Kellanova (K) AI Stock Analysis

• Market Cap: $27.01B
• Dividend Yield: 2.93%
• Average Volume (3M): 4.07M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.09
• Revenue Growth: -12.00%
• EPS Growth: 49.20%
• Country: US
• Employees: 24,000
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Food Confectioners
• EPS (TTM): 0.93
• Shares Outstanding: 346,939,100
• 10 Day Avg. Volume: 5,897,217
• 30 Day Avg. Volume: 4,072,632
• PEG Ratio: 0.06
• Price to Book (P/B): 6.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.63
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 7.26
• Enterprise Value/Ebitda: 4.20
• 1Y Price Target: $83.38
• Price Target Upside: 5.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: $83.00 ▲(5.30%Upside)

Kellanova's stock score is primarily influenced by strong financial performance, although the declining revenue trend and moderate leverage are concerning. Technical analysis indicates bearish momentum, and valuation is fair with a moderate dividend yield. Corporate events are mixed, with the merger progress adding potential but also regulatory uncertainty.

Positive Factors

Profitability

The EBIT margin improved by 200 basis points year-over-year to 13.6%, driven by lower SG&A expenses.

Sales Performance

Organic sales growth outperformed expectations with a 6.1% year-over-year increase compared to the estimated 3.3%.

Negative Factors

Gross Margin

Gross margin was below expectations, which led to a gross profit slightly behind the model.

Reported Sales

Despite higher organic sales, reported sales showed a decline compared to the estimate.

Kellanova Business Overview & Revenue Model

Company Description

Kellanova (K) is a leading multinational food company specializing in the production and distribution of a wide range of packaged foods. With a focus on the convenience and snacks sector, Kellanova offers a diverse portfolio of products, including cereals, snacks, and plant-based foods. The company is committed to delivering high-quality, nutritious, and innovative food solutions that cater to the evolving preferences of consumers worldwide.

How the Company Makes Money

Kellanova makes money primarily through the sale of its packaged food products across various categories such as cereals, snacks, and plant-based foods. The company's revenue streams are diversified across different geographical regions and distribution channels, including retail, e-commerce, and food service. Key partnerships with retailers and distributors enable Kellanova to maintain a strong market presence and drive sales. Additionally, the company invests in marketing and product innovation to strengthen its brand portfolio and capture new market opportunities, contributing to its earnings.

Kellanova Financial Statement Overview

Summary

Kellanova maintains strong profitability and operational efficiency, evidenced by solid margins, though revenue has been on a declining trend. The balance sheet exhibits moderate leverage, which warrants monitoring, yet the company effectively uses equity to drive profit. Cash flow operations remain stable, though slight pressure is seen in free cash flow growth, indicating areas for improvement in capital management.

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	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.63B	12.75B	13.12B	12.65B	11.75B	13.77B
Gross Profit	4.57B	4.54B	4.28B	3.81B	3.82B	4.73B
EBITDA	2.34B	2.33B	1.76B	1.58B	2.12B	2.36B
Net Income	1.38B	1.34B	951.00M	960.00M	1.49B	1.25B
Balance Sheet
Total Assets	15.47B	15.63B	15.62B	18.50B	18.18B	18.00B
Cash, Cash Equivalents and Short-Term Investments	330.00M	694.00M	274.00M	299.00M	286.00M	435.00M
Total Debt	6.22B	6.34B	6.53B	7.16B	7.73B	8.11B
Total Liabilities	11.45B	11.75B	12.25B	14.12B	13.96B	14.36B
Stockholders Equity	3.92B	3.77B	3.17B	3.94B	3.72B	3.11B
Cash Flow
Free Cash Flow	863.00M	1.13B	968.00M	1.16B	1.15B	1.48B
Operating Cash Flow	1.51B	1.76B	1.65B	1.65B	1.70B	1.99B
Investing Cash Flow	-569.00M	-750.00M	-562.00M	-448.00M	-528.00M	-585.00M
Financing Cash Flow	-862.00M	-607.00M	-1.11B	-1.08B	-1.31B	-1.39B

Kellanova Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For K, the sentiment is Negative. The current price of 78.82 is below the 20-day moving average (MA) of 80.56, below the 50-day MA of 81.35, and below the 200-day MA of 80.46, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 33.93 is Neutral, neither overbought nor oversold. The STOCH value of 21.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for K.

Kellanova Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSY	75 Outperform	$33.94B	21.22	37.48%	3.27%	-5.91%	-19.78%
MKC	74 Outperform	$19.75B	25.65	14.19%	2.44%	0.89%	4.85%
MDLZ	72 Outperform	$87.12B	25.43	13.27%	2.79%	0.90%	-14.60%
KHC	68 Neutral	$30.45B	11.66	5.36%	6.22%	-4.25%	-4.04%
Sector *	65 Neutral	$26.82B	14.80	-4.06%	3.24%	1.02%	2.12%
K	64 Neutral	$27.01B	19.62	39.05%	2.93%	-12.00%	49.20%
GIS	63 Neutral	$27.58B	12.36	24.57%	4.74%	-1.87%	-5.16%

Kellanova Corporate Events

Kellanova and Mars Merger Clears FTC Review

On June 25, 2025, Kellanova and Mars, Incorporated announced that the U.S. Federal Trade Commission had completed its antitrust review of Mars’ pending acquisition of Kellanova without any conditions. This marks a significant milestone towards the merger, which is expected to close by the end of 2025, pending European Commission approval. The merger aims to combine the complementary strengths of both companies, enhancing their global snacking business and better meeting consumer needs.

The most recent analyst rating on (K) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Kellanova stock, see the K Stock Forecast page.

Kellanova Faces EU Investigation on Merger Deal

Kellanova, a Delaware corporation, has entered into a Merger Agreement with Acquiror 10VB8, LLC and Mars, Incorporated, where Kellanova will become a wholly-owned subsidiary of Acquiror. The European Commission has initiated a Phase II investigation into the merger, which is expected to close towards the end of 2025, pending regulatory approvals.

The most recent analyst rating on (K) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Kellanova stock, see the K Stock Forecast page.

Kellanova Announces CFO Resignation and New Appointment

On May 6, 2025, Kellanova announced the resignation of Amit Banati, the Vice Chairman and Chief Financial Officer, effective May 9, 2025, as he pursues another opportunity. The company appointed John Renwick as the acting Senior Vice President and Chief Financial Officer, effective May 9, 2025, who has been with the company since 2000 and has extensive experience in finance and investor relations.