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 42 industry peers in the Textiles, Apparel & Luxury Goods industry. KER has a medium profitability rating, but doesn't score so well on its financial health evaluation. KER has a valuation in line with the averages, but it does not seem to be growing. KER also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KER was profitable.
KER had a positive operating cash flow in the past year.
In the past 5 years KER has always been profitable.
In the past 5 years KER always reported a positive cash flow from operatings.
1.2 Ratios
KER has a Return On Assets of 4.93%. This is comparable to the rest of the industry: KER outperforms 60.00% of its industry peers.
KER has a Return On Equity (13.93%) which is in line with its industry peers.
With a Return On Invested Capital value of 7.33%, KER perfoms like the industry average, outperforming 47.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KER is in line with the industry average of 11.32%.
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 better Profit Margin (11.25%) than 77.50% of its industry peers.
In the last couple of years the Profit Margin of KER has declined.
KER has a better Operating Margin (19.36%) than 75.00% of its industry peers.
KER's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 75.37%, KER belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
In the last couple of years the Gross Margin of KER has remained more or less at the same level.
| 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), KER is creating value.
The number of shares outstanding for KER has been increased compared to 1 year ago.
The number of shares outstanding for KER has been reduced compared to 5 years ago.
The debt/assets ratio for KER is higher compared to a year ago.
2.2 Solvency
KER has an Altman-Z score of 1.98. 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 has a Altman-Z score of 1.98. This is in the lower half of the industry: KER underperforms 60.00% 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.
The Debt to FCF ratio of KER (8.51) is worse than 70.00% 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.
Looking at the Debt to Equity ratio, with a value of 1.11, KER is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.18
WACC6.23%
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 70.00% 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.
KER's Quick ratio of 0.87 is in line compared to the rest of the industry. KER outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
KER shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.59%.
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.
Looking at the last year, KER shows a very negative growth in Revenue. The Revenue has decreased by -10.25% in the last year.
Measured over the past years, KER 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, KER will show a small growth in Earnings Per Share. The EPS will grow by 6.87% on average per year.
KER 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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.87 indicates a correct valuation of KER.
Compared to the rest of the industry, the Price/Earnings ratio of KER indicates a rather cheap valuation: KER is cheaper than 87.50% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KER to the average of the S&P500 Index (28.47), we can say KER is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 19.04, the valuation of KER can be described as rather expensive.
70.00% of the companies in the same industry are more expensive than KER, based on the Price/Forward Earnings ratio.
KER 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 | 13.87 | ||
| Fwd PE | 19.04 |
4.2 Price Multiples
KER's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as KER.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.66 | ||
| EV/EBITDA | 7.89 |
4.3 Compensation for Growth
KER has a very decent profitability rating, which may justify a higher PE ratio.
KER'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)6.12
EPS Next 2Y-28.52%
EPS Next 3Y-14.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.49%, KER is a good candidate for dividend investing.
KER's Dividend Yield is rather good when compared to the industry average which is at 2.87. KER pays more dividend than 87.50% of the companies in the same industry.
KER'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
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
KER pays out 82.66% of its income as dividend. This is not a sustainable payout ratio.
The dividend of KER is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP82.66%
EPS Next 2Y-28.52%
EPS Next 3Y-14.34%
KERING
EPA:KER (2/5/2025, 4:31:05 PM)
243.35
-4.6 (-1.86%)
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 Cap30.03B
Analysts54.86
Price Target250.2 (2.81%)
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 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)-1.03%
PT rev (3m)-7.94%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.97%
EPS NY rev (3m)-20.04%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-4.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 19.04 | ||
| P/S | 1.63 | ||
| P/FCF | 13.66 | ||
| P/OCF | 6.97 | ||
| P/B | 2.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.89 |
EPS(TTM)17.55
EY7.21%
EPS(NY)12.78
Fwd EY5.25%
FCF(TTM)17.81
FCFY7.32%
OCF(TTM)34.91
OCFY14.35%
SpS149.48
BVpS120.73
TBVpS-3.03
PEG (NY)N/A
PEG (5Y)6.12
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 | 1.98 |
F-Score3
WACC6.23%
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%