WK KELLOGG CO (KLG) Stock Fundamental Analysis
USA - New York Stock Exchange - 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. There are concerns on the financial health of KLG while its profitability can be described as average. KLG is valued correctly, but it does not seem to be growing.
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.
KLG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KLG has a Return On Assets (1.60%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 9.86%, KLG is doing good in the industry, outperforming 71.91% of the companies in the same industry.
KLG's Return On Invested Capital of 9.68% is amongst the best of the industry. KLG outperforms 82.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KLG is significantly below the industry average of 28.38%.
| 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
Looking at the Profit Margin, with a value of 1.31%, KLG is in line with its industry, outperforming 42.70% of the companies in the same industry.
KLG's Profit Margin has declined in the last couple of years.
KLG has a Operating Margin of 6.49%. This is in the better half of the industry: KLG outperforms 66.29% of its industry peers.
In the last couple of years the Operating Margin of KLG has grown nicely.
Looking at the Gross Margin, with a value of 30.40%, KLG is in the better half of the industry, outperforming 69.66% of the companies in the same industry.
KLG's Gross Margin has improved in the last couple of years.
| 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
KLG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
KLG has more shares outstanding than it did 1 year ago.
KLG has a worse debt/assets ratio than last year.
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.
With a Altman-Z score value of 2.17, KLG perfoms like the industry average, outperforming 50.56% of the companies in the same industry.
KLG has a Debt/Equity ratio of 2.05. This is a high value indicating a heavy dependency on external financing.
KLG has a worse Debt to Equity ratio (2.05) than 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.
The Current ratio of KLG (0.99) is worse than 78.65% of its industry peers.
A Quick Ratio of 0.47 indicates that KLG may have some problems paying its short term obligations.
KLG has a worse Quick ratio (0.47) 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%.
Measured over the past years, KLG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.66% on average per year.
Looking at the last year, KLG shows a decrease in Revenue. The Revenue has decreased by -4.30% 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)-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
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.
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.
The average S&P500 Price/Earnings ratio is at 26.46. KLG is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.33, which indicates a correct valuation of KLG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KLG indicates a somewhat cheap valuation: KLG is cheaper than 70.79% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, KLG is valued rather cheaply.
| 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
KLG has a very decent profitability rating, which 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
KLG has a Yearly Dividend Yield of 2.87%.
Compared to an average industry Dividend Yield of 5.07, 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 2.32.
| 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
164.71% of the earnings are spent on dividend by KLG. 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.