Kellogg Company: No Improvement Since 2012
Kellogg's biggest problem lies in the stagnation of its revenues: from 2012 to the present there has been virtually no growth. As of now, it is not yet clear where the HFSS regulations will take Kellogg, but I personally do not think they can have a positive impact in the future. CEO Steve Cahillane: "In an environment like this, which clearly we haven't seen in 40 years, we aren't going to be able to just not pass prices through to consumers." According to my assumptions, Kellogg is overvalued since it has a fair value of $46.53. Kellogg's free cash flow has been flat for a decade and the dividend continues to grow year after year. Is this sustainable?