company background image
K

KelloggNYSE:K Stock Report

Market Cap

US$20.9b

7D

-3.5%

1Y

-3.9%

Updated

30 Nov, 2021

Data

Company Financials +
K fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends6/6

K Stock Overview

Kellogg Company, together with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience foods.

Kellogg Competitors

Mondelez International

NasdaqGS:MDLZ

US$82.2b

Kraft Heinz

NasdaqGS:KHC

US$41.1b

General Mills

NYSE:GIS

US$37.4b

Hershey

NYSE:HSY

US$36.6b

Price History & Performance

Summary of all time highs, changes and price drops for Kellogg
Historical stock prices
Current Share PriceUS$61.18
52 Week HighUS$68.60
52 Week LowUS$56.61
Beta0.58
1 Month Change-0.20%
3 Month Change-3.33%
1 Year Change-3.93%
3 Year Change-0.91%
5 Year Change-14.99%
Change since IPO257.26%

Recent News & Updates

Nov 22

Kellogg Is An Oasis Of Value In A Frothy Market

Kellogg fits the description of being a "wonderful company at an attractive price". It's seeing strong growth across its snack categories and this momentum should continue. I also highlight the dividend, valuation, and other points worth considering.

Nov 08
Kellogg (NYSE:K) Has More To Do To Multiply In Value Going Forward

Kellogg (NYSE:K) Has More To Do To Multiply In Value Going Forward

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to...

Sep 23
Is Kellogg (NYSE:K) A Risky Investment?

Is Kellogg (NYSE:K) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Sep 10

Kellogg: Even Low Valuations Are At Risk

One year since I first outlined the risks for Kellogg, it is the worst performer in its peer group. The company's low valuation is justified by its low and deteriorating profitability. Going forward, Kellogg's already low valuation is at risk.

Shareholder Returns

KUS FoodUS Market
7D-3.5%-4.4%-2.8%
1Y-3.9%2.2%20.0%

Return vs Industry: K underperformed the US Food industry which returned 2.2% over the past year.

Return vs Market: K underperformed the US Market which returned 20% over the past year.

Price Volatility

Is K's price volatile compared to industry and market?
K volatility
K Average Weekly Movement2.1%
Food Industry Average Movement5.2%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: K is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: K's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190631,000Steve Cahillanehttps://www.kelloggcompany.com

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 and bites, granola bars and bites, ready-to-eat cereals, frozen waffles, veggie foods, and noodles.

Kellogg Fundamentals Summary

How do Kellogg's earnings and revenue compare to its market cap?
K fundamental statistics
Market CapUS$20.87b
Earnings (TTM)US$1.26b
Revenue (TTM)US$14.23b

16.6x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
K income statement (TTM)
RevenueUS$14.23b
Cost of RevenueUS$9.46b
Gross ProfitUS$4.76b
ExpensesUS$3.50b
EarningsUS$1.26b

Last Reported Earnings

Oct 02, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.69
Gross Margin33.47%
Net Profit Margin8.86%
Debt/Equity Ratio188.4%

How did K perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

62%

Payout Ratio

Does K pay a reliable dividends?

See K dividend history and benchmarks
When do you need to buy K by to receive an upcoming dividend?
Kellogg dividend dates
Ex Dividend DateNov 30 2021
Dividend Pay DateDec 15 2021
Days until Ex dividend1 day
Days until Dividend pay date14 days

Does K pay a reliable dividends?

See K dividend history and benchmarks

Valuation

Is Kellogg undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: K ($61.18) is trading below our estimate of fair value ($127.2)

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


Price To Earnings Ratio

PE vs Industry: K is good value based on its PE Ratio (16.6x) compared to the US Food industry average (20.6x).

PE vs Market: K is good value based on its PE Ratio (16.6x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: K is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: K is overvalued based on its PB Ratio (6x) compared to the US Food industry average (2.4x).


Future Growth

How is Kellogg forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: K's forecast earnings growth (5.7% per year) is above the savings rate (2%).

Earnings vs Market: K's earnings (5.7% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: K's revenue (1.3% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: K's revenue (1.3% 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 high in 3 years time (37.9%)


Past Performance

How has Kellogg performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: K has high quality earnings.

Growing Profit Margin: K's current net profit margins (8.9%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: K's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: K's earnings growth over the past year (5.5%) is below its 5-year average (6.1% per year).

Earnings vs Industry: K earnings growth over the past year (5.5%) underperformed the Food industry 21.9%.


Return on Equity

High ROE: Whilst K's Return on Equity (31.65%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Kellogg's financial position?


Financial Position Analysis

Short Term Liabilities: K's short term assets ($3.8B) do not cover its short term liabilities ($5.0B).

Long Term Liabilities: K's short term assets ($3.8B) do not cover its long term liabilities ($9.4B).


Debt to Equity History and Analysis

Debt Level: K's net debt to equity ratio (176.1%) is considered high.

Reducing Debt: K's debt to equity ratio has reduced from 359.5% to 188.4% over the past 5 years.

Debt Coverage: K's debt is well covered by operating cash flow (20.4%).

Interest Coverage: K's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet


Dividend

What is Kellogg current dividend yield, its reliability and sustainability?

3.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: K's dividend (3.79%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: K's dividend (3.79%) is in the top 25% of dividend payers in the US market (3.63%)


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 reasonable payout ratio (62.3%), K's dividend 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 (55.7% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Steve Cahillane (56 yo)

4.08yrs

Tenure

US$11,663,852

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 ($USD11.66M) is about average for companies of similar size in the US market ($USD11.14M).

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


Leadership Team

Experienced Management: K's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: K's board of directors are considered experienced (5.4 years average tenure).


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.


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 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$20.870b
  • Shares outstanding: 341.12m
  • Website: https://www.kelloggcompany.com

Number of Employees


Location

  • Kellogg Company
  • One Kellogg Square
  • Battle Creek
  • Michigan
  • 49016-3599
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 23:55
End of Day Share Price2021/11/30 00:00
Earnings2021/10/02
Annual Earnings2021/01/02


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.