Skip to Content

Kellanova Co K

Morningstar Rating
$61.62 +0.29 (0.47%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Kellanova Earnings: Brand Spending Buttresses Competitive Edge; Shares Still a Bargain

The market cheered narrow-moat Kellanova’s first-quarter results of 5.4% organic sales growth and a 380-basis-point rise in adjusted operating margin to 15.9%, sending the shares up by a high-single-digit percentage intraday. We think this signals that the firm’s advantaged geographic and category reach—30% of sales are from faster-growing emerging markets, and snacking accounts for more than half of sales—is finally getting some rightful acclaim. Even after the rally, we view the stock as attractive, trading at a 15%-20% discount to our intrinsic valuation.

Price vs Fair Value

K is trading at a 164% premium.
Price
$61.33
Fair Value
$85.00
Uncertainty
Medium
1-Star Price
$659.34
5-Star Price
$29.40
Economic Moat
Wrxmdfc
Capital Allocation
Ypdvmccf

Bulls Say, Bears Say

Bulls

Kellanova's European arm has shown it can win even in an intensely competitive landscape, where private label has pronounced share and retail consolidation has run rampant. This is evidenced by the segment's 24 consecutive quarters of organic sales growth.

Bears

Like peers, Kellanova has strained to keep up with the rapid evolution of consumer trends, weighing on volume growth.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if K is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$61.33
Day Range
$61.5261.66
52-Week Range
$47.6364.67
Bid/Ask
$61.57 / $61.62
Market Cap
$21.07 Bil
Volume/Avg
22,685 / 3.2 Mil

Key Statistics

Price/Earnings (Normalized)
15.07
Price/Sales
1.72
Dividend Yield (Trailing)
3.77%
Dividend Yield (Forward)
3.65%
Total Yield
4.25%

Company Profile

Following its split from the North American cereal business, Kellanova (previously the global snacking arm of Kellogg) is a leading global manufacturer and marketer of salty snacks, snack bars, frozen breakfast fare, meat alternatives, and other packaged foods. Its offerings are manufactured in around 20 countries and marketed in more than 180 countries. Its product mix includes well-known brands such as Pringles, Cheez-It, Rice Krispies Treats, Pop-Tarts, Eggo, Nutri-Grain, and Morningstar Farms. Sales beyond its home turf account for about half of Kellanova's consolidated sales base.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Mid Value
Total Number of Employees
23,000

Competitors

Valuation

Metric
K
PEP
CPB
Price/Earnings (Normalized)
15.0723.1915.74
Price/Book Value
6.6412.943.53
Price/Sales
1.722.701.48
Price/Cash Flow
11.3817.8310.36
Price/Earnings
K
PEP
CPB

Financial Strength

Metric
K
PEP
CPB
Quick Ratio
0.350.640.39
Current Ratio
0.620.861.01
Interest Coverage
3.9515.016.29
Quick Ratio
K
PEP
CPB

Profitability

Metric
K
PEP
CPB
Return on Assets (Normalized)
7.27%10.91%7.16%
Return on Equity (Normalized)
34.14%58.64%23.47%
Return on Invested Capital (Normalized)
12.75%18.15%12.00%
Return on Assets
K
PEP
CPB
See how this stock stacks up to its competitors with Morningstar Investor

Packaged Foods Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NSRGY
Nestle SA ADRZlfknrrsjBjwdk$273.3 Bil
KHC
The Kraft Heinz CoJkhscysktXbcc$43.5 Bil
DANOY
Danone SA ADRVcbvdntmSntlqq$41.7 Bil
GIS
General Mills IncCcyvpgnjgPyzslhv$39.0 Bil
HRL
Hormel Foods CorpPhclhqlfyPyzzh$19.9 Bil
MKC
McCormick & Co Inc Registered Shs Non VtgJytkwycfSwgs$19.8 Bil
CAG
Conagra Brands IncRskdqpdhGqdbt$14.6 Bil
CPB
Campbell Soup CoBxrsgmkspSzyq$13.8 Bil
LW
Lamb Weston Holdings IncKnqfrmzYgcwk$12.7 Bil

Sponsor Center