Kraft Heinz Company
Exchange: NASDAQSector: Consumer DefensiveIndustry: Packaged Foods
Kraft Heinz Canada’s heritage can be traced back over a century to when James Lewis Kraft of Stevensville, Ontario began selling cheese from a horse-drawn wagon in 1903. Heinz Canada was established in 1909 in Leamington, Ontario where its first products were pickles sourced from local growers. Following the 2015 merger between Kraft Foods Group and H.J. Heinz Company, Kraft Heinz Canada became a subsidiary of the newly formed Kraft Heinz Company. Now the country’s second largest food and beverage company, iconic Kraft Heinz Canada products like Kraft Peanut Butter, Heinz Ketchup, KD, Philadelphia Cream Cheese, Renée’s Dressing, Jell-O, Classico, Kool-Aid and Maxwell House are found in over 97 percent of Canadian households. Kraft Heinz Canada is driving transformation inspired by Kraft Heinz’s global purpose, Let’s Make Life Delicious, by creating memorable community moments through local initiatives such as Kraft Heinz Project Play and Kraft Hockeyville, while also supporting food banks across Canada through Kraft Heinz Project Pantry.
Did you know?
Carries 8.1x more debt than cash on its balance sheet.
Current Price
$22.49
-0.75%GoodMoat Value
$34.61
53.9% undervaluedProfile
Valuation (TTM)
Market Cap$26.62B
P/E-4.55
EV$42.65B
P/B0.64
Shares Out1.18B
P/Sales1.07
Revenue$24.94B
EV/EBITDA—
Kraft Heinz Company (KHC) Stock Analysis
GoodMoat Analysis
Kraft Heinz is a packaged food giant with a portfolio of iconic brands, but it currently presents a complex picture. While its GoodMoat target price suggests significant upside, the company's negative profitability metrics and declining revenue raise immediate concerns about its quality and moat durability.
Read full analysis
The Kraft Heinz Company is a global food and beverage conglomerate, owning a vast portfolio of legacy brands like Heinz, Kraft, Oscar Mayer, and Philadelphia. For a value investor, the primary appeal lies in its brand portfolio and a GoodMoat target price of $34.61, which implies a substantial margin of safety of approximately 61% from the current $21.51 price. This would place it in the 'Deeply Undervalued' band per the framework's valuation assessment. However, applying the Decision Framework reveals significant hurdles. The company's Moat Score is likely anchored by its Brand & Culture (criterion #6), but it must be weighed against negative quality indicators. Critical financial metrics are weak: the company is not GAAP profitable (with a -23.4% profit margin), shows negative revenue growth YoY (-3.4%), and has a negative ROE of -14.0%. These would likely result in multiple 'Weak' ratings in the Quality Indicators section. According to Step 1 of the Decision Framework, a business with a Moat Score below 5 or multiple weak quality ratings does not proceed to valuation analysis. Therefore, despite the attractive target price, the analysis suggests the business currently fails the Moat & Quality Gate. An investor must first investigate whether the negative profitability is a temporary impairment or a sign of eroding competitive advantages before the valuation can be considered meaningful.
Market Cap$26.62B
Current Price$22.49
P/E Ratio-4.55
Forward P/E—
PEG Ratio0.07
EPS$-4.93
Book Value$35.20
P/B Ratio0.64
KHC Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 4.7% FCF growth (CAGR)
Cash vs Debt
Net Debt: 18.6B
Revenue
25.0B
FY19
26.2B
FY20
26.0B
FY21
26.5B
FY22
26.6B
FY23
25.8B
FY24
24.9B
FY25
Net Income
1.9B
FY19
356M
FY20
1.0B
FY21
2.4B
FY22
2.9B
FY23
2.7B
FY24
—
FY25
KHC 52-Week Range
$21.21
$27.64
50-Day MA: $22.79200-Day MA: $24.25
Did you know?
Price sits at 20% of its 52-week range.
Kraft Heinz Company (KHC) Financial Summary
Kraft Heinz Company (KHC) is a Consumer Defensive company in the Packaged Foods industry, listed on NASDAQ. The stock currently trades at $22.49 with a market capitalization of $26.62B.
Key valuation metrics include a P/E ratio of -4.55, price-to-book ratio of 0.64, and EPS of $-4.93. The company reports a profit margin of -23.4% and return on equity of -14.0%.
KHC Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $26.62B |
| P/E Ratio | -4.55 |
| EPS | $-4.93 |
| P/B Ratio | 0.64 |
| P/S Ratio | 1.07 |
| Dividend Yield | 7.13% |
| Profit Margin | -23.4% |
| Return on Equity | -14.0% |
| Debt/Equity | 0.51 |
KHC Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $24.98B | $1.94B |
| FY20 | $26.18B | $356.00M |
| FY21 | $26.04B | $1.01B |
| FY22 | $26.48B | $2.36B |
| FY23 | $26.64B | $2.85B |
| FY24 | $25.85B | $2.74B |
| FY25 | $24.94B | $-5.85B |
Kraft Heinz Company (KHC) Valuation
Based on GoodMoat's DCF model, Kraft Heinz Company has a fair value estimate of $34.61. At the current price of $22.49, the stock appears 35.0% undervalued relative to our intrinsic value estimate.
KHC Quality Indicators
Kraft Heinz Company maintains a profit margin of -23.4% and an operating margin of -18.7%. Return on equity stands at -14.0%. The current ratio is 1.15. Debt-to-equity ratio is 0.51.
About Kraft Heinz Company
Kraft Heinz Canada’s heritage can be traced back over a century to when James Lewis Kraft of Stevensville, Ontario began selling cheese from a horse-drawn wagon in 1903. Heinz Canada was established in 1909 in Leamington, Ontario where its first products were pickles sourced from local growers. Following the 2015 merger between Kraft Foods Group and H.J. Heinz Company, Kraft Heinz Canada became a subsidiary of the newly formed Kraft Heinz Company. Now the country’s second largest food and beverage company, iconic Kraft Heinz Canada products like Kraft Peanut Butter, Heinz Ketchup, KD, Philadelphia Cream Cheese, Renée’s Dressing, Jell-O, Classico, Kool-Aid and Maxwell House are found in over 97 percent of Canadian households. Kraft Heinz Canada is driving transformation inspired by Kraft Heinz’s global purpose, Let’s Make Life Delicious, by creating memorable community moments through local initiatives such as Kraft Heinz Project Play and Kraft Hockeyville, while also supporting food banks across Canada through Kraft Heinz Project Pantry.
KHC Free Cash Flow
Kraft Heinz Company generated $3.66B in trailing twelve-month free cash flow, representing an FCF yield of 13.75%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
KHC Shares Outstanding
Kraft Heinz Company has 1.18 billion shares outstanding at a share price of $22.49, giving it a market capitalization of $26.62B.
KHC Recent Insider Trades
Recent insider transactions at Kraft Heinz Company include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Onell Cory (Chief Omnich Sales & AEM Ofcr) | SELL | 9,045 | $222597.45 |
| Patricio Miguel (Executive Chair) | SELL | 125,000 | $3.10M |