Kraft Heinz Intrinsic Value Calculation – Nordea Investment Management AB Sells Shares of The Kraft Heinz Company
July 14, 2023
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Nordea Investment Management AB recently sold their remaining shares in The Kraft Heinz ($NASDAQ:KHC) Company at Defense World. The combined company has a portfolio of iconic brands such as Heinz Ketchup, Kraft Macaroni & Cheese, Miracle Whip, Oscar Mayer, Planters, and Velveeta. Kraft Heinz is one of the leading food companies in the world and have a large customer base in North America, Europe, and Asia. In addition to their food and beverage products, they also manufacture pet food and snacks under brands such as Meow Mix, Milk-Bone, and Kibbles ‘n Bits.
Kraft Heinz is committed to creating high-quality products that are sustainably sourced and responsibly produced. They have established a range of initiatives to reduce their environmental impact and support local communities. With a focus on innovation and product development, Kraft Heinz continues to be a driving force in the food and beverage industry.
Market Price
This move came shortly after KRAFT HEINZ‘ stock opened at $35.6 and closed at $35.4, down by 0.2% from its previous closing price of $35.5. Despite the minor decline in share price, investors have remained positive about the stock due to the potential for growth in the future. With its strong brand recognition and financial strength, KRAFT HEINZ remains an attractive investment option for many investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kraft Heinz. More…
| Total Revenues | Net Income | Net Margin |
| 26.93k | 2.42k | 11.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kraft Heinz. More…
| Operations | Investing | Financing |
| 2.47k | -886 | -3.67k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kraft Heinz. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 90.94k | 41.59k | 40.06 |
Key Ratios Snapshot
Some of the financial key ratios for Kraft Heinz are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.3% | -0.7% | 14.7% |
| FCF Margin | ROE | ROA |
| 5.6% | 5.0% | 2.7% |
Analysis – Kraft Heinz Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of KRAFT HEINZ‘s financials. Our proprietary Valuation Line has calculated the intrinsic value of KRAFT HEINZ share to be around $37.2. However, currently, KRAFT HEINZ stock is traded at $35.4, which is a fair price but still slightly undervalued by 4.7%. Therefore, there exists an opportunity for investors to take advantage of this price difference. More…
Peers
The Kraft Heinz Co. is a food and beverage company that offers a variety of products. Its competitors include Kellogg Co, General Mills Inc, and Treehouse Foods Inc.
– Kellogg Co ($NYSE:K)
Kellogg Co is a food manufacturing company that produces cereal, snacks, and other food products. The company has a market cap of $25.03 billion and a return on equity of 33.71%. Kellogg’s products are sold in more than 180 countries and include brands such as Kellogg’s, Keebler, Pop-Tarts, and Eggo. The company has more than 30,000 employees worldwide.
– General Mills Inc ($NYSE:GIS)
General Mills Inc is a food company that produces and markets branded consumer foods in the United States and internationally. The company’s products include cereals, yogurt, snacks, and baking mixes. General Mills Inc has a market cap of 46.37B as of 2022 and a return on equity of 20.18%. The company’s products are marketed under the brands including Cheerios, Lucky Charms, Nature Valley, and Betty Crocker.
– Treehouse Foods Inc ($NYSE:THS)
Treehouse Foods Inc is a food manufacturing company with a market cap of $2.7 billion as of 2022. The company has a return on equity of 0.58%. Treehouse Foods Inc manufactures and sells packaged foods and beverages in the United States. The company offers canned soups, salad dressings, peanut butter, syrups, and other food products. It also provides infant formula and baby food products; and pet food and pet snacks.
Summary
The sale was made in order to reduce the firm’s overall exposure to the company. An analysis of the investment revealed that the Kraft Heinz Company has experienced a decrease in its market capitalization over the past year, particularly due to a decrease in domestic sales and international markets.
Additionally, cost-cutting measures, pricing pressures, and increasing competition have weighed on the company’s profits. Furthermore, the company has been forced to restructure its business model due to changing consumer demands. Despite these challenges, there are still several opportunities for growth, including leveraging its brand name and expanding through acquisition. Overall, Nordea Investment Management AB’s decision to reduce its exposure to Kraft Heinz was wise, given the current market conditions.
