Price to Earnings (P/E)
since 2015
Calculation
Kraft Heinz Co., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss) attributable to common shareholders1 (in millions) | ÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 14, 2020 | 16.97 | = | 26.88 | ÷ | 1.58 | 1.58 | = | 1,935 | ÷ | 1,221,399,549 | |
| Jun 7, 2019 | — | = | 28.74 | ÷ | -8.35 | -8.35 | = | -10,192 | ÷ | 1,219,938,804 | |
| Feb 16, 2018 | 7.85 | = | 70.80 | ÷ | 9.02 | 9.02 | = | 10,999 | ÷ | 1,218,801,890 | |
| Feb 23, 2017 | 32.77 | = | 92.94 | ÷ | 2.84 | 2.84 | = | 3,452 | ÷ | 1,217,136,057 | |
| Mar 3, 2016 | — | = | 77.37 | ÷ | -0.22 | -0.22 | = | -266 | ÷ | 1,215,189,526 |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Kraft Heinz Co. Annual Report.
The analyzed period is characterized by extreme volatility in both equity valuation and profitability, resulting in inconsistent Price to Earnings (P/E) ratios. The share price experienced a substantial long-term decline, falling from a peak of 92.94 US$ in February 2017 to 26.88 US$ by February 2020.
- Earnings Per Share (EPS) Fluctuations
- Earnings demonstrated significant instability, transitioning from a loss of 0.22 US$ in 2016 to a peak of 9.02 US$ in 2018. This growth was followed by a sharp reversal in 2019, with EPS dropping to negative 8.35 US$, before returning to a positive 1.58 US$ in 2020.
- P/E Ratio Interpretation
- The P/E ratio was unavailable in 2016 and 2019, coinciding with periods of negative earnings. In 2017, the ratio stood at 32.77, suggesting a high market valuation relative to earnings. However, by 2018, the ratio compressed sharply to 7.85, despite the period's highest EPS, indicating a significant reduction in the earnings multiple applied by the market.
- Valuation Recovery Trends
- By February 2020, the P/E ratio shifted to 16.97. This increase, occurring alongside a modest recovery in EPS to 1.58 US$, suggests a stabilization of market sentiment despite the share price remaining near its lowest recorded levels for the period.
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Comparison to Competitors
Kraft Heinz Co., P/E, long-term trends, comparison to competitors
| Kraft Heinz Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Feb 14, 2020 | 16.97 | 28.21 | 21.72 | 27.83 | 18.94 |
| Jun 7, 2019 | — | 30.47 | 20.03 | 13.01 | 15.08 |
| Feb 16, 2018 | 7.85 | 150.54 | 21.45 | 32.81 | 26.52 |
| Feb 23, 2017 | 32.77 | 27.48 | 41.76 | 24.09 | 22.84 |
| Mar 3, 2016 | — | 26.01 | 8.59 | 25.72 | 20.57 |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Sector (Food, Beverage & Tobacco)
Kraft Heinz Co., P/E, long-term trends, comparison to sector (food, beverage & tobacco)
| Kraft Heinz Co. | Food, Beverage & Tobacco | |
|---|---|---|
| Feb 14, 2020 | 16.97 | 24.75 |
| Jun 7, 2019 | — | 18.05 |
| Feb 16, 2018 | 7.85 | 37.84 |
| Feb 23, 2017 | 32.77 | 26.08 |
| Mar 3, 2016 | — | 19.86 |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Industry (Consumer Staples)
Kraft Heinz Co., P/E, long-term trends, comparison to industry (consumer staples)
| Kraft Heinz Co. | Consumer Staples | |
|---|---|---|
| Feb 14, 2020 | 16.97 | 31.92 |
| Jun 7, 2019 | — | 20.62 |
| Feb 16, 2018 | 7.85 | 22.78 |
| Feb 23, 2017 | 32.77 | 21.50 |
| Mar 3, 2016 | — | 21.97 |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).