Kellogg Company (K) might be jeopardy as current ratio falls to 0.7

Supported by a up-down ratio of 0.94x, total MFI closed at $-205.98mn. Block trades acted as a tailwind, coming in at $-199.61mn and $704.70mn and $904.31mn of tick ups and tick downs respectivelyConsumer Goods sector is staging a rebound at 6251.82 points, comparatively to the broader index, has seen a change of 9.01 .

Outlook is expressing the advance and to consider what to expect as down trend Moving Avg sets in . Investors expectation for profit is higher than what we believe company can actually deliver.

End of the day Thursday, Dec 21 market cap stood at $23369.69 M , however we prefer enterprise value against market cap for fair value and Kellogg Company is one of the stable Consumer Goods companies in the world with consistency in financial performance.

Kellogg Company research firms are forecasting earnings to be likely pick up speed as EPS remains positive at 13.70%, and By 5.33% Kellogg Company EPS 5.33% compared to Current Year , analyst expect Earnings to Price Ratio to be lower by 5.33%.

Kellogg Company low liquidity ratio has been a worry to creditors indicating low value in current assets however, firm’s higher quick ratio 0.7 indicates less liquidity strength in near term. Kellogg Company has seen some impressive progress despite the challenges in Processed & Packaged Goods Argus analyst David Coleman has now boosted his rating on the company from Hold to Buy, however as of now , Kellogg Company shares are trading at $67.65, a change of 1.17% from the opening bell Currently firm has gross 5.10% in terms of profit, and is slightly above for the Processed & Packaged Goods Industry , and you can tell, looking in to overhead costs analysts feel management has to find cost reduction measures .

From the Kellogg Company graph RSI is moving over the horizontal 62.24 resistance level indicating a neutral indicator , in this case, the chart level may be viewed as a likely weaker pattern, however prices are still to confirm any divergence.

Assets low beta is a indicative of the fact that the stock is less volatile compared to market . Company is now at its 15.13% higher its 12 months low . It appears that with prices nearing yearly high, prices are taking cues on the near term market outlook .

Investors returns in investment in the K has been superior compared to its sector . Growth of the company considering balance sheet strength is positive with Price to Book at 12.1 and there is scope for a upgrade to its outlook.

Present earnings to Price at 6.39% indicate that management is in line in terms of expansion above PE 30.16. Pe ratio of 30.16 is supported by high interest of traders in Consumer Goods sector and given Kellogg Company future possibilities , current stock price seems to be high as firm might find it hard to sustain growth in long term .

And It’s worth pointing out that compared to Consumer Goods PE , stock prices seem to be over priced by 9.35. Since company has weak liquidity firm might find it hard to repay its current debts .

K expected growth over the next year is coming in to be higher than earnings from the previous 12 months , and with thisKellogg Company future PE ratio of 15.91 suggest possible rerating potential.

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