Krispy Kreme Inc. (DNUT:NSD) Analysts rate as a Hold, $17 target

STA Research
by: STA Research
Krispy Kreme Inc. stock

Based on the Krispy Kreme Inc. stock forecasts from 6 analysts, the average analyst target price for Krispy Kreme Inc. is USD 17.33 over the next 12 months. Krispy Kreme Inc.’s average analyst rating is Hold. Stock Target Advisor’s own stock analysis of Krispy Kreme Inc. is Bearish, which is based on 2 positive signals and 6 negative signals. At the last closing, Krispy Kreme Inc.’s stock price was USD 13.63. Krispy Kreme Inc.’s stock price has changed by -1.80% over the past week, +1.64% over the past month and 0% over the last year.

Last week Morgan Stanley cut the target on the stock to $18 from $20, and maintained the Overweight rating on the stock.

Krispy Kreme, Inc., together with its subsidiaries, operates through an omni-channel business model to provide doughnut experiences and produce doughnuts. The company operates through three segments: U.S. and Canada, International, and Market Development. It also produces cookies, brownies, cookie cakes, ice cream, cookie-wiches, and cold milk, as well as doughnut mixes, other ingredients, and doughnut-making equipment. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is headquartered in Charlotte, North Carolina.

 

What to like:

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

 

What to not like:

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price to book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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