KHC Ltd.
KHC Ltd. Fundamental Analysis
KHC Ltd. (1451.T) shows weak financial fundamentals with a PE ratio of 12.60, profit margin of 3.53%, and ROE of 5.67%. The company generates $10.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 1451.T's fundamental strength across five key dimensions:
Efficiency Score
Weak1451.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent1451.T trades at attractive valuation levels.
Growth Score
Moderate1451.T shows steady but slowing expansion.
Financial Health Score
Moderate1451.T shows balanced financial health with some risks.
Profitability Score
Weak1451.T struggles to sustain strong margins.
Key Financial Metrics
Is 1451.T Expensive or Cheap?
P/E Ratio
1451.T trades at 12.60 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1451.T's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values KHC Ltd. at 0.70 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.81 times EBITDA. This is generally considered low.
How Well Does 1451.T Make Money?
Net Profit Margin
For every $100 in sales, KHC Ltd. keeps $3.53 as profit after all expenses.
Operating Margin
Core operations generate 5.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.67 in profit for every $100 of shareholder equity.
ROA
KHC Ltd. generates $2.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
KHC Ltd. produces operating cash flow of $1.25B, showing steady but balanced cash generation.
Free Cash Flow
KHC Ltd. generates strong free cash flow of $1.12B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $278.39 in free cash annually.
FCF Yield
1451.T converts 24.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How 1451.T Stacks Against Its Sector Peers
| Metric | 1451.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.60 | 22.38 | Better (Cheaper) |
| ROE | 5.67% | 721.00% | Weak |
| Net Margin | 3.53% | -37440.00% (disorted) | Weak |
| Debt/Equity | 1.16 | -20.85 (disorted) | Distorted |
| Current Ratio | 2.38 | 1953.62 | Strong Liquidity |
| ROA | 2.37% | -1450.00% (disorted) | Weak |
1451.T outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews KHC Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
EPS CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
FCF CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT