Kraft Heinz (KHC)
Consumer Staples · $28.7B market cap · SEC CIK 0001637459
ahead of 4% of the S&P 500 · #34 of 36 in Consumer Staples
Next reports on Feb 9, 2027, after the close, with analysts expecting $0.44 in earnings per share.
52-week range $21.04 to $28.09. 14% below its 52-week high and 15% above its low.
The case for KHC
- Trades at 0.80× book value, below what the balance sheet says it owns.
- Free cash flow of 12.8% of its market value a year: a lot of cash for the price.
- Pays a 4.6% dividend while you wait.
- Moves less than the market (beta 0.09).
The case against
- Losing money over the last year: net margin −13.6%, return on equity −8%.
- Pays a dividend while losing money over the last twelve months.
- Revenue was flat on the year (−1.6%).
- Revenue has shrunk 1.0% a year over five years.
- Long-term debt of $19.3B against $2.6B of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Staples companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 44 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 24 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 11 |
| Momentumhow the price has behaved lately | 46 |
| Stabilityhow violently it moves, what it owes and what it pays you | 39 |
- It is losing money, so it has no P/E; that counts against value rather than being skipped.
- Each factor except momentum is half fixed thresholds, half rank among the 36 Consumer Staples companies.
The financials
Revenue growth
Is the business growing? No, flat
| Last 12 months | −1.6% |
|---|---|
| Over 5 years | −1.0% a year |
| FY2025 revenue | $24.9B (−3%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $3.7B |
|---|---|
| Of revenue | 15% |
| Of profit | n/a |
Profit margins
Is profitability improving? No, slipping
| Gross margin | 33% |
|---|---|
| Operating margin | −13% |
| Net margin, FY24 → FY25 → now | 10.6% → −23.4% → −13.6% |
Debt vs. cash
Is the balance sheet healthy? Mostly, with some debt to carry
| Cash | $2.6B |
|---|---|
| Long-term debt | $19.3B |
| Net debt | $16.7B |
| Years to repay | 4.3 yrs |
Valuation
Is the stock price reasonable? Hard to say: no earnings to price
| P/E | n/a (a loss) |
|---|---|
| Fair P/E for its growth | 15× |
| P/FCF | 7.8× |
| Forward P/E | 12.7× |
| EV / EBITDA | 17.9× |
| Price / sales | 1.2× |
It has no earnings to price, so the verdict leans on its cash flow. At 7.8× free cash flow it trades well below the 15× that 0% a year of growth plus a 4.6% dividend would justify.
The financials, five years deep
Pulled from Kraft Heinz's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $24.9B | $25.8B | $26.6B | $26.5B | $26.0B |
| Change on the year | −3% | −3% | +1% | +2% | — |
| Free cash flow | |||||
| Free cash flow | $3.7B | $3.2B | $3.0B | $1.6B | $4.5B |
| Of revenue | 15% | 12% | 11% | 6% | 17% |
| Profit margins | |||||
| Gross margin | 33.3% | 34.7% | 33.5% | 30.7% | 33.3% |
| Operating margin | −18.7% | 6.5% | 17.2% | 13.7% | 13.3% |
| Net margin | −23.4% | 10.6% | 10.7% | 8.9% | 3.9% |
| Debt vs. cash | |||||
| Cash | $2.6B | $1.3B | $1.4B | $1.0B | $3.4B |
| Long-term debt | $19.3B | $19.2B | $19.4B | $19.2B | $21.1B |
| Net cash (debt) | −$16.7B | −$17.9B | −$18.0B | −$18.2B | −$17.6B |
What Kraft Heinz says it does
We are driving transformation at The Kraft Heinz Company (Nasdaq: KHC), inspired by our Purpose, Let’s Make Life Delicious . Consumers are at the center of everything we do. With 2025 net sales of approximately $25 billion, we are committed to growing our iconic and emerging food and beverage brands on a global scale. We leverage our scale and agility to unleash the full power of Kraft Heinz across a portfolio of eight consumer-driven product platforms. As global citizens, we’re dedicated to making a sustainable, ethical impact while helping to feed the world in healthy, responsible ways. On July 2, 2015, through a series of transactions, we consummated the merger of Kraft Foods Group, Inc. (“Kraft”) with and into a wholly-owned subsidiary of H.J. Heinz Holding Corporation (“Heinz”) (the “2015 Merger”). At the closing of the 2015 Merger, Heinz was renamed The Kraft Heinz Company, and H. J. Heinz Company changed its name to Kraft Heinz…