NasdaqGS:KHC

Stock Analysis Report

Executive Summary

The Kraft Heinz Company manufactures and markets food and beverage products in the United States, Canada, Europe, the Middle East, and Africa.

Snowflake

Fundamentals

Fair value second-rate dividend payer.


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


Market Performance


7 Day Return

1.2%

KHC

-1.2%

US Food

0.5%

US Market


1 Year Return

-50.9%

KHC

0.3%

US Food

6.8%

US Market

Return vs Industry: KHC underperformed the US Food industry which returned 0.3% over the past year.

Return vs Market: KHC underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

KHCIndustryMarket
7 Day1.2%-1.2%0.5%
30 Day-1.2%-2.9%-0.8%
90 Day-13.3%-1.8%-0.9%
1 Year-48.1%-50.9%3.2%0.3%9.2%6.8%
3 Year-64.5%-68.5%-2.1%-10.7%45.6%36.2%
5 Yearn/a44.2%27.0%63.2%45.4%

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?

49.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KHC ($27.81) is trading below our estimate of fair value ($54.67)

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 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 (0.7x) 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 14 analysts?

49.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KHC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: KHC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: KHC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: KHC's revenue (0.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: KHC's revenue (0.2% per year) is forecast to grow slower than 20% 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?

0.01%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KHC is unprofitable, but has reduced losses over the past 5 years at a rate of 0.01% 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 (-22.7%).


Return on Equity

High ROE: KHC has a negative Return on Equity (-21.59%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: KHC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: KHC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Kraft Heinz's financial position?


Financial Position Analysis

Short Term Liabilities: KHC's short term assets ($9.2B) exceeds its short term liabilities ($7.8B)

Long Term Liabilities: KHC's short term assets (9.2B) do not cover its long term liabilities (43.7B)


Debt to Equity History and Analysis

Debt Level: KHC's debt to equity ratio (59.9%) is considered high

Reducing Debt: KHC's debt to equity ratio has reduced from 89.2% to 59.9% over the past 5 years.

Debt Coverage: KHC's debt is not well covered by operating cash flow (11.9%).

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


Balance Sheet

Inventory Level: KHC has a low level of unsold assets or inventory.

Debt Coverage by Assets: KHC's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

5.75%

Current Dividend Yield


Dividend Yield vs Market

company5.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KHC's dividend (5.75%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: KHC's dividend (5.75%) is in the top 25% of dividend payers in the US market (3.73%)

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 4 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 (62.3% payout ratio).


Next Steps

Management

What is the CEO of Kraft Heinz's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Miguel Patricio (53yo)

0.3yrs

Tenure

0

Mr. Miguel Patricio has been the Chief Executive Officer of The Kraft Heinz Company since June 25, 2019 and has been its Interim President of U.S. Zone sincxe July 1, 2019. Mr. Patricio serves as Chief of  ...


Management Age and Tenure

0.8yrs

Average Tenure

46yo

Average Age

Experienced Management: KHC's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

54.5yo

Average Age

Experienced Board: KHC's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: KHC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$712,952,60516 Sep 19
3G Capital, Inc.
EntityCompany
Shares25,068,657
Max PriceUS$28.44
BuyUS$99,999,98616 Sep 19
Jorge Paulo Alberto Lemann
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,496,503
Max PriceUS$28.60
BuyUS$19,999,98221 Aug 19
Miguel Patricio
EntityIndividual
Role
Chief Executive Officer
CEO & Interim President of U.S. Zone
Shares787,091
Max PriceUS$25.41

Ownership Breakdown


Management Team

  • Miguel Patricio (53yo)

    CEO & Interim President of U.S. Zone

    • Tenure: 0.3yrs
  • Michael Mullen (50yo)

    Senior Vice President of Corporate Affairs

    • Tenure: 0yrs
  • Rashida La Lande (45yo)

    Senior VP

    • Tenure: 1.8yrs
    • Compensation: US$5.80m
  • Chris Jakubik

    Head of Global Investor Relations

    • Tenure: 0yrs
  • Paulo Luiz Basilio (44yo)

    Global Chief Financial Officer

    • Tenure: 0.08yrs
    • Compensation: US$18.85m
  • Melissa Werneck (46yo)

    Global Chief People Officer

    • Tenure: 0yrs
  • Andy Keatings

    Chief Quality Officer

    • Tenure: 0yrs
  • Peter Hall

    Vice President of Sales

    • Tenure: 0yrs
  • Vince Garlati (43yo)

    VP, Principal Accounting Officer & Global Controller

    • Tenure: 1.3yrs
  • Joao Araujo (46yo)

    Head of U.S. Operations

    • Tenure: 0.8yrs

Board Members

  • John Cahill (62yo)

    Vice Chairman

    • Tenure: 4.3yrs
    • Compensation: US$735.05k
  • Jack Pope (70yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$255.05k
  • Jorge Paulo Alberto Lemann (80yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$235.10k
  • Jeanne Jackson (67yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$235.05k
  • Greg Abel (57yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$235.10k
  • Alexandre Behring (52yo)

    Independent Chairman

    • Tenure: 6.3yrs
    • Compensation: US$395.05k
  • Tracy Cool (34yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$235.10k
  • George El-Zoghbi (52yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$17.07m
  • Feroz Dewan (43yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$235.10k
  • Joao Castro-Neves (52yo)

    Independent Director

    • Tenure: 0.3yrs

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$33.928b
  • 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
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 manufactures and markets food and beverage products in the United States, Canada, Europe, the Middle East, and Africa. Its products include condiments and sauces, cheese and dairy,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:28
End of Day Share Price2019/10/21 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


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.