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. There are concerns on the financial health of 1KER while its profitability can be described as average. 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.
1KER had a positive operating cash flow in the past year.
In the past 5 years 1KER has always been profitable.
1KER had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.61%, 1KER is not doing good in the industry: 65.91% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 7.60%, 1KER is doing worse than 61.36% of the companies in the same industry.
The Return On Invested Capital of 1KER (5.20%) is worse than 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1KER is in line with the industry average of 11.04%.
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
The Profit Margin of 1KER (6.59%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of 1KER has declined.
1KER's Operating Margin of 14.48% is fine compared to the rest of the industry. 1KER outperforms 63.64% of its industry peers.
In the last couple of years the Operating Margin of 1KER has declined.
The Gross Margin of 1KER (73.75%) is better than 77.27% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1KER is still creating some value.
The number of shares outstanding for 1KER remains at a similar level compared to 1 year ago.
1KER has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1KER has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that 1KER is in the distress zone and has some risk of bankruptcy.
1KER has a worse Altman-Z score (1.62) than 65.91% of its industry peers.
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 81.82% 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.
With a Debt to Equity ratio value of 1.11, 1KER is not doing good in the industry: 70.45% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 13.88 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.75
WACC6.91%
2.3 Liquidity
A Current Ratio of 1.11 indicates that 1KER should not have too much problems paying its short term obligations.
The Current ratio of 1KER (1.11) is worse than 84.09% 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.
With a Quick ratio value of 0.69, 1KER is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| 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%.
The earnings per share for 1KER have been decreasing by -16.03% on average. This is quite bad
1KER shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.12%.
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 21.28% on average per year.
The Revenue is expected to grow by 3.61% on average over the next years.
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
Based on the Price/Earnings ratio of 18.67, the valuation of 1KER can be described as rather expensive.
1KER's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of 1KER to the average of the S&P500 Index (27.29), we can say 1KER is valued slightly cheaper.
1KER is valuated rather expensively with a Price/Forward Earnings ratio of 21.12.
1KER's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.74. 1KER is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.67 | ||
| Fwd PE | 21.12 |
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 | 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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.03, 1KER pays a better dividend. On top of this 1KER pays more dividend than 84.09% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, 1KER pays a bit more dividend than the S&P500 average.
| 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.
The dividend of 1KER is growing, but earnings are growing more, so the dividend growth is 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
WACC6.91%
ROIC/WACC0.75
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%