10Y annualized return is
positive but below market average
at 3.4% per year
K has met or exceeded earnings expectations in
most
recent quarters (9/10)
Reasonable PE Ratio
Strong Return on Equity
Strong Gross Profit Margin
Healthy Operating Profit Margin
Strong Interest Coverage
📈 Strong Performance Metrics
🌍 Diversified Global Footprint
💡 Innovation Pipeline
🚀 Increased Guidance
🔄 Return to Full Commercial Activity
High Price to Cash Flow Ratio
High Price to Book Ratio
Declining Net Profit Margin
High Debt Levels
Low Liquidity Ratios
📉 Volume Declines in Key Markets
⚠️ Potential Margin Compression
Overall, Kellanova is demonstrating strong business quality and future growth potential, supported by solid performance metrics, a diversified global presence, and a robust innovation pipeline. However, challenges remain in specific markets like Nigeria, and there is caution regarding margin sustainability.
Analysis Date: August 1, 2024
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Kellogg Company is a food company that makes and sells a variety of snacks and breakfast foods. Some of their well-known products include cereals, crackers, granola bars, and frozen waffles. They sell these products under popular brand names like Kellogg's, Pringles, and Eggo. Kellogg operates in different regions around the world and sells its products to grocery stores and other retailers.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Latest News
Brand new flavors bring summer staples together for a first-of-its-kind flavor innovation from Pringles CHICAGO , April 16, 2025 /PRNewswire/ -- Two t...
Wendy's is offering even more ways to love Frosty with new sauces and mix-ins, including OREO cookie pieces and Pop-Tarts Crunchy Poppers pieces DUBLI...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$48.66
Current Market Price: $82.29
IV/P Ratio: 0.59x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-69.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for K
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (21.13)
P/B ratio ≤ 1.5 (7.52)
Current ratio ≥ 2.0 (0.81x)
Long-term debt < Net current assets (-6.03x)
Margin of safety (-69.0%)
K does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
38.69%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
35.79%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
10.53%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
A gross profit margin of 35.79% indicates efficient production and pricing strategies, contributing positively to overall profitability.
An operating profit margin of 14.85% reflects effective cost management and operational efficiency, leading to sound profitability.
The net profit margin of 10.53% is lower than the gross and operating margins, indicating potential issues with non-operating expenses or taxes.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
1.63x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.81x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
An interest coverage ratio of 6.09 suggests that the company generates enough earnings to comfortably cover interest expenses, indicating good financial stability.
A debt to equity ratio of 1.68 indicates significant reliance on debt financing, which could pose risks in a rising interest rate environment.
With a current ratio of 0.81 and a quick ratio of 0.56, the company may face short-term liquidity challenges, suggesting potential difficulties in meeting short-term obligations.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Revenue
Kellanova reported strong quarterly results with a year-on-year organic growth in net sales of 4% and a currency-neutral operating profit growth of 16%. This indicates robust financial health post spin-off.
The company's global diversification and exposure to faster-growing markets provide competitive advantages, helping to mitigate risks associated with regional downturns.
Kellanova has resumed its innovation launch calendar, with numerous new product launches planned, including Pringles Mingles and Cheez-It in Europe. This innovation is expected to drive consumer interest and sales.
Despite overall growth, Nigeria experienced significant volume declines due to currency-driven pricing pressures, which could impact future performance.
Kellanova raised its full-year guidance based on strong first-half performance, indicating confidence in sustaining growth and profitability.
The company is expected to see continued improvement in volume performance across most regions, driven by a return to full commercial activation and planned innovations.
While margins have improved, the company anticipates moderation in gross margin growth due to lapsing transitional items and increased brand-building investments.
Insider trading data shows purchase and sale activities by company executives and board members.
Insider trading patterns can provide insights into how company executives and board members view the stock's future prospects.
Insiders are selling significantly more than buying (ratio: 0.00x)
Total Bought
Total value of insider purchases in recent quarters
K: No insider purchase data available
Total Sold
Total value of insider sales in recent quarters
$459637
Lower values relative to buying indicate possible undervaluation
Active Insiders
Number of insiders trading in recent quarters
1
Limited insider activity
Recent Trend
Change in insider trading pattern
K: No trend data available