WK KELLOGG CO (KLG) Stock Fundamental Analysis
USA - NYSE:KLG - US92942W1071 - Common Stock
23 USD
0 (0%)
23 USD
0 (0%)
KLG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. While KLG is still in line with the averages on profitability rating, there are concerns on its financial health. KLG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year KLG was profitable.
KLG had a positive operating cash flow in the past year.
Of the past 5 years KLG 4 years were profitable.
In the past 5 years KLG always reported a positive cash flow from operatings.
1.2 Ratios
KLG has a Return On Assets (1.60%) which is in line with its industry peers.
KLG's Return On Equity of 9.86% is fine compared to the rest of the industry. KLG outperforms 71.91% of its industry peers.
The Return On Invested Capital of KLG (9.68%) is better than 82.02% of its industry peers.
KLG had an Average Return On Invested Capital over the past 3 years of 10.53%. This is significantly below the industry average of 28.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 9.86% | ||
| ROIC | 9.68% |
ROA(3y)2.58%
ROA(5y)7.05%
ROE(3y)18.58%
ROE(5y)24.2%
ROIC(3y)10.53%
ROIC(5y)12.48%
1.3 Margins
KLG has a Profit Margin (1.31%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KLG has declined.
Looking at the Operating Margin, with a value of 6.49%, KLG is in the better half of the industry, outperforming 66.29% of the companies in the same industry.
In the last couple of years the Operating Margin of KLG has grown nicely.
KLG has a Gross Margin of 30.40%. This is in the better half of the industry: KLG outperforms 69.66% of its industry peers.
In the last couple of years the Gross Margin of KLG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.49% | ||
| PM (TTM) | 1.31% | ||
| GM | 30.4% |
OM growth 3Y62.88%
OM growth 5YN/A
PM growth 3Y-26.09%
PM growth 5YN/A
GM growth 3Y8.37%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KLG is creating some value.
The number of shares outstanding for KLG has been increased compared to 1 year ago.
The debt/assets ratio for KLG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.17 indicates that KLG is not a great score, but indicates only limited risk for bankruptcy at the moment.
KLG's Altman-Z score of 2.17 is in line compared to the rest of the industry. KLG outperforms 50.56% of its industry peers.
KLG has a Debt/Equity ratio of 2.05. This is a high value indicating a heavy dependency on external financing.
KLG's Debt to Equity ratio of 2.05 is on the low side compared to the rest of the industry. KLG is outperformed by 86.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.17 |
ROIC/WACC1.2
WACC8.08%
2.3 Liquidity
A Current Ratio of 0.99 indicates that KLG may have some problems paying its short term obligations.
With a Current ratio value of 0.99, KLG is not doing good in the industry: 78.65% of the companies in the same industry are doing better.
KLG has a Quick Ratio of 0.99. 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 Quick ratio of KLG (0.47) is worse than 76.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
KLG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.07%.
KLG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.66% yearly.
KLG shows a decrease in Revenue. In the last year, the revenue decreased by -4.30%.
KLG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.25% yearly.
EPS 1Y (TTM)-0.07%
EPS 3Y-23.66%
EPS 5YN/A
EPS Q2Q%-40.91%
Revenue 1Y (TTM)-4.3%
Revenue growth 3Y3.25%
Revenue growth 5YN/A
Sales Q2Q%-8.78%
3.2 Future
The Earnings Per Share is expected to grow by 12.93% on average over the next years. This is quite good.
KLG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.80% yearly.
EPS Next Y-5.74%
EPS Next 2Y-1.29%
EPS Next 3Y4.27%
EPS Next 5Y12.93%
Revenue Next Year-4.2%
Revenue Next 2Y-3.55%
Revenue Next 3Y-2.39%
Revenue Next 5Y-0.8%
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.
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 15.54, the valuation of KLG can be described as correct.
69.66% of the companies in the same industry are more expensive than KLG, based on the Price/Earnings ratio.
KLG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.89.
Based on the Price/Forward Earnings ratio of 15.33, the valuation of KLG can be described as correct.
70.79% of the companies in the same industry are more expensive than KLG, based on the Price/Forward Earnings ratio.
KLG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 15.33 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KLG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.26 |
4.3 Compensation for Growth
The decent profitability rating of KLG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.29%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.87%, KLG has a reasonable but not impressive dividend return.
KLG's Dividend Yield is a higher than the industry average which is at 5.17.
KLG's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
5.2 History
KLG has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
KLG pays out 164.71% of its income as dividend. This is not a sustainable payout ratio.
DP164.71%
EPS Next 2Y-1.29%
EPS Next 3Y4.27%
23
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.46%
Inst Owner ChangeN/A
Ins Owners6.57%
Ins Owner Change-177881%
Market Cap1.99B
Revenue(TTM)2.60B
Net Income(TTM)34.00M
Analysts50.67
Price Target22.61 (-1.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP164.71%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.01%
Min EPS beat(2)8.16%
Max EPS beat(2)21.87%
EPS beat(4)4
Avg EPS beat(4)27.7%
Min EPS beat(4)8.16%
Max EPS beat(4)62.95%
EPS beat(8)6
Avg EPS beat(8)23.42%
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)0
Avg Revenue beat(2)-2.92%
Min Revenue beat(2)-3.39%
Max Revenue beat(2)-2.44%
Revenue beat(4)1
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-3.39%
Max Revenue beat(4)0.75%
Revenue beat(8)3
Avg Revenue beat(8)-0.56%
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)0%
PT rev (3m)34.77%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)4.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.7%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)-2.43%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 15.33 | ||
| P/S | 0.76 | ||
| P/FCF | N/A | ||
| P/OCF | 25.16 | ||
| P/B | 5.76 | ||
| P/tB | 8.46 | ||
| EV/EBITDA | 10.26 |
EPS(TTM)1.48
EY6.43%
EPS(NY)1.5
Fwd EY6.52%
FCF(TTM)-1.47
FCFYN/A
OCF(TTM)0.91
OCFY3.97%
SpS30.14
BVpS3.99
TBVpS2.72
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 9.86% | ||
| ROCE | 12.29% | ||
| ROIC | 9.68% | ||
| ROICexc | 10.59% | ||
| ROICexgc | 11.59% | ||
| OM | 6.49% | ||
| PM (TTM) | 1.31% | ||
| GM | 30.4% | ||
| FCFM | N/A |
ROA(3y)2.58%
ROA(5y)7.05%
ROE(3y)18.58%
ROE(5y)24.2%
ROIC(3y)10.53%
ROIC(5y)12.48%
ROICexc(3y)10.95%
ROICexc(5y)12.73%
ROICexgc(3y)12.41%
ROICexgc(5y)14.97%
ROCE(3y)13.36%
ROCE(5y)15.69%
ROICexgc growth 3Y38.76%
ROICexgc growth 5YN/A
ROICexc growth 3Y42.18%
ROICexc growth 5YN/A
OM growth 3Y62.88%
OM growth 5YN/A
PM growth 3Y-26.09%
PM growth 5YN/A
GM growth 3Y8.37%
GM growth 5YN/A
F-Score5
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 248.19% | ||
| Cap/Sales | 7.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 31.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 2.17 |
F-Score5
WACC8.08%
ROIC/WACC1.2
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)-0.07%
EPS 3Y-23.66%
EPS 5YN/A
EPS Q2Q%-40.91%
EPS Next Y-5.74%
EPS Next 2Y-1.29%
EPS Next 3Y4.27%
EPS Next 5Y12.93%
Revenue 1Y (TTM)-4.3%
Revenue growth 3Y3.25%
Revenue growth 5YN/A
Sales Q2Q%-8.78%
Revenue Next Year-4.2%
Revenue Next 2Y-3.55%
Revenue Next 3Y-2.39%
Revenue Next 5Y-0.8%
EBIT growth 1Y3.05%
EBIT growth 3Y68.18%
EBIT growth 5YN/A
EBIT Next Year33.22%
EBIT Next 3Y18.48%
EBIT Next 5Y14.53%
FCF growth 1Y-382.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-46.98%
OCF growth 3Y142.64%
OCF growth 5YN/A
WK KELLOGG CO / KLG FAQ
Can you provide the ChartMill fundamental rating for WK KELLOGG CO?
ChartMill assigns a fundamental rating of 3 / 10 to KLG.
Can you provide the valuation status for WK KELLOGG CO?
ChartMill assigns a valuation rating of 4 / 10 to WK KELLOGG CO (KLG). This can be considered as Fairly Valued.
Can you provide the profitability details for WK KELLOGG CO?
WK KELLOGG CO (KLG) has a profitability rating of 6 / 10.
What are the PE and PB ratios of WK KELLOGG CO (KLG) stock?
The Price/Earnings (PE) ratio for WK KELLOGG CO (KLG) is 15.54 and the Price/Book (PB) ratio is 5.76.
How financially healthy is WK KELLOGG CO?
The financial health rating of WK KELLOGG CO (KLG) is 1 / 10.