Kraft Heinz Co
🇺🇸 KHC · NYSE/NASDAQ · US5007541064
Consumer
USD 22.92 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: 2026-03-31
Why N/A?
EPS (TTM) = -4.84 (negative or zero)
Cannot calculate P/E with negative earnings.
Forward P/E (estimated): 11.7
Based on analyst estimates
Reference: Provider P/E (Forward): 11.7
Yield (Fwd)
6.98%
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): 6.86%
Div. Growth (5Y CAGR)
0.1%
Growth Streak
1 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
12.8x
Latest quarter: 12.8x
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: 2026-03-31
Latest quarter (2026-03-31): 12.8x
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)
62.7%
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): 39.9%
FCF Coverage (TTM): 2.08x
ROE
-12.6%
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 generates robust free cash flow that securely covers its attractive 6.86% yield despite structural headwinds to its legacy brand portfolio. However, chronic multi-billion dollar impairment charges and stagnant long-term revenue indicate structural brand value degradation rather than mere temporary setbacks. The risks of secular decline outweigh the attractive valuation and yield, making it not recommended for new conservative dividend positions.
Sector Context
Kraft Heinz is a major global consumer packaged food and beverage company, manufacturing and marketing products across various grocery and pantry staples. In the consumer staples sector, dividend investors typically look for strong brand loyalty, pricing power, and steady organic growth, which the company has struggled to maintain against shifting consumer preferences and private label competition.
Temporary Opportunity Identified
Massive non-cash impairment charges have severely distorted recent GAAP earnings, pushing TTM P/E negative and masking the company's positive underlying free cash flow and adjusted operational performance.
📊 Strategy Analysis
- • High dividend yield of 6.86% is robustly covered by free cash flow, evidenced by a conservative cash flow payout ratio of 39.91%.
- • Trades at an attractive forward P/E of 11.68 and a deeply discounted Price/Book ratio of 0.65.
- • Underlying cash generation remains resilient despite massive accounting losses, with adjusted EPS increasing despite recent impairment charges.
⚠ What to Watch
- • Chronic history of massive non-cash impairment charges ($9.3B in 2025, $1.4B in 2024, and $15.4B in 2019) strongly signals structural brand value degradation.
- • Long-term fundamentals demonstrate 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 12.78x is mathematically distorted by impairment-driven negative EBITDA margins, complicating accurate leverage and risk assessment.
📊 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: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.