Kellanova (K) AI Stock Analysis

• Market Cap: $28.64B
• Dividend Yield: 2.75%
• Average Volume (3M): 3.04M
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.08
• Revenue Growth: -12.00%
• EPS Growth: 49.20%
• Country: US
• Employees: 24,000
• Sector: Consumer Defensive
• Sector Strength: 85
• Industry: Food Confectioners
• EPS (TTM): 0.93
• Shares Outstanding: 346,939,100
• 10 Day Avg. Volume: 2,998,719
• 30 Day Avg. Volume: 3,040,403
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.65
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $80.50
• Price Target Upside: -2.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

Kellanova exhibits strong operational efficiency and profitability, though facing revenue decline and moderate leverage. The stock shows positive technical momentum with potential overbought conditions. Valuation appears high, but the dividend yield is appealing. Corporate strategy adjustments in executive compensation reflect a focus on long-term growth.

Positive Factors

Profitability

The EBIT margin improved by 200 basis points year-over-year to 13.6%, driven by lower SG&A expenses.

Sales Performance

Organic sales growth outperformed expectations with a 6.1% year-over-year increase compared to the estimated 3.3%.

Negative Factors

Gross Margin

Gross margin was below expectations, which led to a gross profit slightly behind the model.

Reported Sales

Despite higher organic sales, reported sales showed a decline compared to the estimate.

Kellanova Business Overview & Revenue Model

Company Description

Kellogg Company, together with its subsidiaries, manufactures and markets snacks and convenience foods. The company operates through four segments: North America, Europe, Latin America, and Asia Middle East Africa. Its principal products include crackers, crisps, savory snacks, toaster pastries, cereal bars, granola bars and bites, ready-to-eat cereals, frozen waffles, veggie foods, and noodles. The company offers its products under the Kellogg's, Cheez-It, Pringles, Austin, Parati, RXBAR, Kashi, Bear Naked, Eggo, Morningstar Farms, Choco Krispies, Crunchy Nut, Nutri-Grain, Special K, Squares, Zucaritas, Sucrilhos, Pop-Tarts, K-Time, Sunibrite, Split Stix, Be Natural, LCMs, Coco Pops, Frosties, Rice Krispies Squares, Kashi Go, Vector, Incogmeato, Veggitizers, and Gardenburger brand names. It sells its products to retailers through direct sales forces, as well as brokers and distributors. The company was founded in 1906 and is headquartered in Battle Creek, Michigan.

How the Company Makes Money

Kellanova makes money through a diverse revenue model primarily driven by the sale of its packaged food products. The company's key revenue streams include retail sales to grocery stores, supermarkets, and other food retailers, as well as direct-to-consumer sales through online platforms. Kellanova also earns revenue from strategic partnerships and licensing agreements that allow it to expand its brand reach and product offerings. Additionally, the company leverages its global supply chain and efficient production processes to maintain profitability and competitive pricing, contributing to its financial success.

Kellanova Financial Statement Overview

Summary

Kellanova maintains strong profitability and operational efficiency, evidenced by solid margins, though revenue has been on a declining trend. The balance sheet exhibits moderate leverage, which warrants monitoring, yet the company effectively uses equity to drive profit. Cash flow operations remain stable, though slight pressure is seen in free cash flow growth, indicating areas for improvement in capital management.

Income Statement

Kellanova shows a stable performance in terms of profitability with a healthy gross profit margin of 52.2% in TTM. However, the company is experiencing a negative revenue growth trend, with a decline from $15.3 billion in 2022 to $12.6 billion TTM. The net profit margin is strong at 10.9% TTM, indicating effective cost management. EBIT and EBITDA margins remain solid, underscoring operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial leverage with a debt-to-equity ratio of 1.59, indicating a reliance on debt financing. The equity ratio stands at 25.3%, showing a reasonable equity base. Return on equity is robust at 35.2% TTM, suggesting efficient use of shareholders' equity to generate profits.

Cash Flow

Kellanova's cash flow situation is stable, with an operating cash flow to net income ratio of 1.10, indicating good cash generation relative to earnings. Free cash flow has decreased slightly, with a negative free cash flow growth rate of -8.2%, potentially signaling caution in capital expenditures or operational efficiency improvements.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
12.75B	13.12B	15.31B	14.18B	13.77B
	Gross Profit
4.54B	4.28B	4.62B	4.56B	4.73B
	EBIT
1.87B	1.50B	1.64B	1.75B	1.76B
	EBITDA
2.33B	1.76B	1.64B	2.05B	2.25B
	Net Income Common Stockholders
1.34B	951.00M	960.00M	1.49B	1.25B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
694.00M	274.00M	299.00M	286.00M	435.00M
	Total Assets
15.63B	15.62B	18.50B	18.18B	18.00B
	Total Debt
6.34B	6.53B	7.17B	7.73B	8.11B
	Net Debt
5.65B	6.25B	6.87B	7.44B	7.68B
	Total Liabilities
11.75B	12.25B	14.12B	13.96B	14.36B
	Stockholders Equity
3.77B	3.17B	3.94B	3.72B	3.11B
Cash Flow		Free Cash Flow
1.13B	968.00M	1.16B	1.15B	1.48B
	Operating Cash Flow
1.76B	1.65B	1.65B	1.70B	1.99B
	Investing Cash Flow
-750.00M	-562.00M	-448.00M	-528.00M	-585.00M
	Financing Cash Flow
-607.00M	-1.11B	-1.08B	-1.31B	-1.39B

Kellanova Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For K, the sentiment is Positive. The current price of 82.54 is below the 20-day moving average (MA) of 82.54, above the 50-day MA of 82.42, and above the 200-day MA of 79.37, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 51.30 is Neutral, neither overbought nor oversold. The STOCH value of 28.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for K.

Kellanova Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDLZ	78 Outperform	$87.72B	25.18	13.27%	2.73%	0.90%	-14.60%
HSY	73 Outperform	$33.09B	20.15	37.48%	3.25%	-5.91%	-19.78%
K	71 Outperform	$28.64B	20.82	39.05%	2.75%	-12.00%	49.20%
GIS	70 Outperform	$29.88B	12.09	27.37%	4.41%	-2.62%	4.27%
KHC	68 Neutral	$33.61B	12.96	5.36%	5.67%	-4.25%	-4.04%
MKC	67 Neutral	$20.04B	25.85	14.73%	2.32%	0.40%	10.89%
Sector *	64 Neutral	$8.85B	14.84	5.05%	174.27%	3.54%	3.75%

Kellanova Corporate Events

Kellanova Announces CFO Resignation and New Appointment

On May 6, 2025, Kellanova announced the resignation of Amit Banati, the Vice Chairman and Chief Financial Officer, effective May 9, 2025, as he pursues another opportunity. The company appointed John Renwick as the acting Senior Vice President and Chief Financial Officer, effective May 9, 2025, who has been with the company since 2000 and has extensive experience in finance and investor relations.

Spark’s Take on K Stock

According to Spark, TipRanks’ AI Analyst, K is a Outperform.

Kellanova exhibits strong operational efficiency and profitability, though facing revenue decline and moderate leverage. The stock shows positive technical momentum with potential overbought conditions. Valuation appears high, but the dividend yield is appealing. Corporate strategy adjustments in executive compensation reflect a focus on long-term growth.

To see Spark’s full report on K stock, click here.

Kellanova Aligns Executive Compensation with Long-Term Goals

On February 21, 2025, Kellanova’s Board of Directors made compensation decisions for its executive officers, involving the issuance of restricted stock units (RSUs). The independent board members approved RSU grants for several executives, with vesting conditions set for three years from the grant date. This move reflects Kellanova’s commitment to aligning executive compensation with long-term company performance, potentially impacting stakeholder interests by incentivizing leadership to focus on sustained growth.