WK Kellogg Co
WK Kellogg Co Fundamental Analysis
WK Kellogg Co (KLG) shows weak financial fundamentals with a PE ratio of 53.46, profit margin of 1.42%, and ROE of 11.34%. The company generates $2.6B in annual revenue with weak year-over-year growth of -1.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 13.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KLG's fundamental strength across five key dimensions:
Efficiency Score
WeakKLG struggles to generate sufficient returns from assets.
Valuation Score
ModerateKLG shows balanced valuation metrics.
Growth Score
WeakKLG faces weak or negative growth trends.
Financial Health Score
WeakKLG carries high financial risk with limited liquidity.
Profitability Score
WeakKLG struggles to sustain strong margins.
Key Financial Metrics
Is KLG Expensive or Cheap?
P/E Ratio
KLG trades at 53.46 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KLG's PEG of -1.19 indicates potential undervaluation.
Price to Book
The market values WK Kellogg Co at 5.73 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.76 times EBITDA. This is generally considered low.
How Well Does KLG Make Money?
Net Profit Margin
For every $100 in sales, WK Kellogg Co keeps $1.42 as profit after all expenses.
Operating Margin
Core operations generate 1.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.34 in profit for every $100 of shareholder equity.
ROA
WK Kellogg Co generates $1.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
WK Kellogg Co generates limited operating cash flow of $86.42M, signaling weaker underlying cash strength.
Free Cash Flow
WK Kellogg Co generates weak or negative free cash flow of $-120.58M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.40 in free cash annually.
FCF Yield
KLG converts -6.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
53.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.49
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How KLG Stacks Against Its Sector Peers
| Metric | KLG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 53.46 | 23.25 | Worse (Expensive) |
| ROE | 11.34% | 1240.00% | Weak |
| Net Margin | 1.42% | -9728.00% (disorted) | Weak |
| Debt/Equity | 2.49 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.99 | 2.54 | Weak Liquidity |
| ROA | 1.74% | -203388.00% (disorted) | Weak |
KLG outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews WK Kellogg Co's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-5.55%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
-60.44%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
-67.00%
Industry Style: Defensive, Dividend, Low Volatility
Declining