November 23, 2023
Top 10 Stock The Kraft Heinz Company Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View The Kraft Heinz Company Strong Buy

360 METRICS	November 23, 2023
VALUE
VALUE	90
GROWTH
GROWTH	33
SAFETY
SAFETY	49
SENTIMENT
SENTIMENT	72
360° VIEW
360° VIEW	86

ANALYSIS: With an Obermatt 360° View of 86 (better than 86% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock The Kraft Heinz Company are very positive. The 360° View is based on consolidating four consolidated indicators, with half the metrics below and half above average for The Kraft Heinz Company. The consolidated Value Rank has an attractive rank of 90, which means that the share price of The Kraft Heinz Company is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means that the stock price is lower than for 90% of alternative stocks in the same industry. The consolidated Sentiment Rank has a good rank of 72, which means that professional investors are more optimistic about the stock than for 72% of alternative investment opportunities. But the consolidated Growth Rank has a low rank of 33, which means that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, invested capital growth, and stock returns. The consolidated Safety Rank has a riskier rank of 49, meaning the company has a riskier financing structure than 51 comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. ...read more

RECOMMENDATION: With a consolidated 360° View of 86, The Kraft Heinz Company is better positioned than 86% of all alternative stock investment opportunities based on the Obermatt Method. Half of the consolidated Obermatt Ranks exhibit above-average performance, but the other half are below market levels. The company enjoys a good value (Value Rank of 90) and positive market sentiment in the professional investor community (Sentiment Rank of 72), but growth expectations are below-average (Growth Rank of 33) and the financing structure is on the risky side(Safety Rank of 49). This combination is rather dangerous, because high debt levels (low safety) require growth to finance the debt burden. The current low growth level may be temporary, because professionals are actually optimistic (positive sentiment). Good value is sometimes an indication that the company's future is challenging. The below-par growth performance may be the reason for this assessment. Companies with less growth typically have a lower price than fast-growing competitors. Even though professional investor sentiment is strong, we recommend further evaluating whether the future of The Kraft Heinz Company is as challenging as the stock's low price suggests. Since the professional community is optimistic, the stock might just be going through a more challenging phase now, indicating that timing might be good now. ...read more

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Sentiment Strategy: Professional Market Sentiment for The Kraft Heinz Company positive

SENTIMENT METRICS	November 23, 2023
ANALYST OPINION
ANALYST OPINION	36
OPINIONS CHANGE
OPINIONS CHANGE	90
PRO HOLDINGS
PRO HOLDINGS	76
MARKET PULSE
MARKET PULSE	45
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	72

ANALYSIS: With an Obermatt Sentiment Rank of 72 (better than 72% compared with alternatives), overall professional sentiment and engagement for the stock The Kraft Heinz Company is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for The Kraft Heinz Company. Analyst Opinions are at a rank of 36 (worse than 64% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 90, which means that stock research experts are more positive in their investment recommendations in the company. In other words, they are getting more optimistic of stock investments in The Kraft Heinz Company. More encouragingly, the Professional Investors rank is 76, which means that professional investors hold more stock in this company than in 76% of alternative investment opportunities. Pros tend to favor investing in this company. But Market Pulse is on the lower side with a rank of 45, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 55% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 72 (more positive than 72% compared with investment alternatives), The Kraft Heinz Company has a reputation among professional investors that is above-average compared with that of its competitors. The sentiment signals are mixed for The Kraft Heinz Company. While analysts and the news channels are negative, there is a change in what analysts think. Above-average institutional investors in this company support them. Sentiment signals remain mixed with analysts and news channels pessimistic, though improving, and professional investors above average. ...read more

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Value Strategy: The Kraft Heinz Company Stock Price Value at the top

VALUE METRICS	November 23, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	40
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	79
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	97
DIVIDEND YIELD
DIVIDEND YIELD	94
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	90

ANALYSIS: With an Obermatt Value Rank of 90 (better than 90% compared with alternatives) for 2023, The Kraft Heinz Company shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for The Kraft Heinz Company. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 79 which means that the stock price compared with what market professionals expect for future profits is lower than for 79% of comparable companies, indicating a good value concerning The Kraft Heinz Company's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 97, and for Dividend Yield with a Dividend Yield Rank of 94. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 60% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 40). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 90, is a buy recommendation based on The Kraft Heinz Company's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that The Kraft Heinz Company has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing The Kraft Heinz Company shares. ...read more

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Growth Strategy: The Kraft Heinz Company Growth Momentum low

GROWTH METRICS	November 23, 2023
REVENUE GROWTH
REVENUE GROWTH	18
PROFIT GROWTH
PROFIT GROWTH	37
CAPITAL GROWTH
CAPITAL GROWTH	51
STOCK RETURNS
STOCK RETURNS	57
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	33

ANALYSIS: With an Obermatt Growth Rank of 33 (better than 33% compared with alternatives), The Kraft Heinz Company shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for The Kraft Heinz Company. Capital Growth has a rank of 51, which means that currently professionals expect the company to grow its invested capital more than 37% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 57 (above 57% of alternative investments). But Sales Growth has only a rank of 18, which means that, currently, professionals expect the company to grow less than 82% of its competitors, and Profit Growth is also low at a rank of 37. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 33, is a hold recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for The Kraft Heinz Company, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. ...read more

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Safety Strategy: The Kraft Heinz Company Debt Financing Safety below-average

SAFETY METRICS	November 23, 2023
LEVERAGE
LEVERAGE	72
REFINANCING
REFINANCING	23
LIQUIDITY
LIQUIDITY	37
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	49

ANALYSIS: With an Obermatt Safety Rank of 49 (better than 49% compared with alternatives), the company The Kraft Heinz Company has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of The Kraft Heinz Company is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for The Kraft Heinz Company and the other two below average. Leverage is at a rank of 72 meaning the company has a below-average debt-to-equity ratio. It has less debt than 72% of its competitors.Refinancing is at a rank of 23, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 77% of its competitors. Liquidity is at a rank of 37, meaning that the company generates less profit to service its debt than 63% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 49 (worse than 51% compared with alternatives), The Kraft Heinz Company has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of The Kraft Heinz Company are on the safer side. ...read more

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Combined financial peformance: The Kraft Heinz Company Above-Average Financial Performance

COMBINED PERFORMANCE	November 23, 2023
VALUE
VALUE	90
GROWTH
GROWTH	33
SAFETY
SAFETY	37
COMBINED
COMBINED	73

ANALYSIS: With an Obermatt Combined Rank of 73 (better than 73% compared with investment alternatives), The Kraft Heinz Company (Packaged Foods & Meats, USA) shares have above-average financial characteristics compared with similar stocks. Shares of The Kraft Heinz Company are a good value (attractively priced) with a consolidated Value Rank of 90 (better than 90% of alternatives) but show below-average growth (Growth Rank of 33), and are riskily financed (Safety Rank of 49), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 73, is a buy recommendation based on The Kraft Heinz Company's financial characteristics. As the company The Kraft Heinz Company's key financial metrics exhibit good value (Obermatt Value Rank of 90) but low growth (Obermatt Growth Rank of 33) and risky financing practices (Obermatt Safety Rank of 49), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 90% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. ...read more

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