WK KELLOGG CO (KLG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KLG - US92942W1071 - Common Stock
23 USD
0 (0%)
23 USD
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Taking everything into account, KLG scores 3 out of 10 in our fundamental rating. KLG was compared to 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KLG had positive earnings in the past year.
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
The Return On Assets of KLG (1.60%) is comparable to the rest of the industry.
KLG has a Return On Equity of 9.86%. This is in the better half of the industry: KLG outperforms 71.91% of its industry peers.
With an excellent Return On Invested Capital value of 9.68%, KLG belongs to the best of the industry, outperforming 82.02% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
The Profit Margin of KLG (1.31%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KLG has declined.
The Operating Margin of KLG (6.49%) is better than 66.29% of its industry peers.
KLG's Operating Margin has improved in the last couple of years.
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.
KLG has more shares outstanding than it did 1 year ago.
The debt/assets ratio for KLG is higher compared to a year ago.
2.2 Solvency
KLG has an Altman-Z score of 2.17. 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 2.17, KLG is in line with its industry, outperforming 50.56% of the companies in the same industry.
A Debt/Equity ratio of 2.05 is on the high side and indicates that KLG has dependencies on debt financing.
KLG has a Debt to Equity ratio of 2.05. This is amonst the worse of the industry: KLG underperforms 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.
KLG has a worse Current ratio (0.99) than 78.65% of its industry peers.
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.
With a Quick ratio value of 0.47, KLG is not doing good in the industry: 76.40% of the companies in the same industry are doing better.
| 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%.
The earnings per share for KLG have been decreasing by -23.66% on average. This is quite bad
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
Based on estimates for the next years, KLG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.93% on average per year.
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.
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
KLG is valuated correctly with a Price/Earnings ratio of 15.54.
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 26.15.
The Price/Forward Earnings ratio is 15.33, which indicates a correct valuation of KLG.
Based on the Price/Forward Earnings ratio, KLG is valued a bit cheaper than the industry average as 70.79% of the companies are valued more expensively.
KLG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| 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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.21, KLG pays a bit more dividend than its industry peers.
KLG's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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
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%
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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.