Kraft Heinz (KHC) AI Stock Analysis

• Market Cap: $30.87B
• Dividend Yield: 6.13%
• Average Volume (3M): 10.89M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.08
• Revenue Growth: -4.25%
• EPS Growth: -4.04%
• Country: US
• Employees: 36,000
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Packaged Foods
• EPS (TTM): 0.62
• Shares Outstanding: 1,183,542,100
• 10 Day Avg. Volume: 11,014,910
• 30 Day Avg. Volume: 10,891,539
• PEG Ratio: -0.17
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.87
• Enterprise Value/Market Cap: 2.12
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 7.46
• Enterprise Value/Ebitda: 4.67
• 1Y Price Target: $28.88
• Price Target Upside: 10.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

• Rating: 68 Neutral
• Price Target: ―

Kraft Heinz's overall stock score is 67.5, reflecting a stable but challenged financial position. The company has a strong balance sheet and cash flow, but faces revenue stagnation and increased costs. Technical indicators suggest a lack of momentum, while valuations remain attractive. The earnings call indicates strategic efforts to spur growth amid pressures, yet short-term challenges persist.

Positive Factors

Brand Investment

Increased media spending and a commitment to high-quality brand-building are seen as constructive for Kraft Heinz's business.

Strategic Transactions

Kraft Heinz's board is exploring strategic transactions to unlock shareholder value, potentially boosting the company's stock.

Negative Factors

Board Changes

The departure of two board members from its largest shareholder, Berkshire Hathaway, could lead to an adverse market reaction.

Market Share Loss

Kraft Heinz continues to lose share in several of its legacy U.S.-focused brands, impacting its competitive position.

Profit Guidance

Kraft Heinz management lowered profit guidance by about 5% due to higher inflation and consumer elasticity, affecting investor confidence.

Kraft Heinz Business Overview & Revenue Model

Company Description

The Kraft Heinz Company (KHC) is one of the largest food and beverage companies in the world, known for its iconic brands and diverse product offerings. Formed from the merger of Kraft Foods Group and H.J. Heinz Company in 2015, the company operates in the consumer packaged goods industry, producing a wide range of products including condiments, sauces, cheese and dairy, meals, meats, refreshment beverages, coffee, and other grocery products. Kraft Heinz markets its products under well-known brand names such as Heinz, Kraft, Oscar Mayer, Philadelphia, Velveeta, Planters, Maxwell House, and Capri Sun, among others. The company serves a global customer base across retail, foodservice, and e-commerce channels.

How the Company Makes Money

Kraft Heinz generates revenue primarily through the sale of its food and beverage products across various channels including retail, foodservice, and e-commerce. The company's revenue streams are largely driven by its extensive portfolio of well-established brands, which are sold in approximately 200 countries. Key revenue segments include condiments and sauces, cheese and dairy products, ready-to-eat meals, meats, and beverages. Kraft Heinz leverages strategic partnerships and joint ventures to expand its market reach and enhance its product offerings. The company also focuses on innovation and marketing to maintain brand loyalty and attract new customers. Additionally, Kraft Heinz benefits from economies of scale in production and distribution, which help optimize costs and improve profitability.

Kraft Heinz Financial Statement Overview

Summary

Kraft Heinz demonstrates a stable financial position with average operational efficiency and moderate profitability. The balance sheet is strong with low leverage and solid equity, while cash flows are well-managed despite recent declines in free cash flow growth. The company might need to focus on reigniting revenue growth to enhance future profitability and shareholder value.

Income Statement

Kraft Heinz shows moderate stability in its income statement. The TTM gross profit margin is approximately 34.5%, indicating efficient cost management. However, the net profit margin of 10.4% is somewhat lower, reflecting potential challenges in converting revenue to profit. Revenue has shown a slight decline in recent years, indicating stagnation in growth. The EBIT margin is at 6.2%, and EBITDA margin stands at 9.5%, both suggesting average operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.42, indicating conservative leverage. Return on equity (ROE) is at 5.4%, hinting at moderate profitability for shareholders. The equity ratio is 54.8%, which demonstrates a strong equity position relative to total assets, providing stability and resilience against liabilities.

Cash Flow

Cash flow analysis reveals adequate liquidity management. The free cash flow to net income ratio is 1.14, indicating good cash generation relative to net income. The operating cash flow to net income ratio is 1.56, suggesting robust cash conversion efficiency. However, the free cash flow growth rate shows a negative trend, down by 4.3%, which may limit future investment capabilities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.43B	25.85B	26.64B	26.48B	26.04B	26.18B
	Gross Profit
8.79B	8.97B	8.93B	8.12B	8.68B	9.18B
	EBIT
1.58B	1.68B	4.57B	3.63B	3.46B	2.13B
	EBITDA
2.71B	2.72B	5.51B	4.82B	4.67B	3.39B
	Net Income Common Stockholders
2.65B	2.74B	2.85B	2.36B	1.01B	356.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.10B	1.33B	1.40B	1.04B	3.44B	3.42B
	Total Assets
103.56B	88.29B	90.34B	90.51B	93.39B	99.83B
	Total Debt
31.11B	19.87B	20.03B	20.07B	21.82B	28.31B
	Net Debt
30.01B	18.54B	18.63B	19.03B	18.37B	24.89B
	Total Liabilities
51.73B	38.96B	40.62B	41.64B	43.94B	49.59B
	Stockholders Equity
51.70B	49.19B	49.53B	48.68B	49.30B	50.10B
Cash Flow		Free Cash Flow
3.02B	3.16B	2.96B	1.55B	4.46B	4.33B
	Operating Cash Flow
4.13B	4.18B	3.98B	2.47B	5.36B	4.93B
	Investing Cash Flow
-1.61B	-1.02B	-916.00M	-1.09B	4.04B	-522.00M
	Financing Cash Flow
-1.87B	-3.01B	-2.68B	-3.71B	-9.34B	-3.33B

Kraft Heinz Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KHC, the sentiment is Negative. The current price of 26.08 is below the 20-day moving average (MA) of 26.60, below the 50-day MA of 27.72, and below the 200-day MA of 30.17, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 36.73 is Neutral, neither overbought nor oversold. The STOCH value of 22.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KHC.

Kraft Heinz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRL	71 Outperform	$16.82B	22.49	9.39%	3.79%	-1.01%	-2.93%
KHC	68 Neutral	$30.87B	11.82	5.36%	6.13%	-4.25%	-4.04%
CAG	67 Neutral	$10.30B	31.56	3.67%	6.49%	-3.15%	-65.38%
CPB	65 Neutral	$9.78B	21.67	11.67%	4.76%	8.65%	-38.57%
Sector *	65 Neutral	$8.81B	14.92	4.67%	6.17%	3.60%	-2.89%
GIS	63 Neutral	$29.33B	11.76	27.37%	4.48%	-2.62%	4.27%
SJM	60 Neutral	$10.19B	22.22	-17.87%	4.51%	7.07%	-181.54%

Kraft Heinz Corporate Events

Kraft Heinz Board Members Step Down

On May 19, 2025, Kraft Heinz announced that Board members Timothy Kenesey and Alicia Knapp decided to step down, effective May 20, 2025, without any disagreements with the company’s management or policies. As a result, the Board’s size has been reduced to ten members, which may impact the company’s governance structure.

The most recent analyst rating on (KHC) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Kraft Heinz stock, see the KHC Stock Forecast page.

Kraft Heinz Elects Directors at Annual Meeting

On May 8, 2025, Kraft Heinz held its Annual Meeting of Stockholders where all 12 director nominees were elected for a one-year term. Additionally, stockholders approved the executive compensation and the selection of PricewaterhouseCoopers LLP as independent auditors for 2025. However, proposals regarding recyclability claims, plastic packaging, and adopting a policy for an independent Board Chair were not approved.

The most recent analyst rating on (KHC) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Kraft Heinz stock, see the KHC Stock Forecast page.