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The Kraft Heinz Co (MIL:1KHC) Piotroski F-Score : 6 (As of Oct. 31, 2024)


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What is The Kraft Heinz Co Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

The Kraft Heinz Co has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for The Kraft Heinz Co's Piotroski F-Score or its related term are showing as below:

MIL:1KHC' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of The Kraft Heinz Co was 8. The lowest was 3. And the median was 6.


The Kraft Heinz Co Piotroski F-Score Historical Data

The historical data trend for The Kraft Heinz Co's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Kraft Heinz Co Piotroski F-Score Chart

The Kraft Heinz Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 6.00 7.00 6.00 7.00

The Kraft Heinz Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 7.00 8.00 6.00 6.00

Competitive Comparison of The Kraft Heinz Co's Piotroski F-Score

For the Packaged Foods subindustry, The Kraft Heinz Co's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Kraft Heinz Co's Piotroski F-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Kraft Heinz Co's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where The Kraft Heinz Co's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was 694.169 + 736.92 + 94.758 + -261.29 = €1,265 Mil.
Cash Flow from Operations was 1243.452 + 709.32 + 875.118 + 975.783 = €3,804 Mil.
Revenue was 6290.62 + 5898.12 + 6016.204 + 5751.083 = €23,956 Mil.
Gross Profit was 2124.689 + 2063.56 + 2131.126 + 1969.586 = €8,289 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(84007.672 + 82840.863 + 83084.28 + 82492.413 + 79797.966) / 5 = €82444.6388 Mil.
Total Assets at the begining of this year (Sep23) was €84,008 Mil.
Long-Term Debt & Capital Lease Obligation was €17,464 Mil.
Total Current Assets was €7,390 Mil.
Total Current Liabilities was €6,963 Mil.
Net Income was 840.16 + 780.824 + 923 + 245.494 = €2,789 Mil.

Revenue was 6967.664 + 6060.726 + 6203.483 + 6156.09 = €25,388 Mil.
Gross Profit was 2231.616 + 1973.542 + 2086.903 + 2094.195 = €8,386 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(90891.92 + 85444.272 + 84940.762 + 83952.388 + 84007.672) / 5 = €85847.4028 Mil.
Total Assets at the begining of last year (Sep22) was €90,892 Mil.
Long-Term Debt & Capital Lease Obligation was €18,056 Mil.
Total Current Assets was €7,344 Mil.
Total Current Liabilities was €7,312 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

The Kraft Heinz Co's current Net Income (TTM) was 1,265. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

The Kraft Heinz Co's current Cash Flow from Operations (TTM) was 3,804. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=1264.557/84007.672
=0.01505288

ROA (Last Year)=Net Income/Total Assets (Sep22)
=2789.478/90891.92
=0.03069005

The Kraft Heinz Co's return on assets of this year was 0.01505288. The Kraft Heinz Co's return on assets of last year was 0.03069005. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

The Kraft Heinz Co's current Net Income (TTM) was 1,265. The Kraft Heinz Co's current Cash Flow from Operations (TTM) was 3,804. ==> 3,804 > 1,265 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=17464.083/82444.6388
=0.211828

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=18055.99/85847.4028
=0.21032657

The Kraft Heinz Co's gearing of this year was 0.211828. The Kraft Heinz Co's gearing of last year was 0.21032657. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=7390.002/6962.928
=1.0613354

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=7344.206/7312.348
=1.00435674

The Kraft Heinz Co's current ratio of this year was 1.0613354. The Kraft Heinz Co's current ratio of last year was 1.00435674. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

The Kraft Heinz Co's number of shares in issue this year was 0. The Kraft Heinz Co's number of shares in issue last year was 1235. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=8288.961/23956.027
=0.34600733

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=8386.256/25387.963
=0.3303241

The Kraft Heinz Co's gross margin of this year was 0.34600733. The Kraft Heinz Co's gross margin of last year was 0.3303241. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=23956.027/84007.672
=0.28516475

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=25387.963/90891.92
=0.27932035

The Kraft Heinz Co's asset turnover of this year was 0.28516475. The Kraft Heinz Co's asset turnover of last year was 0.27932035. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+1+1+1+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

The Kraft Heinz Co has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The Kraft Heinz Co  (MIL:1KHC) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


The Kraft Heinz Co Piotroski F-Score Related Terms

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The Kraft Heinz Co Business Description

Comparable Companies
Address
One PPG Place, Pittsburgh, PA, USA, 15222
In July 2015, Kraft merged with Heinz to create the third-largest food and beverage manufacturer in North America behind wide-moats PepsiCo and Nestle and the fifth-largest player in the world. Beyond its namesake brands, the combined firm's portfolio includes Oscar Mayer, Velveeta, and Philadelphia. While the retail channel drives around 85% of its total sales, the firm also operates a growing presence in the foodservice arena. Outside North America, Kraft Heinz's global reach counts a distribution network in Europe and emerging markets that drives about 25% of its consolidated sales base, as its products are sold in more than 190 countries and territories.

The Kraft Heinz Co Headlines

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