Kraft Heinz Co (NASDAQ: KHC)

Sector: Consumer Defensive Industry: Packaged Foods CIK: 0001637459
Market Cap 28.20 Bn
P/B 0.68
P/E -4.82
P/S 1.13
ROIC (Qtr) -5.38
Div Yield % 6.73
Rev 1y % (Qtr) -3.38
Total Debt (Qtr) 21.22 Bn
Debt/Equity (Qtr) 0.51
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About

The Kraft Heinz Company, known by its ticker symbol KHC, is a prominent player in the global food and beverage industry. Established in 2015, the company has rapidly ascended in the industry, driven by its purpose of "Making Life Delicious." The company operates through two primary segments: North America and International. Kraft Heinz's operations span a broad spectrum of food and beverage categories, including condiments and sauces, cheese and dairy, ambient foods, frozen and chilled foods, and meats and seafood. The company boasts an impressive...

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Investment thesis

Bull case

  • Operating cash flow of 4.46B provides strong 46.97x coverage of stock compensation 95M, indicating sustainable incentive practices.
  • Tangible assets of 22.08B provide exceptional 16.71x coverage of deferred revenue 1.32B, showing strong service capability backing.
  • Robust free cash flow of 3.66B exceeds capital expenditure of 801M by 4.57x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 22.08B provides 16.37x coverage of working capital 1.35B, indicating strong operational backing.
  • Operating cash flow of 4.46B provides strong 3.38x coverage of deferred revenue 1.32B, indicating service delivery capability.

Bear case

  • Operating cash flow of 4.46B barely covers its investment activities of (1.83B), with a coverage ratio of -2.43, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 4.46B provides thin coverage of dividend payments of (1.90B) with a -2.35 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of (4.50B) show weak coverage of depreciation charges of 968M, with a -4.64 ratio indicating high capital intensity and potential reinvestment needs.
  • Other non-current liabilities of 10.59B represent a high 0.48x of tangible assets 22.08B, suggesting significant long-term obligations without clear asset backing.
  • Retained earnings of (4.63B) provide limited buffer against comprehensive income items of (2.37B), which is 1.95x, indicating elevated exposure to market risks.

srt_PlatformAxis Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Packaged Foods
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KHC Kraft Heinz Co 28.20 Bn -4.82 1.13 21.22 Bn
2 GIS General Mills Inc 26.99 Bn 20.72 1.54 13.73 Bn
3 JBS Jbs N.V. 17.81 Bn 10.08 0.23 23.92 Bn
4 MKC Mccormick & Co Inc 16.10 Bn 44.21 3.77 4.00 Bn
5 HRL Hormel Foods Corp /De/ 12.37 Bn 18.03 1.34 2.86 Bn
6 SJM J M SMUCKER Co 11.08 Bn 19.60 1.97 7.91 Bn
7 PPC Pilgrims Pride Corp 10.32 Bn 9.54 0.56 3.29 Bn
8 MICC Magnum Ice Cream Co N.V. 9.71 Bn 28.17 1.04 4.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.58 1.47
EV to Cash from Ops. EV/CFO 10.60 29.75
EV to Debt EV to Debt 2.23 27.85
EV to EBIT EV/EBIT -10.52 86.88
EV to EBITDA EV/EBITDA -12.77 -156.20
EV to Free Cash Flow [EV/FCF] EV/FCF 12.91 -5.67
EV to Market Cap EV to Market Cap 1.68 1.15
EV to Revenue EV/Rev 1.90 7.32
Price to Book Value [P/B] P/B 0.68 8.48
Price to Earnings [P/E] P/E -4.82 14.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -3.08 4.58
Dividend Payout Ratio % Div Payout % (Qtr) -32.50 3.76
Dividend per Basic Share Div per Share (Qtr) 1.60 0.65
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 51.73 22.76
Interest Coverage Int. cover (Qtr) -4.75 6.64
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 31.19 -118.07
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 96.03 43.48
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.66
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -185.10 -48.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -240.67 -152.35
EBIT Growth (1y) % EBIT 1y % (Qtr) -354.59 -50.79
EBT Growth (1y) % EBT 1y % (Qtr) -737.35 -54.94
EPS Growth (1y) % EPS 1y % (Qtr) -317.18 -28.10
FCF Growth (1y) % FCF 1y % (Qtr) 21.23 7.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -7.35 439.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.30 1.01
Cash Payout Ratio Cash Payout (Qtr) 0.36 0.12
Cash Ratio Cash Ratio (Qtr) 0.30 0.86
Current Ratio Curr Ratio (Qtr) 1.15 2.60
Debt to Equity Ratio Debt/Equity (Qtr) 0.51 2.21
Interest Cover Ratio Int Coverage (Qtr) -4.75 6.64
Times Interest Earned Times Interest Earned (Qtr) -4.75 6.64
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -14.10 -919.13
EBIT Margin % EBIT Margin % (Qtr) -18.03 -1,474.87
EBT Margin % EBT Margin % (Qtr) -21.82 -1,537.76
Gross Margin % Gross Margin % (Qtr) 33.30 26.98
Net Profit Margin % Net Margin % (Qtr) -23.40 -1,538.60