Kellogg Company logged a 0.3% change during today's morning session, and is now trading at a price of $67.29 per share. The S&P 500 index moved -1.0% and the Nasdaq posted a -0.0% change.
Kellogg Company shares moved 0.8% over the last 52 weeks, with a high of $77.17 and a low of $63.74. During this time, the stock outperformed the S&P 500 index by 9.0%. As of January 2022, the company's 50-day average price is $67.0. Kellogg Company, together with its subsidiaries, manufactures and markets snacks and convenience foods. The large-cap Consumer Staples company has 30,000 full time employees and is based in Battle Creek, MI. Kellogg Company has returned a 3.5% dividend yield over the last 12 months.
Declining EPS Growth Trend with a Highly Leveraged Balance Sheet:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $13,578 | $13,770 | $14,181 | $15,315 |
| Revenue Growth | n/a | 1.41% | 2.98% | 8.0% |
| Gross Margins | 32.3% | 34.3% | 32.2% | 30.1% |
| Gross Margins Growth | n/a | 6.19% | -6.12% | -6.52% |
| Operating Margins | 10.3% | 12.8% | 12.4% | 10.7% |
| Operating Margins Growth | n/a | 24.27% | -3.13% | -13.71% |
| Net Margins | 7.07% | 9.08% | 10.49% | 6.27% |
| Net Margins Growth | n/a | 28.43% | 15.53% | -40.23% |
| Earnings Per Share | $2.8 | $3.63 | $4.33 | $2.79 |
| EPS Growth | n/a | 29.64% | 19.28% | -35.57% |
| Diluted Shares (MM) | 343 | 345 | 343 | 343 |
| Free Cash Flow (MM) | $590 | $1,481 | $1,148 | $1,163 |
| FCF Growth | n/a | 151.02% | -22.48% | 1.31% |
| Capital Expenditures (MM) | -$586 | -$505 | -$553 | -$488 |
| Net Debt / EBITDA | 3.63 | 2.98 | 2.57 | 3.31 |
Kellogg Company Is Overpriced:
Compared to the Consumer Staples sector's average of 24.36, Kellogg Company has a trailing twelve month P/E ratio of 24.1 and, according to its EPS guidance of 4.25, an expected P/E ratio of 15.8. Kellogg Company's PEG ratio is 1.48 based on its 8.7% compound average growth rate of historical and projected earnings per share. This implies that the company's shares are fairly valued.
Kellogg Company's P/B ratio is 5.8 compared to its sector average of 4.29. The company is likely overvalued in terms of its equity. The company's shares are currently trading 126.9% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 3.39 * 11.53) = $29.66
Kellogg Company Benefits From Positive Market Indicators:
17 analysts are following Kellogg Company and have set target prices ranging from $61.0 to $82.0 per share. On average, they have given the company a rating of hold. At the current price of $67.29, K is trading -7.07% away from its average analyst target price of $72.41 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 3.5% of the company's shares are tied to short positions. Institutions own 87.4% of Kellogg Company's shares, while the insider ownership rate stands at 6.84%. The biggest shareholder is Kellogg W K Foundation Trust with a 16% stake in the company worth approximately $3,763,653,430.
