Kellanova
Kellanova Fundamental Analysis
Kellanova (K) shows moderate financial fundamentals with a PE ratio of 22.74, profit margin of 10.08%, and ROE of 31.92%. The company generates $12.7B in annual revenue with weak year-over-year growth of -2.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze K's fundamental strength across five key dimensions:
Efficiency Score
WeakK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentK trades at attractive valuation levels.
Growth Score
ModerateK shows steady but slowing expansion.
Financial Health Score
WeakK carries high financial risk with limited liquidity.
Profitability Score
ModerateK maintains healthy but balanced margins.
Key Financial Metrics
Is K Expensive or Cheap?
P/E Ratio
K trades at 22.74 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, K's PEG of -4.89 indicates potential undervaluation.
Price to Book
The market values Kellanova at 6.91 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.28 times EBITDA. This signals the market has high growth expectations.
How Well Does K Make Money?
Net Profit Margin
For every $100 in sales, Kellanova keeps $10.08 as profit after all expenses.
Operating Margin
Core operations generate 14.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.92 in profit for every $100 of shareholder equity.
ROA
Kellanova generates $8.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kellanova generates limited operating cash flow of $1.25B, signaling weaker underlying cash strength.
Free Cash Flow
Kellanova produces free cash flow of $598.88M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.72 in free cash annually.
FCF Yield
K converts 2.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How K Stacks Against Its Sector Peers
| Metric | K Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.74 | 23.25 | Neutral |
| ROE | 31.92% | 1240.00% | Weak |
| Net Margin | 10.08% | -9728.00% (disorted) | Strong |
| Debt/Equity | 1.48 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.68 | 2.54 | Weak Liquidity |
| ROA | 8.16% | -203388.00% (disorted) | Weak |
K outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kellanova's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-6.65%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
39.08%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
48.79%
Industry Style: Defensive, Dividend, Low Volatility
High Growth