Kellogg Stock Analysis, Valuation (NYSE:K)

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$65.23 $1.72 (2.71%) K stock closing price May 25, 2018 (Closing)
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Kellogg
Updated on : May 25, 2018
previous close
K 65.2 (0%)
S&P 500 2721.3 (0%)
Closing Price On: May 25, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Food-Misc-Diversified
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-2.2%
Operating Profit
Operating Margin:
16%
Sector Average:
12%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
8.66B
Debt/Equity Ratio:
 3.39
Compared to the industry
Cash Flow
Operating cash flow:
$228M
Net Income:
$444M
Dividend Yield
K dividend yield:
3.28%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
Long Term Growth
High Debt Burden
Cash Flow
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
K PS :
1.7
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
13.9%
Return on Equity:
68.5%
Free Cash Flow Margin:
2.8%
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Kellogg Stock Analysis

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Investors can watch the Amigobulls Kellogg stock analysis video here. This is our analyst opinion covering the buy and sell arguments for K stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Kellogg Company Stock Rating 3.3/5

Amigobulls K stock analysis relies on business fundamentals such as Kellogg revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 earnings. Kellogg valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Kellogg stock rating which is indicative of the company's financial performance.

Should you buy K stock?

  • The TTM operating margin was good at 16% for Kellogg.
  • Net margins came in at average 11.1% for Kellogg over the last twelve months.
  • K stock is trading at an earnings multiple of 15.6 which is better than the industry average of 21.9.
  • Kellogg has an attractive ROIC (Return on Invested Capital) of 13.9%
  • Kellogg has a good Return On Equity (ROE) of 68.5%.

Should you sell K stock?

  • The company saw an average annual sales decline of -2.2% in sales over the last 5 years.
  • Kellogg is debt laden and has a high debt/equity ratio of  3.39.
  • Cash flow from operations is low at 0.5 times the net income.

Comments on this video and Kellogg stock

Investors can use Amigobulls Kellogg stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

Kellogg revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Kellogg stock.