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US Equities · Finance research note

KHC — Kraft Heinz

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 20.74%
Profit Margins -23.05%
Return on Equity -12.58%
Return on Assets 3.47%
Free Float 0.86B
Dividend Yield 6.75%
Short Int % Utilisation 10.26%

2.2 Growth

Metric Value
Revenue Growth 0.8%
Free Cash Flow 3.21B
EBITDA 7.93 (Ratio)
Enterprise Value 45.69B
EV/Revenue 1.83
EV/EBITDA 7.93

Revenue growth of 0.8% suggests mature or challenged top-line momentum.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 2.17%
Risk / Std Dev (Ann.)* 27.54%
1-Year Price Return* -1.62%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $25.51
52-Week Range $21.04 – $28.10
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $24.94B $25.85B
Net income Reported net income $-5.85B $2.74B
Total assets Year-end reported balance $81.79B $88.29B
Shareholders’ equity Year-end reported balance $41.66B $49.19B
Net margin Net income ÷ revenue -23.44% 10.62%
Asset turnover Revenue ÷ total assets 0.3050x 0.2927x
Equity multiplier Total assets ÷ shareholders’ equity 1.9630x 1.7950x
ROE Net margin × asset turnover × equity multiplier -14.03% 5.58%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: Reported operating inputs do not support a stable FCFF DCF. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price $24.95
Market capitalisation $29.59B
Revenue $24.94B
EBIT -$4.50B
Reported free cash flow $3.66B
FCF yield 12.37%
Net debt / EBITDA -4.97x

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:39:15.301760 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -16.51% -5.91%
Adjusted R² 0.03 0.07
Annualised residual volatility 25.52% 24.82%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) -0.01 (-0.04) 0.26 (1.56)
Size (SMB) 0.40 (1.99) 0.33 (1.54)
Value (HML) 0.26 (1.49) -0.11 (-0.54)
Profitability (RMW) NM 0.35 (1.97)
Investment (CMA) NM 0.74 (2.38)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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