UBS downgrades The Kraft Heinz Company(KHC:NSD) to a Sell rating

STA Research
by: STA Research

UBS downgrades The Kraft Heinz Company to a Sell rating and lowers the target price to $34 from $40 on the company’s stock.

Based on the The Kraft Heinz Company stock forecasts from 5 analysts, the average analyst target price for The Kraft Heinz Company is USD 0.00 over the next 12 months. The Kraft Heinz Company’s average analyst rating is Under-perform. Stock Target Advisor’s own stock analysis of The Kraft Heinz Company is Bearish, which is based on 4 positive signals and 10 negative signals. At the last closing, The Kraft Heinz Company’s stock price was USD 39.88The Kraft Heinz Company’s stock price has changed by +2.15% over the past week, -7.34% over the past month and -9.67% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

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 we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow 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 to buy.

Poor return on equity

The company management has delivered below median return on equity 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.

Overpriced on 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 to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

 

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