KOHLS CORP (KSS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KSS - US5002551043 - Common Stock
21.84 USD
-1.36 (-5.86%)
21.81 USD
-0.03 (-0.14%)
Taking everything into account, KSS scores 3 out of 10 in our fundamental rating. KSS was compared to 30 industry peers in the Broadline Retail industry. KSS has a medium profitability rating, but doesn't score so well on its financial health evaluation. KSS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year KSS was profitable.
In the past year KSS had a positive cash flow from operations.
In multiple years KSS reported negative net income over the last 5 years.
KSS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KSS's Return On Assets of 1.37% is in line compared to the rest of the industry. KSS outperforms 46.67% of its industry peers.
Looking at the Return On Equity, with a value of 4.94%, KSS is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Return On Invested Capital of KSS (4.15%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for KSS is significantly below the industry average of 9.38%.
The last Return On Invested Capital (4.15%) for KSS is above the 3 year average (3.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 4.94% | ||
| ROIC | 4.15% |
ROA(3y)0.98%
ROA(5y)1.62%
ROE(3y)3.5%
ROE(5y)5.5%
ROIC(3y)3.96%
ROIC(5y)4.98%
1.3 Margins
The Profit Margin of KSS (1.23%) is comparable to the rest of the industry.
KSS's Profit Margin has declined in the last couple of years.
The Operating Margin of KSS (3.17%) is comparable to the rest of the industry.
KSS's Operating Margin has declined in the last couple of years.
KSS has a worse Gross Margin (40.47%) than 60.00% 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 | 3.17% | ||
| PM (TTM) | 1.23% | ||
| GM | 40.47% |
OM growth 3Y-28.67%
OM growth 5Y-12.36%
PM growth 3Y-48.17%
PM growth 5Y-27.94%
GM growth 3Y-0.57%
GM growth 5Y0.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KSS is destroying value.
KSS has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, KSS has less shares outstanding
The debt/assets ratio for KSS has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that KSS is in the distress zone and has some risk of bankruptcy.
KSS's Altman-Z score of 1.58 is in line compared to the rest of the industry. KSS outperforms 50.00% of its industry peers.
KSS has a debt to FCF ratio of 4.93. This is a neutral value as KSS would need 4.93 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.93, KSS is in line with its industry, outperforming 56.67% of the companies in the same industry.
KSS has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
KSS's Debt to Equity ratio of 1.01 is on the low side compared to the rest of the industry. KSS is outperformed by 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 4.93 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.43
WACC9.71%
2.3 Liquidity
KSS has a Current Ratio of 1.30. This is a normal value and indicates that KSS is financially healthy and should not expect problems in meeting its short term obligations.
KSS has a worse Current ratio (1.30) than 63.33% of its industry peers.
KSS has a Quick Ratio of 1.30. This is a bad value and indicates that KSS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.12, KSS is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
The earnings per share for KSS have decreased strongly by -33.33% in the last year.
KSS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -21.05% yearly.
KSS shows a decrease in Revenue. In the last year, the revenue decreased by -6.13%.
The Revenue has been decreasing by -4.08% on average over the past years.
EPS 1Y (TTM)-33.33%
EPS 3Y-41.2%
EPS 5Y-21.05%
EPS Q2Q%-50%
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-2.85%
3.2 Future
Based on estimates for the next years, KSS will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.67% on average per year.
KSS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.45% yearly.
EPS Next Y-6.62%
EPS Next 2Y-5.02%
EPS Next 3Y-1.53%
EPS Next 5Y17.67%
Revenue Next Year-3.34%
Revenue Next 2Y-2.18%
Revenue Next 3Y-1.37%
Revenue Next 5Y0.45%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.76 indicates a correct valuation of KSS.
Based on the Price/Earnings ratio, KSS is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
KSS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.14, the valuation of KSS can be described as correct.
KSS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KSS is cheaper than 66.67% of the companies in the same industry.
KSS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 16.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KSS is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, KSS is valued cheaper than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.99 | ||
| EV/EBITDA | 5.34 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.02%
EPS Next 3Y-1.53%
5. Dividend
5.1 Amount
KSS has a Yearly Dividend Yield of 2.21%.
Compared to an average industry Dividend Yield of 2.17, KSS pays a better dividend. On top of this KSS pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, KSS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
The dividend of KSS decreases each year by -5.49%.
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)-5.49%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
50.52% of the earnings are spent on dividend by KSS. This is a bit on the high side, but may be sustainable.
DP50.52%
EPS Next 2Y-5.02%
EPS Next 3Y-1.53%
21.84
-1.36 (-5.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.51%
Inst Owner Change-9.53%
Ins Owners3.31%
Ins Owner Change-0.51%
Market Cap2.45B
Revenue(TTM)15.75B
Net Income(TTM)194.00M
Analysts50
Price Target21.86 (0.09%)
Short Float %26.44%
Short Ratio5.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend2
Dividend Growth(5Y)-5.49%
DP50.52%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)120.06%
Min EPS beat(2)89.73%
Max EPS beat(2)150.38%
EPS beat(4)4
Avg EPS beat(4)80.01%
Min EPS beat(4)28.5%
Max EPS beat(4)150.38%
EPS beat(8)6
Avg EPS beat(8)-41.37%
EPS beat(12)9
Avg EPS beat(12)-30.74%
EPS beat(16)12
Avg EPS beat(16)-27.49%
Revenue beat(2)1
Avg Revenue beat(2)0.7%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)1.52%
Revenue beat(4)1
Avg Revenue beat(4)0.23%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)1.52%
Revenue beat(8)1
Avg Revenue beat(8)-1.58%
Revenue beat(12)1
Avg Revenue beat(12)-1.45%
Revenue beat(16)3
Avg Revenue beat(16)-0.6%
PT rev (1m)62.41%
PT rev (3m)73.54%
EPS NQ rev (1m)81.49%
EPS NQ rev (3m)92.14%
EPS NY rev (1m)89.29%
EPS NY rev (3m)208.91%
Revenue NQ rev (1m)2.87%
Revenue NQ rev (3m)3.08%
Revenue NY rev (1m)1.54%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 16.14 | ||
| P/S | 0.16 | ||
| P/FCF | 2.99 | ||
| P/OCF | 2 | ||
| P/B | 0.62 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 5.34 |
EPS(TTM)1.48
EY6.78%
EPS(NY)1.35
Fwd EY6.2%
FCF(TTM)7.3
FCFY33.43%
OCF(TTM)10.93
OCFY50.04%
SpS140.4
BVpS35.03
TBVpS35.03
PEG (NY)N/A
PEG (5Y)N/A
Graham Number34.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 4.94% | ||
| ROCE | 4.61% | ||
| ROIC | 4.15% | ||
| ROICexc | 4.2% | ||
| ROICexgc | 4.2% | ||
| OM | 3.17% | ||
| PM (TTM) | 1.23% | ||
| GM | 40.47% | ||
| FCFM | 5.2% |
ROA(3y)0.98%
ROA(5y)1.62%
ROE(3y)3.5%
ROE(5y)5.5%
ROIC(3y)3.96%
ROIC(5y)4.98%
ROICexc(3y)4.02%
ROICexc(5y)5.42%
ROICexgc(3y)4.02%
ROICexgc(5y)5.42%
ROCE(3y)4.45%
ROCE(5y)5.55%
ROICexgc growth 3Y-33.7%
ROICexgc growth 5Y-15.18%
ROICexc growth 3Y-33.7%
ROICexc growth 5Y-15.18%
OM growth 3Y-28.67%
OM growth 5Y-12.36%
PM growth 3Y-48.17%
PM growth 5Y-27.94%
GM growth 3Y-0.57%
GM growth 5Y0.61%
F-Score5
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 4.93 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 57.4% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 1.82 | ||
| Cash Conversion | 101.41% | ||
| Profit Quality | 422.17% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | 1.58 |
F-Score5
WACC9.71%
ROIC/WACC0.43
Cap/Depr(3y)80.66%
Cap/Depr(5y)70.48%
Cap/Sales(3y)3.58%
Cap/Sales(5y)3.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-33.33%
EPS 3Y-41.2%
EPS 5Y-21.05%
EPS Q2Q%-50%
EPS Next Y-6.62%
EPS Next 2Y-5.02%
EPS Next 3Y-1.53%
EPS Next 5Y17.67%
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-2.85%
Revenue Next Year-3.34%
Revenue Next 2Y-2.18%
Revenue Next 3Y-1.37%
Revenue Next 5Y0.45%
EBIT growth 1Y-17.49%
EBIT growth 3Y-32.84%
EBIT growth 5Y-15.93%
EBIT Next Year143.78%
EBIT Next 3Y33.5%
EBIT Next 5Y22.35%
FCF growth 1Y64.46%
FCF growth 3Y-52.2%
FCF growth 5Y-25.67%
OCF growth 1Y12.89%
OCF growth 3Y-34.17%
OCF growth 5Y-17.12%
KOHLS CORP / KSS FAQ
What is the ChartMill fundamental rating of KOHLS CORP (KSS) stock?
ChartMill assigns a fundamental rating of 3 / 10 to KSS.
Can you provide the valuation status for KOHLS CORP?
ChartMill assigns a valuation rating of 5 / 10 to KOHLS CORP (KSS). This can be considered as Fairly Valued.
Can you provide the profitability details for KOHLS CORP?
KOHLS CORP (KSS) has a profitability rating of 4 / 10.
What is the earnings growth outlook for KOHLS CORP?
The Earnings per Share (EPS) of KOHLS CORP (KSS) is expected to decline by -6.62% in the next year.
Can you provide the dividend sustainability for KSS stock?
The dividend rating of KOHLS CORP (KSS) is 5 / 10 and the dividend payout ratio is 50.52%.