Market Cap
US$21.8b
Last Updated
2020/04/07 01:38 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
Established 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
5.9%
K
1.8%
US Food
-2.6%
US Market
1 Year Return
11.1%
K
-3.8%
US Food
-13.3%
US Market
Return vs Industry: K exceeded the US Food industry which returned -4% over the past year.
Return vs Market: K exceeded the US Market which returned -15.9% over the past year.
Shareholder returns
| K | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.9% | 1.8% | -2.6% |
| 30 Day | 0.5% | -6.1% | -15.2% |
| 90 Day | -7.8% | -12.0% | -22.2% |
| 1 Year | 15.4%11.1% | -1.3%-3.8% | -11.5%-13.3% |
| 3 Year | -2.3%-12.0% | -10.2%-17.5% | 13.2%5.7% |
| 5 Year | 13.7%-3.2% | 24.6%9.9% | 31.8%17.2% |
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
2 weeks ago | Simply Wall St
Should We Be Delighted With Kellogg Company's (NYSE:K) ROE Of 29%?3 weeks ago | Simply Wall St
Should We Worry About Kellogg Company's (NYSE:K) P/E Ratio?1 month ago | Simply Wall St
Just 2 Days Before Kellogg Company (NYSE:K) Will Be Trading Ex-DividendValuation
Is Kellogg undervalued compared to its fair value and its price relative to the market?
37.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: K ($63.51) is trading below our estimate of fair value ($101)
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 (22.6x) compared to the Food industry average (19.7x).
PE vs Market: K is poor value based on its PE Ratio (22.6x) compared to the US market (12.2x).
Price to Earnings Growth Ratio
PEG Ratio: K is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: K is overvalued based on its PB Ratio (7.9x) compared to the US Food industry average (1.7x).
Next Steps
Future Growth
How is Kellogg forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
12.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: K's forecast earnings growth (12.3% per year) is above the savings rate (1.7%).
Earnings vs Market: K's earnings (12.3% per year) are forecast to grow slower than the US market (13.4% per year).
High Growth Earnings: K's earnings are forecast to grow, but not significantly.
Revenue vs Market: K's revenue (0.4% per year) is forecast to grow slower than the US market (7% per year).
High Growth Revenue: K's revenue (0.4% 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 (40.3%).
Next Steps
Past Performance
How has Kellogg performed over the past 5 years?
19.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: K has high quality earnings.
Growing Profit Margin: K's current net profit margins (7.1%) are lower than last year (9.9%).
Past Earnings Growth Analysis
Earnings Trend: K's earnings have grown by 19.8% 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 (-28.4%) over the past year, making it difficult to compare to the Food industry average (0.4%).
Return on Equity
High ROE: Whilst K's Return on Equity (29.48%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Kellogg's financial position?
Financial Position Analysis
Short Term Liabilities: K's short term assets ($3.4B) do not cover its short term liabilities ($4.8B).
Long Term Liabilities: K's short term assets ($3.4B) do not cover its long term liabilities ($9.5B).
Debt to Equity History and Analysis
Debt Level: K's debt to equity ratio (239.4%) is considered high.
Reducing Debt: K's debt to equity ratio has reduced from 256.4% to 239.4% over the past 5 years.
Debt Coverage: K's debt is not well covered by operating cash flow (14.8%).
Interest Coverage: K's interest payments on its debt are well covered by EBIT (6.5x coverage).
Balance Sheet
Next Steps
Dividend
What is Kellogg's current dividend yield, its reliability and sustainability?
3.59%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: K's dividend (3.59%) is higher than the bottom 25% of dividend payers in the US market (2.07%).
High Dividend: K's dividend (3.59%) is low compared to the top 25% of dividend payers in the US market (5.82%).
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: At its current payout ratio (80.3%), K's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: K's dividends in 3 years are forecast to be covered by earnings (60.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Steve Cahillane (54yo)
2.5s
Tenure
US$9,694,223
Compensation
Mr. Steven A. Cahillane, also known as Steve, has been the Chief Executive Officer, President and Director of Kellogg Company since October 2, 2017 and has been its Chairman since March 16, 2018. Mr. Cahil ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD9.69M) is about average for companies of similar size in the US market ($USD12.04M).
Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.5yrs | US$9.69m | 0.015% $3.2m | |
| Senior VP & CFO | 0.75yr | US$5.37m | 0.012% $2.5m | |
| Vice Chairman of Corporate Development | 4.25yrs | US$4.60m | 0.017% $3.8m | |
| Senior Vice President of Global Supply Chain | 8yrs | US$4.08m | 0.012% $2.6m | |
| Senior VP & President of Kellogg North America | 6.5yrs | US$3.99m | 0.0080% $1.7m | |
| VP, Corporate Controller & Principal Accounting Officer | 1.67yrs | no data | 0.00035% $76.1k | |
| Senior VP & Chief Information Officer | 1.17yrs | no data | no data | |
| Vice President of Investor Relations & Corporate Planning | 3.92yrs | no data | no data | |
| Vice President of Global Sales | 4.92yrs | no data | no data | |
| Senior Vice President of Global Human Services | 3.83yrs | no data | 0.0040% $867.9k |
3.9yrs
Average Tenure
54yo
Average Age
Experienced Management: K's management team is considered experienced (3.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.5yrs | US$9.69m | 0.015% $3.2m | |
| Lead Independent Director | no data | US$310.00k | 0.011% $2.4m | |
| Independent Director | 3.83yrs | US$260.00k | 0.0029% $622.1k | |
| Non-Executive Director | 19.75yrs | US$260.00k | 0.011% $2.5m | |
| Independent Director | 5.33yrs | US$275.00k | no data | |
| Independent Director | 6.17yrs | US$280.00k | 0.0047% $1.0m | |
| Independent Director | 2.83yrs | US$260.00k | 0.0022% $474.2k | |
| Independent Director | 7.5yrs | US$280.00k | 0.0059% $1.3m | |
| Independent Director | 4.33yrs | US$260.00k | 0.0033% $711.3k | |
| Independent Director | 6.17yrs | US$275.00k | no data |
5.3yrs
Average Tenure
58yo
Average Age
Experienced Board: K's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: K insiders have bought more shares than they have sold 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
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$21.752b
- Shares outstanding: 342.50m
- Website: https://www.kelloggcompany.com
Number of Employees
Location
- Kellogg Company
- One Kellogg Square
- Battle Creek
- Michigan
- 49016-3599
- 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 |
| K1EL34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
Biography
Kellogg Company, together with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience foods. The company operates through four segments: North America, Europe, Latin America, and Asia Middle East Africa. Its principal products include crackers, crisps, savory snacks, toaster pastries, cereal bars, granola bars and bites, ready-to-eat cereals, frozen waffles, veggie foods, and noodles. The company offers its products under the Kellogg’s, Cheez-It, Pringles, Austin, Parati, RXBAR, Kashi, Bear Naked, Eggo, Morningstar Farms, Choco Krispies, Crunchy Nut, Nutri-Grain, Special K, Squares, Zucaritas, Sucrilhos, Pop-Tarts, K-Time, Split Stix, Be Natural, LCMs, Coco Pops, Rice Krispies Squares, Kashi Go, Vector, and Gardenburger brand names. It sells its products to retailers through direct sales forces, as well as brokers and distributors. 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 | 2020/04/07 01:38 |
| End of Day Share Price | 2020/04/06 00:00 |
| Earnings | 2019/12/28 |
| 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.