KERING (KER.PA) Stock Fundamental Analysis
EPA:KER - Euronext Paris - Matif - FR0000121485 - Common Stock - Currency: EUR
Overall KER gets a fundamental rating of 4 out of 10. We evaluated KER against 44 industry peers in the Textiles, Apparel & Luxury Goods industry. While KER is still in line with the averages on profitability rating, there are concerns on its financial health. KER is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
KER had positive earnings in the past year.
KER had a positive operating cash flow in the past year.
Each year in the past 5 years KER has been profitable.
KER had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KER has a Return On Assets (2.61%) which is in line with its industry peers.
With a Return On Equity value of 7.60%, KER perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
KER's Return On Invested Capital of 5.20% is in line compared to the rest of the industry. KER outperforms 40.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KER is in line with the industry average of 11.04%.
The 3 year average ROIC (10.05%) for KER 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%, KER is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
KER's Profit Margin has declined in the last couple of years.
KER has a better Operating Margin (14.48%) than 65.91% of its industry peers.
In the last couple of years the Operating Margin of KER has declined.
Looking at the Gross Margin, with a value of 73.75%, KER belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
KER'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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KER is creating some value.
Compared to 1 year ago, KER has about the same amount of shares outstanding.
Compared to 5 years ago, KER has less shares outstanding
KER has a worse debt/assets ratio than last year.
2.2 Solvency
KER has an Altman-Z score of 1.61. This is a bad value and indicates that KER is not financially healthy and even has some risk of bankruptcy.
KER has a Altman-Z score of 1.61. This is in the lower half of the industry: KER underperforms 68.18% of its industry peers.
KER has a debt to FCF ratio of 13.88. This is a negative value and a sign of low solvency as KER would need 13.88 years to pay back of all of its debts.
The Debt to FCF ratio of KER (13.88) is worse than 77.27% of its industry peers.
KER has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
KER has a Debt to Equity ratio of 1.11. This is in the lower half of the industry: KER underperforms 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 13.88 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.73
WACC7.12%
2.3 Liquidity
KER has a Current Ratio of 1.11. This is a normal value and indicates that KER is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.11, KER is not doing good in the industry: 79.55% of the companies in the same industry are doing better.
A Quick Ratio of 0.69 indicates that KER may have some problems paying its short term obligations.
KER has a worse Quick ratio (0.69) than 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
KER shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.30%.
Measured over the past years, KER shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.03% on average per year.
KER shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.12%.
Measured over the past years, KER 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, KER 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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.55, KER is valued on the expensive side.
Based on the Price/Earnings ratio, KER is valued a bit cheaper than 61.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of KER to the average of the S&P500 Index (27.45), we can say KER is valued slightly cheaper.
A Price/Forward Earnings ratio of 20.99 indicates a rather expensive valuation of KER.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KER is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.89, KER is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.55 | ||
| Fwd PE | 20.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KER is on the same level as its industry peers.
KER's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.47 | ||
| EV/EBITDA | 9.02 |
4.3 Compensation for Growth
The decent profitability rating of KER 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
With a Yearly Dividend Yield of 3.02%, KER has a reasonable but not impressive dividend return.
KER's Dividend Yield is a higher than the industry average which is at 3.03.
Compared to an average S&P500 Dividend Yield of 2.37, KER 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 KER grows each year by 6.01%, which is quite nice.
Dividend Growth(5Y)6.01%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
151.46% of the earnings are spent on dividend by KER. This is not a sustainable payout ratio.
The dividend of KER is growing, but earnings are growing more, so the dividend growth is sustainable.
DP151.46%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
EPA:KER (7/4/2025, 7:00:00 PM)
198.14
-0.3 (-0.15%)
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 Cap24.45B
Analysts52.67
Price Target196.54 (-0.81%)
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 Years3
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)-2.39%
PT rev (3m)-18.76%
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 | 18.55 | ||
| Fwd PE | 20.99 | ||
| P/S | 1.42 | ||
| P/FCF | 17.47 | ||
| P/OCF | 5.19 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.02 |
EPS(TTM)10.68
EY5.39%
EPS(NY)9.44
Fwd EY4.76%
FCF(TTM)11.34
FCFY5.72%
OCF(TTM)38.15
OCFY19.26%
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 | 1.61 |
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%