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H.J. Heinz Company (HNZ)

HNZ Stock Report

2-Year Price History

Recent Price
(7/2 4:17PM) -2.7%
52-Week Price
$30.51 – $53.00
Market Capitalization
$11.3 Billion
Dividend Yield
Most Recent Dividend

Ockham’s Rating

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HNZ Revenue

As a value investing shop, we are interested in seeing how HNZ’s revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock’s current underlying value. Using this method, we have established a high range for Price to Sales of 1.58x and the low end of the range at 1.19x.

With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for HNZ of 0.98x is well below its normal historic Price to Sales levels. At a price of $35.80, HNZ is 30% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.

HNZ Cash Earnings

As the old saying goes, "Cash is King!" However, we prefer to capture a few other items within our analysis to identify "cash earnings". Nevertheless, an analysis of Cash Earnings is absolutely pivotal to assessing a company’s value, and currently HNZ is significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from HNZ. For example, HNZ’s Cash Earnings ratio per share has fluctuated between 10.50 and 13.86 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where HNZ is with respect to prior business periods.

Now that HNZ’s current price is $35.80 and its Price to Cash Earnings ratio is 9.37, we are very positive on its outlook from the cash earnings perspective. In fact, HNZ is now trading a full 24% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why HNZ has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.

HNZ Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company’s inherent expectations.

Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from HNZ against the historic high and low levels over an available data range. Because HNZ has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In HNZ’s case, the estimated annual dividend is $1.68 producing a current dividend yield of 4.69%. The highest dividend yield from HNZ in recent history was 5.51% while the lowest dividend yield was 2.77%. A current dividend yield of 13.29% above the historical median is favorable in our analysis of HNZ.

Peer Comparison


H.J. Heinz Company Industry Grouping

Company Ticker Market Cap (Ml) Latest
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding HNZ) 9.35 4.96 » 20.41 0.98 0.69 » 2.02 3.43% 25.14%
*10 year range does not include current year values
Cadbury PLC – Shs American Deposit Receipt Repr 4 Shs CBY $11.8 Billion $34.66 13.33 4.33 » 38.00 1.25 0.85 » 2.45 -7.36% 20.04%
H.J. Heinz Company HNZ $11.3 Billion $35.80 9.37 7.97 » 18.59 0.98 0.95 » 1.74 3.82% 44.72%
Campbell Soup Company CPB $10.2 Billion $29.21 9.87 7.39 » 15.85 1.32 1.12 » 2.18 3.67% 65.46%
ConAgra Foods CAG $8.3 Billion $18.56 6.36 4.63 » 15.98 0.70 0.35 » 1.16 -10.17% 15.46%
Coca Cola Hellenic Bottling Co SA ADS CCH $7.5 Billion $20.55 5.85 2.74 » 14.28 0.66 0.34 » 1.79 17.51% 11.02%
Coca-Cola FEMSA SAB De CV KOF $7.4 Billion $40.23 11.33 5.69 » 17.95 0.98 0.80 » 2.53 13.49% 13.72%
Ockham Ratings & Analysis Report
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The latest TV Media Discussion

4:41:48 PM HNZ $35.80 H.J. Heinz Company
2 days ago (07/03)
“…So, take a look at this week’s plasectomy found by david guppy from indianapolis, indiana. >> i’m out here where dave and diane HEINZ, we know how to treat customer, customer satisfaction is all about. Unlike these guys, mastercard, visa, american express, when they call you every day it purns me up. …” …more details…
6:09:54 PM HNZ $36.02 H.J. Heinz Company
Mad Money
3 days ago (07/02)
“…High yields, stocks that have fallen so fast that the dividends seem to be really, really big and they’re safe. Let’s buy some of those. Maybe we buy some of the companies that are long-term great, colgates and HEINZ kinds of things, the companies that have never been dented by the chinese or the japanese and have great brand names. I’d put 10% of your money in the market and then wait a year and …” …more details…
12:49:25 PM HNZ $36.19 H.J. Heinz Company
3 days ago (07/02)
“…Comprises lower. They have raised prices as we said this last night on the show. People are buying in that look at that, look at HEINZ and sara lee. >> they became the poster child for a consumer nondiscretionary and the knee jerk reaction, and it’s a little bit of both, probably, right? >> I would say so. …” …more details…
5:08:37 PM HNZ $36.78 H.J. Heinz Company
Fast Money
4 days ago (07/01)
“…>> toucan sam. You talk about the dividend yields, it’s the consumer staples staples, sara lee is 4%, conagra conagra, 4%, HEINZ, four.5%. They are steady companies growing around the world. I love froot loops. >> they will not be able to look for the financials for another year. The dividends are not coming …” …more details…
6:54:29 PM HNZ $36.07 H.J. Heinz Company
Mad Money
18 days ago (06/17)
“…At&t is a high yielder, doesn’t get any glow from apple flow. And people are worried about customers pulling the landlines but at&t is very well managed. HEINZ has become a high yielder because people feel like the earnings have gone down. That’s not clear to me. And terra has nitrogen. And visa. We have utility and technology …” …more details…
6:53:57 PM HNZ $36.07 H.J. Heinz Company
Mad Money
18 days ago (06/17)
“…Shouldings, tnh, etp. >> caller: HEINZ, hnz and at&t. >> this is an interesting result high yielding portfolio. I really like it. Let’s look at it from diversification point view. …” …more details…
9:45:10 AM HNZ $35.81 H.J. Heinz Company
18 days ago (06/17)
“…Now, the president will announce plans for an overhaul financial regulatory system. Your next guest says that risk is the key issue in the regulatory debate. We welcome in representative jim HEINZ democrat from connecticut and a member of the house financial services committee and the veteran of goldman sachs. Welcome to opening bell. What do you mean by that, risk …” …more details…
4:40:32 PM HNZ $36.77 H.J. Heinz Company
6/5/2009 4:40 PM
“…Hedge fund research, the group boasted their best returns since february of 2000. That’s better than a 5% gain last month. Here to talk about it, the man behind the report, ken HEINZ, president of hedge fund research along with jack mcdonald. Ken, another big month in may. Walk us through your results. …” …more details…
4:05:25 PM HNZ $36.16 H.J. Heinz Company
5/28/2009 4:05 PM
“…Shortfall, though the eps was better than expected. Pc sales in the final three months of 2008 and to start off the year have been fairly weak take a look from png and HEINZ. Both of those companies came out with cautious outlooks. Nonetheless, the market has closed higher by 100 points or so, finishing up 103 points as I head it back to maria bartiromo. …” …more details…
11:10:39 AM HNZ $35.99 H.J. Heinz Company
5/28/2009 11:10 AM
“…Down 2.6% taking the role of gm as the biggest losers on the dow and other losers worth watching, caterpillar, getting a sell rating and time warner spinning off aol. And HEINZ, well, HEINZ is interesting because they have saw their net dropping nearly 10% on weak seams. We have been watching the treasury deals and now at 3.66. Remember, yesterday when it was above 3.7. …” …more details…
10:11:44 AM HNZ $36.11 H.J. Heinz Company
5/28/2009 10:11 AM
“…Dilution for bank of america, citi, j.P. Morgan, morgan stanley, the movers time warner saying they are going to spin off aol. We saw caterpillar getting a sell rating and HEINZ is on the move and the quarterly net, weak sales for them and then yet credit suisse cutting retailers and certainly now, it’s all about general motors. Originally, it was all about the obama administration looking …” …more details…
9:31:40 AM HNZ $36.34 H.J. Heinz Company
5/28/2009 9:31 AM
“…That compares to the prior view of up 1% to 3%. You’ve got a lot of consumers in the proctor ander & gamble products. The company says cutting back or trading down to other brands. HEINZ also given a cautious full-year guidance was a little bit light here. The results did come in line. That stock at least was set in the premarket to open slightly to the downside. We’ve been following the time warner story throughout the …” …more details…
9:02:29 AM HNZ $36.26 H.J. Heinz Company
5/28/2009 9:02 AM
“…It was cautious here. They see 2010 net sales. You can see a little of the bring-back there from procter & gamble. HEINZ as well, earnings came in in line. The stock are going to open a couple of percentage points to the downside. Full-year guidance was a touch light there. Organic sales were up because of price increases. …” …more details…
7:34:15 AM HNZ $36.26 H.J. Heinz Company
5/28/2009 7:34 AM
“…Ashley webster is in london. Connell mcshane is in studio. Let’s get started connell. Connell: maybe a bit bounceback after yesterday’s big sell-off in the markets. Breaking report out of HEINZ. Right in line with what we were 55 cents per share most recent quarter that was the revenue right in line 290 for the full year also right in line …” …more details…
5:53:45 PM HNZ $36.26 H.J. Heinz Company
Fast Money
5/27/2009 5:53 PM
“…Tomorrow. A pop of 53 cents is expected. Steve, what do you do? >> I like to buy in bulk. I like to eat in bulk. My wife’s hooked now. I’ve got twins coming in july. I’m taking costco. >> there you go. >> HEINZ reporting earnings pete, what do you do? >> talk about somebody who sells in bulk, these guys sell in bulk they’re always around the barbecue, I like HEINZ, I think it’s a steady eddy you’ve got to like the dividend yield. >> tonight on cnbc reports, live from austria, germany, midwest, as well as california, the show "cnbc reports" will look to find …” …more details…
3:36:19 PM HNZ $36.14 H.J. Heinz Company
5/22/2009 3:36 PM
“…And things you may use on your grill over the weekend. Lots of americans that are pulling back on lots of things but we like our holiday weekends. We’re not going to cut back on the barbecuing. >> liz: where is HEINZ? Doesn’t everybody need ketch-up? Phil, you’re grilling. What is your secret? >> if I — if I told you, it wouldn’t a secret anymore, would it? …” …more details…
5:51:48 PM HNZ $35.50 H.J. Heinz Company
Fast Money
5/21/2009 5:51 PM
“…Petey, you use spf 50. On i’m a 50 block all of the way medical background from my >> always be safe. >> you’re looking at HEINZ, the maker of ketchup. >> some people will talk about going to the barbecue, you’re talking about beer and the barbecue itself. I’m looking at HEINZ because when it’s all and said done you might not drink and grab that cigar and smoke, and when you eat you’ll go for HEINZ, 4 3/4% dividend yield. It’s solid and consistent, a lot like mustard ask a lot like >> timmy, if you do drink, you …” …more details…
7:39:06 AM HNZ $35.08 H.J. Heinz Company
Squawk Box
5/11/2009 7:39 AM
“…You also mentioned how it was important to have both a mission of business backgrounds on the board but also people with obviously, you’ve had a lot of experience in consumer product companies, and I think you brought that to bear at HEINZ. Also, you brought on michael weinstein maybe you can explain why you think it’s important to have basically have been in the …” …more details…
7:38:08 AM HNZ $35.08 H.J. Heinz Company
Squawk Box
5/11/2009 7:38 AM
“…>> so catering to markets. >> so why should he do something differently, as the chairman representing all the shareholders, than if he owned >> what, for example, at HEINZ? What do you want to do differently? >> I don’t want to just talk i’m on the board. I have inside information. >> what’s should target do? …” …more details…
7:33:01 AM HNZ $35.08 H.J. Heinz Company
Squawk Box
5/11/2009 7:33 AM
“…We have people on boards today, tiffany, kraft, cadbury, dr. Pepper, snapple, obviously wendy’s and HEINZ. So I think it’s sort of a knee jerk reaction. I think once the — this thing of the fight is over, it all settles down. Honest men can disagree. I think perhaps HEINZ didn’t agree with our plan initially. And I think they saw some wisdom in it. I think what they’re doing today is executing to a good compromise of both their plan — >> how much of your plan have they taken over and run with, and how much have you come to some compromises? >> well, if you look at — and i’ve got to be the HEINZ board meeting tomorrow. I don’t want to take credit for what’s happened to earnings per share at that company, but if you look at what’s happened since we bought our stock, …” …more details…
7:31:51 AM HNZ $35.08 H.J. Heinz Company
Squawk Box
5/11/2009 7:31 AM
“…My other nominee was welcomed in such a way that we never felt anything but being part of that board forever, got all the information we wanted, and it was a testament to the old HEINZ board and bill that it worked out so well. And it continues to work well. >> why do you think companies fight so hard? Why did they fight so hard to keep you off? …” …more details…
7:31:10 AM HNZ $35.08 H.J. Heinz Company
Squawk Box
5/11/2009 7:31 AM
“…Pershing square. And they say, well, after a proxy contest, isn’t it going to be a mess on the board? Again, you took a very high minded approach to the proxy HEINZ didn’t take that approach. A lot of attacks. I thought it was fairly ugly from my perspective. But you say it was fine. >> it all depends on your perspective. …” …more details…
7:30:17 AM HNZ $35.08 H.J. Heinz Company
Squawk Box
5/11/2009 7:30 AM
“…How is that going to happen? Is how do we capture what we call the free money on the there and not being addressed if you can do that — and we did that at HEINZ, and we did it in such a way that we took the high there was no name calling, no ajekatives. We just presented our plan, and the company presented their plan. …” …more details…
7:01:09 AM HNZ $35.08 H.J. Heinz Company
Squawk Box
5/11/2009 7:01 AM
“…No stranger to boardroom fights. Billionaire nelson peltz talks about shareholder activism, just ask HEINZ and wendy’s. "squawk box" begins right now. …” …more details…
9:47:42 AM HNZ $35.08 H.J. Heinz Company
5/6/2009 9:47 AM
“…Catastrophe is that, you know, george schultz put it well, the reality is if it’s too big to fail, it’s probably too big. Alexis: great point. All right, congressman jim HEINZ, democrat of connecticut, as always great speaking with >> thanks, alexis. We are going to get reaction by the way from the other side of the aisle, we are going to be talking to republican representative darryl issa next …” …more details…
9:44:37 AM HNZ $35.18 H.J. Heinz Company
5/6/2009 9:44 AM
“…Good information there. And stress test results, where do we go after the results are could the government end up becoming even more involved in the financial sector? Joining us right now is representative jim HEINZ,’s he a democrat of connecticut. Good morning, congressman, good to he see you. >> good morning, alexis, how you >> oh, i’m great. So much changes since I see you in person till now and look. …” …more details…
9:41:18 AM HNZ $35.15 H.J. Heinz Company
5/6/2009 9:41 AM
“…Charles payne thanks so much for the seven early movers. We’re ten minutes into the trading day. Investors waiting the full results of the stress test, could they lead to more government help for wall street? Congressman jim HEINZ and darryl are both here coming up next. …” …more details…
6:04:39 PM HNZ $35.22 H.J. Heinz Company
Mad Money
5/5/2009 6:04 PM
“…Be yingling or rolling lock but it’s actually key energy. The ceo threw cold beer on my thesis that the stock could be ready to romp. Yet we got a strong number from coors and it seemed to carry right over to HEINZ and a rare pork, pickle, beans and I didn’t think the rally could hold, or of course we would have built a beeramid right alongside …” …more details…
9:25:21 AM HNZ $33.49 H.J. Heinz Company
5/4/2009 9:25 AM
“…Maybe 40 of them, quite frankly. Let’s get well diversified. There’s plenty of them out there. HEINZ, kraft, you know, the tobacco stocks, oil stocks, mlps, reits, a lot of places where you can get very good yields right now. I think they’ll move — if the market takes off, they’ll move. You will be able to participate …” …more details…
6:09:55 PM HNZ $33.49 H.J. Heinz Company
Mad Money
4/14/2009 6:09 PM
“…Fallen so fast that the dividends seem to be really, really big and they’re safe. Let’s buy some of those. Maybe we buy some of the companies that are long-term great, colgates and HEINZ kinds companies that have never been dented by the chinese or the japanese and have great brand names. I would put 10% of your money in the market over the course of the next year and then wait a year and then do the same thing …” …more details…
5:56:16 PM HNZ $33.69 H.J. Heinz Company
Happy Hour
4/8/2009 5:56 PM
“…Rings, supposed to shut up. I will keep track of that as I got to monitor this kid. Time forget personal. We have two lovely ladies >> i’m from miami, florida, and my friend nadine HEINZ is from tampa, florida. Rebecca: fantastic. I hear you guys love "happy >> we do. You’re exactly right. We watch you the time. Rebecca: you got right. >> and 11:00 p.M. If you …” …more details…
11:25:56 AM HNZ $33.26 H.J. Heinz Company
4/1/2009 11:25 AM
“…Just give us an update where you >> of course, the financing is always a challenge, but as opposed to the united states, where there is no financing available, we have actually my partner john HEINZ and I have been over to korea, filled up 150 times in china as well, we have partnered with the government, the central government of korea, as well as …” …more details…
10:07:57 AM HNZ $33.02 H.J. Heinz Company
4/1/2009 10:07 AM
“…Night at six o’clock with congressman grace out of it’s heated and pretty good, regarding excessive pay. He said define excessive, he couldn’t do it. >> dagen: we had the congressman HEINZ yesterday from connecticut and same issue. >> brian: I think it’s incredibly ironic that congress pays its people more because it needs to retain top talent, but they don’t want the banks to pay …” …more details…
6:31:03 PM HNZ $34.61 H.J. Heinz Company
Mad Money
3/25/2009 6:31 PM
“…That’s down 1.3%. But not as good as cramer fave, agnico-eagle agnico-eagle. As a variety HEINZ catch-up play. Does it still make sense? I would like to know. But el dorado sure looks good. It’s cash costs for 2009 about …” …more details…
6:09:17 PM HNZ $34.61 H.J. Heinz Company
Mad Money
3/25/2009 6:09 PM
“…What do you think about it now? Should I pull the trigger? >> general mills is not two-week player in, the food basket. It’s got less exposure than say, kelloggs and HEINZ. I was not happy with the like many companies hedged in so you did not get the benefit of the big commodity decline. I than ken pal is a terrific …” …more details…
8:01:27 AM HNZ $33.08 H.J. Heinz Company
3/25/2009 8:01 AM
“…You live in the 9 o’clock hour so we’ll keep a close eye on that, what he says later this morning. >>> but for more on the federal budget, i’m joined by democratic representative jim HEINZ of connecticut and leonard lance of new jersey who has introduced legislation dealing with executive pay of companies who have been bailed out by taxpayer dollars. Congressman, gentlemen, thank you for being here this morning. >> happy to be here. >> thank you very much. Alexis: congressman HEINZ, let me start with you. The president last night talked about the federal he received one of his toughest questions in regard I want you to take a brief listen, then get your reaction on the other end. …” …more details…
6:04:41 PM HNZ $33.08 H.J. Heinz Company
Mad Money
3/20/2009 6:04 PM
“…Holy great quarters have turned into disasters because of the strenghts of our occurrence pe. It caught everyone by surprised. No one was hedged, well some companies. You can listen into a HEINZ and from double-digit growth and in some places declined. Single digits. These are currency translation. When the dollar’s strong, companies that make money abroad get fewer dollars for every euro …” …more details…
6:27:36 PM HNZ $33.41 H.J. Heinz Company
Mad Money
3/19/2009 6:27 PM
“…Prudhoe bay stock at $51 has 15 more points of upside left just to catch up to crude. I’m calling it the 57 variety HEINZ ketchup trade. This is the field in the north flow in alaska has been in production since ’77, 55 million barrels, ten-year reserve life. That’s how long it can play. It’s dependable. …” …more details…
2:08:26 PM HNZ $33.41 H.J. Heinz Company
3/19/2009 2:08 PM
“…Cestak from pennsylvania and republican representative michelle bockman. Welcome to you both. >> liz: representative, is this going to pass? We’re already hearing that there are representatives like congressman HEINZ who say it’s going too quickly and we’re not ready to say we should tax the bonuses at we see a hesitancy to move too quickly on certain things. What do you think will …” …more details…
6:19:53 PM HNZ $33.70 H.J. Heinz Company
Mad Money
3/16/2009 6:19 PM
“…Buying and sufering with union pacific. We had a simultaneous rally in soft good stocks including some that have not seen the light of day if weeks. Procter & gamble, HEINZ and and most importantly, a rally, again, in the banks. Almost all of them. The rails go higher — …” …more details…
View All H.J. Heinz Company News

Key Fundamentals

HNZ – H.J. Heinz Company Fundamentals
Price (7/2 4:17PM) $35.80
Volume (7/2 4:17PM) 3.0 Million
Last Close Price $36.78
10 Day Average Volume 3.4 Million
13 Week Price Range $33.00 – $37.50
52 Week Price Range $30.51 – $53.00
LTM Revenue $10.1 Billion
Shares Outstanding (04/2009) 315.0 Million
Market Capitalization $11.3 Billion
Shares Held By Institutions 217.8 Million
Institutional Holders 839
% Shares Held By Institutions 69.20%
Earnings Per Share (EPS) $2.90
P/E Ratio 12.30
Book Value Per Share $3.87
Gross Margin 38.10%
Annual Dividend 1.68
Dividend Yield 4.70%
Beta 0.63
Fiscal Year Ends April

About H.J. Heinz Company

H.J. Heinz Company is considered to operate in the Consumer Goods sector. They specifically operate in the Food – Major Diversified business segment contained within the Food & Beverage industry.

The Company and its subsidiaries manufacture and market a line of food products throughout the world.

NASDAQ 1796.52

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^DIA 82.99

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