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Kraft Foods, Incorporated Class A (KFT)

KFT Stock Report

2-Year Price History

Recent Price
(7/2 4:16PM) -2.4%
$25.96
52-Week Price
$20.81 – $34.97
Market Capitalization
$38.2 Billion
Dividend Yield
4.50%
Most Recent Dividend
$1.10

Ockham’s Rating

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KFT Revenue

As a value investing shop, we are interested in seeing how KFT’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 9 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 1.65x and the low end of the range at 1.25x.

With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for KFT of 0.90x is well below its normal historic Price to Sales levels. At a price of $25.96, KFT is 38% 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.

KFT 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 KFT, Ockham views their current Cash Earnings as significantly below its historical average multiple of Cash Earnings. Looking at the last 9 years we can get a good understanding of what investors have grown to expect from KFT. For example, KFT’s Cash Earnings ratio per share has fluctuated between 11.71 and 15.40 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where KFT is with respect to prior business periods.

So with KFT’s current price (latest close of $25.96) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, KFT is 28% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn’t exist in a vacuum. So if the market doesn’t recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with KFT.

KFT Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don’t require dividend payments for company’s whose management has elected to forgo them entirely.

When reviewing dividend yields for KFT, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management’s confidence in the company. KFT’s estimated annual dividend is $1.16 resulting in a current dividend yield of 4.47%. The highest dividend yield from KFT over recent history was 5.57% while the lowest dividend yield was 0.37%. KFT’s current dividend yield is therefore significantly higher than its median dividend yield historically. In fact, the current yield is 50.51% above the median which weighs very positively on our analysis of KFT.

Peer Comparison

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Kraft Foods, Inc. Class A 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 KFT) 11.52 7.82 » 26.63 1.78 1.21 » 3.51 9.19% 33.46%
*10 year range does not include current year values
Diageo PLC ADS DEO $41.6 Billion $58.96 11.40 7.14 » 29.03 2.06 1.45 » 4.25 7.48% 41.02%
Kraft Foods, Inc. Class A KFT $38.2 Billion $25.96 9.80 9.35 » 18.52 0.90 0.86 » 2.56 6.36% 10.22%
Unilever N.V. UN $37.0 Billion $24.04 7.96 7.02 » 28.90 1.06 1.05 » 1.86 1.05% 40.78%
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%
>
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The latest TV Media Discussion

8:46:36 AM KFT $25.96 Kraft Foods, Inc. Class A
1 days ago (07/03)
Premium Content – please sign up for Ockham PREMIUM to gain full access and to see what Money For Breakfast said about KRAFT FOODS, INC. CLASS A …more details… LEARN MORE
8:45:39 AM KFT $25.96 Kraft Foods, Inc. Class A
1 days ago (07/03)
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8:44:19 AM KFT $25.96 Kraft Foods, Inc. Class A
1 days ago (07/03)
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3:02:29 PM KFT $26.08 Kraft Foods, Inc. Class A
2 days ago (07/02)
Premium Content – please sign up for Ockham PREMIUM to gain full access and to see what Closing Bell said about KRAFT FOODS, INC. CLASS A …more details… LEARN MORE
12:02:03 PM KFT $26.24 Kraft Foods, Inc. Class A
2 days ago (07/02)
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5:57:19 PM KFT $26.69 Kraft Foods, Inc. Class A
Fast Money
2 days ago (07/01)
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5:07:53 PM KFT $26.75 Kraft Foods, Inc. Class A
Fast Money
2 days ago (07/01)
Premium Content – please sign up for Ockham PREMIUM to gain full access and to see what Fast Money said about KRAFT FOODS, INC. CLASS A …more details… LEARN MORE
3:55:51 PM KFT $26.65 Kraft Foods, Inc. Class A
3 days ago (07/01)
“…Gets the stock price up, it’s semantics, and number plays, don’t buy into it. Number six, craft. Believe it or not, KRAFT was a dow leaders. General mills expect the rate of cost of inflation on input goods to moderate and that actually sent the whole consumer staple and KRAFT benefitted and was our big dow leader today. Yum! Brands actually also benefitting from the same comments, our fox 50 leader, but also a nice bump from goldman sachs, upgrade. …” …more details…
3:03:18 PM KFT $26.71 Kraft Foods, Inc. Class A
3 days ago (07/01)
“…Pass the cheerios, vodka, and cheese. Cheerios, general mills earning much better than expected. Constellation brands saying vodka was a real standout during the quarter. And KRAFT FOODS today moving to the up side. Financials overall mixed today, although we’re seeing some strength with citigroup calling bank of america their best growth stock, the stock having …” …more details…
1:12:21 PM KFT $26.75 Kraft Foods, Inc. Class A
3 days ago (07/01)
“…Down to 55 or up to 85? >> big movers in the dow jones industrial average, biggest percentage mover is KRAFT food. The stock today up 5.5%. Brands up by 6.25%. …” …more details…
12:32:46 PM KFT $26.66 Kraft Foods, Inc. Class A
3 days ago (07/01)
“…You’ve been a busy guy these >>> today’s adp report shows the private sector shed some 473,000 jobs in june. But there is one company that is bucking the trend. And it is KRAFT. Its pizza division broke ground last week to extend manufacturing plants in wisconsin, adding 300 jobs to joining us now for our ongoing look at today’s whose hiring, tim copier, the president of KRAFT pizza company. Nice to see you. Be here. >> I note that not only do you make a lot of pizzas, you made a lot of name-brand pizzas that people know, the di justin …” …more details…
11:30:43 AM KFT $26.49 Kraft Foods, Inc. Class A
3 days ago (07/01)
“…And have to wrap it up. But tim thank you very much for joining us today. >> and our special coverage of who is hiring in america continues today on cnbc on "power lunch." the president of KRAFT pizza and his plans to add jobs to the >>> and up next in today’s "call of the wild", should banks be …” …more details…
11:04:16 AM KFT $26.50 Kraft Foods, Inc. Class A
3 days ago (07/01)
“…Of general mills, you’ve got good numbers out of constellation brands, people still drinking, apparently in the recession, and vodka sales up 13%. And KRAFT has kind of broken out >> you know what’s interesting here is I think they were able to raise their prices, they had to raise their prices because of the cost of manufacturing went rchs exactly. >> and now its costs go down and they’re able to reap benefits. …” …more details…
10:32:33 AM KFT $26.38 Kraft Foods, Inc. Class A
3 days ago (07/01)
“…Entertainment, mvl. It is going from overweight to neutral at jpmorgan with a nice 5% pop. One of the best performing stocks last time I checked in the dow today with this nice move is KRAFT.E and the reason i’m showing you this chart is that it looks like we have a little three-week breakout going on here. Yeah, I understand that the all-time high was back in may or …” …more details…
3:32:05 PM KFT $25.62 Kraft Foods, Inc. Class A
11 days ago (06/23)
“…Dow. In and out of positive territory, negative most of the last hour-and-a-half. Caterpillar, american express, intel, g.E., microsoft, dupont, disney, verizon, KRAFT, they’re all up. The j&j and pfizer moving a couple of pictures there. Look at oil. …” …more details…
6:09:23 PM KFT $25.41 Kraft Foods, Inc. Class A
14 days ago (06/19)
“…>> when I come up with legislation I usually have the cbo numbers before I introduce it. >> we are trying to get language up hear that house the numbers and we cannot run the numbers until the KRAFT of the language. >> they have run the numbers and it is $1 trillion. …” …more details…
1:46:07 PM KFT $25.93 Kraft Foods, Inc. Class A
16 days ago (06/18)
“…Four dow stocks up more than 4%. Wide range of sectors. Dew stocks. KRAFT, alcoa, b of a, merck. Those are dow gainers. That’s asolid gain. When you see dow stocks, up 4%, that ladies and gentlemen is otherwise known as a rally. …” …more details…
3:36:35 PM KFT $24.89 Kraft Foods, Inc. Class A
17 days ago (06/17)
“…Their sales overseas, they’ve benefited from high growth in those markets. In many cases foreign currency translations helped them. When those companies’ growth rates dropped to the KRAFT and the pepsis, when they go from 9% to 6%, their p/e multiples are going to be reevaluated down to 12, 15 as you mentioned earlier. We don’t want to own them. >> pete, for so long we’ve been talking about the emerging …” …more details…
3:33:17 PM KFT $24.90 Kraft Foods, Inc. Class A
17 days ago (06/17)
“…Balance sheets, consistency environment around you? >> yeah. And they’re very inexpensive, 12 times earnings i’m willing to buy them at 12. I do realize there’s very little growth at these companies. KRAFT and some of the others. You know, 6% earnings growth. 5% free cash flow yield. 4% divide jeend yield. Total return could be decent. And like I said, I think some of these basic materials companies …” …more details…
3:32:48 PM KFT $24.91 Kraft Foods, Inc. Class A
17 days ago (06/17)
“…>> yeah, like right now. Consumer staples have been overowned earlier this year. They’ve lagged recently as people put money in basic materials, which appear to be I think you’ve got to own KRAFT and pepsi here, some of those names, philip morris international, all 12 times earnings. 4% dividend yields. Boring at heck, but they’re probably going to hold in here in a market that could trade off …” …more details…
6:54:09 PM KFT $25.95 Kraft Foods, Inc. Class A
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…
6:33:24 PM KFT $25.85 Kraft Foods, Inc. Class A
Mad Money
23 days ago (06/10)
“…After the terrible year his shareholders had. Some of you have suggested that irene rosenfield, the ceo of KRAFT bronx with these people on but that, too, would be a mischaracter of justice, when rosenfield in 2006, KRAFT was at 31. Now at 25.85. Down, but better than the s&p 500, that’s down 25%. And KRAFT is up 8.2%, including dividends, since rosenfield took better than a sharp stick in the eye, or cheese whiz. Now on the website, bob nardelli, who just stopped being …” …more details…
5:57:12 PM KFT $26.64 Kraft Foods, Inc. Class A
Fast Money
25 days ago (06/08)
“…I think the dollar’s about to roll back over. Mcdonald’s down 2%, I think cafe >> mccafe. >> that same nutritional field, KRAFT. >> and when you finish up eating that mcdonald’s and stuffing down the big mac, they’re involved in cholesterol and >> i’m melissa lee. See you tomorrow 12:45. …” …more details…
5:47:07 PM KFT $26.64 Kraft Foods, Inc. Class A
Fast Money
25 days ago (06/08)
“…Route and look for that counseling and, you know, people like to be with other people and help lose weight together. Although the weight watchers valuation is not as attractive to me. There’s KRAFT, which owns south beach diet, which it does have fatty products. You’ve got a nice virtuous cycle >> everyone remains fat, it made …” …more details…
1:52:55 PM KFT $26.50 Kraft Foods, Inc. Class A
26 days ago (06/08)
“…Out. Dow additions have proven a better bet for the short. The dow down 34% after the most recent edition. KRAFT thanks in great part to the financial cries. That said, the dow’s sector waiting in line with the s&p with the year’s bester with …” …more details…
2:56:15 PM KFT $26.54 Kraft Foods, Inc. Class A
29 days ago (06/05)
“…And paying himself $26,000.$26,000. He waived his bonus last year we like to see him put his skin in the game. >> david: putting the money his mouth is. Switch to the worse. These folks aren’t happy to be on the list. KRAFT FOODS. Why is KRAFT — what are they doing wrong? >> well, we like to see managers that are well aligned with the particular problem they face in their industry at the moment. Ceo irene rozzenfeld at craft …” …more details…
5:12:05 PM KFT $24.80 Kraft Foods, Inc. Class A
Fast Money
5/15/2009 5:12 PM
“…More specialty names guy talked about that I think are really expensive. I like that trade being in the walmarts of the world, the p & g, the KRAFT. Those things are non-discretionary, unlike abercrombie — >> I know you’ve never been there but how about dollar tree? Or some of these — >> I might have been there in one of my cougar days. …” …more details…
5:11:35 PM KFT $25.41 Kraft Foods, Inc. Class A
Fast Money
5/12/2009 5:11 PM
“…Kind of froth that some of the lesser-quality companies that have big debt issues have seen, and so we think this is a really attractive place to add to p & g, clorox, KRAFT, walmart even, which is probably the biggest customer for many of those I think in an up market or down these names will outperform except for the screaming up and after seven or eight weeks …” …more details…
3:36:31 PM KFT $25.43 Kraft Foods, Inc. Class A
5/12/2009 3:36 PM
“…What we are seeing coming off the lows when alan greenspan was talking we have strikes in the defensive play. Things you need at home. Coca-cola, KRAFT, procter & those are what we’re watching. Put it together and that gave us a rally. The question is whether we can hold it. >> cheryl: the dow agrees. Mr. Happy every times he gets to the microphone recently. …” …more details…
8:35:44 AM KFT $25.53 Kraft Foods, Inc. Class A
5/11/2009 8:35 AM
“…Charles: warren buffett’s berkshire hathaway posted earnings on friday I always hate companies that post friday their first loss since 01. Of course he’s invested in a couple of fox 50 stocks like KRAFT and procter & gamble johnson & johnson and wells fargo what do you think right now of all these investments what are his best investments also maybe some whisper scott that warren buffett may not have it to the degree he had it once …” …more details…
7:32:24 AM KFT $25.53 Kraft Foods, Inc. Class A
Squawk Box
5/11/2009 7:32 AM
“…We’ve been buying strategic stakes in companies for 25 years 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. …” …more details…
6:43:51 PM KFT $25.53 Kraft Foods, Inc. Class A
Mad Money
5/8/2009 6:43 PM
“…>>> we’ve grown accustomed to disappointment in the food and drug businesses. KRAFT, widely perceived to be the absolute worst of all the food stocks, put up a terrific — a terrific earnings — where’s the other …” …more details…
5:12:34 PM KFT $25.53 Kraft Foods, Inc. Class A
Fast Money
5/8/2009 5:12 PM
“…This is going to end poorly, but for now those traders are on the >> if you want to play defense, also, there are some consumer product names that if you do have inflation they will do names like clorox, like KRAFT, like walmart, even. >> and in the meantime it will do bup kus. I’d rather own banks. >> next trade, oil continuing to up 10%. …” …more details…
11:04:29 AM KFT $25.49 Kraft Foods, Inc. Class A
5/8/2009 11:04 AM
“…Tan expected and lending strengths to consumer related names including the retail sector, look at saks up six pennies, that was up at one procter & gamble, KRAFT, consumer related names also treading in green territory. And finally the earnings news because we’ve had a lot of earnings news released in the la 12 hours or so, toyota, posting …” …more details…
8:26:01 AM KFT $25.17 Kraft Foods, Inc. Class A
5/8/2009 8:26 AM
“…The six restaurants down there are back up and running. But we’ve been growing around the world. The other thing that — so we have a great ancillary revenue what’s really been good for us is our relationship with KRAFT that creates our frozen cpk that’s growing exponentially and is now 20,000 locations in 50 states and create as lot of …” …more details…
2:02:56 PM KFT $25.19 Kraft Foods, Inc. Class A
5/6/2009 2:02 PM
“…Other companies. As a result, they feel that is a disqualifying event. It certainly was the kiss with aig last september when the government took over that company. It was picked out of the dow. They brought in KRAFT FOODS to replace it. As far as citigroup goes, he said it would hold true for all of them. It asked about citi if they do conversion, would …” …more details…
12:03:20 PM KFT $25.09 Kraft Foods, Inc. Class A
5/6/2009 12:03 PM
“…That’s a possible replacement candidate, guys. The last change in the 113-year-old dow was in september when aig was placed into receivership with the government, the custodianship there, KRAFT FOODS went in as a replacement. If case you’re wondering, general motors first joined the dow 1915 replacing u.S. Rubber, dropped in 1916 but then came …” …more details…
6:11:06 PM KFT $25.36 Kraft Foods, Inc. Class A
Mad Money
5/5/2009 6:11 PM
“…Man, even with the ordinary why? Because there’s nothing more sinful than giving back a gain. So I don’t care about the tax man. I care about the profits. KRAFT cheese came out of its slumber today, and it needs to stay back in the way it was. Or else the rally is just going to end right here. …” …more details…
6:06:53 PM KFT $25.36 Kraft Foods, Inc. Class A
Mad Money
5/5/2009 6:06 PM
“…Down 16 points at the end of the las vegas sands blew away the numbers at the close too. Rocket fuel alert, maybe. Here’s the bottom line. I didn’t like today. In the end we need to see canines like KRAFT and molson behave. We need them to roll over. We need them to heel. We need them down boy if we’re going to have a resumption of the rally. In a market recovery without …” …more details…
6:04:04 PM KFT $25.22 Kraft Foods, Inc. Class A
Mad Money
5/5/2009 6:04 PM
“…The leaders, all of which were down today. Yep, once you get this chart, once you start get ingting buying and KRAFT, you know this flow of funds could be reversing, just as sure as this chart of cheese wiz demonstrates. You see, there isn’t enough it wasn’t enough that a loser like KRAFT burst out of its oscar mayer wiener dog funk. Guess what else happened. Molson rumpelstiltskin coors woke up. Few groups have underperformed …” …more details…
View All Kraft Foods, Inc. Class A News

Key Fundamentals

KFT – Kraft Foods, Incorporated Class A Fundamentals
Price (7/2 4:16PM) $25.96
Volume (7/2 4:16PM) 10.7 Million
Last Close Price $26.61
10 Day Average Volume 11.0 Million
13 Week Price Range $21.97 – $27.24
52 Week Price Range $20.81 – $34.97
LTM Revenue $41.8 Billion
 
Shares Outstanding (12/2008) 1.5 Billion
Market Capitalization $38.2 Billion
Shares Held By Institutions 1.1 Billion
Institutional Holders 1,202
% Shares Held By Institutions 74.50%
Earnings Per Share (EPS) $1.92
P/E Ratio 13.10
Book Value Per Share $15.20
 
Gross Margin 35.90%
Annual Dividend 1.16
Dividend Yield 4.50%
Beta 0.65
Fiscal Year Ends December

About Kraft Foods, Inc. Class A

Kraft Foods, Incorporated Class A 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 through its subsidiaries, manufactures and markets packaged foods and beverages in approximately 150 countries.

NASDAQ 1796.52

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