KHC logo

The Kraft Heinz Co

KHC

Build a strategy around KHC

Accountable AI Logo

The Kraft Heinz Co AI Insights

Informational only. Not investment advice.
As of 2025-12-08

Snapshot

  • Goodwill/intangibles of 59.7B represent 144% of equity - tangible book value is NEGATIVE (-18.3B), creating material impairment overhang[Goodwill and Other Intangible Assets]
  • FCF TTM of 3.6B vs net loss of 4.4B - cash generation remains intact despite accounting losses, covering 1.9B dividend[Free Cash Flow TTM]
  • Operating margin TTM 19.5% vs industry median 5.2% - 3.7x advantage despite revenue challenges[Operating Margin TTM]

Watch Triggers

  • Free Cash Flow TTM: Falls below 3.0BDividend coverage drops below 1.6x, forcing cut or debt increase
  • Goodwill: Additional impairment >2BSignals further brand deterioration; equity cushion erodes
  • Operating Margin TTM: Drops below 15%Pricing power thesis breaks; cost cuts exhausted

Bull Case

Cash machine trading at 8x FCF (3.6B FCF vs 29B market cap) with 6.5% dividend yield - price embeds significant pessimism on brand value

Free Cash Flow TTMMarket Cap TTMDividends Paid Per Share TTM

Operating margin 19.5% demonstrates pricing power in staples; cost structure already optimized post-3G era

Operating Margin TTMGross Margin TTM

Bear Case

21.2B debt with 19B net debt at 0.51 D/E, but interest expense (936M TTM) consumes 26% of operating income - refinancing risk if rates stay elevated

Total DebtInterest Expense TTMNet Debt

Asset turnover 0.30x vs industry 0.93x median - capital trapped in declining brands with limited reinvestment runway

Asset Turnover TTMGoodwillTotal Assets

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
45%

Leverage KHC's top insights and create a custom strategy based on them in seconds. Our AI editor does it all — in one click.

Take Me to The Editor

Forward Thesis

FCF stability will support dividend through brand rationalization cycle

1-3ymed
  • 3.6B FCF covers 1.9B dividend at 1.9x
  • Low capex intensity (3.4% of revenue)
  • Working capital positive at 1.1B
FCF TTM 3.6B despite net lossCapex TTM only 843MDividend yield ~6.5% sustainable

Intangible write-downs likely to continue given 22B goodwill on declining revenue base

3-12mhigh
  • Goodwill 53% of total equity
  • Legacy brands facing secular decline
  • Negative EBITDA TTM signals impairments taken
EBITDA TTM -4.7B (impairment-driven)Net income TTM -4.4BTangible book value -18.3B

Valuation Context

Caveats

Public Strategies Rankings

See how The Kraft Heinz Co ranks across different investment strategies.

Leverage KHC's top insights and create a custom strategy in seconds. Our AI editor does it all — in one click.

Data Partners
Morningstar Logo

Fundamental company data provided by Morningstar, updated daily.

Accountable Finance, Inc. Disclaimer
accountable.finance is not operated by a broker or a dealer. Under no circumstances does any information posted on accountable.finance represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. In no event shall accountable.finance be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on accountable.finance, or relating to the use of, or inability to use, accountable.finance or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Stock quotes and fundamental company data provided by Morningstar, updated daily.

Accountable Logo
© 2026 Accountable Finance, Inc. All rights reserved.