KERING (KER.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:KER • FR0000121485
264.15 EUR
+1.45 (+0.55%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, KER scores 3 out of 10 in our fundamental rating. KER was compared to 52 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. While showing a medium growth rate, KER is valued expensive at the moment.
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.
- 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
- KER has a Return On Assets (1.72%) which is comparable to the rest of the industry.
- KER's Return On Equity of 4.94% is in line compared to the rest of the industry. KER outperforms 40.38% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.65%, KER is doing worse than 67.31% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for KER is in line with the industry average of 11.58%.
- The last Return On Invested Capital (3.65%) for KER is well below the 3 year average (10.05%), which needs to be investigated, but indicates that KER had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 4.94% | ||
| ROIC | 3.65% |
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
- KER has a Profit Margin (4.62%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of KER has declined.
- KER's Operating Margin of 11.07% is in line compared to the rest of the industry. KER outperforms 57.69% of its industry peers.
- In the last couple of years the Operating Margin of KER has declined.
- With a decent Gross Margin value of 73.03%, KER is doing good in the industry, outperforming 76.92% 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 | 11.07% | ||
| PM (TTM) | 4.62% | ||
| GM | 73.03% |
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.
- KER has about the same amout of shares outstanding than it did 1 year ago.
- 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 1.78. This is a bad value and indicates that KER is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of KER (1.78) is worse than 61.54% of its industry peers.
- The Debt to FCF ratio of KER is 13.86, which is on the high side as it means it would take KER, 13.86 years of fcf income to pay off all of its debts.
- KER's Debt to FCF ratio of 13.86 is on the low side compared to the rest of the industry. KER is outperformed by 63.46% of its industry peers.
- KER has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.12, KER is doing worse than 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 13.86 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.52
WACC7.01%
2.3 Liquidity
- KER has a Current Ratio of 1.32. 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 1.32, KER is not doing good in the industry: 63.46% of the companies in the same industry are doing better.
- A Quick Ratio of 0.87 indicates that KER may have some problems paying its short term obligations.
- The Quick ratio of KER (0.87) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The earnings per share for KER have decreased strongly by -59.67% in the last year.
- The earnings per share for KER have been decreasing by -16.03% on average. This is quite bad
- Looking at the last year, KER shows a very negative growth in Revenue. The Revenue has decreased by -14.56% in the last year.
- The Revenue has been growing slightly by 1.60% on average over the past years.
EPS 1Y (TTM)-59.67%
EPS 3Y-26.58%
EPS 5Y-16.03%
EPS Q2Q%-49.31%
Revenue 1Y (TTM)-14.56%
Revenue growth 3Y-0.86%
Revenue growth 5Y1.6%
Sales Q2Q%-15.97%
3.2 Future
- The Earnings Per Share is expected to grow by 9.83% on average over the next years. This is quite good.
- KER is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.24% yearly.
EPS Next Y-45.58%
EPS Next 2Y-10.81%
EPS Next 3Y3.27%
EPS Next 5Y9.83%
Revenue Next Year-12.78%
Revenue Next 2Y-5.37%
Revenue Next 3Y-1.3%
Revenue Next 5Y2.24%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 37.15, KER can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as KER.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, KER is valued a bit more expensive.
- With a Price/Forward Earnings ratio of 31.09, KER can be considered very expensive at the moment.
- KER's Price/Forward Earnings ratio is in line with the industry average.
- KER's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.15 | ||
| Fwd PE | 31.09 |
4.2 Price Multiples
- KER's Enterprise Value to EBITDA is on the same level as the industry average.
- KER's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.56 | ||
| EV/EBITDA | 12.01 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.81%
EPS Next 3Y3.27%
5. Dividend
5.1 Amount
- KER has a Yearly Dividend Yield of 2.28%.
- KER's Dividend Yield is comparable with the industry average which is at 2.05.
- KER's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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
- KER pays out 100.96% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of KER is growing, but earnings are growing more, so the dividend growth is sustainable.
DP100.96%
EPS Next 2Y-10.81%
EPS Next 3Y3.27%
KERING / KER.PA FAQ
What is the fundamental rating for KER stock?
ChartMill assigns a fundamental rating of 3 / 10 to KER.PA.
What is the valuation status of KERING (KER.PA) stock?
ChartMill assigns a valuation rating of 1 / 10 to KERING (KER.PA). This can be considered as Overvalued.
How profitable is KERING (KER.PA) stock?
KERING (KER.PA) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for KER stock?
The Earnings per Share (EPS) of KERING (KER.PA) is expected to decline by -45.58% in the next year.
Can you provide the dividend sustainability for KER stock?
The dividend rating of KERING (KER.PA) is 4 / 10 and the dividend payout ratio is 100.96%.