KERING (1KER.MI) Stock Fundamental Analysis
BIT:1KER - Borsa Italiana Milan - FR0000121485 - Common Stock - Currency: EUR
Overall 1KER gets a fundamental rating of 4 out of 10. We evaluated 1KER against 42 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. 1KER is valued correctly, but it does not seem to be growing. 1KER also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 1KER was profitable.
1KER had a positive operating cash flow in the past year.
In the past 5 years 1KER has always been profitable.
Each year in the past 5 years 1KER had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.93%, 1KER is doing good in the industry, outperforming 62.50% of the companies in the same industry.
1KER has a Return On Equity of 13.93%. This is in the better half of the industry: 1KER outperforms 62.50% of its industry peers.
1KER's Return On Invested Capital of 7.33% is in line compared to the rest of the industry. 1KER outperforms 50.00% 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 11.32%.
The last Return On Invested Capital (7.33%) for 1KER is well below the 3 year average (13.24%), which needs to be investigated, but indicates that 1KER had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.93% | ||
| ROE | 13.93% | ||
| ROIC | 7.33% |
ROA(3y)9.36%
ROA(5y)8.85%
ROE(3y)23.07%
ROE(5y)21.97%
ROIC(3y)13.24%
ROIC(5y)13.34%
1.3 Margins
Looking at the Profit Margin, with a value of 11.25%, 1KER is in the better half of the industry, outperforming 80.00% 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 (19.36%) than 77.50% of its industry peers.
In the last couple of years the Operating Margin of 1KER has declined.
With an excellent Gross Margin value of 75.37%, 1KER belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
1KER's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.36% | ||
| PM (TTM) | 11.25% | ||
| GM | 75.37% |
OM growth 3Y0.82%
OM growth 5Y-3.4%
PM growth 3Y-2.43%
PM growth 5Y-10.92%
GM growth 3Y1.67%
GM growth 5Y0.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1KER is creating value.
The number of shares outstanding for 1KER has been increased compared to 1 year ago.
The number of shares outstanding for 1KER has been reduced compared to 5 years ago.
1KER has a worse debt/assets ratio than last year.
2.2 Solvency
1KER has an Altman-Z score of 1.97. This is not the best score and indicates that 1KER is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.97, 1KER is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
1KER has a debt to FCF ratio of 8.51. This is a slightly negative value and a sign of low solvency as 1KER would need 8.51 years to pay back of all of its debts.
1KER has a Debt to FCF ratio of 8.51. This is in the lower half of the industry: 1KER underperforms 67.50% 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.
With a Debt to Equity ratio value of 1.11, 1KER is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 1.97 |
ROIC/WACC1.18
WACC6.22%
2.3 Liquidity
1KER has a Current Ratio of 1.38. 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 1.38, 1KER is doing worse than 67.50% of the companies in the same industry.
1KER has a Quick Ratio of 1.38. 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 0.87 is in line compared to the rest of the industry. 1KER outperforms 57.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
1KER shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.59%.
The Earnings Per Share has been growing slightly by 2.27% on average over the past years.
The Revenue for 1KER has decreased by -10.25% in the past year. This is quite bad
Measured over the past years, 1KER shows a small growth in Revenue. The Revenue has been growing by 7.44% on average per year.
EPS 1Y (TTM)-39.59%
EPS 3Y16.59%
EPS 5Y2.27%
EPS Q2Q%-51.03%
Revenue 1Y (TTM)-10.25%
Revenue growth 3Y14.31%
Revenue growth 5Y7.44%
Sales Q2Q%-11.02%
3.2 Future
Based on estimates for the next years, 1KER will show a small growth in Earnings Per Share. The EPS will grow by 6.87% on average per year.
1KER is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.37% yearly.
EPS Next Y-53.45%
EPS Next 2Y-28.52%
EPS Next 3Y-14.34%
EPS Next 5Y6.87%
Revenue Next Year-12.78%
Revenue Next 2Y-5.85%
Revenue Next 3Y-2.04%
Revenue Next 5Y1.37%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.84 indicates a correct valuation of 1KER.
1KER's Price/Earnings ratio is rather cheap when compared to the industry. 1KER is cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, 1KER is valued rather cheaply.
The Price/Forward Earnings ratio is 19.00, which indicates a rather expensive current valuation of 1KER.
72.50% of the companies in the same industry are more expensive than 1KER, based on the Price/Forward Earnings ratio.
1KER is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1KER is valued a bit cheaper than 62.50% of the companies in the same industry.
1KER's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.64 | ||
| EV/EBITDA | 7.78 |
4.3 Compensation for Growth
The decent profitability rating of 1KER may justify a higher PE ratio.
1KER's earnings are expected to decrease with -14.34% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)6.11
EPS Next 2Y-28.52%
EPS Next 3Y-14.34%
5. Dividend
5.1 Amount
1KER has a Yearly Dividend Yield of 4.49%, which is a nice return.
Compared to an average industry Dividend Yield of 2.87, 1KER pays a better dividend. On top of this 1KER pays more dividend than 85.00% of the companies listed in the same industry.
1KER's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
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
82.66% of the earnings are spent on dividend by 1KER. This is not a sustainable payout ratio.
1KER's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP82.66%
EPS Next 2Y-28.52%
EPS Next 3Y-14.34%
KERING
BIT:1KER (2/3/2025, 7:00:00 PM)
242.85
-10.45 (-4.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners28.99%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap29.97B
Analysts54.86
Price Target248.77 (2.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
Yearly Dividend13.99
Dividend Growth(5Y)18.45%
DP82.66%
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)-2.18%
PT rev (3m)-8.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.97%
EPS NY rev (3m)-1.97%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 19 | ||
| P/S | 1.62 | ||
| P/FCF | 13.64 | ||
| P/OCF | 6.96 | ||
| P/B | 2.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.78 |
EPS(TTM)17.55
EY7.23%
EPS(NY)12.78
Fwd EY5.26%
FCF(TTM)17.81
FCFY7.33%
OCF(TTM)34.91
OCFY14.38%
SpS149.48
BVpS120.73
TBVpS-3.03
PEG (NY)N/A
PEG (5Y)6.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.93% | ||
| ROE | 13.93% | ||
| ROCE | 10.6% | ||
| ROIC | 7.33% | ||
| ROICexc | 8.26% | ||
| ROICexgc | 16.13% | ||
| OM | 19.36% | ||
| PM (TTM) | 11.25% | ||
| GM | 75.37% | ||
| FCFM | 11.91% |
ROA(3y)9.36%
ROA(5y)8.85%
ROE(3y)23.07%
ROE(5y)21.97%
ROIC(3y)13.24%
ROIC(5y)13.34%
ROICexc(3y)16.11%
ROICexc(5y)15.88%
ROICexgc(3y)33.65%
ROICexgc(5y)33.45%
ROCE(3y)19.27%
ROCE(5y)19.44%
ROICexcg growth 3Y-1.86%
ROICexcg growth 5Y-22.55%
ROICexc growth 3Y-1.87%
ROICexc growth 5Y-11.99%
OM growth 3Y0.82%
OM growth 5Y-3.4%
PM growth 3Y-2.43%
PM growth 5Y-10.92%
GM growth 3Y1.67%
GM growth 5Y0.44%
F-Score3
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 8.51 | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | 107.81% | ||
| Cap/Sales | 11.44% | ||
| Interest Coverage | 7.88 | ||
| Cash Conversion | 77.93% | ||
| Profit Quality | 105.88% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.97 |
F-Score3
WACC6.22%
ROIC/WACC1.18
Cap/Depr(3y)90.59%
Cap/Depr(5y)80.64%
Cap/Sales(3y)7.97%
Cap/Sales(5y)7.18%
Profit Quality(3y)91.51%
Profit Quality(5y)88.73%
High Growth Momentum
Growth
EPS 1Y (TTM)-39.59%
EPS 3Y16.59%
EPS 5Y2.27%
EPS Q2Q%-51.03%
EPS Next Y-53.45%
EPS Next 2Y-28.52%
EPS Next 3Y-14.34%
EPS Next 5Y6.87%
Revenue 1Y (TTM)-10.25%
Revenue growth 3Y14.31%
Revenue growth 5Y7.44%
Sales Q2Q%-11.02%
Revenue Next Year-12.78%
Revenue Next 2Y-5.85%
Revenue Next 3Y-2.04%
Revenue Next 5Y1.37%
EBIT growth 1Y-33.69%
EBIT growth 3Y15.24%
EBIT growth 5Y3.79%
EBIT Next Year-12.49%
EBIT Next 3Y1.99%
EBIT Next 5Y-1.72%
FCF growth 1Y-39.33%
FCF growth 3Y-4.13%
FCF growth 5Y-6.39%
OCF growth 1Y-5.76%
OCF growth 3Y15.63%
OCF growth 5Y5.58%