NasdaqGS:KHC

Stock Analysis Report

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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. More Details


Snowflake Analysis

Fair value with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.1%

KHC

-1.6%

US Food

-1.1%

US Market


1 Year Return

2.5%

KHC

6.5%

US Food

15.0%

US Market

Return vs Industry: KHC matched the US Food industry which returned 6.8% over the past year.

Return vs Market: KHC underperformed the US Market which returned 15.6% over the past year.


Shareholder returns

KHCIndustryMarket
7 Day-7.1%-1.6%-1.1%
30 Day-2.0%1.8%2.9%
90 Day-15.0%-0.1%5.7%
1 Year8.2%2.5%9.1%6.5%17.6%15.0%
3 Year-56.5%-62.4%9.2%0.3%38.9%29.7%
5 Year-52.4%-61.5%16.2%0.4%78.4%58.4%

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

Valuation

Is Kraft Heinz undervalued compared to its fair value and its price relative to the market?

30.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KHC ($30.68) is trading below our estimate of fair value ($42.28)

Significantly Below Fair Value: KHC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KHC is unprofitable, so we can't compare its PE Ratio to the US Food industry average.

PE vs Market: KHC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KHC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KHC is good value based on its PB Ratio (0.8x) compared to the US Food industry average (2.1x).


Next Steps

Future Growth

How is Kraft Heinz forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

75.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KHC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: KHC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KHC's is expected to become profitable in the next 3 years.

Revenue vs Market: KHC's revenue is expected to decline over the next 3 years (-1.9% per year).

High Growth Revenue: KHC's revenue is forecast to decline over the next 3 years (-1.9% 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 (6%).


Next Steps

Past Performance

How has Kraft Heinz performed over the past 5 years?

-19.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KHC is currently unprofitable.

Growing Profit Margin: KHC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KHC is unprofitable, and losses have increased over the past 5 years at a rate of 19.3% per year.

Accelerating Growth: Unable to compare KHC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KHC is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-6.4%).


Return on Equity

High ROE: KHC has a negative Return on Equity (-0.39%), as it is currently unprofitable.


Next Steps

Financial Health

How is Kraft Heinz's financial position?


Financial Position Analysis

Short Term Liabilities: KHC's short term assets ($8.8B) exceed its short term liabilities ($8.1B).

Long Term Liabilities: KHC's short term assets ($8.8B) do not cover its long term liabilities ($41.1B).


Debt to Equity History and Analysis

Debt Level: KHC's debt to equity ratio (57.1%) is considered high.

Reducing Debt: KHC's debt to equity ratio has reduced from 86.8% to 57.1% over the past 5 years.

Debt Coverage: KHC's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: KHC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Kraft Heinz current dividend yield, its reliability and sustainability?

5.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KHC's dividend (5.22%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: KHC's dividend (5.22%) is in the top 25% of dividend payers in the US market (4.63%)


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: KHC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: KHC's dividends in 3 years are forecast to be covered by earnings (58.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Miguel Patricio (54 yo)

1.33yrs

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 ($USD43.30M) is above average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Insufficient data to compare Miguel's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Miguel Patricio
Chief Executive Officer1.33yrsUS$43.30m0.065%
$ 23.1m
Paulo Luiz Basilio
Global Chief Financial Officer1.08yrsUS$15.37m0.0036%
$ 1.3m
Rashida La Lande
Senior VP2.75yrsUS$7.38mno data
Nina Barton
Chief Growth Officer5.25yrsUS$8.49m0.00043%
$ 153.6k
Rafael de Oliveira
Zone President of International4yrsUS$11.09m0.0025%
$ 889.5k
Flavio Torres
Head of Global Operations0.75yrno datano data
Vince Garlati
VP, Principal Accounting Officer & Global Controller2.33yrsno data0.00053%
$ 189.3k
Christopher Jakubik
Head of Global Investor Relationsno datano datano data
Peter Hall
Vice President of Salesno datano datano data
Melissa Werneck
Global Chief People Officerno datano datano data
Michael Mullen
Senior Vice President of Corporate & Government Affairsno datano datano data
Andy Keatings
Chief Quality Officerno datano datano data

2.3yrs

Average Tenure

46yo

Average Age

Experienced Management: KHC's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Cahill
Vice Chairman5.25yrsUS$496.43k0.012%
$ 4.3m
John Pope
Independent Director5.25yrsUS$255.00k0.00083%
$ 296.5k
Jorge Paulo Alberto Lemann
Independent Director7.75yrsUS$235.03k0.29%
$ 102.2m
Gregory Abel
Independent Director7.33yrsUS$235.03k0.0032%
$ 1.1m
Alexandre Behring
Independent Chairman7.33yrsUS$388.99k0.0034%
$ 1.2m
Alexandre Van Damme
Independent Director2.5yrsUS$235.03k0.00049%
$ 175.0k
Timothy Kenesey
Independent Director0.75yrno data0.00052%
$ 185.8k
Elio Sceti
Independent Director0.42yrno data0.00035%
$ 125.0k
Susan Mulder
Independent Director0.42yrno data0.00035%
$ 125.0k
George El-Zoghbi
Director2.5yrsUS$180.00k0.0070%
$ 2.5m
Joao Castro-Neves
Independent Director1.33yrsUS$152.32kno data

2.5yrs

Average Tenure

54yo

Average Age

Experienced Board: KHC's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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.


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: NasdaqGS
  • Founded: 1869
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$35.724b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KHCNasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDJul 2015
KHNZXTRA (XETRA Trading Platform)YesNew Common StockDEEURJul 2015
KHC *BMV (Bolsa Mexicana de Valores)YesNew Common StockMXMXNJul 2015
KHNZDB (Deutsche Boerse AG)YesNew Common StockDEEURJul 2015
KHC-UETLX (Eurotlx)YesNew Common StockITEURJul 2015
KHCSWX (SIX Swiss Exchange)YesNew Common StockCHCHFJul 2015
KHCWBAG (Wiener Boerse AG)YesNew Common StockATEURJul 2015
0JRVLSE (London Stock Exchange)YesNew Common StockGBUSDJul 2015
KHCB34BOVESPA (Bolsa de Valores de Sao Paulo)EACH BDR REPR 1 COM USD0.01BRBRLSep 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 cond ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 23:34
End of Day Share Price2020/10/28 00:00
Earnings2020/06/27
Annual Earnings2019/12/28


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.