📊 KHC Key Takeaways
Is Kraft Heinz Co (KHC) a Good Investment?
Kraft Heinz exhibits fundamental deterioration with declining revenue (-3.5% YoY), flat net income, and a severe 318% EPS decline while generating historically poor returns (1.9% ROE, 1.0% ROA) indicating severe capital inefficiency. Despite adequate operating margins and positive free cash flow, the company is destroying shareholder value amid negative top-line growth and mounting liquidity pressures.
Kraft Heinz shows solid cash generation and still produces a healthy gross margin, but the latest period fundamentals are weighed down by declining revenue and deeply negative operating and net margins. Financial health is not distressed given positive free cash flow, adequate liquidity, and moderate debt/equity, yet weak earnings quality and negative interest coverage materially weaken the fundamental outlook.
Kraft Heinz Co Key Strengths (KHC)
- Solid operating margins (18.9%) and gross margins (36.7%) demonstrate production efficiency within the food manufacturing sector
- Positive free cash flow of $766M provides flexibility and ability to service debt obligations
- Moderate debt-to-equity ratio of 0.46x indicates balance sheet is not severely overleveraged relative to equity base
- Strong free cash flow generation of $3.66B with a 14.7% FCF margin
- Gross margin remains solid at 33.3%, indicating underlying brand and pricing strength
- Balance sheet leverage appears manageable with 0.46x debt/equity and a 1.15x current ratio
KHC Stock Risks: Kraft Heinz Co Investment Risks
- Revenue declining 3.5% YoY combined with flat net income signals margin compression and deteriorating competitive position
- Catastrophic 318% EPS decline YoY represents severe shareholder value destruction and concerning capital allocation
- Abysmal returns on equity (1.9%) and assets (1.0%) reveal massive capital inefficiency and likely asset impairment from prior acquisitions
- Quick ratio of 0.82x indicates short-term liquidity strain and potential difficulty meeting obligations without asset liquidation
- High absolute debt of $19.2B amplifies financial risk in declining revenue environment despite moderate leverage ratio
- Revenue declined 3.5% year over year, pointing to weak top-line momentum
- Operating loss of $4.67B and net loss of $5.85B indicate severe profitability pressure
- Negative interest coverage of -4.9x suggests earnings currently do not support debt servicing comfortably
Key Metrics to Watch
- Revenue stabilization and return to growth - critical inflection point for investment thesis
- Return on Equity and Return on Assets trajectory - must improve significantly from distressed levels
- Operating free cash flow sustainability - ability to service debt while managing declining sales
- Quick ratio improvement and working capital management - monitor liquidity adequacy
- Revenue growth and operating margin recovery
- Free cash flow consistency and interest coverage improvement
Kraft Heinz Co (KHC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Kraft Heinz Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
KHC Profit Margin, ROE & Profitability Analysis
KHC vs Consumer Sector: How Kraft Heinz Co Compares
How Kraft Heinz Co compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kraft Heinz Co Stock Overvalued? KHC Valuation Analysis 2026
Based on fundamental analysis, Kraft Heinz Co has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Kraft Heinz Co Balance Sheet: KHC Debt, Cash & Liquidity
KHC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kraft Heinz Co's revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $2.31 reflects profitable operations.
KHC Revenue Growth, EPS Growth & YoY Performance
KHC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $6.0B | $712.0M | $0.59 |
| Q3 2025 | $6.2B | -$290.0M | $-0.24 |
| Q2 2025 | $6.4B | $102.0M | $0.08 |
| Q1 2025 | $6.0B | $712.0M | $0.59 |
| Q3 2024 | $6.4B | $262.0M | $0.21 |
| Q2 2024 | $6.5B | $102.0M | $0.08 |
| Q1 2024 | $6.4B | $801.0M | $0.66 |
| Q3 2023 | $6.5B | $262.0M | $0.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kraft Heinz Co Dividends, Buybacks & Capital Allocation
KHC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kraft Heinz Co (CIK: 0001637459)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KHC
What is the AI rating for KHC?
Kraft Heinz Co (KHC) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KHC's key strengths?
Claude: Solid operating margins (18.9%) and gross margins (36.7%) demonstrate production efficiency within the food manufacturing sector. Positive free cash flow of $766M provides flexibility and ability to service debt obligations. ChatGPT: Strong free cash flow generation of $3.66B with a 14.7% FCF margin. Gross margin remains solid at 33.3%, indicating underlying brand and pricing strength.
What are the risks of investing in KHC?
Claude: Revenue declining 3.5% YoY combined with flat net income signals margin compression and deteriorating competitive position. Catastrophic 318% EPS decline YoY represents severe shareholder value destruction and concerning capital allocation. ChatGPT: Revenue declined 3.5% year over year, pointing to weak top-line momentum. Operating loss of $4.67B and net loss of $5.85B indicate severe profitability pressure.
What is KHC's revenue and growth?
Kraft Heinz Co reported revenue of $6.0B.
Does KHC pay dividends?
Kraft Heinz Co pays dividends, with $474.0M distributed to shareholders in the trailing twelve months.
Where can I find KHC SEC filings?
Official SEC filings for Kraft Heinz Co (CIK: 0001637459) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KHC's EPS?
Kraft Heinz Co has a diluted EPS of $0.67.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KHC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Kraft Heinz Co has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KHC stock overvalued or undervalued?
Valuation metrics for KHC: ROE of 1.9% (sector avg: 18%), net margin of 13.2% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is KHC's AI grade for 2026?
Our dual AI analysis gives Kraft Heinz Co a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is KHC's free cash flow?
Kraft Heinz Co's operating cash flow is $1.0B, with capital expenditures of $240.0M. FCF margin is 12.7%.
How does KHC compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 13.2% (avg: 8%), ROE 1.9% (avg: 18%), current ratio 1.20 (avg: 1.5).