Market Cap
US$23.5b
Last Updated
2020/01/28 23:42 UTC
Data Sources
Company Financials +
Executive Summary
Kellogg Company, together with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience foods.
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer and slightly overvalued.
Similar Companies
Share Price & News
How has Kellogg's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: K has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.3%
K
-1.5%
US Food
-2.7%
US Market
1 Year Return
18.5%
K
13.0%
US Food
21.2%
US Market
Return vs Industry: K exceeded the US Food industry which returned 13.9% over the past year.
Return vs Market: K underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| K | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.3% | -1.5% | -2.7% |
| 30 Day | -0.3% | -1.6% | 0.09% |
| 90 Day | 8.0% | 5.4% | 6.9% |
| 1 Year | 23.1%18.5% | 16.1%13.0% | 23.8%21.2% |
| 3 Year | 5.1%-5.1% | 0.1%-7.9% | 48.1%38.6% |
| 5 Year | 21.3%3.5% | 42.8%26.0% | 72.5%53.4% |
Price Volatility Vs. Market
How volatile is Kellogg's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Here's Why Kellogg (NYSE:K) Has A Meaningful Debt Burden2 weeks ago | Simply Wall St
What Kind Of Investor Owns Most Of Kellogg Company (NYSE:K)?3 weeks ago | Simply Wall St
Kellogg Company (NYSE:K) Earns A Nice Return On Capital EmployedValuation
Is Kellogg undervalued compared to its fair value and its price relative to the market?
30.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: K ($70) is trading below our estimate of fair value ($100)
Significantly Below Fair Value: K is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: K is poor value based on its PE Ratio (32.9x) compared to the Food industry average (25.4x).
PE vs Market: K is poor value based on its PE Ratio (32.9x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: K is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: K is overvalued based on its PB Ratio (8.8x) compared to the US Food industry average (2.1x).
Next Steps
Future Growth
How is Kellogg forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
14.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: K's forecast earnings growth (19.7% per year) is above the savings rate (1.7%).
Earnings vs Market: K's earnings (14.2% per year) are forecast to grow slower than the US market (14.7% per year).
High Growth Earnings: K's earnings are forecast to grow, but not significantly.
Revenue vs Market: K's revenue (1% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: K's revenue (1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: K's Return on Equity is forecast to be very high in 3 years time (46.9%).
Next Steps
Past Performance
How has Kellogg performed over the past 5 years?
13.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: K has high quality earnings.
Growing Profit Margin: K's current net profit margins (5.3%) are lower than last year (13.7%).
Past Earnings Growth Analysis
Earnings Trend: K's earnings have grown by 13.7% per year over the past 5 years.
Accelerating Growth: K's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: K had negative earnings growth (-60.2%) over the past year, making it difficult to compare to the Food industry average (-12.1%).
Return on Equity
High ROE: Whilst K's Return on Equity (22.6%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Kellogg's financial position?
Financial Position Analysis
Short Term Liabilities: K's short term assets ($3.5B) do not cover its short term liabilities ($4.4B).
Long Term Liabilities: K's short term assets ($3.5B) do not cover its long term liabilities ($9.8B).
Debt to Equity History and Analysis
Debt Level: K's debt to equity ratio (240.3%) is considered high.
Reducing Debt: K's debt to equity ratio has increased from 224.4% to 240.3% over the past 5 years.
Debt Coverage: K's debt is not well covered by operating cash flow (19.4%).
Interest Coverage: K's interest payments on its debt are well covered by EBIT (5.6x coverage).
Balance Sheet
Inventory Level: K has a high level of physical assets or inventory.
Debt Coverage by Assets: K's debt is not covered by short term assets (assets are 0.4x debt).
Next Steps
Dividend
What is Kellogg's current dividend yield, its reliability and sustainability?
3.31%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: K's dividend (3.26%) is higher than the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: K's dividend (3.26%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
Stable Dividend: K's dividends per share have been stable in the past 10 years.
Growing Dividend: K's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (105.7%), K's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: K's dividends in 3 years are forecast to be covered by earnings (59% payout ratio).
Next Steps
Management
What is the CEO of Kellogg's salary, the management and board of directors tenure and is there insider trading?
3.6yrs
Average management tenure
CEO
Steve Cahillane (54yo)
2.3yrs
Tenure
US$9,989,992
Compensation
Mr. Steven A. Cahillane, also known as Steve, has been the Chief Executive Officer, President and Director of Kellogg Company since October 2, 2017 and has been its Chairman since March 16, 2018. Mr. Cahil ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD9.99M) is about average for companies of similar size in the US market ($USD10.76M).
Compensation vs Earnings: Insufficient data to compare Steve's compensation with company performance.
Management Age and Tenure
3.6yrs
Average Tenure
54yo
Average Age
Experienced Management: K's management team is considered experienced (3.6 years average tenure).
Board Age and Tenure
5.1yrs
Average Tenure
58yo
Average Age
Experienced Board: K's board of directors are considered experienced (5.1 years average tenure).
Insider Trading
Insider Buying: K insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 2,136 |
| Max Price | US$63.70 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of Global Supply Chain |
| Shares | 2,500 |
| Max Price | US$63.88 |
| Entity | Individual |
| Role | Chief Legal Officer Vice Chairman of Corporate Development & Chief Legal Officer |
| Shares | 20,655 |
| Max Price | US$63.73 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
John Renwick
Vice President of Investor Relations & Corporate Planning
- Tenure: 3.7yrs
Gary Pilnick (55yo)
Vice Chairman of Corporate Development & Chief Legal Officer
- Tenure: 4yrs
- Compensation: US$3.47m
Steve Cahillane (54yo)
Chairman
- Tenure: 2.3yrs
- Compensation: US$9.99m
Amit Banati (50yo)
Senior VP & CFO
- Tenure: 0.5yrs
Alistair Hirst (60yo)
Senior Vice President of Global Supply Chain
- Tenure: 7.8yrs
- Compensation: US$2.87m
Melissa Howell (52yo)
Senior Vice President of Global Human Services
- Tenure: 3.6yrs
Chris Hood (56yo)
Senior VP & President of Kellogg North America
- Tenure: 6.3yrs
- Compensation: US$3.95m
Michael Hunter
Vice President of Global Sales
- Tenure: 4.7yrs
Kurt Forche (49yo)
VP, Corporate Controller & Principal Accounting Officer
- Tenure: 1.4yrs
Lesley Salmon
Senior VP & Chief Information Officer
- Tenure: 0.9yrs
Board Members
Don Knauss (68yo)
Lead Independent Director
- Compensation: US$305.00k
Rick Dreiling (66yo)
Independent Director
- Tenure: 3.6yrs
- Compensation: US$260.00k
Jim Jenness (73yo)
Non-Executive Director
- Tenure: 19.5yrs
- Compensation: US$260.00k
Zack Gund (48yo)
Independent Director
- Tenure: 5.1yrs
- Compensation: US$275.00k
Stephanie Burns (64yo)
Independent Director
- Tenure: 5.9yrs
- Compensation: US$280.00k
Steve Cahillane (54yo)
Chairman
- Tenure: 2.3yrs
- Compensation: US$9.99m
Carter Cast (55yo)
Independent Director
- Tenure: 2.6yrs
- Compensation: US$372.03k
Mary Laschinger (58yo)
Independent Director
- Tenure: 7.3yrs
- Compensation: US$280.00k
Carolyn Tastad (58yo)
Independent Director
- Tenure: 4.1yrs
- Compensation: US$260.00k
La Montgomery Tabron (56yo)
Independent Director
- Tenure: 5.9yrs
- Compensation: US$260.00k
Company Information
Kellogg Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Kellogg Company
- Ticker: K
- Exchange: NYSE
- Founded: 1906
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: US$23.529b
- Shares outstanding: 341.09m
- Website: https://www.kelloggcompany.com
Number of Employees
Location
- Kellogg Company
- One Kellogg Square
- Battle Creek
- Michigan
- 49016
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| K | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| KEL | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1968 |
| KEL | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| K | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jan 1968 |
| 0R1R | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| KELL | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1968 |
| K * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
Biography
Kellogg Company, together with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience foods. The company operates through U.S. Snacks, U.S. Morning Foods, U.S. Specialty Channels, North America Other, Europe, Latin America, and Asia Pacific segments. Its principal products include crackers, cookies, crisps and other savory snacks, toaster pastries, cereal bars, granola bars and bites, fruit-flavored snacks, ready-to-eat cereals, frozen waffles, veggie foods, and noodles. The company offers its snacks and other convenience foods under the Kellogg’s, Keebler, Cheez-It, Pringles, Murray, Austin, Famous Amos, Parati, and RXBAR brand names; cereals and cereal bars under the Kellogg’s, Kashi, and Bear Naked brands; and frozen foods under the Eggo and Morningstar Farms brand names. It sells its products to retailers through direct sales forces, as well as brokers and distributors in approximately 180 countries. Kellogg Company was founded in 1906 and is headquartered in Battle Creek, Michigan.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/28 23:42 |
| End of Day Share Price | 2020/01/28 00:00 |
| Earnings | 2019/09/28 |
| Annual Earnings | 2018/12/29 |
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.