KERING (KER.PA) Stock Fundamental Analysis
EPA:KER - Euronext Paris - Matif - FR0000121485 - Common Stock - Currency: EUR
KER gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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.
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 of 2.61%. This is in the lower half of the industry: KER underperforms 63.64% of its industry peers.
With a Return On Equity value of 7.60%, KER perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
KER's Return On Invested Capital of 5.20% is on the low side compared to the rest of the industry. KER is outperformed by 61.36% of its industry peers.
KER had an Average Return On Invested Capital over the past 3 years of 10.05%. This 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
With a decent Profit Margin value of 6.59%, KER is doing good in the industry, outperforming 61.36% of the companies in the same industry.
KER's Profit Margin has declined in the last couple of years.
The Operating Margin of KER (14.48%) is better than 65.91% of its industry peers.
In the last couple of years the Operating Margin of KER has declined.
KER's Gross Margin of 73.75% is fine compared to the rest of the industry. KER outperforms 79.55% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KER is still creating some value.
KER has about the same amout of shares outstanding than it did 1 year ago.
KER has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KER has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.60, we must say that KER is in the distress zone and has some risk of bankruptcy.
KER has a Altman-Z score of 1.60. This is in the lower half of the industry: KER underperforms 70.45% 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.
Looking at the Debt to FCF ratio, with a value of 13.88, KER is doing worse than 79.55% 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.
KER's Debt to Equity ratio of 1.11 is on the low side compared to the rest of the industry. KER is outperformed by 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 13.88 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.75
WACC6.9%
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.
KER has a worse Current ratio (1.11) than 81.82% of its industry peers.
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 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for KER have decreased strongly by -57.30% in the last year.
The earnings per share for KER have been decreasing by -16.03% on average. This is quite bad
The Revenue for KER has decreased by -12.12% in the past year. This is quite bad
The Revenue has been growing slightly by 1.60% on average over the past years.
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
KER is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.28% yearly.
The Revenue is expected to grow by 3.61% on average over the next years.
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.
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
The Price/Earnings ratio is 18.43, which indicates a rather expensive current valuation of KER.
KER's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of KER to the average of the S&P500 Index (27.29), we can say KER is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 20.84, the valuation of KER can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KER is on the same level as its industry peers.
KER's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 20.84 |
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 | 17.35 | ||
| EV/EBITDA | 8.94 |
4.3 Compensation for Growth
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.
Compared to an average industry Dividend Yield of 3.03, KER pays a bit more dividend than its industry peers.
KER's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| 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
KER pays out 151.46% of its income as dividend. This is not a sustainable payout ratio.
KER's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP151.46%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
EPA:KER (7/8/2025, 10:16:09 AM)
196.79
+1.39 (+0.71%)
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 Cap24.29B
Analysts52.67
Price Target196.54 (-0.13%)
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 | 18.43 | ||
| Fwd PE | 20.84 | ||
| P/S | 1.41 | ||
| P/FCF | 17.35 | ||
| P/OCF | 5.16 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.94 |
EPS(TTM)10.68
EY5.43%
EPS(NY)9.44
Fwd EY4.8%
FCF(TTM)11.34
FCFY5.76%
OCF(TTM)38.15
OCFY19.39%
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 | 1.6 |
F-Score3
WACC6.9%
ROIC/WACC0.75
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%