KOHLS CORP (KSS)
US5002551043 - Common Stock
We assign a fundamental rating of 4 out of 10 to KSS. KSS was compared to 32 industry peers in the Broadline Retail industry. KSS has a bad profitability rating. Also its financial health evaluation is rather negative. KSS is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
KSS had positive earnings in the past year.
In the past year KSS had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 2.00%, KSS is in line with its industry, outperforming 46.88% of the companies in the same industry.
With a Return On Equity value of 7.42%, KSS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
With a Return On Invested Capital value of 5.07%, KSS perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KSS is significantly below the industry average of 11.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 7.42% | ||
| ROIC | 5.07% |
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
KSS has a Profit Margin of 1.66%. This is comparable to the rest of the industry: KSS outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of KSS has declined.
KSS has a Operating Margin of 3.88%. This is comparable to the rest of the industry: KSS outperforms 50.00% of its industry peers.
KSS's Operating Margin has declined in the last couple of years.
KSS has a Gross Margin of 40.08%. This is comparable to the rest of the industry: KSS outperforms 46.88% 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 | 3.88% | ||
| PM (TTM) | 1.66% | ||
| GM | 40.08% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KSS is destroying value.
Compared to 1 year ago, KSS has about the same amount of shares outstanding.
Compared to 5 years ago, KSS has less shares outstanding
KSS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that KSS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of KSS (1.78) is comparable to the rest of the industry.
The Debt to FCF ratio of KSS is 6.48, which is on the high side as it means it would take KSS, 6.48 years of fcf income to pay off all of its debts.
KSS's Debt to FCF ratio of 6.48 is in line compared to the rest of the industry. KSS outperforms 56.25% of its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that KSS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.09, KSS is doing worse than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.56
WACC9.04%
2.3 Liquidity
KSS has a Current Ratio of 1.08. 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 1.08, KSS is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
A Quick Ratio of 0.16 indicates that KSS may have some problems paying its short term obligations.
KSS's Quick ratio of 0.16 is on the low side compared to the rest of the industry. KSS is outperformed by 96.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 350.00% over the past year.
KSS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.70% yearly.
Looking at the last year, KSS shows a decrease in Revenue. The Revenue has decreased by -3.59% in the last year.
The Revenue has been decreasing by -2.88% on average over the past years.
EPS 1Y (TTM)350%
EPS 3YN/A
EPS 5Y-12.7%
EPS Q2Q%13.46%
Revenue 1Y (TTM)-3.59%
Revenue growth 3Y3.08%
Revenue growth 5Y-2.88%
Sales Q2Q%-4.16%
3.2 Future
KSS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.79% yearly.
The Revenue is expected to decrease by -2.66% on average over the next years.
EPS Next Y-34.75%
EPS Next 2Y-15.85%
EPS Next 3Y-10.27%
EPS Next 5Y8.79%
Revenue Next Year-5.37%
Revenue Next 2Y-2.85%
Revenue Next 3Y-2.66%
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 7.19, the valuation of KSS can be described as very cheap.
Based on the Price/Earnings ratio, KSS is valued cheaper than 84.38% of the companies in the same industry.
KSS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.56.
With a Price/Forward Earnings ratio of 9.09, the valuation of KSS can be described as very reasonable.
KSS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KSS is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.20, KSS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.19 | ||
| Fwd PE | 9.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KSS indicates a rather cheap valuation: KSS is cheaper than 87.50% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KSS is valued cheaper than 96.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.88 | ||
| EV/EBITDA | 4.13 |
4.3 Compensation for Growth
A cheap valuation may be justified as KSS's earnings are expected to decrease with -10.27% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.85%
EPS Next 3Y-10.27%
5. Dividend
5.1 Amount
KSS has a Yearly Dividend Yield of 12.20%, which is a nice return.
Compared to an average industry Dividend Yield of 4.89, KSS pays a better dividend. On top of this KSS pays more dividend than 96.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.19, KSS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.2% |
5.2 History
The dividend of KSS decreases each year by -3.89%.
KSS has paid a dividend for at least 10 years, which is 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 Years3
5.3 Sustainability
77.82% of the earnings are spent on dividend by KSS. This is not a sustainable payout ratio.
DP77.82%
EPS Next 2Y-15.85%
EPS Next 3Y-10.27%
KOHLS CORP
NYSE:KSS (11/25/2024, 9:03:00 PM)
After market: 17.46 -0.88 (-4.8%)18.34
+1.31 (+7.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.19 | ||
| Fwd PE | 9.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 7.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.88% | ||
| PM (TTM) | 1.66% | ||
| GM | 40.08% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)350%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-34.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.59%
Revenue growth 3Y3.08%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y