.19%
EBIT Next 3Y27.02%
EBIT Next 5Y15.96%
FCF growth 1Y-110.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-76.3%
OCF growth 3Y142.64%
OCF growth 5YN/A