Kellanova (K) Stock

Kellanova trades at a P/E ratio of 20.39, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 20.00 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 3.39 indicates a premium valuation even accounting for growth.

With a beta of 0.28, Kellanova is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 6.59 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Kellanova achieves a profit margin of 10.60%, meaning it retains $10.60 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 14.30% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 35.30% and ROA at 7.59%, the company generates strong returns on invested capital.

Kellanova's revenue grew by 0.30% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 15.00% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against PACKAGED FOODS industry averages for proper context.

Kellanova offers a dividend yield of 2.93%, paying $2.28 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Sep 2, 2025.

The dividend sustainability can be assessed through the payout ratio - Kellanova pays $2.28 per share in dividends against earnings of $4.02 per share, resulting in a payout ratio of 56.72%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Sep 15, 2025.

Kellanova has a market capitalization of $28.5B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 347.67M shares outstanding, the company's ownership is relatively concentrated. As a participant in the PACKAGED FOODS industry, it competes with other firms in this sector.

Kellanova's book value per share is $11.82, while the current stock price is $83.06, resulting in a price-to-book (P/B) ratio of 7.03. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

16 analysts cover K with 0% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $83.39 implies 0.4% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:0016 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.