Kellanova
Exchange: NYSESector: Consumer DefensiveIndustry: Packaged Foods
Kellanova is a leader in global snacking, international cereal and noodles, and North America frozen foods with a legacy stretching back more than 100 years. Powered by differentiated brands including Pringles®, Cheez-It®, Pop-Tarts®, Kellogg's Rice Krispies Treats®, RXBAR®, Eggo®, MorningStar Farms®, Special K®, Coco Pops®, and more, Kellanova's vision is to become the world's best-performing snacks-led powerhouse, unleashing the full potential of our differentiated brands and our passionate people. Our net sales for 2023 were $13 billion. At Kellanova, our purpose is to create better days and ensure everyone has a seat at the table through our trusted food brands. We are committed to promoting sustainable and equitable food access by tackling the crossroads of hunger, sustainability, wellbeing, and equity, diversity & inclusion. Our goal is to create Better Days for 4 billion people by the end of 2030 (from a 2015 baseline).
Did you know?
Capital expenditures decreased by 7% from FY23 to FY24.
Current Price
$83.44
GoodMoat Value
$70.21
15.9% overvaluedProfile
Valuation (TTM)
Market Cap$29.01B
P/E22.72
EV$34.97B
P/B7.68
Shares Out347.67M
P/Sales2.29
Revenue$12.67B
EV/EBITDA15.61
Kellanova (K) Stock Analysis
GoodMoat Analysis
Kellanova is a leading global packaged foods company with a portfolio of iconic brands, but its competitive moat appears limited and its valuation is currently above our fair value estimate. The stock does not pass the initial 'Moat & Quality Gate' of our framework, suggesting it may not be a strong candidate for further value investing analysis at this price.
Read full analysis
Kellanova operates in the consumer defensive sector as a global manufacturer and marketer of packaged foods, including well-known brands like Pringles and Morningstar Farms. Applying the GoodMoat Investment Framework, the company's competitive advantages are not immediately compelling. While it possesses a strong brand portfolio, which may satisfy the 'Brand & Culture' moat criterion, it likely lacks the network effects, high switching costs, or proprietary data that create durable moats. A preliminary moat score would likely be below the 5-point threshold required to proceed with deeper analysis. Financially, the company shows mixed signals: a high Return on Equity of 33.8% is excellent, but this is paired with a high Debt-to-Equity ratio of 1.68, which introduces financial risk and is a potential quality concern. The Free Cash Flow Yield of 3.9% is modest. On valuation, the current price of $83.44 is above the GoodMoat Target of $70.21, indicating a negative margin of safety. A P/E of 22.7 is not cheap for a company in a mature, low-growth industry. Following the Decision Framework, Kellanova likely fails the initial 'Moat & Quality Gate' (Step 1), as its moat score is insufficient and its financial quality has notable weaknesses. Therefore, it does not qualify for a favourable valuation assessment, making it an unfavourable candidate for further investigation from a strict value investing perspective at this level. Analysis based on data as of 2024-05-15.
Market Cap$29.01B
Current Price$83.44
P/E Ratio22.72
Forward P/E—
PEG Ratio-1.35
EPS$3.88
Book Value$10.86
P/B Ratio7.68
K Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 2.8% FCF growth (CAGR)
Cash vs Debt
Net Debt: 5.6B
Revenue
13.5B
FY18
13.6B
FY19
13.8B
FY21
11.7B
FY22
12.7B
FY22
13.1B
FY23
12.7B
FY24
Net Income
1.3B
FY18
960M
FY19
1.3B
FY21
1.5B
FY22
960M
FY22
951M
FY23
1.3B
FY24
K 52-Week Range
$76.43
$83.45
50-Day MA: $82.68200-Day MA: —
Did you know?
Net income compounded at 0.1% annually over 6 years.
Kellanova (K) Financial Summary
Kellanova (K) is a Consumer Defensive company in the Packaged Foods industry, listed on NYSE. The stock currently trades at $83.44 with a market capitalization of $29.01B.
Key valuation metrics include a P/E ratio of 22.72, price-to-book ratio of 7.68, and EPS of $3.88. The company reports a profit margin of 10.1% and return on equity of 33.8%.
K Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $29.01B |
| P/E Ratio | 22.72 |
| EPS | $3.88 |
| P/B Ratio | 7.68 |
| P/S Ratio | 2.29 |
| EV/EBITDA | 15.61 |
| Dividend Yield | 2.67% |
| Profit Margin | 10.1% |
| Return on Equity | 33.8% |
| Debt/Equity | 1.68 |
K Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY18 | $13.55B | $1.34B |
| FY19 | $13.58B | $960.00M |
| FY21 | $13.77B | $1.25B |
| FY22 | $11.75B | $1.49B |
| FY22 | $12.65B | $1.49B |
| FY23 | $13.12B | $951.00M |
| FY24 | $12.75B | $1.34B |
Kellanova (K) Valuation
Based on GoodMoat's DCF model, Kellanova has a fair value estimate of $70.21. At the current price of $83.44, the stock appears 18.8% overvalued relative to our intrinsic value estimate.
K Quality Indicators
Kellanova maintains a profit margin of 10.1% and an operating margin of 14.7%. Return on equity stands at 33.8%. The current ratio is 0.81. Debt-to-equity ratio is 1.68.
About Kellanova
Kellanova is a leader in global snacking, international cereal and noodles, and North America frozen foods with a legacy stretching back more than 100 years. Powered by differentiated brands including Pringles®, Cheez-It®, Pop-Tarts®, Kellogg's Rice Krispies Treats®, RXBAR®, Eggo®, MorningStar Farms®, Special K®, Coco Pops®, and more, Kellanova's vision is to become the world's best-performing snacks-led powerhouse, unleashing the full potential of our differentiated brands and our passionate people. Our net sales for 2023 were $13 billion. At Kellanova, our purpose is to create better days and ensure everyone has a seat at the table through our trusted food brands. We are committed to promoting sustainable and equitable food access by tackling the crossroads of hunger, sustainability, wellbeing, and equity, diversity & inclusion. Our goal is to create Better Days for 4 billion people by the end of 2030 (from a 2015 baseline).
K Free Cash Flow
Kellanova generated $1.13B in trailing twelve-month free cash flow, representing an FCF yield of 3.90%. This moderate FCF yield indicates reasonable cash generation.
K Shares Outstanding
Kellanova has 0.35 billion shares outstanding at a share price of $83.44, giving it a market capitalization of $29.01B.