Kellanova (K) is listed on NYSE and operates in the Food Confectioners industry (Consumer Defensive sector).
Kellanova, together with its subsidiaries, manufactures and markets snacks and convenience foods in North America, Europe, Latin America, the Asia Pacific, the Middle East, Australia, and Africa. Its principal products consist of snacks, such as crackers, savory snacks, toaster pastries, cereal bars, granola bars, and bites; and convenience foods, including ready-to-eat cereals, frozen waffles, veggie foods, and noodles; and crisps. The company offers its products under the Kellogg's, Cheez-It, Pringles, Austin, Parati, RXBAR, Eggo, Morningstar Farms, Bisco, Club, Luxe, Minueto, Special K, Toasteds, Town House, Zesta, Zoo Cartoon, Choco Krispis, Crunchy Nut, Kashi, Nutri-Grain, Squares, Zucaritas, Rice Krispies Treats, Sucrilhos, Pop-Tarts, K-Time, Sunibrite, Split Stix, LCMs, Coco Pops, Krave, Frosties, Rice Krispies Squares, Incogmeato, Veggitizers, Gardenburger, Trink, Carr's, Kellogg's Extra, Müsli, Fruit n Fibre, Kellogg's Crunchy Nut, Country Store, Smacks, Honey Bsss, Zimmy's, Toppas, Tresor, Froot Ring, Chocos, Chex, Guardian, Just Right, Sultana Bran, Rice Bubbles, Sustain, Choco Krispies, Melvin, Cornelius, Chocovore, Poperto, Pops the Bee, and Sammy the Seal brand names. It sells its products to retailers through direct sales forces, as well as brokers and distributors. The company was formerly known as Kellogg Company and changed its name to Kellanova in October 2023. Kellanova was founded in 1906 and is headquartered in Chicago, Illinois.
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 13 |
| Hold | 20 |
| Sell | 1 |
| Strong Sell | 0 |
Kellanova, formerly known as Kellogg Company, is a global manufacturer and marketer of snacks and convenience foods. Operating across North America, Europe, Latin America, the Asia Pacific, the Middle East, Australia, and Africa, the company offers a diverse range of products. Its snack offerings include crackers, savory snacks, toaster pastries, cereal bars, granola bars, and bites. In the convenience foods category, Kellanova provides ready-to-eat cereals, frozen waffles, veggie foods, noodles, and crisps. The company's products are marketed under various brand names, including Kellogg's, Cheez-It, Pringles, RXBAR, Eggo, Morningstar Farms, and Kashi, among others. Kellanova distributes its products to retailers through direct sales forces, brokers, and distributors. Established in 1906, the company is headquartered in Chicago, Illinois.
Over the past three fiscal years, the company has demonstrated a mixed performance across various financial metrics. Revenue showed an inconsistent trend, growing at a modest CAGR of 0.4% from $12.65 billion in 2022 to $12.75 billion in 2024. Despite this modest revenue growth, the company achieved significant improvements in profitability, with gross margin expanding by 5.5 percentage points to 35.6%, and operating margin increasing by 5.1 percentage points to 14.7%. This indicates effective cost management and operational efficiency. Earnings per share (EPS) also saw a notable increase, growing at a CAGR of 17.9% to reach $3.88 in 2024, suggesting enhanced shareholder value.
Cash flow metrics presented a more complex picture. Operating cash flow (OCF) increased at a CAGR of 3.2%, reaching $1.76 billion in 2024, while free cash flow (FCF) showed a slight decline, with a negative CAGR of 1.3%, ending at $1.13 billion. The FCF margin decreased slightly by 0.3 percentage points to 8.9%, reflecting some challenges in cash conversion efficiency. Despite these challenges, the company successfully reduced its net debt by $1.22 billion, indicating a focus on strengthening its balance sheet.
From a capital efficiency perspective, the return on invested capital (ROIC) consistently improved, reaching 17.0% in 2024, highlighting the company's ability to generate returns from its investments. However, liquidity remains a concern, with both the current and quick ratios below 1, suggesting potential short-term financial constraints. Overall, while the company has made strides in profitability and capital efficiency, it faces ongoing challenges in cash flow generation and liquidity management.
No significant news developments were reported for this company in the recent period.