Kraft Heinz
Market Cap
€34.0b
Last Updated
2020/06/05 01:00 UTC
Data Sources
Company Financials +
Executive Summary
The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Fair value with mediocre balance sheet.
Similar Companies
Share Price & News
How has Kraft Heinz's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: KHC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
1.5%
KHC
1.5%
AT Food
4.5%
AT Market
1 Year Return
7.8%
KHC
-0.1%
AT Food
-15.6%
AT Market
Return vs Industry: KHC exceeded the Austrian Food industry which returned -0.3% over the past year.
Return vs Market: KHC exceeded the Austrian Market which returned -16.4% over the past year.
Shareholder returns
| KHC | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.5% | 1.5% | 4.5% |
| 30 Day | 1.3% | 2.9% | 6.6% |
| 90 Day | 19.2% | -1.8% | -6.5% |
| 1 Year | 14.2%7.8% | 2.0%-0.1% | -14.7%-15.6% |
| 3 Year | -61.6%-66.7% | 17.8%11.0% | -11.8%-18.6% |
| 5 Year | n/a | 46.6%33.1% | 18.8%3.8% |
Price Volatility Vs. Market
How volatile is Kraft Heinz's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Kraft Heinz undervalued compared to its fair value and its price relative to the market?
32.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KHC (€27.38) is trading below our estimate of fair value (€40.34)
Significantly Below Fair Value: KHC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: KHC is poor value based on its PE Ratio (20.2x) compared to the Food industry average (18x).
PE vs Market: KHC is poor value based on its PE Ratio (20.2x) compared to the Austrian market (10.8x).
Price to Earnings Growth Ratio
PEG Ratio: KHC is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: KHC is good value based on its PB Ratio (0.8x) compared to the XE Food industry average (1.1x).
Next Steps
Future Growth
How is Kraft Heinz forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
9.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KHC's forecast earnings growth (9.9% per year) is above the savings rate (0.5%).
Earnings vs Market: KHC's earnings (9.9% per year) are forecast to grow slower than the Austrian market (22.7% per year).
High Growth Earnings: KHC's earnings are forecast to grow, but not significantly.
Revenue vs Market: KHC's revenue is expected to decline over the next 3 years (-0.04% per year).
High Growth Revenue: KHC's revenue is forecast to decline over the next 3 years (-0.04% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: KHC's Return on Equity is forecast to be low in 3 years time (5.5%).
Next Steps
Past Performance
How has Kraft Heinz performed over the past 5 years?
-17.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KHC has a large one-off loss of $1.4B impacting its March 28 2020 financial results.
Growing Profit Margin: KHC became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: KHC's earnings have declined by -17% per year over the past 5 years.
Accelerating Growth: KHC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: KHC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (-0.9%).
Return on Equity
High ROE: KHC's Return on Equity (3.7%) is considered low.
Next Steps
Financial Health
How is Kraft Heinz's financial position?
Financial Position Analysis
Short Term Liabilities: KHC's short term assets ($11.7B) exceed its short term liabilities ($7.9B).
Long Term Liabilities: KHC's short term assets ($11.7B) do not cover its long term liabilities ($45.0B).
Debt to Equity History and Analysis
Debt Level: KHC's debt to equity ratio (62.6%) is considered high.
Reducing Debt: KHC's debt to equity ratio has reduced from 89.4% to 62.6% over the past 5 years.
Debt Coverage: KHC's debt is not well covered by operating cash flow (10.8%).
Interest Coverage: KHC's interest payments on its debt are well covered by EBIT (4x coverage).
Balance Sheet
Next Steps
Dividend
What is Kraft Heinz's current dividend yield, its reliability and sustainability?
5.08%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KHC's dividend (5.08%) is higher than the bottom 25% of dividend payers in the Austrian market (1.68%).
High Dividend: KHC's dividend (5.08%) is in the top 25% of dividend payers in the Austrian market (5.01%)
Stability and Growth of Payments
Stable Dividend: KHC has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: KHC has only been paying a dividend for 5 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (102.4%), KHC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: KHC's dividends in 3 years are forecast to be covered by earnings (67.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Miguel Patricio (53yo)
1
Tenure
US$43,297,480
Compensation
Mr. Miguel Patricio has been the Chief Executive Officer of The Kraft Heinz Company since June 25, 2019 and served as its Interim President of U.S. Zone from July 1, 2019 to February 2020. Mr. Patricio ser ...
CEO Compensation Analysis
Compensation vs Market: Miguel's total compensation ($USD43.30M) is above average for companies of similar size in the Austrian market ($USD3.79M).
Compensation vs Earnings: Insufficient data to compare Miguel's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 1yr | US$43.30m | 0.065% $22.0m | |
| Global Chief Financial Officer | 0.75yr | US$15.37m | 0.053% $18.0m | |
| Senior VP | 2.42yrs | US$7.38m | no data | |
| Chief Growth Officer | 4.92yrs | US$8.49m | 0.0021% $726.9k | |
| Zone President of International | 3.67yrs | US$11.09m | 0.0020% $679.3k | |
| Head of Global Operations | 0.42yr | no data | no data | |
| VP, Principal Accounting Officer & Global Controller | 2yrs | no data | 0.00053% $180.0k | |
| Head of Global Investor Relations | no data | no data | no data | |
| Vice President of Sales | no data | no data | no data | |
| Global Chief People Officer | no data | no data | no data |
2.0yrs
Average Tenure
45yo
Average Age
Experienced Management: KHC's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Vice Chairman | 4.92yrs | US$496.43k | 0.012% $4.1m | |
| Independent Director | 4.92yrs | US$255.00k | 0.00083% $281.9k | |
| Independent Director | 7.42yrs | US$235.03k | 0.29% $97.2m | |
| Independent Director | 7yrs | US$235.03k | 0.0032% $1.1m | |
| Independent Chairman | 7yrs | US$388.99k | 0.0034% $1.1m | |
| Independent Director | 2.17yrs | US$235.03k | 0.00049% $166.4k | |
| Independent Director | 0.42yr | no data | 0.00052% $176.6k | |
| Independent Director | 0.083yr | no data | 0.00035% $118.9k | |
| Director | 2.17yrs | US$180.00k | 0.0070% $2.4m | |
| Independent Director | 1yr | US$152.32k | no data |
3.5yrs
Average Tenure
55yo
Average Age
Experienced Board: KHC's board of directors are considered experienced (3.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
The Kraft Heinz Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Kraft Heinz Company
- Ticker: KHC
- Exchange: WBAG
- Founded: 1869
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: US$38.476b
- Listing Market Cap: US$33.966b
- Shares outstanding: 1.22b
- Website: https://www.kraftheinzcompany.com
Number of Employees
Location
- The Kraft Heinz Company
- One PPG Place
- Pittsburgh
- Pennsylvania
- 15222
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KHC | NasdaqGS (Nasdaq Global Select) | Yes | New Common Stock | US | USD | Jul 2015 |
| KHNZ | XTRA (XETRA Trading Platform) | Yes | New Common Stock | DE | EUR | Jul 2015 |
| KHC * | BMV (Bolsa Mexicana de Valores) | Yes | New Common Stock | MX | MXN | Jul 2015 |
| KHNZ | DB (Deutsche Boerse AG) | Yes | New Common Stock | DE | EUR | Jul 2015 |
| KHC-U | ETLX (Eurotlx) | Yes | New Common Stock | IT | EUR | Jul 2015 |
| KHC | SWX (SIX Swiss Exchange) | Yes | New Common Stock | CH | CHF | Jul 2015 |
| KHC | WBAG (Wiener Boerse AG) | Yes | New Common Stock | AT | EUR | Jul 2015 |
| 0JRV | LSE (London Stock Exchange) | Yes | New Common Stock | GB | USD | Jul 2015 |
| KHCB34 | BOVESPA (Bolsa de Valores de Sao Paulo) | EACH BDR REPR 1 COM USD0.01 | BR | BRL | Sep 2015 |
Biography
The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally. Its products include condiments and sauces, cheese and dairy, meals, meats and seafood, frozen and chilled foods, packaged drinking pouches, appetizers, refreshment beverages, coffee, nuts and salted snacks, infant and nutrition products, and other grocery products, as well as desserts, dressings, toppings, and baking. The company offers its products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Planters, Maxwell House, Capri Sun, Ore-Ida, Kool-Aid, Jell-O, Classico, McCafe, Tassimo, TGI Fridays, Taco Bell Home Originals, Plasmon, Pudliszki, Honig, HP, Benedicta, Karvan Cevitam, ABC, Master, Quero, Golden Circle, and Wattie's names. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative and independent grocery accounts, convenience stores, drug stores, value stores, bakeries, pharmacies, mass merchants, club stores, foodservice distributors and institutions, including hotels, restaurants, hospitals, health care facilities, and government agencies; and online through e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is headquartered in Pittsburgh, Pennsylvania.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/05 01:00 |
| End of Day Share Price | 2020/06/04 00:00 |
| Earnings | 2020/03/28 |
| Annual Earnings | 2019/12/28 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.