Kellanova (K) AI Stock Analysis

• Market Cap: $28.89B
• Dividend Yield: 2.76%
• Average Volume (3M): 3.19M
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.04
• Revenue Growth: -6.38%
• EPS Growth: 45.73%
• Country: US
• Employees: 24,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 0.93
• Shares Outstanding: 347,669,200
• 10 Day Avg. Volume: 1,846,932
• 30 Day Avg. Volume: 3,192,519
• PEG Ratio: 0.51
• Price to Book (P/B): 7.38
• Price to Sales (P/S): 2.18
• P/FCF Ratio: 24.59
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 2.68
• Enterprise Value/Gross Profit: 7.51
• Enterprise Value/Ebitda: 14.76
• 1Y Price Target: $83.44
• Price Target Upside: 0.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 64 Neutral
• Price Target: $88.00 ▲(5.91% Upside)

Kellanova's overall stock score is primarily influenced by its solid financial performance, despite challenges in revenue growth and cash flow. The technical analysis suggests potential resistance and overbought conditions, while the valuation indicates moderate pricing without significant discounts. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Brand Loyalty

Strong brand loyalty provides a competitive advantage, ensuring consistent demand and pricing power, which supports long-term revenue stability.

Profitability and Margins

High profitability and strong margins indicate efficient operations, allowing for reinvestment and resilience against market fluctuations.

Efficient Operations

Efficient operations, as seen in strong EBIT and EBITDA margins, suggest the company can maintain profitability even during revenue fluctuations.

Negative Factors

Revenue Growth Challenges

Slowing revenue growth may hinder the company's ability to expand market share and invest in new opportunities, affecting long-term growth prospects.

Declining Cash Flow

Decreasing cash flow growth limits the company's ability to fund operations, pay down debt, and invest in future growth, potentially impacting financial health.

High Debt Levels

High debt levels can strain financial resources, limiting flexibility and increasing vulnerability to interest rate changes, affecting long-term stability.

Kellanova Business Overview & Revenue Model

Company Description

Kellanova, together with its subsidiaries, manufactures and markets snacks and convenience foods in North America, Europe, Latin America, the Asia Pacific, the Middle East, Australia, and Africa. Its principal products consist of snacks, such as crackers, savory snacks, toaster pastries, cereal bars, granola bars, and bites; and convenience foods, including ready-to-eat cereals, frozen waffles, veggie foods, and noodles; and crisps. The company offers its products under the Kellogg's, Cheez-It, Pringles, Austin, Parati, RXBAR, Eggo, Morningstar Farms, Bisco, Club, Luxe, Minueto, Special K, Toasteds, Town House, Zesta, Zoo Cartoon, Choco Krispis, Crunchy Nut, Kashi, Nutri-Grain, Squares, Zucaritas, Rice Krispies Treats, Sucrilhos, Pop-Tarts, K-Time, Sunibrite, Split Stix, LCMs, Coco Pops, Krave, Frosties, Rice Krispies Squares, Incogmeato, Veggitizers, Gardenburger, Trink, Carr's, Kellogg's Extra, Müsli, Fruit ‘n Fibre, Kellogg's Crunchy Nut, Country Store, Smacks, Honey Bsss, Zimmy's, Toppas, Tresor, Froot Ring, Chocos, Chex, Guardian, Just Right, Sultana Bran, Rice Bubbles, Sustain, Choco Krispies, Melvin, Cornelius, Chocovore, Poperto, Pops the Bee, and Sammy the Seal brand names. It sells its products to retailers through direct sales forces, as well as brokers and distributors. The company was formerly known as Kellogg Company and changed its name to Kellanova in October 2023. Kellanova was founded in 1906 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Kellanova generates revenue primarily through the sale of its food products across multiple channels, including retail, e-commerce, and foodservice. Key revenue streams include branded consumer products, which are sold through supermarkets, convenience stores, and online platforms, as well as private label offerings. The company benefits from strong brand loyalty and market share in its core categories. Additionally, Kellanova engages in strategic partnerships with distributors and retailers, enhancing its market reach and promotional capabilities, which further contribute to its earnings.

Kellanova Financial Statement Overview

Summary

Kellanova demonstrates strong profitability and operational efficiency with solid margins. However, the declining revenue trend and moderate leverage on the balance sheet warrant caution. Cash flow operations are stable, but the negative free cash flow growth indicates potential areas for improvement.

Income Statement

Kellanova shows a stable performance in terms of profitability with a healthy gross profit margin of 52.2% in TTM. However, the company is experiencing a negative revenue growth trend, with a decline from $15.3 billion in 2022 to $12.6 billion TTM. The net profit margin is strong at 10.9% TTM, indicating effective cost management. EBIT and EBITDA margins remain solid, underscoring operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial leverage with a debt-to-equity ratio of 1.59, indicating a reliance on debt financing. The equity ratio stands at 25.3%, showing a reasonable equity base. Return on equity is robust at 35.2% TTM, suggesting efficient use of shareholders' equity to generate profits.

Cash Flow

Kellanova's cash flow situation is stable, with an operating cash flow to net income ratio of 1.10, indicating good cash generation relative to earnings. Free cash flow has decreased slightly, with a negative free cash flow growth rate of -8.2%, potentially signaling caution in capital expenditures or operational efficiency improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.64B	12.75B	13.12B	12.65B	14.18B	13.77B
Gross Profit	4.51B	4.69B	4.40B	3.73B	4.49B	4.72B
EBITDA	2.30B	2.38B	1.76B	1.64B	2.66B	2.38B
Net Income	1.33B	1.34B	951.00M	960.00M	1.49B	1.25B
Balance Sheet
Total Assets	15.87B	15.63B	15.62B	18.50B	18.18B	18.00B
Cash, Cash Equivalents and Short-Term Investments	354.00M	694.00M	274.00M	299.00M	286.00M	435.00M
Total Debt	6.48B	6.34B	6.53B	7.16B	7.73B	8.11B
Total Liabilities	11.66B	11.75B	12.25B	14.12B	13.96B	14.36B
Stockholders Equity	4.11B	3.77B	3.17B	3.94B	3.72B	3.11B
Cash Flow
Free Cash Flow	650.00M	1.13B	968.00M	1.16B	1.15B	1.48B
Operating Cash Flow	1.30B	1.76B	1.65B	1.65B	1.70B	1.99B
Investing Cash Flow	-618.00M	-750.00M	-562.00M	-448.00M	-528.00M	-585.00M
Financing Cash Flow	-598.00M	-607.00M	-1.11B	-1.08B	-1.31B	-1.39B

Kellanova Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For K, the sentiment is Positive. The current price of 83.09 is above the 20-day moving average (MA) of 82.89, above the 50-day MA of 80.57, and above the 200-day MA of 80.43, indicating a bullish trend. The MACD of 0.77 indicates Positive momentum. The RSI at 71.35 is Negative, neither overbought nor oversold. The STOCH value of 91.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for K.

Kellanova Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSY	―	$36.36B	23.84	35.89%	3.02%	2.55%	-16.52%
MDLZ	―	$77.91B	21.99	13.51%	3.17%	3.14%	-5.80%
GIS	―	$25.63B	9.10	30.98%	5.04%	-3.26%	25.58%
K	―	$28.89B	21.72	36.00%	2.76%	-6.38%	45.73%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
STZ	―	$23.49B	19.59	15.91%	3.03%	-5.57%	119.49%
KHC	―	$30.21B	-5.70	-11.68%	6.27%	-3.83%	-384.08%