The Kraft Heinz Co. (KHC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

General Mills, Inc.

Campbell Soup Co.

The Vita Coco Co., Inc.

Tyson Foods, Inc.

The Simply Good Foods Co.

The Kraft Heinz Co.

Conagra Brands, Inc.

B&G Foods, Inc.

The Hain Celestial Group, Inc.

Beyond Meat, Inc.

The Real Good Food Co., Inc.

Why is The Kraft Heinz Co. ?

Poor long term growth as Operating profit has grown by an annual rate -3.56% of over the last 5 years

INTEREST COVERAGE RATIO(Q) Lowest at 554.92
NET PROFIT(Q) At USD 678.45 MM has Fallen at -80.87%
ROCE(HY) Lowest at -12.87%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -29.02%, its profits have fallen by -43.9%
At the current price, the company has a high dividend yield of 7.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -29.02% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Kraft Heinz Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Kraft Heinz Co.

-29.02%

-1.39

25.72%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.97%

EBIT Growth (5y)

-3.56%

EBIT to Interest (avg)

4.65

Debt to EBITDA (avg)

3.27

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

0.39

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

88.84%

ROCE (avg)

7.46%

ROE (avg)

7.53%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.65

EV to EBIT

9.54

EV to EBITDA

7.90

EV to Capital Employed

0.75

EV to Sales

1.79

PEG Ratio

Dividend Yield

7.06%

ROCE (Latest)

7.90%

ROE (Latest)

7.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 4,462 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 72.94%

CASH AND EQV(HY)

Highest at USD 7,005 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.08 times

-17What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 554.92

NET PROFIT(Q)

At USD 678.45 MM has Fallen at -80.87%

ROCE(HY)

Lowest at -12.87%

OPERATING PROFIT MARGIN(Q)

Lowest at 21.31 %

Here's what is working for The Kraft Heinz Co.

Operating Cash Flow

Highest at USD 4,462 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 7,005 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 5.08 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 72.94%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 251 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for The Kraft Heinz Co.

Interest Coverage Ratio

Lowest at 554.92 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At USD 678.45 MM has Fallen at -80.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit Margin

Lowest at 21.31 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales