Is it time to buy Kellogg stock now?
In the first half of 2020, organic net sales were up 8.6% for Kellogg. The company typically doesn't grow this fast. For example, organic net sales were flat in 2018 and only up 1.9% in 2019. While accelerating revenue growth is positive, this isn't a reason to buy Kellogg stock now.
How much of Kellogg's stock is owned by insiders?
In the past three months, Kellogg insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $10,384,250.00 in company stock. Only 1.20% of the stock of Kellogg is held by insiders. 83.69% of the stock of Kellogg is held by institutions.
What are analysts'forecasts for Kellogg's stock?
9 brokers have issued 12-month price objectives for Kellogg's stock. Their forecasts range from $58.00 to $75.00. On average, they expect Kellogg's stock price to reach $67.63 in the next year. This suggests a possible upside of 0.9% from the stock's current price.
Why did Kellogg's sales rise 9% in the second quarter?
Naturally, with more people staying home and eating in, Kellogg's sales benefited. Its second-quarter adjusted sales rose by better than 9%. While management claimed it is now reaching new households and using data and analytics to help revenue growth, as authorities eased restrictions, people's normal buying habits started returning.
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Should I invest Kellogg stock?
Kellogg Company - Hold Its Value Score of B indicates it would be a good pick for value investors. The financial health and growth prospects of K, demonstrate its potential to outperform the market. It currently has a Growth Score of C.
Is Kellogg a buy now?
USD 71.34 0.28 0.39% Taking into account the 90-day investment horizon and your highly speculative risk level, our recommendation regarding Kellogg Company is 'Strong Buy'.
Is Kellogg stock overvalued?
Kellogg Company secures a last-minute Real Value of $74.02 per share. The latest price of the firm is $67.54. At this time, the firm appears to be undervalued....USD 67.54 0.13 0.19%LowIncome Per ShareHigh0.190.190.19
Is Kellogg's worth more than post?
Kellogg's brand is ranked #- in the list of Global Top 1000 Brands, as rated by customers of Kellogg. Their current market cap is $21.56B. Post Holdings's brand is ranked #- in the list of Global Top 1000 Brands, as rated by customers of Post Holdings. Their current market cap is $6.82B....Kellogg vs Post Holdings.100%Promoters0%Detractors1 more row
Is Kellogg undervalued?
Undervalued with solid track record and pays a dividend.
Is Kellogg's a good company?
Kellogg's has an overall rating of 3.7 Average Rating out of 5, based on over 36 Kellogg's Review Ratings left anonymously by Kellogg's employees, which is 5% lower than the average rating for all companies on CareerBliss. 89% of employees would recommend working at Kellogg's.
Is Kellogg's financially healthy?
turned in strong earnings growth during fiscal 2020. Net income in the fiscal year ended Jan. 2 totaled $1.25 billion, equal to $3.65 per share on the common stock, up 30% from $960 million, or $2.81 per share, in fiscal 2019.
Why is Special K out of stock?
We're still making Original Special K. However, due to supply constraints in manufacturing, there is a temporary shortage.
Whats a good PEG ratio?
What Is a Good PEG Ratio? As a general rule, a PEG ratio of 1.0 or lower suggests a stock is fairly priced or even undervalued. A PEG ratio above 1.0 suggests a stock is overvalued.
Who is Kellogg biggest competitor?
Kellogg's Competitors General Mills. Mondelez International. Kraft Heinz. J M Smucker. Ingredion. Quaker Oats Company. Nestle. Conagra Foods.More items...•
Is Kellogg or post bigger?
The company has a market capitalization of $36 billion. Kellogg's shares are down 10% over the last year and down 14% over the last five years. The company has a market capitalization of $21 billion. Post Holdings shares are down 7% over the last year and up 64% over the last five years.
What is the number 1 selling cereal?
Cheerios1. Cheerios. America's favorite cereal by both revenue and boxes sold is Cheerios.
Kellogg's (K)
Kellogg Company - Sell
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
Style Scorecard
Zacks' proprietary data indicates that Kellogg Company is currently rated as a Zacks Rank 4 and we are expecting a below average return from the K shares relative to the market in the next few months.
Chart for K
The Zacks Equity Research reports, or ZER for short, are our in-house, independently produced research reports.
How much did Kellogg's sales in 2019?
Headquartered in Battle Creek, MI, Kellogg Company (K) manufactures and markets ready-to-eat cereals and convenience foods (including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and veggie foods), and savory snacks. The company has a balanced portfolio of cereal and snack products.
What is Kellogg's food?
These consumer staple products have stable demand, but they haven't provided Kellogg's with much growth. In fact, its 2019 adjusted sales were $13.9 billion, only 1.9% year-over-year growth when stripping out the effects of acquisitions, divestitures, and foreign currency translations.
Why are dividends important for shareholders?
Stable products, slow growth. Kellogg is known for various foods such as snacks like crackers, cereal bars, and granola bars, and convenience foods like cereal and frozen waffles. Aside from its namesake brand, these are also sold under well-known names like Cheez-It, Pringles, and Eggo. These consumer staple products have stable demand, ...
How much cash flow does Kellogg have in 2020?
With a slow-growth company, dividends become more prominent for shareholders, since that is what they rely on for returns rather than price appreciation. It is easy to get fooled by the faster growth experienced in 2020, but you shouldn't fall into the trap.
Is Kellogg's sales increase anemic?
For the first three quarters of 2020, Kellogg's operating cash flow was $1.6 billion. After subtracting capital expenditures of $326 million, that left free cash flow of $1.3 billion, leaving plenty left over for the $586 million of dividends. However, taking a look at 2019, which is a more typical year since it didn't get the benefit ...
Does Kellogg have dividends?
Kellogg's sales increases have historically been anemic, and while there is a high dividend yield, the board of directors' decision to keep the same level last year doesn't bode well for the company's future.
Is cereal a good food?
While Kellogg had raised dividends every year since 2005, the company halted this streak last year. The dividend yield is a high 3.8%, but the lack of an increase certainly makes a statement about management's view of the company's prospects. For the first three quarters of 2020, Kellogg's operating cash flow was $1.6 billion.
Does Kellogg have a customer?
Cereal Business: Kellogg — with brands like Corn Flakes and Special K — is the market leader, accounting for about 30% of the overall cereal biz. In general, the industry should benefit from the aging of the population considering that older people tend to eat more cereal (and generally are encouraged to for its health benefits). Plus, cereal is a very affordable food.
Pros on Kellogg Stock
Customer Dependence: Kellogg relies heavily on distribution from big-box retailers and grocers; about 20% of sales comes from Walmart ( WMT) alone. This puts the retailer at an advantage in terms of leverage to get better terms, which could put pressure on Kellogg’s margins. At the same time, the U.S. grocery market has been undergoing consolidation, which again will give the industry more negotiating power.
Cons on Kellogg Stock
Brand portfolio. It’s extensive. Some of Kellogg’s franchise brands include Corn Flakes, Keebler, Eggo and Rice Krispies.
Verdict on Kellogg Stock
Debt. Kellogg’s leverage is on the high side. Keep in mind that long-term debt is a hefty $6.3 billion. There is also outstanding pension liabilities of $886 million. All this compares to about $2.8 billion in equity.
What is Kellogg's stock price in 2020?
Kellogg has some troublesome headwinds, as seen with the competition and sluggishness with the core cereal business. But the good news is that the company is taking swift actions to restructure its cost structure. The result should be higher cash flows, which will allow for a robust dividend and share buybacks in Kellogg stock.
When is Kellogg's quarterly dividend?
Kellogg's stock was trading at $61.69 on March 11th, 2020 when COVID-19 (Coronavirus) reached pandemic status according to the World Health Organization (WHO). Since then, K stock has increased by 2.5% and is now trading at $63.25. View which stocks have been most impacted by COVID-19.
Does Kellogg have a dividend?
Kellogg announced a quarterly dividend on Friday, April 30th. Investors of record on Tuesday, June 1st will be given a dividend of $0.58 per share on Tuesday, June 15th. This represents a $2.32 annualized dividend and a dividend yield of 3.67%. The ex-dividend date of this dividend is Friday, May 28th.
PE Ratio
Kellogg does not yet have a strong track record of dividend growth. The dividend payout ratio of Kellogg is 58.15%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Kellogg will have a dividend payout ratio of 54.72% next year.
Broad Value Outlook
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world.
What About the Stock Overall?
In aggregate, Kellogg Company currently has a Value Style Score of B, putting it into the top 40% of all stocks we cover from this look. This makes K a solid choice for value investors and some of its other metrics make it clear too.
Kellogg Company Price and Consensus
Though Kellogg Company might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of A and a Momentum score of F. This gives K a VGM score—or its overarching fundamental grade—of B.
Bottom Line
This somewhat mixed trend is why the stock has just a Zacks Rank #3 (Hold) and why we are looking for in-line performance from the company in the near term.
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Kellogg Company is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Moreover a strong industry rank (Top 50% out of more than 250 industries) further supports the growth potential of the stock. However with a Zacks Rank #3, it is hard to get excited about the stock overall.