Enterprise Value to FCFF (EV/FCFF)
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Free Cash Flow to The Firm (FCFF)
Kellanova, FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).
- Net Cash Provided by Operating Activities
- There was a significant increase in net cash provided by operating activities from 2019 to 2020, rising from 1,176 million US dollars to 1,986 million US dollars. However, the figures show a downward trend in subsequent years, decreasing to 1,701 million in 2021, then slightly declining to 1,651 million in 2022, and stabilizing at 1,645 million in 2023. This indicates that while the company experienced substantial growth in operating cash flow initially, it has been facing challenges in maintaining that elevated level beyond 2020.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm also showed growth from 804 million US dollars in 2019 to 1,680 million in 2020, mirroring the trend in operating cash flow. From 2020 onward, there is a noticeable decrease, with FCFF dropping to 1,310 million in 2021, followed by a slight recovery to 1,338 million in 2022, and then declining again to 1,187 million in 2023. These fluctuations suggest variability in the firm's capacity to generate free cash after accounting for capital expenditures and indicate potential volatility in cash available for discretionary use or investment.
- Overall Cash Flow Trends
- Both key cash flow metrics peaked in 2020, likely reflecting an exceptional operational performance or favorable economic conditions in that period. Since then, both metrics have declined or remained below the peak, showing a general trend of stabilization but at a lower level than the high point in 2020. The reduction in free cash flow more pronounced than operating cash flow could imply increased capital expenditures or other outflows impacting the available free cash across recent years.
Interest Paid, Net of Tax
Kellanova, interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).
2 2023 Calculation
Interest paid, tax = Interest paid × EITR
= × =
The annual financial data exhibits fluctuations in key financial metrics over the five-year period ending in December 30, 2023. Notably, the effective income tax rate (EITR) shows a varying trend with both decreases and increases across the years. The rate starts at 24.6% in 2019, decreases to a low of 20.2% in 2020, increases again near the initial level to 24.1% in 2021, dips to 20.4% in 2022, and rises to the highest point of 24.8% by the end of 2023. This pattern suggests a recurring fluctuation influenced potentially by changes in tax regulations, operational structure, or profitability margins during these years.
Regarding interest expense paid net of tax, the values indicate a general downward trend from 2019 through 2021 followed by a recovery and increase in the subsequent years. Specifically, interest paid starts at $214 million in 2019, declines to $199 million in 2020, and further declines to $162 million by 2021. However, the interest paid net of tax increases to $175 million in 2022 and sharply rises to $219 million by the end of 2023, exceeding the initial 2019 level. This pattern may reflect changes in debt levels, interest rates, refinancing activities, or tax impacts on interest expenses over the periods analyzed.
- Effective Income Tax Rate (EITR)
- Fluctuates between approximately 20% and 25% with no consistent increasing or decreasing trend but rather alternating decreases and increases year over year.
- Interest Paid, Net of Tax (US$ in millions)
- Declines from 2019 to 2021, suggesting reduced interest burden or debt levels, followed by an increase in 2022 and 2023, surpassing prior years, indicating higher net interest expense.
Overall, the data reveals volatility in tax rates and interest expenses, which could imply changes in the company’s financial strategies, debt management, and tax planning in response to evolving economic or business conditions across the reviewed period.
Enterprise Value to FCFF Ratio, Current
Kellanova, current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Coca-Cola Co. | |
| Mondelēz International Inc. | |
| PepsiCo Inc. | |
| Philip Morris International Inc. | |
| EV/FCFF, Sector | |
| Food, Beverage & Tobacco | |
| EV/FCFF, Industry | |
| Consumer Staples | |
Based on: 10-K (reporting date: 2023-12-30).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Kellanova, historical EV/FCFF calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| EV/FCFF, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).
3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
The analyzed financial data reveals several notable trends over the five-year period ending in December 2023. The enterprise value (EV) exhibits a fluctuating pattern with an overall decline from 30,155 million US dollars in 2019 to 24,915 million US dollars in 2023. Initially, there is a decrease from 2019 to 2020, followed by a moderate recovery through 2021 and 2022, before declining again in 2023.
Free cash flow to the firm (FCFF) demonstrates variability yet maintains a level of resilience across the years. Starting at 804 million US dollars in 2019, FCFF nearly doubles to 1,680 million US dollars in 2020. Subsequently, it experiences a decline in 2021 to 1,310 million and stabilizes around that range in 2022 and 2023, with values of 1,338 million and 1,187 million US dollars respectively.
The EV/FCFF ratio, which presents the valuation multiple, reflects these movements in value and cash flow. The ratio decreases sharply from 37.5 in 2019 to 16.64 in 2020, indicating a significant change in valuation relative to cash flow. Following this, the ratio rises again to between 20.99 and 22.84 during the 2021–2023 period, suggesting a more moderate valuation in relation to free cash flow. Despite some fluctuations, the ratio remains lower in 2023 compared to 2019, pointing to a market valuation that is more conservative relative to free cash flow generation at the end of the period.
- Enterprise Value (EV)
- Overall decline over the period with fluctuations; peak in 2019, trough in 2020, partial recovery, then decline again in 2023.
- Free Cash Flow to the Firm (FCFF)
- Substantial increase in 2020 followed by gradual decline and stabilization at levels higher than in 2019.
- EV/FCFF Ratio
- Marked decrease in 2020 indicating improved cash flow relative to value, followed by moderate increase and stabilization, reflecting adjusted valuation perspectives through 2023.