NEW YORK (TheStreet) -- Kellogg Co. (K - Get Report) , maker of breakfast cereals and other packaged food, is seeking to buy a majority stake in Egypt's Bisco Misr, a confectionery-maker in the most populous Arab country, Bloomberg reports.
Bisco Misr said in a statement it agreed to a due diligence by Kellogg before a possible acquisition of at least 51%. That's the third due diligence request Bisco Misr received this year after private equity firm Abraaj Group and Saudi Arabia's Savola Group made similar moves, Bloomberg said.
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- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Food Products industry and the overall market, KELLOGG CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has slightly increased to $386.00 million or 5.17% when compared to the same quarter last year. In addition, KELLOGG CO has also modestly surpassed the industry average cash flow growth rate of 2.25%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- 42.52% is the gross profit margin for KELLOGG CO which we consider to be strong. Regardless of K's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.00% trails the industry average.
- K, with its decline in revenue, slightly underperformed the industry average of 2.7%. Since the same quarter one year prior, revenues slightly dropped by 0.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: K Ratings Report