KOHLS CORP (KSS) Stock Fundamental Analysis
NYSE:KSS - New York Stock Exchange, Inc. - US5002551043 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to KSS. KSS was compared to 32 industry peers in the Broadline Retail industry. Both the profitability and financial health of KSS have multiple concerns. KSS has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
KSS had positive earnings in the past year.
KSS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: KSS reported negative net income in multiple years.
In the past 5 years KSS always reported a positive cash flow from operatings.
1.2 Ratios
KSS's Return On Assets of 1.64% is in line compared to the rest of the industry. KSS outperforms 48.39% of its industry peers.
Looking at the Return On Equity, with a value of 6.49%, KSS is in line with its industry, outperforming 51.61% of the companies in the same industry.
The Return On Invested Capital of KSS (4.51%) is worse than 61.29% of its industry peers.
KSS had an Average Return On Invested Capital over the past 3 years of 6.43%. This is below the industry average of 11.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.64% | ||
| ROE | 6.49% | ||
| ROIC | 4.51% |
ROA(3y)2.79%
ROA(5y)2.41%
ROE(3y)9.25%
ROE(5y)7.46%
ROIC(3y)6.43%
ROIC(5y)5.63%
1.3 Margins
With a Profit Margin value of 1.47%, KSS perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
In the last couple of years the Profit Margin of KSS has declined.
The Operating Margin of KSS (3.61%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KSS has declined.
KSS has a Gross Margin of 40.12%. This is comparable to the rest of the industry: KSS outperforms 41.94% of its industry peers.
In the last couple of years the Gross Margin of KSS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.61% | ||
| PM (TTM) | 1.47% | ||
| GM | 40.12% |
OM growth 3Y252.07%
OM growth 5Y-10.74%
PM growth 3YN/A
PM growth 5Y-14.46%
GM growth 3Y3.28%
GM growth 5Y0.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KSS is destroying value.
Compared to 1 year ago, KSS has about the same amount of shares outstanding.
The number of shares outstanding for KSS has been reduced compared to 5 years ago.
Compared to 1 year ago, KSS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.60, we must say that KSS is in the distress zone and has some risk of bankruptcy.
KSS has a Altman-Z score of 1.60. This is in the lower half of the industry: KSS underperforms 61.29% of its industry peers.
The Debt to FCF ratio of KSS is 12.47, which is on the high side as it means it would take KSS, 12.47 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KSS (12.47) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.17 is on the high side and indicates that KSS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.17, KSS is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 12.47 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.55
WACC8.23%
2.3 Liquidity
KSS has a Current Ratio of 1.05. This is a normal value and indicates that KSS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.05, KSS is not doing good in the industry: 83.87% of the companies in the same industry are doing better.
A Quick Ratio of 0.12 indicates that KSS may have some problems paying its short term obligations.
With a Quick ratio value of 0.12, KSS is not doing good in the industry: 96.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
KSS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 269.47%, which is quite impressive.
Measured over the past years, KSS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.70% on average per year.
Looking at the last year, KSS shows a decrease in Revenue. The Revenue has decreased by -4.33% in the last year.
Measured over the past years, KSS shows a decrease in Revenue. The Revenue has been decreasing by -2.88% on average per year.
EPS 1Y (TTM)269.47%
EPS 3YN/A
EPS 5Y-12.7%
EPS Q2Q%-62.26%
Revenue 1Y (TTM)-4.33%
Revenue growth 3Y3.08%
Revenue growth 5Y-2.88%
Sales Q2Q%-8.74%
3.2 Future
The Earnings Per Share is expected to grow by 4.16% on average over the next years.
KSS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.40% yearly.
EPS Next Y-53.44%
EPS Next 2Y-30.68%
EPS Next 3Y-20.68%
EPS Next 5Y4.16%
Revenue Next Year-7.07%
Revenue Next 2Y-4.42%
Revenue Next 3Y-3.4%
Revenue Next 5YN/A
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.41, the valuation of KSS can be described as very cheap.
Based on the Price/Earnings ratio, KSS is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
KSS is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.77, the valuation of KSS can be described as reasonable.
Based on the Price/Forward Earnings ratio, KSS is valued cheaper than 87.10% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, KSS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.41 | ||
| Fwd PE | 8.77 |
4.2 Price Multiples
93.55% of the companies in the same industry are more expensive than KSS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KSS indicates a rather cheap valuation: KSS is cheaper than 93.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.41 | ||
| EV/EBITDA | 3.92 |
4.3 Compensation for Growth
KSS's earnings are expected to decrease with -20.68% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-30.68%
EPS Next 3Y-20.68%
5. Dividend
5.1 Amount
KSS has a Yearly Dividend Yield of 16.67%, which is a nice return.
In the last 3 months the price of KSS has falen by -29.48%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
KSS's Dividend Yield is rather good when compared to the industry average which is at 5.37. KSS pays more dividend than 96.77% of the companies in the same industry.
KSS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.67% |
5.2 History
The dividend of KSS decreases each year by -3.89%.
KSS has been paying a dividend for at least 10 years, so it has a reliable track record.
KSS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-3.89%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
89.47% of the earnings are spent on dividend by KSS. This is not a sustainable payout ratio.
DP89.47%
EPS Next 2Y-30.68%
EPS Next 3Y-20.68%
12.01
+0.01 (+0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners107.41%
Inst Owner Change-17.31%
Ins Owners2.11%
Ins Owner Change22.31%
Market Cap1.34B
Analysts49.57
Price Target13.94 (16.07%)
Short Float %39.95%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.67% |
Yearly Dividend1.98
Dividend Growth(5Y)-3.89%
DP89.47%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.97%
Min EPS beat(2)-29.1%
Max EPS beat(2)31.04%
EPS beat(4)2
Avg EPS beat(4)-162.74%
Min EPS beat(4)-682.13%
Max EPS beat(4)31.04%
EPS beat(8)5
Avg EPS beat(8)-86.11%
EPS beat(12)8
Avg EPS beat(12)-63.32%
EPS beat(16)12
Avg EPS beat(16)115.52%
Revenue beat(2)0
Avg Revenue beat(2)-3.56%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)-2.57%
Revenue beat(4)0
Avg Revenue beat(4)-3.39%
Min Revenue beat(4)-5.64%
Max Revenue beat(4)-0.82%
Revenue beat(8)0
Avg Revenue beat(8)-2.29%
Revenue beat(12)2
Avg Revenue beat(12)-0.88%
Revenue beat(16)6
Avg Revenue beat(16)1.29%
PT rev (1m)-3.19%
PT rev (3m)-30.27%
EPS NQ rev (1m)-2.79%
EPS NQ rev (3m)-23.8%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-28.65%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-6.08%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)-1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.41 | ||
| Fwd PE | 8.77 | ||
| P/S | 0.08 | ||
| P/FCF | 3.41 | ||
| P/OCF | 1.59 | ||
| P/B | 0.35 | ||
| P/tB | 0.35 | ||
| EV/EBITDA | 3.92 |
EPS(TTM)2.22
EY18.48%
EPS(NY)1.37
Fwd EY11.4%
FCF(TTM)3.52
FCFY29.32%
OCF(TTM)7.55
OCFY62.9%
SpS150.74
BVpS34.17
TBVpS34.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.64% | ||
| ROE | 6.49% | ||
| ROCE | 5.68% | ||
| ROIC | 4.51% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 4.58% | ||
| OM | 3.61% | ||
| PM (TTM) | 1.47% | ||
| GM | 40.12% | ||
| FCFM | 2.34% |
ROA(3y)2.79%
ROA(5y)2.41%
ROE(3y)9.25%
ROE(5y)7.46%
ROIC(3y)6.43%
ROIC(5y)5.63%
ROICexc(3y)7.1%
ROICexc(5y)6.14%
ROICexgc(3y)7.1%
ROICexgc(5y)6.14%
ROCE(3y)7.59%
ROCE(5y)6.63%
ROICexcg growth 3Y248.88%
ROICexcg growth 5Y-17.54%
ROICexc growth 3Y248.88%
ROICexc growth 5Y-17.54%
OM growth 3Y252.07%
OM growth 5Y-10.74%
PM growth 3YN/A
PM growth 5Y-14.46%
GM growth 3Y3.28%
GM growth 5Y0.12%
F-Score6
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 12.47 | ||
| Debt/EBITDA | 3.29 | ||
| Cap/Depr | 60.11% | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 1.81 | ||
| Cash Conversion | 62.16% | ||
| Profit Quality | 158.7% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | 1.6 |
F-Score6
WACC8.23%
ROIC/WACC0.55
Cap/Depr(3y)83.82%
Cap/Depr(5y)76.58%
Cap/Sales(3y)3.66%
Cap/Sales(5y)3.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)269.47%
EPS 3YN/A
EPS 5Y-12.7%
EPS Q2Q%-62.26%
EPS Next Y-53.44%
EPS Next 2Y-30.68%
EPS Next 3Y-20.68%
EPS Next 5Y4.16%
Revenue 1Y (TTM)-4.33%
Revenue growth 3Y3.08%
Revenue growth 5Y-2.88%
Sales Q2Q%-8.74%
Revenue Next Year-7.07%
Revenue Next 2Y-4.42%
Revenue Next 3Y-3.4%
Revenue Next 5YN/A
EBIT growth 1Y422.41%
EBIT growth 3Y262.92%
EBIT growth 5Y-13.32%
EBIT Next Year79.43%
EBIT Next 3Y21.65%
EBIT Next 5Y15.59%
FCF growth 1Y146.67%
FCF growth 3Y-16.19%
FCF growth 5Y-17.31%
OCF growth 1Y1068.06%
OCF growth 3Y-4.43%
OCF growth 5Y-11.13%