Kellanova (K) AI Stock Analysis

• Market Cap: $28.99B
• Dividend Yield: 2.76%
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 22.8
• Beta (1Y): <0.01
• Revenue Growth: -1.01%
• EPS Growth: 25.47%
• Country: US
• Employees: 24,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 0.93
• Shares Outstanding: 347,932,620
• 10 Day Avg. Volume: 1,896,229
• 30 Day Avg. Volume: 2,071,546
• 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: 1.15
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 7.38
• Enterprise Value/Ebitda: 14.52
• 1Y Price Target: $83.42
• Price Target Upside: 0.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $88.00 ▲(5.60% 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 solid profitability with strong margins and return on equity. However, challenges in revenue growth and cash flow generation could impact future financial flexibility. The balance sheet shows moderate leverage, but reliance on debt remains a concern.

Income Statement

Kellanova's income statement shows a stable performance with a slight decline in revenue growth over the TTM period. The gross profit margin remains healthy at 35.7%, and the net profit margin is consistent at 10.6%. However, the revenue growth rate has slowed, indicating potential challenges in expanding market share. EBIT and EBITDA margins are strong, reflecting efficient operations.

Balance Sheet

The balance sheet reveals a moderate level of leverage with a debt-to-equity ratio of 1.58, which is an improvement from previous years. Return on equity is robust at 34.6%, indicating effective use of equity capital. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth by 24.7% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is low at 0.24, suggesting limited cash conversion efficiency. The free cash flow to net income ratio is moderate at 0.50, indicating some room for improvement in cash generation.

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: 83.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 83.33 is above the 20-day moving average (MA) of 83.19, above the 50-day MA of 81.74, and above the 200-day MA of 80.68, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 74.41 is Negative, neither overbought nor oversold. The STOCH value of 77.56 is Neutral, 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
GIS	67 Neutral	$25.29B	8.98	30.98%	5.15%	-3.26%	25.58%
HSY	65 Neutral	$36.34B	26.81	31.01%	3.00%	4.71%	-23.03%
K	64 Neutral	$28.99B	22.82	32.52%	2.76%	-1.01%	25.47%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MDLZ	62 Neutral	$73.37B	21.24	13.07%	3.44%	4.13%	-5.19%
STZ	57 Neutral	$22.48B	18.85	15.91%	3.12%	-5.57%	119.49%
KHC	53 Neutral	$29.41B	―	-9.73%	6.56%	-3.70%	-431.05%