Grain Mill Products
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, Krave, Rice Krispies Treats, Kashi Go, Crunchy Nut, Rice Krispies Squares, Incogmeato, Veggitizers, and Gardenburger brand names. It sells its products to retailers through direct sales forces, as well as brokers and distributors. Kellogg Company was founded in 1906 and is headquartered in Battle Creek, Michigan.
Discounted Cash Flow Valuation of Kellogg Co
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +8.78%.
The trend of Net Margin over the past 5 years is -0.4%.
The average ROA over the past 5 years is +10.31%.
The trend of ROA over the past 5 years is -0.19%.
The average ROE over the past 5 years is +36.64%.
The trend of ROE over the past 5 years is -5.45%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 5.48.
The trend of Debt/FCF over the past 5 years is -0.74.
Graham’s Stability measure stands at 0.68.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +3.57%.
The trend of Revenue growth rate over the past 5 years is +1.34%.
The Earnings CAGR over the past 5 years is -5.43%.
The trend of Earnings growth rate over the past 5 years is +1.79%.
The Equity CAGR over the past 5 years is +14.45%.
The trend of Equity growth rate over the past 5 years is +4.17%.
The FCF CAGR over the past 5 years is +0.31%.
The trend of FCF growth rate over the past 5 years is +3.44%.