KERING (1KER.MI) Stock Fundamental Analysis
BIT:1KER - Euronext Milan - FR0000121485 - Common Stock - Currency: EUR
Overall 1KER gets a fundamental rating of 3 out of 10. We evaluated 1KER against 42 industry peers in the Textiles, Apparel & Luxury Goods industry. There are concerns on the financial health of 1KER while its profitability can be described as average. 1KER is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1KER had positive earnings in the past year.
In the past year 1KER had a positive cash flow from operations.
Each year in the past 5 years 1KER has been profitable.
1KER had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1KER has a Return On Assets (2.61%) which is comparable to the rest of the industry.
1KER has a Return On Equity (7.60%) which is in line with its industry peers.
1KER has a Return On Invested Capital (5.36%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 7.6% | ||
| ROIC | 5.36% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 6.59%, 1KER is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
In the last couple of years the Profit Margin of 1KER has declined.
Looking at the Operating Margin, with a value of 14.48%, 1KER is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Operating Margin of 1KER has declined.
With an excellent Gross Margin value of 73.75%, 1KER belongs to the best of the industry, outperforming 88.64% of the companies in the same industry.
In the last couple of years the Gross Margin of 1KER has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.48% | ||
| PM (TTM) | 6.59% | ||
| GM | 73.75% |
OM growth 3Y-19.39%
OM growth 5Y-13.44%
PM growth 3Y-28.46%
PM growth 5Y-14.63%
GM growth 3Y-0.14%
GM growth 5Y-0.1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1KER is destroying value.
There is no outstanding debt for 1KER. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that 1KER is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of 1KER (1.74) is worse than 70.45% of its industry peers.
1KER has a debt to FCF ratio of 14.39. This is a negative value and a sign of low solvency as 1KER would need 14.39 years to pay back of all of its debts.
1KER has a Debt to FCF ratio of 14.39. This is in the lower half of the industry: 1KER underperforms 72.73% of its industry peers.
A Debt/Equity ratio of 1.05 is on the high side and indicates that 1KER has dependencies on debt financing.
1KER has a Debt to Equity ratio of 1.05. This is in the lower half of the industry: 1KER underperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 14.39 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.69
WACC7.74%
2.3 Liquidity
1KER has a Current Ratio of 1.11. This is a normal value and indicates that 1KER is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.11, 1KER is doing worse than 77.27% of the companies in the same industry.
1KER has a Quick Ratio of 1.11. This is a bad value and indicates that 1KER is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1KER (0.69) is worse than 61.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
1KER shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -62.09%.
1KER shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.87% yearly.
The Revenue for 1KER has decreased by -12.12% in the past year. This is quite bad
The Revenue has been growing slightly by 1.60% on average over the past years.
EPS 1Y (TTM)-62.09%
EPS 3Y-28.71%
EPS 5Y-12.87%
EPS Q2Q%-78.75%
Revenue 1Y (TTM)-12.12%
Revenue growth 3Y-0.86%
Revenue growth 5Y1.6%
Sales Q2Q%-13.31%
3.2 Future
The Earnings Per Share is expected to grow by 28.24% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.33% on average over the next years.
EPS Next Y4.12%
EPS Next 2Y13.98%
EPS Next 3Y12.37%
EPS Next 5Y28.24%
Revenue Next Year1.08%
Revenue Next 2Y3.55%
Revenue Next 3Y4.56%
Revenue Next 5Y6.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.73, the valuation of 1KER can be described as expensive.
1KER's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, 1KER is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.62, the valuation of 1KER can be described as rather expensive.
1KER's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1KER is cheaper than 65.91% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, 1KER is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.73 | ||
| Fwd PE | 21.62 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1KER.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1KER.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.77 | ||
| EV/EBITDA | 10.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1KER does not grow enough to justify the current Price/Earnings ratio.
1KER's earnings are expected to grow with 12.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.48
PEG (5Y)N/A
EPS Next 2Y13.98%
EPS Next 3Y12.37%
5. Dividend
5.1 Amount
1KER has a Yearly Dividend Yield of 2.32%.
1KER's Dividend Yield is a higher than the industry average which is at 3.02.
1KER's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
On average, the dividend of 1KER grows each year by 18.45%, which is quite nice.
Dividend Growth(5Y)18.45%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
151.46% of the earnings are spent on dividend by 1KER. This is not a sustainable payout ratio.
The dividend of 1KER is growing, but earnings are growing more, so the dividend growth is sustainable.
DP151.46%
EPS Next 2Y13.98%
EPS Next 3Y12.37%
BIT:1KER (3/7/2025, 7:00:00 PM)
247
-11.95 (-4.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners25.98%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap30.48B
Analysts54.29
Price Target256.77 (3.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend13.99
Dividend Growth(5Y)18.45%
DP151.46%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.22%
PT rev (3m)1.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-10.6%
EPS NY rev (3m)-14.55%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.73 | ||
| Fwd PE | 21.62 | ||
| P/S | 1.77 | ||
| P/FCF | 21.77 | ||
| P/OCF | 6.47 | ||
| P/B | 2.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.22 |
EPS(TTM)9.24
EY3.74%
EPS(NY)11.42
Fwd EY4.62%
FCF(TTM)11.34
FCFY4.59%
OCF(TTM)38.15
OCFY15.45%
SpS139.31
BVpS120.76
TBVpS-5.35
PEG (NY)6.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 7.6% | ||
| ROCE | 7.37% | ||
| ROIC | 5.36% | ||
| ROICexc | 5.99% | ||
| ROICexgc | 12.37% | ||
| OM | 14.48% | ||
| PM (TTM) | 6.59% | ||
| GM | 73.75% | ||
| FCFM | 8.14% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-19.39%
OM growth 5Y-13.44%
PM growth 3Y-28.46%
PM growth 5Y-14.63%
GM growth 3Y-0.14%
GM growth 5Y-0.1%
F-Score3
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 14.39 | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 156.6% | ||
| Cap/Sales | 19.25% | ||
| Interest Coverage | 4.08 | ||
| Cash Conversion | 102.33% | ||
| Profit Quality | 123.57% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.74 |
F-Score3
WACC7.74%
ROIC/WACC0.69
Cap/Depr(3y)121.37%
Cap/Depr(5y)96.61%
Cap/Sales(3y)12.62%
Cap/Sales(5y)9.83%
Profit Quality(3y)91.35%
Profit Quality(5y)99.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-62.09%
EPS 3Y-28.71%
EPS 5Y-12.87%
EPS Q2Q%-78.75%
EPS Next Y4.12%
EPS Next 2Y13.98%
EPS Next 3Y12.37%
EPS Next 5Y28.24%
Revenue 1Y (TTM)-12.12%
Revenue growth 3Y-0.86%
Revenue growth 5Y1.6%
Sales Q2Q%-13.31%
Revenue Next Year1.08%
Revenue Next 2Y3.55%
Revenue Next 3Y4.56%
Revenue Next 5Y6.33%
EBIT growth 1Y-47.22%
EBIT growth 3Y-20.08%
EBIT growth 5Y-12.06%
EBIT Next Year86.23%
EBIT Next 3Y30.49%
EBIT Next 5Y25.36%
FCF growth 1Y-24.24%
FCF growth 3Y-29.17%
FCF growth 5Y-3.26%
OCF growth 1Y5.61%
OCF growth 3Y-1.14%
OCF growth 5Y12.54%