The Kraft Heinz Company

The Kraft Heinz Company

KHCยทNASDAQ

$22.76

-2.4%
Consumer DefensivePackaged Foods

The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products. The company also offers dressings, healthy snacks, and other categories; and spices and other seasonings. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative and independent grocery accounts, convenience stores, drug stores, value stores, bakeries, pharmacies, mass merchants, club stores, and foodservice distributors and institutions, including hotels, restaurants, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is headquartered in Pittsburgh, Pennsylvania.

At a Glance

Live Snapshot
Market Cap$26.99B
EPS-4.9300
P/E Ratio-4.62
Earnings Date07/29/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -4.6).

Valuation inputs: P/E -4.6, earnings yield N/A, momentum -2.4%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -14.0%, ROIC -6.2%).

Profitability stack: net margin -23.4%, ROE -14.0%, ROIC -6.2%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +48.9%, momentum -2.4%, net margin -23.4%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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The Kraft Heinz Company Market vs Earnings Trajectory

KHC ยท NASDAQ

Loading price and EPS data...

The Kraft Heinz Company

The Kraft Heinz Company Fair Value Envelope

KHC ยท NASDAQ

Our analysis suggests that KHC has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $22.76, this represents a potential HIDDEN relative to our calculated worth for The Kraft Heinz Company.

Intrinsic Value
Current Price: $22.76
3Y-312.0%
5Y-694.0%
10Y-42.0%
3Y-6.0%
5Y-4.0%
10Y-5.0%
3Y-305.0%
5Y-678.0%
10Y-43.0%
3Y+12.0%
5Y-17.0%
10Y+73.0%
3Y+24.0%
5Y-18.0%
10Y+109.0%
3Y-9.0%
5Y-12.0%
10Y-21.0%
The Kraft Heinz Company

The Kraft Heinz Company Profit Bridge

KHC ยท NASDAQ
Revenue24.94B
Cost of Goods Sold (16.63B)
Gross Profit8.31B
Operating Expenses (12.98B)
Operating Income-4.67B
Interest Expense (947.00M)
Other Income/Expense-776.00M
Pretax Income-5.45B
Income Tax (403.00M)
Net Income-5.85B
Net Income
-5.85B

Profitability Analysis

Gross Margin

33.3%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

-18.7%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-23.4%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

33.31%
Gross Profit Margin
-4%
3Y-1.0%
5Y-
10Y-2.0%
-18.72%
Operating Profit Margin
-387%
3Y-209.0%
5Y-241.0%
10Y-52.0%
-23.44%
Net Profit Margin
-321%
3Y-319.0%
5Y-703.0%
10Y-40.0%
-14.03%
Return on Equity
-352%
3Y-343.0%
5Y-784.0%
10Y-29.0%
-7.15%
Return on Assets
-330%
3Y-326.0%
5Y-760.0%
10Y-27.0%
-6.23%
Return on Invested Capital
-402%
3Y-244.0%
5Y-356.0%
10Y-35.0%
KHC

The Kraft Heinz Company Cash Conversion Engine

KHC ยท NASDAQ
Net Income-5.85B
Depreciation & Amortization968.00M
Stock-Based Compensation95.00M
Change in Working Capital230.00M
Others9.51B
Capital Expenditures-801.00M
Free Cash Flow3.66B

Cash Flow Quality Analysis

FCF Conversion Rate

-62.6%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

18.0%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+15.9%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$230.00M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

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The Kraft Heinz Company Funding & Solvency Profile

KHC ยท NASDAQ
Cash & Cash Equivalents3.31B
Net Receivables2.31B
Inventory3.31B
Other Current Assets974.00M
Total Current Assets11 B
Property, Plant & Equipment7.23B
Goodwill & Intangible Assets59.54B
Long-Term Investments0.00
Other Non-Current Assets4.59B
Total Non-Current Assets12 B
Total Assets
82.05B

Financial Health Analysis

Current Ratio

1.20x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

0.95x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

2 B

Positive working capital, but relatively tight. The company should monitor cash flow carefully.

Asset Composition

13% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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The Kraft Heinz Company Street Expectations Map

KHC ยท NASDAQ

Wall Street analysts project that KHC stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 22.78, with estimates ranging from a low of 18.00 to a high of 25.00.

Lowest Target
18.00
-20.91%
Consensus Target
22.78
0.09%
Highest Target
25.00
9.84%

The consensus 1-year price target stands at 22.78, with estimates ranging from a low of 18.00 to a high of 25.00.

Analyst Consensus Analysis

Upside Potential

+0.1%

Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.

Analyst Agreement

30.7% spread

Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.

Risk-Reward Profile

0.47x

Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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The Kraft Heinz Company Insider Positioning

KHC ยท NASDAQ

During the last 12 months, insiders have purchased $5.00M and sold $7.20M worth of KHC shares, resulting in $2.20M of net selling activity.

3 Months

Bought

213.1K

5.00M

Sold

0

0.00

Net Activity

+5.0M

+$5.00M

3-6 Months

Bought

0

0.00

Sold

264.0K

6.55M

Net Activity

-6.6M

-$6.55M

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

25.0K

647.71K

Net Activity

-648K

-$648K

Top Buyers

1
CSA

Cahillane Steven A

Director, Officer: Chief Executive Officer

213.1K sharesโ€ข1 transactions

$5.00M

Top Sellers

1
PM

Patricio Miguel

Director, Officer: Executive Chair

250.0K sharesโ€ข2 transactions

$6.21M

2
SEL

Sceti Elio Leoni

Director

25.0K sharesโ€ข1 transactions

$648K

3
OC

Onell Cory

Officer: Chief Omnich Sales & Aem Ofcr

14.0K sharesโ€ข2 transactions

$344K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Slightly bearish with $2.20M net selling. Selling modestly exceeds buying, which could be routine diversification rather than concern.

Buy/Sell Ratio

0.69:1

Moderately negative ratio. Selling is roughly double the buying, which may be routine or signal caution.

Recent Trend (3 Months)

$5.00M

Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.

Insider Participation

High Selling

3 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.

1.81%
Dividend Yield
9%
3Y+61.0%
5Y+84.0%
10Y+149.0%
ย 

khc Dividend History

KHC
10Y CAGR 4%
Latest $0.4
Annual $1.6
Stable dividend payments
Last Period: +0%