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Kellogg Company (K)

K Stock Report

2-Year Price History

Recent Price
(7/2 4:17PM) -1.5%
$46.82
52-Week Price
$35.64 – $58.51
Market Capitalization
$17.9 Billion
Dividend Yield
2.90%
Most Recent Dividend
$1.61

Ockham’s Rating

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K Revenue

As a value investing shop, we are interested in seeing how K’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 1.79x and the low end of the range at 1.42x.

With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for K of 1.37x is below its historical average only slightly. So, while not a huge positive for our analysis, we do feel it is worth noting that K does look a bit undervalued on a Price to Sales basis, all other factors being equal. However, if the Price to Sales ratio drops further, Ockham Research is likely to become more bullish on this stock.

K Cash Earnings

As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of K, Ockham views their current Cash Earnings as below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for K, the current level of Cash Earnings compared to its historical levels helps identify where K is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 14.18 and a historical low Cash Earnings per share ratio of 11.20, an investor can relate where value becomes optimal.

With a historical average Cash Earnings ratio of 12.69, the current Cash Earnings ratio of 11.79 is a positive opportunity for value in the Ockham view. Naturally, we would love to see a deeper value opportunity for K, but to get there one of two things must occur (or both). Either the stock price must decline further to increase the long term buying opportunity, or the management at K needs to earn more cash. If either, or both, of these occur, then we could see a significant gap emerge between what investors were willing to pay for in the past, and where K is trading currently (latest close price of $46.82).

K Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

In K’s case, the estimated annual dividend is $1.36 resulting in a current dividend yield of 2.90%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from K against the historic high and low levels over the past 10 years. The highest dividend yield from K over this period was 4.82% while the lowest dividend yield was 2.11% While it is quite common for a growth stock to pay no dividend at all, but for a mature company such as K that has a history of paying dividends it is disappointing to see their dividend yield drop so significantly. At this time, the current dividend yield is 16.31% below the median yield.

Peer Comparison

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Kellogg Company Industry Grouping

(7/2/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding K) 11.07 6.17 » 26.48 1.38 0.87 » 2.90 8.79% 22.48%
*10 year range does not include current year values
General Mills, Inc. GIS $19.2 Billion $58.50 12.21 9.46 » 34.91 1.32 1.09 » 3.34 5.38% 20.62%
Kellogg Company K $17.9 Billion $46.82 11.79 9.56 » 15.04 1.37 1.12 » 1.95 7.79% 50.78%
Companhia de das Bebidas Americas ADS AmBev PF ABV $17.3 Billion $64.38 14.21 5.91 » 25.30 3.11 1.36 » 6.15 24.26% 14.08%
Archer Daniels Midland Company ADM $17.0 Billion $26.54 6.23 3.18 » 15.60 0.26 0.11 » 0.84 17.85% 12.96%
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%
>
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The latest TV Media Discussion

11:34:41 AM K $46.76 Kellogg Company
1 days ago (07/02)
Premium Content – please sign up for Ockham PREMIUM to gain full access and to see what The Call said about KELLOGG COMPANY …more details… LEARN MORE
9:17:13 AM K $47.19 Kellogg Company
3 days ago (07/01)
“…Rivals, whether it be campbell’s or hershey or whatever it might be. That’s been true. I think, you know, general mills has a healthy on trend portfolio that’s helped them quite a bit. We like KELLOGG and campbell quite a bit as well. We also like the store brand manufacture. So I think the food sector is in I think a lot of them are good-byes in here. …” …more details…
6:50:16 PM K $46.57 Kellogg Company
Mad Money
3 days ago (06/30)
“…Growth stocks, the ones that survive and thrive in a they’re trying to make a lot of if you diversify you can earn cyclical and secular growth, but when the economy’s weak, you should be reaching for KELLOGG and coke, but you only know the economy is weak because you listen to the woefull conference call and they say we can’t sell the washing machines that’s why you do homework so …” …more details…
6:30:21 PM K $46.68 Kellogg Company
Mad Money
4 days ago (06/29)
“…Then you’ve got your secular growth stocks, in addition to not keeping the sabbath. Here’s some examples. KELLOGG, proctor and gamble, johnson & johnson, utilities, these have secular growth. They won’t be affected by the cycle because we don’t stop buying band-aids because we’re low on cash. We’re not going to starve ourselves either. …” …more details…
6:19:24 PM K $46.68 Kellogg Company
Mad Money
4 days ago (06/29)
“…How about the supermarket, how about your medicine chest. Find some stocks. Give you a couple of examples. Proctor and gamble, KELLOGG. The economy going south. If the economy’s already gone south, you should by more shares of your recession resistant stock relative to your other stocks because these do well …” …more details…
6:35:40 PM K $46.33 Kellogg Company
Mad Money
8 days ago (06/25)
“…It happens in every industry, not just in tech. Companies hide behind other companies in the sector when they drop the ball. We saw this with general miles, the cereal company. It had gotten beaten viciously by KELLOGG. It said the whole industry was oh, wow. We also saw it with procter & gamble, which claimed that the world was rebelling from high-priced products. …” …more details…
6:05:25 PM K $44.72 Kellogg Company
Mad Money
14 days ago (06/19)
“…Still, there’s nothing more important. Every time we get a selloff from what is known as the defensive stocks, utilities like clean energy companies, the old con ed or the foods like KELLOGG or hershey or the drugs like lilly and the health care stocks like express scripts and well point, because it doesn’t have a lot of …” …more details…
4:28:40 PM K $45.10 Kellogg Company
14 days ago (06/19)
“…Are feeling and doing, and tomorrow will be an important measure of how they intend to proceed with this measure. >> amy KELLOGG, we have her on quite a bit because she knows iran well. Those under house arrest and in …” …more details…
4:25:10 PM K $45.21 Kellogg Company
15 days ago (06/18)
“…The fourth straight day of protests while religious leaders extend an invitation to the president’s challengers. >> amy KELLOGG is live in london with the latest. Amy? >> hi, liz and dave. The protests today were a day of warning for those people that …” …more details…
4:12:29 PM K $45.12 Kellogg Company
15 days ago (06/18)
“…Of cash. Things we’ve done over the last week, we’ve sold all of our oil positions, natural gas. British petroleum, think I can buy it cheaper. But I have been committing money to KELLOGG, verizon, altreea. A lot of my favorites that i’ve been out of quite frankly. But right now i’m not really committing much capital, keeping my stocks tight. And the bottom line, I covered my treasury shorts. …” …more details…
3:52:48 PM K $44.29 Kellogg Company
16 days ago (06/17)
“…More neft the weak neft evident in the weakening raised price target. Winner on wall street, up 2%. >> red berries, my vote goes to KELLOGG red berries. Shibani joshi? >> in the focus of the big picture talking about the healthcare and the financials and the economy. Don’t forget the smaller the economy starts to turn …” …more details…
11:04:49 AM K $44.13 Kellogg Company
16 days ago (06/17)
“…And really, the s&p hovering around that level. The traders are watching it very that being said quickly, just touch on some of the other movers that people are talking about a little bit. Fedex and KELLOGG in particular, fedex, loss widened. Cautious outlook and basically say they’re not giving their earnings forecast anymore and their forecasts of the first quarter for the near term. 30 to 45 cents, really, well below the average analyst and bmo raising KELLOGG from outperform to a market perform and basically saying they had a superior business model and aflac an interesting name to keep an eye on. Traders watching that one and I can tell you this morning, it’s above that $31 mark and tanking …” …more details…
7:02:29 PM K $43.46 Kellogg Company
America's Nightly Scoreboard
17 days ago (06/16)
“…If israel loses that battle, a nuclear iran could be a catastrophic threat to every city in america. A lot of ifs. Let’s get very latest from what is happening from our own amy KELLOGG. >> foreign journalists are being told not to cover demonstrations. Their credentialals are being revoked staying inside …” …more details…
2:30:46 PM K $43.52 Kellogg Company
17 days ago (06/16)
“…Protest over what they perceive as rigged vote. The supreme leader of iran called for the recount, which should happen relatively dave and liz? >> amy KELLOGG. Thank you. >> mcgraw hill ceo terry mcgraw is coming up. >> mike morris of american electric power has his finger on the pulse of energy and …” …more details…
7:24:26 PM K $43.45 Kellogg Company
America's Nightly Scoreboard
18 days ago (06/15)
“…The incumbent ahmadinejad, was declared an overwhelming there have been widespread claims that the vote was rigged and the chorus of opposition is growing "fox news"’s amy KELLOGG is in london with the very latest. >> iranian television reported that shots were fired at the rally today and photographer said he saw one person shot to death and …” …more details…
8:24:11 AM K $43.95 Kellogg Company
22 days ago (06/12)
“…Jenna: welcome back to "money for breakfast" everybody. I’m jenna lee with a look at this morning’s top news stories. Iranians began voting today in a crucial presidential election. Joining us live with more on this story is fox news’s amy KELLOGG. Amy, so far how is the turnout? >>> jenna by all accounts there has been a very steady voter turnout not only in iran but here in london a lot of iranians …” …more details…
6:54:09 PM K $43.95 Kellogg Company
Mad Money
22 days ago (06/11)
“…Most importantly, the next reason i’m putting her up on the wall, compared to the other food companies, her stock is abysmal. KELLOGG, up 23%, kraft, up 4%, campbell soup, up 26%, general mills, up 27%. …” …more details…
10:27:06 AM K $43.63 Kellogg Company
29 days ago (06/05)
“…Ballots and many think that the labor party and leader british prime minister of gordon brown could be poised for big loss. Amy KELLOGG is in london with much more on the developing story, call it a scandal, that’s what it is. >> high political drama, for sure. If you were tuned into a …” …more details…
6:44:19 PM K $44.30 Kellogg Company
Mad Money
6/3/2009 6:44 PM
“…But it seems to always stay dirt cheap p it had a miraculous run then went up too high then sold going too wild with redemptions. I remember KELLOGG. Went to 18 down a buck today I think that’s a better buy I would rather see you in kbr. Good balance sheet just like shaw but a better book of the "lightning round" is over! …” …more details…
4:10:45 PM K $43.43 Kellogg Company
5/21/2009 4:10 PM
“…Almost a percent and a half. >>> aushby capital markets initiating coverage of cereal maker KELLOGG, price target of 52 bucks. The earnings quality and high brand strengths. KELLOGG shares to the downside on the session. Didn’t get a lot of benefit out of that. Down almost half a percent. …” …more details…
7:45:30 AM K $42.65 Kellogg Company
5/8/2009 7:45 AM
“…As tom said, it is a good old-fashioned top core movie. It is a lot of fun. I think your boys will love it. Alexis: they did a lot of things. We’re showing you some KELLOGG’s products they made deals with and did a lot of co-branded item which speak directly to the mom or to the mom in the house whose boys are all dying to see this …” …more details…
8:03:00 AM K $39.50 Kellogg Company
4/30/2009 8:03 AM
“…Does appear at least the headline number, net number coming in below expectations, continuing to take a look at exxon/mobil now. We’ll have those numbers for you in a couple minutes. >>> KELLOGG also coming in, the cereal giant 84 cents per share, a nickel ahead of the average estimate from analysts, beating, $2.2 billion. Exxon loos like e first …” …more details…
4:59:10 PM K $39.50 Kellogg Company
4/29/2009 4:59 PM
“…We have more than 100 results coming out, including results from exxon, proctor & gamble, dow, as well as motorola and KELLOGG. >> rick santelli on the floor of the cme group. Tune in tomorrow for a cornucopia of data. 8:30, continuing claims, initial claims, personal income, personal spending, employment …” …more details…
4:53:57 PM K $38.77 Kellogg Company
4/24/2009 4:53 PM
“…Financials, e-trade, mastercard, met life, visa, among the big names. Burger king, KELLOGG, motorola and pfizer as well. Home price data with the case shiller index. …” …more details…
1:00:17 PM K $39.70 Kellogg Company
4/20/2009 1:00 PM
“…Stock market sell-off, the dow and s&p 500 taking their biggest tumble since march 30th. The nasdaq, its biggest since march 5th. >>> KELLOGG has settled a dispute with the ftc over its adding for its frosted mini heats cereal. >>> and fannie may executive michael williams has been …” …more details…
12:24:36 PM K $39.51 Kellogg Company
4/20/2009 12:24 PM
“…Battlecreek, michigan, and the ftc says KELLOGG settled charges that were false. That was the charge, KELLOGG claimed that frosted mini wheats were shown to improve kids’ attentiveness by 20%. The ftc saying not so fast, KELLOGG. >> the stock was already down. >> a sugar rush for maybe a few seconds. >> tom: I need frosted flakes! …” …more details…
6:46:18 PM K $39.55 Kellogg Company
Mad Money
4/9/2009 6:46 PM
“…A severe recession, church and dwight will do well. If not, it is going to languish here like chattam is languishing and KELLOGG is languishing so I cannot pull the trigger even though the company is great because it is wrong for this coming out of the depression environment and I don’t want you to miss the opportunity where you could get it in a retailer, …” …more details…
10:18:42 AM K $38.26 Kellogg Company
4/6/2009 10:18 AM
“…Still hefty payouts to cover incentive plan, security or oracle, ellison and noncontributions to ibm paul and KELLOGG’s’s david maccay and air travel for gary concis all put them on the top of the perk in >> mary has laid out who got got what and what the trends were. …” …more details…
6:43:38 PM K $37.70 Kellogg Company
3/23/2009 6:43 PM
“…About it at eefortomorrow.Com. To answer your question –. Neil: clearly you’re the marketer in this duo. I like that. >> well-said. I went to KELLOGG. That’s what we do. But anyway, african-americans face a unique set of circumstances. Let’s also be clear about what this is. …” …more details…
6:52:22 PM K $36.67 Kellogg Company
Mad Money
3/19/2009 6:52 PM
“…Remember, bear, lee pan, these are not serial or soda stocks. You don’t stop drinking coke or eating corn flakes if coke or KELLOGG’s stocks go down. When the stocks of the financial companies go down, people pull the money from the banks. It puts them out of business, …” …more details…
6:42:44 PM K $36.19 Kellogg Company
Mad Money
3/10/2009 6:42 PM
“…>> caller: hey, jimbo. A big — ba, ba, boo-yah. >> all right that sounded good. >> caller: I know we had activity in the market today. But KELLOGG’s. Symbol "k." >> look it’s a 52-week low. But as that goes higher i’m not that high on that one or heinz. Neither one has enough domestic both so hurt by this strong dollar that I cannot get behind KELLOGG or heinz. And I want to scale out as they go higher. Terry in california. Terry? >> caller: jim cramer you’re a rock star! Oh my god. …” …more details…
2:05:50 PM K $36.73 Kellogg Company
3/5/2009 2:05 PM
“…So signs of spring on wall street. Do the markets reflect the real american economy or not? Two former ceos from KELLOGG and commerce secretary under president bush. And mark crandall. Mr. Crandall, my producer says you may be a crocus killer but we are ready with the truth. What are you seeing? …” …more details…
1:01:33 PM K $38.13 Kellogg Company
3/4/2009 1:01 PM
“…The company is trying to instill confidence, saying it doesn’t need to raise fresh capital. Down 10% to 632. KELLOGG, the cereal company, bounced back a little, $38 a share for KELLOGG. Stockpiles down 75,000 barrels. 2 million was expected. Up 2.43 a barrel. Gas prices holding steady. Regular unleaded, $1.93 the …” …more details…
3:49:09 PM K $39.44 Kellogg Company
2/25/2009 3:49 PM
“…What geithner has to say. >> and after the bell former gutierrez on whether he thinks the obama administration needs to implement more regulation. What is his perspective? Former KELLOGG’s ceo, former gutierrez. Still to come. …” …more details…
12:45:15 PM K $40.95 Kellogg Company
2/12/2009 12:45 PM
“…>> I think sometimes the pack is when you deal with a situation, you like the rails because you want to be contrary, and then you come in today and they’re down 7%, 8%, it makes you long or KELLOGG’s. >> the hard thing is during the recession, consumer staples do …” …more details…
5:46:16 PM K $43.58 Kellogg Company
Fast Money
2/6/2009 5:46 PM
“…>> drop for bong head michael >> bong head. >> well, that’s what he is now. He was photographed smoking marijuana from a bong last week. Olympic swimmer michael phelps is feeling the repercussions. Yesterday, KELLOGG announcing it will not renew its sponsorship deal with phelps, saying his behavior, quote, is not consistent with the image of the the 23-year-old has also been suspended by usa swimming, will …” …more details…
10:42:05 AM K $43.58 Kellogg Company
2/6/2009 10:42 AM
“…And many of the other derivative we talked about dare ne the opening there. Dairy’s come down quite a bit since december. But certainly companies like general mills or a KELLOGG, we think by the second half of ’09 should start to benefit from some of these input co-s coming >> an interesting statistic you had was this — 60% of the milk in this country is privately …” …more details…
8:01:43 AM K $43.58 Kellogg Company
2/6/2009 8:01 AM
“…>>> and michael phelps career isn’t going up in smoke but the photo of him inhaling marijuana from a pop has proved costly for him. KELLOGG announced it will not renew its sponsorship with phelps and was banned for competition for three months by the u.S. Olympics team. Supreme court justice ruth bader ginsburg will remain in the hospital for at least a week as …” …more details…
7:54:06 AM K $43.58 Kellogg Company
2/6/2009 7:54 AM
“…So advertisers want that exposure. Michael phelps, he’s the all-american kid who won 14 gold medals and it’s hard for sponsors right now. I’m not surprised by KELLOGG, but I don’t think this will lead to a mass abandoning of his image. It was stupid thing to do, and just proof that wherever you are, there is always someone with a camera to take a picture of it. …” …more details…
7:33:17 AM K $43.58 Kellogg Company
2/6/2009 7:33 AM
“…@ alexis: welcome to "money for breakfast." i’m alexis glick. KELLOGG has announced they will break ties with michael phelps after this now infamous picture of him smoking pot surfaces. Is that a smart move for the company? …” …more details…
View All Kellogg Company News

Key Fundamentals

K – Kellogg Company Fundamentals
Price (7/2 4:17PM) $46.82
Volume (7/2 4:17PM) 2.1 Million
Last Close Price $47.55
10 Day Average Volume 2.3 Million
13 Week Price Range $37.84 – $47.72
52 Week Price Range $35.64 – $58.51
LTM Revenue $12.7 Billion
 
Shares Outstanding (12/2008) 382.5 Million
Market Capitalization $17.9 Billion
Shares Held By Institutions 312.3 Million
Institutional Holders 760
% Shares Held By Institutions 81.60%
Earnings Per Share (EPS) $2.99
P/E Ratio 15.50
Book Value Per Share $4.23
 
Gross Margin 44.50%
Annual Dividend 1.36
Dividend Yield 2.90%
Beta 0.52
Fiscal Year Ends December

About Kellogg Company

Kellogg Company is considered to operate in the Consumer Goods sector. They specifically operate in the Processed/Packaged Goods business segment contained within the Food & Beverage industry.

The Company and its subsidiaries are engaged in the manufacture and marketing of ready-to-eat cereal and convenience foods.

NASDAQ 1796.52

-49.2  -2.67%
S&P; 500 896.42

-26.91  -2.91%
^DIA 82.99

-2.04  -2.4%