KERING (1KER.MI) Stock Fundamental Analysis
BIT:1KER - Euronext Milan - FR0000121485 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to 1KER. 1KER was compared to 44 industry peers in the Textiles, Apparel & Luxury Goods industry. While 1KER is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, 1KER is valued expensive at the moment.
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.
In the past 5 years 1KER always reported a positive cash flow from operatings.
1.2 Ratios
1KER has a Return On Assets of 2.61%. This is in the lower half of the industry: 1KER underperforms 61.36% of its industry peers.
1KER has a Return On Equity (7.60%) which is in line with its industry peers.
1KER has a Return On Invested Capital of 5.20%. This is in the lower half of the industry: 1KER underperforms 61.36% of its industry peers.
1KER had an Average Return On Invested Capital over the past 3 years of 10.05%. This is in line with the industry average of 11.04%.
The last Return On Invested Capital (5.20%) for 1KER is well below the 3 year average (10.05%), which needs to be investigated, but indicates that 1KER had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 7.6% | ||
| ROIC | 5.2% |
ROA(3y)6.82%
ROA(5y)7.67%
ROE(3y)17.67%
ROE(5y)19%
ROIC(3y)10.05%
ROIC(5y)11.02%
1.3 Margins
With a decent Profit Margin value of 6.59%, 1KER is doing good in the industry, outperforming 61.36% of the companies in the same industry.
In the last couple of years the Profit Margin of 1KER has declined.
1KER has a better Operating Margin (14.48%) than 63.64% of its industry peers.
1KER's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 73.75%, 1KER is in the better half of the industry, outperforming 79.55% 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) just above the Cost of Capital (WACC), 1KER is creating some value.
Compared to 1 year ago, 1KER has about the same amount of shares outstanding.
Compared to 5 years ago, 1KER has less shares outstanding
1KER has a worse debt/assets ratio than last year.
2.2 Solvency
1KER has an Altman-Z score of 1.62. This is a bad value and indicates that 1KER is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of 1KER (1.62) is worse than 65.91% of its industry peers.
The Debt to FCF ratio of 1KER is 13.88, which is on the high side as it means it would take 1KER, 13.88 years of fcf income to pay off all of its debts.
1KER's Debt to FCF ratio of 13.88 is on the low side compared to the rest of the industry. 1KER is outperformed by 79.55% of its industry peers.
1KER has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
1KER has a Debt to Equity ratio of 1.11. This is in the lower half of the industry: 1KER underperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 13.88 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.73
WACC7.12%
2.3 Liquidity
A Current Ratio of 1.11 indicates that 1KER should not have too much problems paying its short term obligations.
1KER's Current ratio of 1.11 is on the low side compared to the rest of the industry. 1KER is outperformed by 81.82% of its industry peers.
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.
1KER's Quick ratio of 0.69 is on the low side compared to the rest of the industry. 1KER is outperformed by 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for 1KER have decreased strongly by -57.30% in the last year.
1KER shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.03% yearly.
Looking at the last year, 1KER shows a very negative growth in Revenue. The Revenue has decreased by -12.12% in the last year.
Measured over the past years, 1KER shows a small growth in Revenue. The Revenue has been growing by 1.60% on average per year.
EPS 1Y (TTM)-57.3%
EPS 3Y-26.58%
EPS 5Y-16.03%
EPS Q2Q%-66.89%
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 21.28% on average over the next years. This is a very strong growth
Based on estimates for the next years, 1KER will show a small growth in Revenue. The Revenue will grow by 3.61% on average per year.
EPS Next Y-11.6%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
EPS Next 5Y21.28%
Revenue Next Year-8.52%
Revenue Next 2Y-2.02%
Revenue Next 3Y0.88%
Revenue Next 5Y3.61%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 18.67, 1KER is valued on the expensive side.
1KER's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.45. 1KER is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 21.12 indicates a rather expensive valuation of 1KER.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1KER is on the same level as its industry peers.
1KER is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.67 | ||
| Fwd PE | 21.12 |
4.2 Price Multiples
1KER's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1KER is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.58 | ||
| EV/EBITDA | 9.05 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.25%
EPS Next 3Y9.21%
5. Dividend
5.1 Amount
1KER has a Yearly Dividend Yield of 3.02%.
1KER's Dividend Yield is rather good when compared to the industry average which is at 3.03. 1KER pays more dividend than 81.82% of the companies in the same industry.
1KER's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
On average, the dividend of 1KER grows each year by 6.01%, which is quite nice.
Dividend Growth(5Y)6.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1KER pays out 151.46% of its income as dividend. This is not a sustainable payout ratio.
1KER's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP151.46%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
BIT:1KER (7/3/2025, 7:00:00 PM)
199.4
-3.15 (-1.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners25.73%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap24.61B
Analysts52.67
Price Target202.81 (1.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend14
Dividend Growth(5Y)6.01%
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)0.24%
PT rev (3m)-16.07%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-13.31%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.67 | ||
| Fwd PE | 21.12 | ||
| P/S | 1.43 | ||
| P/FCF | 17.58 | ||
| P/OCF | 5.23 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.05 |
EPS(TTM)10.68
EY5.36%
EPS(NY)9.44
Fwd EY4.73%
FCF(TTM)11.34
FCFY5.69%
OCF(TTM)38.15
OCFY19.13%
SpS139.31
BVpS120.76
TBVpS-5.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 7.6% | ||
| ROCE | 7.37% | ||
| ROIC | 5.2% | ||
| ROICexc | 5.4% | ||
| ROICexgc | 10.07% | ||
| OM | 14.48% | ||
| PM (TTM) | 6.59% | ||
| GM | 73.75% | ||
| FCFM | 8.14% |
ROA(3y)6.82%
ROA(5y)7.67%
ROE(3y)17.67%
ROE(5y)19%
ROIC(3y)10.05%
ROIC(5y)11.02%
ROICexc(3y)11.71%
ROICexc(5y)13.25%
ROICexgc(3y)23.84%
ROICexgc(5y)27.41%
ROCE(3y)14.46%
ROCE(5y)15.94%
ROICexcg growth 3Y-34.7%
ROICexcg growth 5Y-22.91%
ROICexc growth 3Y-32.92%
ROICexc growth 5Y-21.33%
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 | 1.11 | ||
| Debt/FCF | 13.88 | ||
| Debt/EBITDA | 3.58 | ||
| 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 | 1.62 |
F-Score3
WACC7.12%
ROIC/WACC0.73
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)-57.3%
EPS 3Y-26.58%
EPS 5Y-16.03%
EPS Q2Q%-66.89%
EPS Next Y-11.6%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
EPS Next 5Y21.28%
Revenue 1Y (TTM)-12.12%
Revenue growth 3Y-0.86%
Revenue growth 5Y1.6%
Sales Q2Q%-13.31%
Revenue Next Year-8.52%
Revenue Next 2Y-2.02%
Revenue Next 3Y0.88%
Revenue Next 5Y3.61%
EBIT growth 1Y-47.22%
EBIT growth 3Y-20.08%
EBIT growth 5Y-12.06%
EBIT Next Year50.68%
EBIT Next 3Y22.84%
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%