Kraft Heinz Co
🇺🇸 KHC · NYSE/NASDAQ · US5007541064
Consumer
USD 22.79 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
N/A
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
TTM period through: 2025-12-31
Why N/A?
EPS (TTM) = -4.92 (negative or zero)
Cannot calculate P/E with negative earnings.
Forward P/E (estimated): 10.9
Based on analyst estimates
Reference: Provider P/E (Forward): 10.9
Yield (Fwd)
7.02%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 7.18%
Net Debt/EBITDA (TTM)
13.4x
Latest quarter: 13.4x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 13.4x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (TTM)
61.8%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Cash Flow Payout (TTM): 42.5%
FCF Coverage (TTM): 1.93x
ROE
-12.8%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
13.1x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Kraft Heinz is a major global consumer staples enterprise that continues to generate strong free cash flow despite structural headwinds to its legacy brand portfolio. While the 7.2% yield is highly attractive and securely covered by cash flow, the chronic history of massive brand impairments and stagnant long-term revenues points to structural degradation rather than a purely temporary issue. Not recommended for new positions given the fundamental risks, though current investors may want to monitor the situation while continuing to collect the well-covered dividend.
Sector Context
Kraft Heinz is a major global food and beverage enterprise providing packaged foods, condiments, and pantry staples. While the consumer staples sector generally offers the highly defensive, predictable cash flows ideal for dividend strategies, food manufacturers face significant structural risks from changing consumer health preferences and the rising market share of cheaper private label grocery brands.
Temporary Opportunity Identified
Massive non-cash impairment charges ($9.3B and $1.4B) related to brand value and goodwill have severely distorted TTM earnings, resulting in deeply negative reported EPS and EBITDA despite positive underlying cash generation.
📊 Strategy Analysis
- • Highly attractive 7.2% dividend yield that remains securely covered by a conservative 42.5% free cash flow payout ratio
- • Deeply discounted forward P/E of 10.9 prices in significant pessimism while underlying operations continue generating strong free cash flow ($1.17B)
- • Adjusted operational performance shows some resilience, with recent quarters showing positive adjusted EPS growth despite headline impairment losses
⚠ What to Watch
- • Chronic multi-billion dollar non-cash impairment charges ($9.3B in 2025, $1.4B in 2024) strongly signal permanent structural brand value degradation rather than temporary setbacks
- • Long-term fundamentals show clear secular stagnation, with a 10-year revenue CAGR of -0.5% and an 8-year adjusted earnings CAGR of -3.3%
- • Reported Net Debt/EBITDA of 13.42x is severely elevated, though mechanically skewed by impairment-driven negative EBITDA margins (-14.15%)
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.