Summary
Krupa Global Investments (KGI) is significant shareholder of KHC.
KHC trades at discount to peer on P/E and dividend yield (5.2% vs 3.1% average).
Kraft Heinz is undervalued among peers such Mondelez, Kellogg's and General Mills.
Our Upside Thesis
Based on the JPMorgan US Food Producers and Retailers 2019 outlook, KHC has an overweight rating meanwhile General Mills, Kellogg's and McCormick have neutral ratings.
Source: JPMorgan US Food Producers and Retailers 2019 Outlook
KHC has FY20E P/E of 12.7x which is significantly below the peer median of 14.6x, beating Mondelez and Campbell Soup. On the other hand, EV/EBITDA is inline with peers where KHC has 11.8x FY20E EV/EBITDA and median value is 11.4x.
