Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Credit

<ul><li>Kellogg has faced its fair share of challenges in 2021 in the form of supply chain issues, inflationary pressures, struggles with its core cereals business, plant fires, labor strikes, and so on.</li><li>While Kellogg had a fantastic 2020 on account of the pandemic-induced tailwinds, the company was able to outperform those numbers in 2021 despite facing a highly challenging operating environment.</li><li>Like most of its food peers, the company faced various supply chain challenges and was hampered by bottlenecks and shortages in everything from labour to materials to freight, resulting in incremental costs and inefficiencies that were difficult to plan for.</li></ul>

Kellogg has faced its fair share of challenges in 2021 in the form of supply chain issues, inflationary pressures, struggles with its core cereals business, plant fires, labor strikes, and so on.While Kellogg had a fantastic 2020 on account of the pandemic-induced tailwinds, the company was able to outperform those numbers in 2021 despite facing a highly challenging operating environment.Like most of its food peers, the company faced various supply chain challenges and was hampered by bottlenecks and shortages in everything from labour to materials to freight, resulting in incremental costs and inefficiencies that were difficult to plan for.

Kellogg Company: Detailed Credit Analysis & Financial Strength Evaluation Report

Equity Capital Markets

<ul><li>Kellogg had an extraordinary 2020 on account of the pandemic-induced tailwinds and the company was able to outperform those numbers in 2021 as well despite facing a highly challenging operating environment.</li><li>However, with the inflationary impact, the strikes, the plant fire, and the struggling cereal business, there is little to be optimistic about Kellogg.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

Kellogg had an extraordinary 2020 on account of the pandemic-induced tailwinds and the company was able to outperform those numbers in 2021 as well despite facing a highly challenging operating environment.However, with the inflationary impact, the strikes, the plant fire, and the struggling cereal business, there is little to be optimistic about Kellogg.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Kellogg Company: Financial & Price Forecasts

<ul><li>Kellogg delivered a strong quarter driven by a robust top-line growth driven by incremental brand-building investment.</li><li>While their productivity and revenue growth management actions continue to cobble together, market-driven cost inflation has resulted in high incremental costs and disruption from the current operating environment.</li><li>It is important to highlight that Kellogg continues to sustain strong momentum in their emerging markets.</li></ul>

Kellogg delivered a strong quarter driven by a robust top-line growth driven by incremental brand-building investment.While their productivity and revenue growth management actions continue to cobble together, market-driven cost inflation has resulted in high incremental costs and disruption from the current operating environment.It is important to highlight that Kellogg continues to sustain strong momentum in their emerging markets.

<ul><li>Kellogg delivered a decent financial result in the second quarter of fiscal year 2021.</li><li>The company’s snacks brands sustained their momentum in the second quarter resulting in the top-line outperformance with many outpaced their respective categories.</li><li>The management upholding their guidance of 1-2% earnings growth for the year does not sound too exciting though it does hope to generate significant cash flows in the range of $1.1-1.2 billion, possible ensuring a decent dividend payout.</li></ul>

Kellogg delivered a decent financial result in the second quarter of fiscal year 2021.The company’s snacks brands sustained their momentum in the second quarter resulting in the top-line outperformance with many outpaced their respective categories.The management upholding their guidance of 1-2% earnings growth for the year does not sound too exciting though it does hope to generate significant cash flows in the range of $1.1-1.2 billion, possible ensuring a decent dividend payout.

Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

<ul>
<li>One year since I first outlined the risks for Kellogg, it is the worst performer in its peer group.</li>
<li>The company's low valuation is justified by its low and deteriorating profitability.</li>
<li>Going forward, Kellogg's already low valuation is at risk.</li>
</ul>


One year since I first outlined the risks for Kellogg, it is the worst performer in its peer group.
The company's low valuation is justified by its low and deteriorating profitability.
Going forward, Kellogg's already low valuation is at risk.


United States

Kellogg Company manufactures and markets ready-to-eat cereal and other convenience foods. The Company's products include cereals, cookies, crackers, toaster pastries, cereal bars, fruit snacks, frozen waffles and veggie foods. Kellogg markets its products in the United States, Canada, and other countries throughout the world.

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Kellogg Co (K US)

Kellogg Company: Detailed Credit Analysis & Financial Strength Evaluation Report

Kellogg has faced its fair share of challenges in 2021 in the form of supply chain issues, inflationary pressures, struggles with its core cereals...

Baptista Research

Kellogg Company: Financial & Price Forecasts

Kellogg had an extraordinary 2020 on account of the pandemic-induced tailwinds and the company was able to outperform those numbers in 2021 as...

Baptista Research

Kellogg Company - Investment Thesis

Kellogg delivered a strong quarter driven by a robust top-line growth driven by incremental brand-building investment. While their productivity...

Baptista Research

Kellogg Company - Investment Thesis

Kellogg delivered a decent financial result in the second quarter of fiscal year 2021. The company’s snacks brands sustained their momentum in the...

Baptista Research

Kellogg: Even Low Valuations Are At Risk

One year since I first outlined the risks for Kellogg, it is the worst performer in its peer group. The company's low valuation is justified by...

Vladimir Dimitrov, CFA

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