KERING (KER.PA)
FR0000121485 - Common Stock
Overall KER gets a fundamental rating of 4 out of 10. We evaluated KER against 42 industry peers in the Textiles, Apparel & Luxury Goods industry. KER scores excellent on profitability, but there are concerns on its financial health. KER has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally KER also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KER was profitable.
In the past year KER had a positive cash flow from operations.
KER had positive earnings in each of the past 5 years.
KER 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 4.93%, KER is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
KER has a Return On Equity of 13.93%. This is in the better half of the industry: KER outperforms 60.98% of its industry peers.
KER has a Return On Invested Capital of 7.33%. This is comparable to the rest of the industry: KER outperforms 48.78% of its industry peers.
KER had an Average Return On Invested Capital over the past 3 years of 13.24%. This is above the industry average of 10.96%.
The last Return On Invested Capital (7.33%) for KER is well below the 3 year average (13.24%), which needs to be investigated, but indicates that KER 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
KER has a Profit Margin of 11.25%. This is in the better half of the industry: KER outperforms 78.05% of its industry peers.
KER's Profit Margin has declined in the last couple of years.
KER's Operating Margin of 19.36% is fine compared to the rest of the industry. KER outperforms 75.61% of its industry peers.
KER's Operating Margin has declined in the last couple of years.
The Gross Margin of KER (75.37%) is better than 85.37% of its industry peers.
KER'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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KER is creating value.
Compared to 1 year ago, KER has more shares outstanding
Compared to 5 years ago, KER has less shares outstanding
Compared to 1 year ago, KER has a worse debt to assets ratio.
2.2 Solvency
KER has an Altman-Z score of 1.94. This is not the best score and indicates that KER is in the grey zone with still only limited risk for bankruptcy at the moment.
KER's Altman-Z score of 1.94 is on the low side compared to the rest of the industry. KER is outperformed by 63.41% of its industry peers.
KER has a debt to FCF ratio of 8.51. This is a slightly negative value and a sign of low solvency as KER would need 8.51 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.51, KER is doing worse than 65.85% of the companies in the same industry.
KER has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.11, KER is doing worse than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 1.94 |
ROIC/WACC1.14
WACC6.45%
2.3 Liquidity
KER has a Current Ratio of 1.38. This is a normal value and indicates that KER 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, KER is doing worse than 63.41% of the companies in the same industry.
KER has a Quick Ratio of 1.38. This is a bad value and indicates that KER is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.87, KER is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for KER have decreased strongly by -39.59% in the last year.
Measured over the past 5 years, KER shows a small growth in Earnings Per Share. The EPS has been growing by 2.27% on average per year.
KER shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.25%.
KER shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.44% yearly.
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
KER is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.59% yearly.
The Revenue is expected to grow by 2.20% on average over the next years.
EPS Next Y-52.52%
EPS Next 2Y-26.89%
EPS Next 3Y-12.72%
EPS Next 5Y6.59%
Revenue Next Year-12.24%
Revenue Next 2Y-5.34%
Revenue Next 3Y-1.64%
Revenue Next 5Y2.2%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.34, the valuation of KER can be described as correct.
KER's Price/Earnings ratio is a bit cheaper when compared to the industry. KER is cheaper than 78.05% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. KER is valued rather cheaply when compared to this.
KER is valuated rather expensively with a Price/Forward Earnings ratio of 17.52.
Based on the Price/Forward Earnings ratio, KER is valued a bit cheaper than the industry average as 73.17% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.83. KER is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 17.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KER is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KER indicates a somewhat cheap valuation: KER is cheaper than 63.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.15 | ||
| EV/EBITDA | 7.6 |
4.3 Compensation for Growth
The decent profitability rating of KER may justify a higher PE ratio.
A cheap valuation may be justified as KER's earnings are expected to decrease with -12.72% in the coming years.
PEG (NY)N/A
PEG (5Y)5.89
EPS Next 2Y-26.89%
EPS Next 3Y-12.72%
5. Dividend
5.1 Amount
KER has a Yearly Dividend Yield of 4.75%, which is a nice return.
KER's Dividend Yield is rather good when compared to the industry average which is at 3.23. KER pays more dividend than 82.93% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, KER pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
5.2 History
The dividend of KER is nicely growing with an annual growth rate of 18.45%!
Dividend Growth(5Y)18.45%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
82.66% of the earnings are spent on dividend by KER. This is not a sustainable payout ratio.
KER's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP82.66%
EPS Next 2Y-26.89%
EPS Next 3Y-12.72%
KERING
EPA:KER (12/20/2024, 7:00:00 PM)
234.2
-0.55 (-0.23%)
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 OwnersN/A
Ins Owner ChangeN/A
Market Cap28.90B
Analysts55.43
Price Target253.6 (8.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
Dividend Growth(5Y)18.45%
DP82.66%
Div Incr Years2
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)-6.69%
PT rev (3m)-22.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-18.43%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 17.52 | ||
| P/S | 1.57 | ||
| P/FCF | 13.15 | ||
| P/OCF | 6.71 | ||
| P/B | 1.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.6 |
EPS(TTM)17.55
EY7.49%
EPS(NY)13.37
Fwd EY5.71%
FCF(TTM)17.81
FCFY7.6%
OCF(TTM)34.91
OCFY14.91%
SpS149.48
BVpS120.73
TBVpS-3.03
PEG (NY)N/A
PEG (5Y)5.89
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 | 1.94 |
F-Score3
WACC6.45%
ROIC/WACC1.14
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-52.52%
EPS Next 2Y-26.89%
EPS Next 3Y-12.72%
EPS Next 5Y6.59%
Revenue 1Y (TTM)-10.25%
Revenue growth 3Y14.31%
Revenue growth 5Y7.44%
Sales Q2Q%-11.02%
Revenue Next Year-12.24%
Revenue Next 2Y-5.34%
Revenue Next 3Y-1.64%
Revenue Next 5Y2.2%
EBIT growth 1Y-33.69%
EBIT growth 3Y15.24%
EBIT growth 5Y3.79%
EBIT Next Year-12.49%
EBIT Next 3Y1.99%
EBIT Next 5Y7.85%
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%