Home Sectors Consumer Defensive Present Valuation: The Kraft Heinz Company (NASDAQ: KHC)

Present Valuation: The Kraft Heinz Company (NASDAQ: KHC)


The Kraft Heinz Company is in the consumer defensive sector and is in the consumer packaged goods industry. The company CEO is Bernardo Hees. Kraft Foods Group Inc is a consumer packaged food and beverage company. It manufactures and markets food and beverage products, including cheese, meats, refreshment beverages, packaged dinners, refrigerated meals, snack nuts, and other grocery products.

Previous Intraday Trading Performance:

The KHC stock showed a previous change of -1.08% with an open at 31.62 and a close of 31.11. It reached an intraday high of 31.73 and a low of 31.03.

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The stock has a market cap of $37.9b with 1.2b shares outstanding, of which the float is 1.2b shares. Trading volume reached 8,275,508 shares compared to its average volume of 7,415,738 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, The Kraft Heinz Company shares returned -2.14% and in the past 30 trading days it returned -5.93%. Over three months, it changed -7.99%. In one year it has changed -43.55% and within that year its 52-week high was 64.99 and its 52-week low was 31.03. KHC stock is 0.26% above its 52 Week Low.

Our calculations show a 200 day moving average of 45.31 and a 50 day moving average of 32.56. Currently KHC stock is trading -31.34% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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The last annual fiscal EPS for the company was reported at -8.4 that ended on 31st of December 2018. Based on 7 analyst estimates, the consensus EPS for the next quarter is 0.63. The TTM EPS is 3.51, which comes to a TTM PE of 8.86.

Below was the last reported quarterly diluted earnings per share:

4thQtr of 2018 -10.34
3rdQtr of 2018 0.51
2ndQtr of 2018 0.62
1stQtr of 2018 0.81
4thQtr of 2017 6.52

The dividend per share is currently 1.60, which is a dividend yield of 5.14%. Also, the payout ratio is 45.58%, therefore the dividend is safe according to our calculations. KHC stock has a high dividend yield, but because the company has sufficient earnings to cover future dividends, it may be a good investment opportunity for an income portfolio.

Base on our calculations, the intrinsic value per share is 47.62, which means it is possibly undervalued and has a margin of safety of 34.68%.

Indicators to Watch:

Based on the latest filings, there is 75.60% of institutional ownership.

The current calculated beta is 0.75.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is -17.36%, return on assets is -9.14%, profit margin is -56.55%, price-to-sales is 1.92 and price-to-book is 0.73.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 0  :Past Performance Score
 2  :Financial Strength Score
 3  :Future Growth Score
 3  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.