KERING (1KER.MI) Stock Fundamental Analysis
BIT:1KER - Euronext Milan - FR0000121485 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1KER. 1KER was compared to 40 industry peers in the Textiles, Apparel & Luxury Goods industry. 1KER has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1KER has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
1KER had positive earnings in the past year.
1KER had a positive operating cash flow in the past year.
1KER had positive earnings in each of the past 5 years.
1KER had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.61%, 1KER is in line with its industry, outperforming 42.50% of the companies in the same industry.
1KER has a Return On Equity (7.60%) which is comparable to the rest of the industry.
The Return On Invested Capital of 1KER (5.20%) is comparable to the rest of the industry.
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 10.85%.
The 3 year average ROIC (10.05%) for 1KER is well above the current ROIC(5.20%). The reason for the recent decline needs to be investigated.
| 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
Looking at the Profit Margin, with a value of 6.59%, 1KER is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
1KER's Profit Margin has declined in the last couple of years.
The Operating Margin of 1KER (14.48%) is better than 70.00% of its industry peers.
1KER's Operating Margin has declined in the last couple of years.
1KER's Gross Margin of 73.75% is amongst the best of the industry. 1KER outperforms 85.00% of its industry peers.
1KER's Gross Margin has been stable in the last couple of years.
| 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
1KER has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1KER remains at a similar level compared to 1 year ago.
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 1.54. This is a bad value and indicates that 1KER is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.54, 1KER is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
1KER has a debt to FCF ratio of 13.88. This is a negative value and a sign of low solvency as 1KER would need 13.88 years to pay back of all of its debts.
1KER has a worse Debt to FCF ratio (13.88) than 77.50% of its industry peers.
A Debt/Equity ratio of 1.11 is on the high side and indicates that 1KER has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.11, 1KER is doing worse than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 13.88 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.78
WACC6.63%
2.3 Liquidity
A Current Ratio of 1.11 indicates that 1KER should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, 1KER is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.69 indicates that 1KER may have some problems paying its short term obligations.
The Quick ratio of 1KER (0.69) is worse than 67.50% 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 -57.30%.
Measured over the past years, 1KER shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.03% on average per year.
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
Based on estimates for the next years, 1KER will show a very strong growth in Earnings Per Share. The EPS will grow by 26.93% on average per year.
Based on estimates for the next years, 1KER will show a small growth in Revenue. The Revenue will grow by 4.44% on average per year.
EPS Next Y-11.6%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
EPS Next 5Y26.93%
Revenue Next Year1.08%
Revenue Next 2Y3.55%
Revenue Next 3Y4.56%
Revenue Next 5Y4.44%
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
A Price/Earnings ratio of 16.33 indicates a correct valuation of 1KER.
67.50% of the companies in the same industry are more expensive than 1KER, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.79, 1KER is valued a bit cheaper.
1KER is valuated rather expensively with a Price/Forward Earnings ratio of 18.47.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1KER indicates a somewhat cheap valuation: 1KER is cheaper than 72.50% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1KER to the average of the S&P500 Index (21.38), we can say 1KER is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 18.47 |
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 | 15.38 | ||
| EV/EBITDA | 8.32 |
4.3 Compensation for Growth
The decent profitability rating of 1KER may justify a higher PE ratio.
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 3.65%. Purely for dividend investing, there may be better candidates out there.
The stock price of 1KER dropped by -24.31% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.50, 1KER pays a bit more dividend than its industry peers.
1KER's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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 (4/25/2025, 7:00:00 PM)
174.42
+3.32 (+1.94%)
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 Cap21.53B
Analysts53.53
Price Target241.65 (38.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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)-5.89%
PT rev (3m)-4.98%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-17.36%
EPS NY rev (3m)-29.38%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 18.47 | ||
| P/S | 1.25 | ||
| P/FCF | 15.38 | ||
| P/OCF | 4.57 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.32 |
EPS(TTM)10.68
EY6.12%
EPS(NY)9.44
Fwd EY5.41%
FCF(TTM)11.34
FCFY6.5%
OCF(TTM)38.15
OCFY21.87%
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 | 1.54 |
F-Score3
WACC6.63%
ROIC/WACC0.78
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 5Y26.93%
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 5Y4.44%
EBIT growth 1Y-47.22%
EBIT growth 3Y-20.08%
EBIT growth 5Y-12.06%
EBIT Next Year72.86%
EBIT Next 3Y27.46%
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%