JPMorgan Upgrades Kellogg to Neutral, Risk Already Factored In
May 6, 2023
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JPMorgan has recently upgraded Kellogg Company ($NYSE:K) to a Neutral rating, believing that the risks associated with the stock have already been taken into account. Kellogg is a multinational food manufacturing company based in Battle Creek, Michigan, that produces cereal and convenience foods such as cookies, crackers, toaster pastries, cereal bars, frozen waffles, and vegetarian foods. Its portfolio of iconic brands includes Corn Flakes, Special K, Pringles, Rice Krispies, and Cheez-It.
With a focus on innovation, Kellogg is constantly looking for new ways to bring tasty and nourishing foods to its customers. By upgrading their rating to Neutral, JPMorgan believes that any risks associated with Kellogg have already been factored into the stock price.
Stock Price
JPMorgan recently upgraded their rating of KELLOGG COMPANY to Neutral, claiming that the risks associated with the stock had already been factored into the price. On Friday, the stock opened at $70.8 and closed at $70.4, suggesting that the market had already adjusted to the change in rating. However, should the company be able to meet investor expectations, the stock could benefit from a further increase in price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kellogg Company. More…
| Total Revenues | Net Income | Net Margin |
| 15.7k | 836 | 5.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kellogg Company. More…
| Operations | Investing | Financing |
| 1.6k | -541 | -943 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kellogg Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 18.63k | 14.15k | 11.53 |
Key Ratios Snapshot
Some of the financial key ratios for Kellogg Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.2% | 1.7% | 8.2% |
| FCF Margin | ROE | ROA |
| 6.7% | 20.2% | 4.3% |
Analysis
At GoodWhale, we have conducted an analysis of KELLOGG COMPANY‘s financials. Based on our Risk Rating, KELLOGG COMPANY is a low risk investment in terms of financial and business aspects. However, we have detected one risk warning in their cash flow statement. If you’re interested, register with us to check it out and make an informed decision when considering your investment options. Our analysis can help you understand the risks associated with KELLOGG COMPANY and make the best decision for you. More…
Peers
Kellogg Co is in competition with Nestle SA, McCormick & Co Inc, and Procter & Gamble Co. All four companies are large, international corporations that manufacture and sell food products. Kellogg Co’s primary product is cereal, but it also manufactures snacks and frozen foods. Nestle SA is a Swiss company that is the largest food company in the world. It manufactures a wide variety of food products, including baby food, bottled water, cereals, coffee, and confectioneries. McCormick & Co Inc is an American company that manufactures spices, herbs, and seasonings. Procter & Gamble Co is an American company that manufactures a wide variety of consumer goods, including food, beverages, cleaning products, and personal care products.
– Nestle SA ($OTCPK:NSRGY)
Nestle SA is a food and beverage company with a market capitalization of 288.43 billion as of 2022. The company has a return on equity of 14.82%. Nestle SA is a food and beverage company that manufactures and markets a variety of food and beverage products, including baby food, bottled water, cereals, coffee, dairy products, and pet food. The company has operations in over 190 countries and employs over 339,000 people.
– McCormick & Co Inc ($NYSE:MKC)
McCormick & Co Inc is a US-based company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavoring products. It has a market cap of 19.85B as of 2022 and a return on equity of 13.21%. The company operates through three segments: Consumer, Industrial, and Other.
– Procter & Gamble Co ($NYSE:PG)
Procter & Gamble Co is a consumer goods company with a market cap of $304.7B as of 2022. The company has a return on equity of 25.38%. Procter & Gamble Co manufactures and markets a variety of consumer goods, including beauty, grooming, health care, fabric care and home care products. The company operates in over 180 countries and has over 125,000 employees. Procter & Gamble Co is one of the largest consumer goods companies in the world.
Summary
Investment analysis of Kellogg Company has been recently upgraded to Neutral by JPMorgan due to the perceived risk being considered to be adequately managed. JPMorgan believes the firm has been able to successfully manage the threats posed by changing consumer tastes, competition from other companies, and other potential risks related to the food industry. As a result, investors may find the stock is relatively stable in terms of performance and may provide a suitable investment for some portfolios.
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