KHC - Kraft Heinz Company

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Current Price: 77,68$
Open: 78,31$
Stop Loss: 49,02$
Target: 97$
Leverage: X2
Capital Investment: 8,71% of Etoro capital, 0,04% of total capital

EPS 1st of July 2017: 0,95, 1st of April 2017: 0,73, 3rd of July 2016: 0,63 (+30% QoQ, +50% YoY)
Book value per share: 1st of July 2017: 47,86$, 1st of April 2017: 47,536$, 3rd of July 2016: 47,799$
(+0,68% QoQ, +0,13% YoY)
Share Price: 3rd of July 2017: 84,47$, 3rd of April 2017: 91,06$, 1st of July 2016: 88,24$
(-7,24% QoQ, -4,3% YoY, -8,1% since 3rd of July 2017)

The EPS forecast for this quarter is 0,82$.

Kraft Heinz Company trades at a low 1,63 price to book ratio although it has solid EPS growth. The stock trades close to a three years low of 1,46 P/B ratio. Back then the EPS was at 0,44$ so half of current EPS. Therefore it looks undervalued at current stock price levels.

(See: https://www.gurufocus.com/term/pb/NAS:KHC/PB-Ratio/The-Kraft-Heinz-Co)

 Due Diligence About Ownership

 Kraft Heinz has a 62,75% institutional ownership with the biggest money management company Berkshire Hathaways. As I follow the same strategy as Berkshire Hathaways this seems to be a good sign.

See: http://www.nasdaq.com/de/symbol/khc/ownership-summary
Balance Sheet Analyses

 Quick Ratio: 0,50
Current Ratio: 1,00
ROE: 6,60%
Equity Ratio: 48,90%
P/B Ratio: 1,60
P/E Ratio: 24,8

The company is close to its all time low of a price / book ratio of 1,46 and is very cheap. However the company will need some liquidity short term (risk / reward situation).



 A Final Word In Regards Of Risks Involved

If you are new on this blog please read through the introduction (the big picture) before following my strategy and advises. You can find this introduction here.

 Conclusion

Taking EPS growth into consideration this stock seems to be undervalued at current share Price of 77,68$. The stop loss is basically set to the book value per share which whould be an irrational price for this stock at current EPS from my point of view.

This stock is a BUY at current stock prices.

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