Now trading at a price of $35.04, Kraft Heinz has moved -1.7% so far today.
Over the last year, Kraft Heinz logged a 3.0% change, with its stock price reaching a high of $38.96 and a low of $30.68. Over the same period, the stock underperformed the S&P 500 index by -25.0%. AThe company's 50-day average price was $34.55. The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Based in Pittsburgh, PA, the Large-Cap Consumer Staples company has 36,000 full time employees. Kraft Heinz has offered a 4.5% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 24.52%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $26,268 | $24,977 | $26,185 | $26,042 | $26,485 | $26,640 |
| Gross Margins | 34.0% | 33.0% | 35.0% | 33.0% | n/a | 34.0% |
| Net Margins | -39% | 8% | 1% | 4% | 9% | 11% |
| Net Income (M) | -$10,192 | $1,935 | $356 | $1,012 | $2,368 | $2,855 |
| Net Interest Expense (M) | $1,284 | $1,361 | $1,394 | $2,047 | $921 | $912 |
| Depreciation & Amort. (M) | $983 | $994 | $969 | $910 | $933 | $961 |
| Diluted Shares (M) | 1,219 | 1,224 | 1,228 | 1,236 | 1,235 | 1,235 |
| Earnings Per Share | -$8.36 | $1.58 | $0.29 | $0.82 | $1.91 | $2.31 |
| EPS Growth | n/a | 118.9% | -81.65% | 182.76% | 132.93% | 20.94% |
| Avg. Price | $47.57 | $27.01 | $27.05 | $34.81 | $36.71 | $35.04 |
| P/E Ratio | -5.69 | 16.99 | 93.28 | 41.94 | 19.22 | 15.04 |
| Free Cash Flow (M) | $1,748 | $2,784 | $4,333 | $4,459 | $1,553 | $2,963 |
| CAPEX (M) | $826 | $768 | $596 | $905 | $916 | $1,013 |
| EV / EBITDA | -9.54 | 14.74 | 18.7 | 13.94 | 14.0 | 11.13 |
| Total Debt (M) | $31,147 | $29,238 | $28,300 | $21,801 | $20,064 | $20,032 |
| Net Debt / EBITDA | -3.25 | 6.63 | 8.03 | 4.2 | 4.17 | 3.37 |
| Current Ratio | 1.21 | 1.03 | 1.34 | 0.99 | 0.87 | 0.99 |
Kraft Heinz has generally positive cash flows and slight revenue growth and increasing reinvestment in the business. Additionally, the company's financial statements display wider gross margins than its peer group and positive EPS growth. However, the firm has not enough current assets to cover current liabilities because its current ratio is 0.99. Finally, we note that Kraft Heinz has significant leverage levels.
The Market May Be Undervaluing Kraft Heinz's Assets and Equity:
Kraft Heinz has a trailing twelve month P/E ratio of 22.1, compared to an average of 22.08 for the Consumer Staples sector. Based on its EPS guidance of $2.84, the company has a forward P/E ratio of 12.2. The 4.3% compound average growth rate of Kraft Heinz's historical and projected earnings per share yields a PEG ratio of 5.19. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Kraft Heinz in terms of its equity because its P/B ratio is 0.87 while the sector average is 3.05. The company's shares are currently trading -23.2% above their Graham number.
Kraft Heinz Has an Analyst Consensus of Some Upside Potential:
The 20 analysts following Kraft Heinz have set target prices ranging from $30.0 to $45.0 per share, for an average of $37.83 with a buy rating. The company is trading -7.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Kraft Heinz has an average amount of shares sold short because 4.2% of the company's shares are sold short. Institutions own 56.8% of the company's shares, and the insider ownership rate stands at 27.19%, suggesting a large amount of insider shareholders. The largest shareholder is Berkshire Hathaway, Inc, whose 27% stake in the company is worth $11,410,244,320.
