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KHC

Kraft Heinz NasdaqGS:KHC Stock Report

Last Price

US$38.40

Market Cap

US$47.0b

7D

7.9%

1Y

-5.6%

Updated

26 Jun, 2022

Data

Company Financials +
KHC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance3/6
Financial Health4/6
Dividends2/6

KHC Stock Overview

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.

Kraft Heinz Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Kraft Heinz
Historical stock prices
Current Share PriceUS$38.40
52 Week HighUS$44.87
52 Week LowUS$32.79
Beta0.85
1 Month Change3.59%
3 Month Change-2.27%
1 Year Change-5.63%
3 Year Change23.71%
5 Year Change-55.16%
Change since IPO-47.37%

Recent News & Updates

Jun 22

Kellogg Company: A Tasteful Decision

The management team at Kellogg Company announced plans to spin off two separate sets of operations in the firm. This will turn Kellogg into three standalone publicly-traded enterprises, with the largest entity focused on the global snacking business. This could unlock significant value for investors, but even today, K stock is worth considering.

Jun 08

Buying Kraft Heinz Back

I offer the lessons I've learned while trading this stock over the years. I've outperformed "buy and hold" for a few reasons. The dividend remains relatively well covered, and so I see no harm in buying at current levels. While I won't sell more puts until my current crop expires or I'm exercised, I think there's an opportunity for others here.

Jun 08
Kraft Heinz (NASDAQ:KHC) Has A Somewhat Strained Balance Sheet

Kraft Heinz (NASDAQ:KHC) Has A Somewhat Strained Balance Sheet

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

KHCUS FoodUS Market
7D7.9%4.6%6.6%
1Y-5.6%-1.8%-18.4%

Return vs Industry: KHC underperformed the US Food industry which returned -1.8% over the past year.

Return vs Market: KHC exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is KHC's price volatile compared to industry and market?
KHC volatility
KHC Average Weekly Movement4.6%
Food Industry Average Movement7.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: KHC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: KHC's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186936,000Miguel Patriciohttps://www.kraftheinzcompany.com

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 products, meals, meats, refreshment beverages, coffee, and other grocery products. The company also offers dressings, healthy snacks, and other categories; and spices and other seasonings.

Kraft Heinz Fundamentals Summary

How do Kraft Heinz's earnings and revenue compare to its market cap?
KHC fundamental statistics
Market CapUS$47.00b
Earnings (TTM)US$1.23b
Revenue (TTM)US$25.69b

38.4x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KHC income statement (TTM)
RevenueUS$25.69b
Cost of RevenueUS$17.20b
Gross ProfitUS$8.49b
Other ExpensesUS$7.27b
EarningsUS$1.23b

Last Reported Earnings

Mar 26, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.00
Gross Margin33.05%
Net Profit Margin4.77%
Debt/Equity Ratio44.1%

How did KHC perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

160%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is KHC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KHC?

Other financial metrics that can be useful for relative valuation.

KHC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA10.8x
PEG Ratio3.6x

Price to Earnings Ratio vs Peers

How does KHC's PE Ratio compare to its peers?

KHC PE Ratio vs Peers
The above table shows the PE ratio for KHC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.4x

Price-To-Earnings vs Peers: KHC is expensive based on its Price-To-Earnings Ratio (38.4x) compared to the peer average (17.4x).


Price to Earnings Ratio vs Industry

How does KHC's PE Ratio compare vs other companies in the U.S. Food Industry?

Price-To-Earnings vs Industry: KHC is expensive based on its Price-To-Earnings Ratio (38.4x) compared to the US Food industry average (17.8x)


Price to Earnings Ratio vs Fair Ratio

What is KHC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KHC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio38.4x
Fair PE Ratio27.7x

Price-To-Earnings vs Fair Ratio: KHC is expensive based on its Price-To-Earnings Ratio (38.4x) compared to the estimated Fair Price-To-Earnings Ratio (27.7x).


Share Price vs Fair Value

What is the Fair Price of KHC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KHC ($38.4) is trading below our estimate of fair value ($97.03)

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


Price to Earnings Growth Ratio

PEG Ratio: KHC is poor value based on its PEG Ratio (3.6x)


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Future Growth

How is Kraft Heinz forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KHC's forecast earnings growth (10.6% per year) is above the savings rate (1.9%).

Earnings vs Market: KHC's earnings (10.6% per year) are forecast to grow slower than the US market (13.9% per year).

High Growth Earnings: KHC's earnings are forecast to grow, but not significantly.

Revenue vs Market: KHC's revenue (0.7% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: KHC's revenue (0.7% 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 (6.6%).


Discover growth companies

Past Performance

How has Kraft Heinz performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-21.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KHC has a large one-off loss of $1.5B impacting its March 26 2022 financial results.

Growing Profit Margin: KHC's current net profit margins (4.8%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: KHC's earnings have declined by 21.2% per year over the past 5 years.

Accelerating Growth: KHC's earnings growth over the past year (127.3%) exceeds its 5-year average (-21.2% per year).

Earnings vs Industry: KHC earnings growth over the past year (127.3%) exceeded the Food industry 13.1%.


Return on Equity

High ROE: KHC's Return on Equity (2.5%) is considered low.


Discover strong past performing companies

Financial Health

How is Kraft Heinz's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: KHC's short term assets ($9.3B) exceed its short term liabilities ($9.1B).

Long Term Liabilities: KHC's short term assets ($9.3B) do not cover its long term liabilities ($35.0B).


Debt to Equity History and Analysis

Debt Level: KHC's net debt to equity ratio (38.1%) is considered satisfactory.

Reducing Debt: KHC's debt to equity ratio has reduced from 56.4% to 44.1% over the past 5 years.

Debt Coverage: KHC's debt is well covered by operating cash flow (22.9%).

Interest Coverage: KHC's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.17%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KHC's dividend (4.17%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: KHC's dividend (4.17%) is low compared to the top 25% of dividend payers in the US market (4.24%).


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 7 years, and since then payments have fallen.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (159.9%), KHC's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (47.2%), KHC's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.7yrs

Average management tenure


CEO

Miguel Patricio (55 yo)

3yrs

Tenure

US$8,605,599

Compensation

Mr. Miguel Patricio has been the Chief Executive Officer of The Kraft Heinz Company since June 25, 2019 and serves as its Director since May 06, 2021 and serves as its Chairman of the Board since May 5, 20...


CEO Compensation Analysis

Compensation vs Market: Miguel's total compensation ($USD8.61M) is below average for companies of similar size in the US market ($USD13.44M).

Compensation vs Earnings: Miguel's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: KHC's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: KHC's board of directors are not considered experienced ( 2.1 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: KHC insiders have only sold shares 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 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
  • Implied Market Cap: US$47.003b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/26
Annual Earnings2021/12/25


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.