Kraft Heinz
Market Cap
US$35.7b
Last Updated
2020/10/28 23:34 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. More Details
Rewards
Risk Analysis
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
| KHC | Industry | Market | |
|---|---|---|---|
| 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 Year | 8.2%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
2 weeks ago | Simply Wall St
What You Need To Know About The Kraft Heinz Company's (NASDAQ:KHC) Investor Composition1 month ago | Simply Wall St
Is There An Opportunity With The Kraft Heinz Company's (NASDAQ:KHC) 31% Undervaluation?1 month ago | Simply Wall St
Are Dividend Investors Making A Mistake With The Kraft Heinz Company (NASDAQ:KHC)?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 1.33yrs | US$43.30m | 0.065% $ 23.1m | |
| Global Chief Financial Officer | 1.08yrs | US$15.37m | 0.0036% $ 1.3m | |
| Senior VP | 2.75yrs | US$7.38m | no data | |
| Chief Growth Officer | 5.25yrs | US$8.49m | 0.00043% $ 153.6k | |
| Zone President of International | 4yrs | US$11.09m | 0.0025% $ 889.5k | |
| Head of Global Operations | 0.75yr | no data | no data | |
| VP, Principal Accounting Officer & Global Controller | 2.33yrs | no data | 0.00053% $ 189.3k | |
| 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 | |
| Senior Vice President of Corporate & Government Affairs | no data | no data | no data | |
| Chief Quality Officer | no data | no data | no data |
2.3yrs
Average Tenure
46yo
Average Age
Experienced Management: KHC's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Vice Chairman | 5.25yrs | US$496.43k | 0.012% $ 4.3m | |
| Independent Director | 5.25yrs | US$255.00k | 0.00083% $ 296.5k | |
| Independent Director | 7.75yrs | US$235.03k | 0.29% $ 102.2m | |
| Independent Director | 7.33yrs | US$235.03k | 0.0032% $ 1.1m | |
| Independent Chairman | 7.33yrs | US$388.99k | 0.0034% $ 1.2m | |
| Independent Director | 2.5yrs | US$235.03k | 0.00049% $ 175.0k | |
| Independent Director | 0.75yr | no data | 0.00052% $ 185.8k | |
| Independent Director | 0.42yr | no data | 0.00035% $ 125.0k | |
| Independent Director | 0.42yr | no data | 0.00035% $ 125.0k | |
| Director | 2.5yrs | US$180.00k | 0.0070% $ 2.5m | |
| Independent Director | 1.33yrs | US$152.32k | no 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
| 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 cond ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/28 23:34 |
| End of Day Share Price | 2020/10/28 00:00 |
| Earnings | 2020/06/27 |
| 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.