KERING (KER.PA) Stock Fundamental Analysis
EPA:KER - Euronext Paris - Matif - FR0000121485 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to KER. KER was compared to 40 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
In the past year KER was profitable.
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
Looking at the Return On Assets, with a value of 2.61%, KER is doing worse than 62.50% of the companies in the same industry.
KER has a Return On Equity of 7.60%. This is comparable to the rest of the industry: KER outperforms 42.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.20%, KER is doing worse than 62.50% 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 10.85%.
The last Return On Invested Capital (5.20%) 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 | 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
The Profit Margin of KER (6.59%) is better than 62.50% of its industry peers.
In the last couple of years the Profit Margin of KER has declined.
KER has a better Operating Margin (14.48%) than 65.00% 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 is in the better half of the industry, outperforming 80.00% 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 | 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.
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 1.55. This is a bad value and indicates that KER is not financially healthy and even has some risk of bankruptcy.
KER has a worse Altman-Z score (1.55) than 65.00% 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.
KER has a Debt to FCF ratio of 13.88. This is amonst the worse of the industry: KER underperforms 82.50% 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 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 13.88 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.78
WACC6.64%
2.3 Liquidity
A Current Ratio of 1.11 indicates that KER should not have too much problems paying its short term obligations.
KER has a Current ratio of 1.11. This is amonst the worse of the industry: KER underperforms 80.00% of its industry peers.
A Quick Ratio of 0.69 indicates that KER may have some problems paying its short term obligations.
KER's Quick ratio of 0.69 is on the low side compared to the rest of the industry. KER is outperformed by 72.50% 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.
Looking at the last year, KER shows a very negative growth in Revenue. The Revenue has decreased by -12.12% in the last year.
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
The Earnings Per Share is expected to grow by 26.93% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y-11.6%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
EPS Next 5Y26.93%
Revenue Next Year1.08%
Revenue Next 2Y3.55%
Revenue Next 3Y4.56%
Revenue Next 5Y4.44%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.34, the valuation of KER can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as KER.
The average S&P500 Price/Earnings ratio is at 28.79. KER is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.48, the valuation of KER can be described as rather expensive.
67.50% of the companies in the same industry are more expensive than KER, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, KER is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 18.48 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as KER.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.38 | ||
| EV/EBITDA | 8.35 |
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 3.65%, KER has a reasonable but not impressive dividend return.
The stock price of KER dropped by -32.44% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
KER's Dividend Yield is rather good when compared to the industry average which is at 3.50. KER pays more dividend than 85.00% of the companies in the same industry.
KER's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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 Years2
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.
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 (4/25/2025, 7:00:00 PM)
174.5
+1.26 (+0.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners25.98%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap21.54B
Analysts53.53
Price Target241.93 (38.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
Yearly Dividend14
Dividend Growth(5Y)6.01%
DP151.46%
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)-5.71%
PT rev (3m)-4.3%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-17.36%
EPS NY rev (3m)-29.38%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 18.48 | ||
| P/S | 1.25 | ||
| P/FCF | 15.38 | ||
| P/OCF | 4.57 | ||
| P/B | 1.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.35 |
EPS(TTM)10.68
EY6.12%
EPS(NY)9.44
Fwd EY5.41%
FCF(TTM)11.34
FCFY6.5%
OCF(TTM)38.15
OCFY21.86%
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 | 1.55 |
F-Score3
WACC6.64%
ROIC/WACC0.78
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 5Y26.93%
Revenue 1Y (TTM)-12.12%
Revenue growth 3Y-0.86%
Revenue growth 5Y1.6%
Sales Q2Q%-13.31%
Revenue Next Year1.08%
Revenue Next 2Y3.55%
Revenue Next 3Y4.56%
Revenue Next 5Y4.44%
EBIT growth 1Y-47.22%
EBIT growth 3Y-20.08%
EBIT growth 5Y-12.06%
EBIT Next Year72.86%
EBIT Next 3Y27.46%
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%