Kraft Heinz (KHC) AI Stock Analysis

• Market Cap: $33.61B
• Dividend Yield: 5.63%
• Average Volume (3M): 10.61M
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.03
• Revenue Growth: -4.25%
• EPS Growth: -4.04%
• Country: US
• Employees: 36,000
• Sector: Consumer Defensive
• Sector Strength: 82
• Industry: Packaged Foods
• EPS (TTM): 0.62
• Shares Outstanding: 1,183,542,100
• 10 Day Avg. Volume: 9,961,845
• 30 Day Avg. Volume: 10,608,970
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.14
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $29.31
• Price Target Upside: 3.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

Kraft Heinz's overall stock score is 67.5, reflecting a stable but challenged financial position. The company has a strong balance sheet and cash flow, but faces revenue stagnation and increased costs. Technical indicators suggest a lack of momentum, while valuations remain attractive. The earnings call indicates strategic efforts to spur growth amid pressures, yet short-term challenges persist.

Positive Factors

Brand Growth and Innovation

The commitment to high quality brand-building with increased media spending and raising R&D to match peers is seen as constructive for the business.

Financial Strategy

Upside risk on steep rate cuts scenario as Kraft Heinz would benefit from lower borrowing costs and attract dividend-focused investors.

Strategic Investment

Investing in marketing and innovation to compete against private label, focusing on value-driven initiatives.

Negative Factors

Market Share Loss

Kraft Heinz continues to lose share in several of its legacy U.S.-focused brands, impacting its market position.

Profitability Concerns

Gross margins were also below expectations, impacting overall profitability.

Volume Decline

Ongoing declines in volumes are observed across four big banners: Lunchables, Kraft Mac and Cheese, Capri Sun, and Oscar Mayer.

Kraft Heinz Business Overview & Revenue Model

Company Description

The Kraft Heinz Company (KHC) is a leading global food and beverage company formed through the merger of Kraft Foods Group and H.J. Heinz Company in 2015. The company operates primarily in the consumer packaged goods industry, offering a wide range of products across several categories, including condiments and sauces, cheese and dairy products, meats, refreshment beverages, coffee, and other grocery products. With iconic brands such as Heinz, Kraft, Oscar Mayer, and Philadelphia, Kraft Heinz serves customers worldwide, delivering high-quality, great-tasting products that are enjoyed by millions of consumers every day.

How the Company Makes Money

Kraft Heinz generates revenue primarily through the sale of its diverse portfolio of food and beverage products to retailers, distributors, and foodservice providers. The company's revenue model is based on manufacturing, marketing, and distributing its products across various channels, including supermarkets, convenience stores, and online platforms. Key revenue streams include the sales of condiments and sauces, dairy products, meats, and snacks, with a strong focus on leveraging its well-established brands. Additionally, Kraft Heinz engages in strategic partnerships and collaborations to expand its market reach and drive innovation in its product offerings. The company's earnings are influenced by factors such as consumer preferences, cost management, global market expansion, and the effective execution of marketing strategies to enhance brand visibility and customer loyalty.

Kraft Heinz Financial Statement Overview

Summary

Kraft Heinz demonstrates a stable financial position with average operational efficiency and moderate profitability. The balance sheet is strong with low leverage and solid equity, while cash flows are well-managed despite recent declines in free cash flow growth. The company might need to focus on reigniting revenue growth to enhance future profitability and shareholder value.

Income Statement

Kraft Heinz shows moderate stability in its income statement. The TTM gross profit margin is approximately 34.5%, indicating efficient cost management. However, the net profit margin of 10.4% is somewhat lower, reflecting potential challenges in converting revenue to profit. Revenue has shown a slight decline in recent years, indicating stagnation in growth. The EBIT margin is at 6.2%, and EBITDA margin stands at 9.5%, both suggesting average operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.42, indicating conservative leverage. Return on equity (ROE) is at 5.4%, hinting at moderate profitability for shareholders. The equity ratio is 54.8%, which demonstrates a strong equity position relative to total assets, providing stability and resilience against liabilities.

Cash Flow

Cash flow analysis reveals adequate liquidity management. The free cash flow to net income ratio is 1.14, indicating good cash generation relative to net income. The operating cash flow to net income ratio is 1.56, suggesting robust cash conversion efficiency. However, the free cash flow growth rate shows a negative trend, down by 4.3%, which may limit future investment capabilities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.85B	26.64B	26.48B	26.04B	26.18B
	Gross Profit
8.97B	8.93B	8.12B	8.68B	9.18B
	EBIT
1.68B	4.57B	3.63B	5.39B	5.82B
	EBITDA
2.72B	5.51B	4.83B	4.68B	3.40B
	Net Income Common Stockholders
2.74B	2.85B	2.36B	1.01B	356.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.33B	1.40B	1.04B	3.44B	3.42B
	Total Assets
88.29B	90.34B	90.51B	93.39B	99.83B
	Total Debt
19.87B	20.03B	20.07B	21.82B	28.31B
	Net Debt
18.54B	18.63B	19.03B	18.37B	24.89B
	Total Liabilities
38.96B	40.62B	41.64B	43.94B	49.59B
	Stockholders Equity
49.19B	49.53B	48.68B	49.30B	50.10B
Cash Flow		Free Cash Flow
3.16B	2.96B	1.55B	4.46B	4.33B
	Operating Cash Flow
4.18B	3.98B	2.47B	5.36B	4.93B
	Investing Cash Flow
-1.02B	-916.00M	-1.09B	4.04B	-522.00M
	Financing Cash Flow
-3.01B	-2.68B	-3.71B	-9.34B	-3.33B

Kraft Heinz Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KHC, the sentiment is Negative. The current price of 28.23 is below the 20-day moving average (MA) of 29.16, below the 50-day MA of 29.79, and below the 200-day MA of 31.43, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 8.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KHC.

Kraft Heinz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIS	70 Outperform	$29.88B	12.09	27.37%	4.40%	-2.62%	4.27%
HRL	69 Neutral	$16.03B	21.20	9.54%	3.93%	-1.84%	-5.14%
CAG	68 Neutral	$11.15B	34.40	3.67%	6.00%	-3.15%	-65.38%
KHC	68 Neutral	$33.61B	12.96	5.36%	5.63%	-4.25%	-4.04%
CPB	66 Neutral	$10.59B	20.49	13.43%	4.28%	9.15%	-31.94%
Sector *	64 Neutral	$8.87B	14.81	5.05%	174.26%	3.56%	3.68%
SJM	59 Neutral	$12.08B	22.22	-3.55%	3.77%	7.07%	-181.54%

Kraft Heinz Corporate Events

Vince Garlati Returns as Kraft Heinz Accounting Officer

Vince Garlati is resuming his role as Principal Accounting Officer at Kraft Heinz, bringing stability to the company’s financial leadership after his leave of absence. His return promises to strengthen the financial operations without any conflicts of interest, as there are no personal ties or undisclosed transactions impacting his position.