KOHLS CORP (KSS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KSS - US5002551043 - Common Stock
20.54 USD
-1.22 (-5.61%)
20.7 USD
+0.16 (+0.78%)
KSS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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
KSS had positive earnings in the past year.
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
With a Return On Assets value of 1.37%, KSS perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
KSS has a Return On Equity (4.94%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.15%, KSS perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KSS is significantly below the industry average of 9.29%.
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
KSS's Profit Margin of 1.23% is in line compared to the rest of the industry. KSS outperforms 53.33% of its industry peers.
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's Gross Margin of 40.47% is on the low side compared to the rest of the industry. KSS is outperformed by 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.
Compared to 1 year ago, KSS has about the same amount of shares outstanding.
Compared to 5 years ago, KSS has less shares outstanding
Compared to 1 year ago, KSS has about the same debt to assets ratio.
2.2 Solvency
KSS has an Altman-Z score of 1.56. This is a bad value and indicates that KSS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.56, KSS perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
The Debt to FCF ratio of KSS is 4.93, which is a neutral value as it means it would take KSS, 4.93 years of fcf income to pay off 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 53.33% of the companies in the same industry.
A Debt/Equity ratio of 1.01 is on the high side and indicates that KSS has dependencies on debt financing.
KSS has a Debt to Equity ratio of 1.01. This is in the lower half of the industry: KSS underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 4.93 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.43
WACC9.59%
2.3 Liquidity
A Current Ratio of 1.30 indicates that KSS should not have too much problems paying its short term obligations.
KSS's Current ratio of 1.30 is on the low side compared to the rest of the industry. KSS is outperformed by 60.00% 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.
The Quick ratio of KSS (0.12) is worse than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
KSS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.33%.
The earnings per share for KSS have been decreasing by -21.05% on average. This is quite bad
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 17.03% on average per year.
The Revenue is expected to grow by 0.97% on average over the next years.
EPS Next Y-6.11%
EPS Next 2Y-2.83%
EPS Next 3Y0.85%
EPS Next 5Y17.03%
Revenue Next Year-3.15%
Revenue Next 2Y-2.01%
Revenue Next 3Y-0.58%
Revenue Next 5Y0.97%
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
The Price/Earnings ratio is 13.88, which indicates a correct valuation of KSS.
86.67% of the companies in the same industry are more expensive than KSS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KSS to the average of the S&P500 Index (27.19), we can say KSS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.50, 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 70.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KSS to the average of the S&P500 Index (23.88), we can say KSS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 14.5 |
4.2 Price Multiples
KSS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KSS is cheaper than 86.67% of the companies in the same industry.
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 | 2.81 | ||
| EV/EBITDA | 5.09 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.83%
EPS Next 3Y0.85%
5. Dividend
5.1 Amount
KSS has a Yearly Dividend Yield of 2.30%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.25, KSS pays a better dividend. On top of this KSS pays more dividend than 83.33% of the companies listed in the same industry.
KSS's Dividend Yield is a higher than the S&P500 average which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
The dividend of KSS decreases each year by -5.49%.
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)-5.49%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
KSS pays out 50.52% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP50.52%
EPS Next 2Y-2.83%
EPS Next 3Y0.85%
20.54
-1.22 (-5.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.46%
Inst Owner Change0%
Ins Owners3.28%
Ins Owner Change-0.54%
Market Cap2.30B
Revenue(TTM)15.75B
Net Income(TTM)194.00M
Analysts52.38
Price Target22.37 (8.91%)
Short Float %25.26%
Short Ratio5.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend2
Dividend Growth(5Y)-5.49%
DP50.52%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
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)2.33%
PT rev (3m)66.2%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)94.38%
EPS NY rev (1m)0.55%
EPS NY rev (3m)93.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.08%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 14.5 | ||
| P/S | 0.15 | ||
| P/FCF | 2.81 | ||
| P/OCF | 1.88 | ||
| P/B | 0.59 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 5.09 |
EPS(TTM)1.48
EY7.21%
EPS(NY)1.42
Fwd EY6.9%
FCF(TTM)7.3
FCFY35.54%
OCF(TTM)10.93
OCFY53.2%
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 | 1.56 |
F-Score5
WACC9.59%
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-6.11%
EPS Next 2Y-2.83%
EPS Next 3Y0.85%
EPS Next 5Y17.03%
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-2.85%
Revenue Next Year-3.15%
Revenue Next 2Y-2.01%
Revenue Next 3Y-0.58%
Revenue Next 5Y0.97%
EBIT growth 1Y-17.49%
EBIT growth 3Y-32.84%
EBIT growth 5Y-15.93%
EBIT Next Year143.78%
EBIT Next 3Y34.03%
EBIT Next 5Y23.01%
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.
What is the valuation status of KOHLS CORP (KSS) stock?
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 financial health of KOHLS CORP (KSS) stock?
The financial health rating of KOHLS CORP (KSS) is 2 / 10.
What is the earnings growth outlook for KOHLS CORP?
The Earnings per Share (EPS) of KOHLS CORP (KSS) is expected to decline by -6.11% in the next year.