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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Vita Coco Co., Inc.

General Mills, Inc.

The Simply Good Foods Co.

Conagra Brands, Inc.

Campbell Soup Co.

B&G Foods, Inc.

The Kraft Heinz Co.

Tyson 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 0.07% of over the last 5 years

ROCE(HY) Lowest at -11.68%
INTEREST COVERAGE RATIO(Q) Lowest at 579.01
DEBT-EQUITY RATIO (HY) Highest at 45.01 %

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 -20.55%, its profits have risen by 69.5% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 464.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.55% 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.

-21.81%

-0.96

25.14%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.08%

EBIT Growth (5y)

0.07%

EBIT to Interest (avg)

4.65

Debt to EBITDA (avg)

3.27

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

0.38

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

70.85%

Pledged Shares

Institutional Holding

86.45%

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

0.64

EV to EBIT

9.54

EV to EBITDA

8.10

EV to Capital Employed

0.74

EV to Sales

1.99

PEG Ratio

0.08

Dividend Yield

464.28%

ROCE (Latest)

7.77%

ROE (Latest)

11.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 4,400 MM

NET PROFIT(Q)

At USD 1,270 MM has Grown at 264.97%

-11What is not working for the Company

ROCE(HY)

Lowest at -11.68%

INTEREST COVERAGE RATIO(Q)

Lowest at 579.01

DEBT-EQUITY RATIO (HY)

Highest at 45.01 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.24 times

INTEREST(Q)

Highest at USD 262 MM

PRE-TAX PROFIT(Q)

Lowest at USD 927 MM

EPS(Q)

Lowest at USD -6.6

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

Net Profit

At USD 1,270 MM has Grown at 264.97%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 4,400 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)

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

Interest

At USD 262 MM has Grown at 11.49%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 579.01

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 262 MM

in the last five periods and Increased by 11.49% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Lowest at USD 927 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

EPS

Lowest at USD -6.6

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 45.01 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 11.24 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio