KOHLS CORP (KSS) Stock Fundamental Analysis
USA - NYSE:KSS - US5002551043 - Common Stock
16.43 USD
+0.06 (+0.37%)
16.41 USD
-0.02 (-0.12%)
KSS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. Both the profitability and financial health of KSS have multiple concerns. KSS has a valuation in line with the averages, 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.
In multiple years KSS reported negative net income over the last 5 years.
Each year in the past 5 years KSS had a positive operating cash flow.
1.2 Ratios
KSS has a Return On Assets (1.55%) which is in line with its industry peers.
KSS has a Return On Equity of 5.30%. This is comparable to the rest of the industry: KSS outperforms 46.67% of its industry peers.
With a Return On Invested Capital value of 4.31%, KSS is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for KSS is significantly below the industry average of 10.42%.
The 3 year average ROIC (3.96%) for KSS is below the current ROIC(4.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 5.3% | ||
| ROIC | 4.31% |
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 (1.31%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KSS has declined.
KSS has a Operating Margin (3.28%) which is in line with its industry peers.
In the last couple of years the Operating Margin of KSS has declined.
Looking at the Gross Margin, with a value of 40.48%, KSS is doing worse than 60.00% of the companies in the same industry.
KSS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.28% | ||
| PM (TTM) | 1.31% | ||
| GM | 40.48% |
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
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.
The number of shares outstanding for KSS has been reduced compared to 5 years ago.
Compared to 1 year ago, KSS has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that KSS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.63, KSS is in line with its industry, outperforming 43.33% of the companies in the same industry.
The Debt to FCF ratio of KSS is 8.52, which is on the high side as it means it would take KSS, 8.52 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KSS (8.52) is comparable to the rest of the industry.
KSS has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of KSS (1.02) is worse than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.47
WACC9.08%
2.3 Liquidity
KSS has a Current Ratio of 1.36. This is a normal value and indicates that KSS is financially healthy and should not expect problems in meeting its short term obligations.
KSS's Current ratio of 1.36 is on the low side compared to the rest of the industry. KSS is outperformed by 66.67% of its industry peers.
KSS has a Quick Ratio of 1.36. 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 (0.19) is worse than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The earnings per share for KSS have decreased strongly by -38.04% in the last year.
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 -7.23%.
The Revenue has been decreasing by -4.08% on average over the past years.
EPS 1Y (TTM)-38.04%
EPS 3Y-41.2%
EPS 5Y-21.05%
EPS Q2Q%-5.08%
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-5.05%
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.
Based on estimates for the next years, KSS will show a small growth in Revenue. The Revenue will grow by 0.45% on average per year.
EPS Next Y-50.88%
EPS Next 2Y-30.66%
EPS Next 3Y-20.96%
EPS Next 5Y17.67%
Revenue Next Year-4.78%
Revenue Next 2Y-3.03%
Revenue Next 3Y-1.68%
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.
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
KSS is valuated reasonably with a Price/Earnings ratio of 10.40.
Compared to the rest of the industry, the Price/Earnings ratio of KSS indicates a rather cheap valuation: KSS is cheaper than 90.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, KSS is valued rather cheaply.
A Price/Forward Earnings ratio of 22.78 indicates a rather expensive valuation of KSS.
KSS's Price/Forward Earnings is on the same level as the industry average.
KSS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 22.78 |
4.2 Price Multiples
90.00% of the companies in the same industry are more expensive than KSS, based on the Enterprise Value to EBITDA ratio.
KSS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KSS is cheaper than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.84 | ||
| EV/EBITDA | 4.59 |
4.3 Compensation for Growth
KSS's earnings are expected to decrease with -20.96% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-30.66%
EPS Next 3Y-20.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, KSS has a reasonable but not impressive dividend return.
KSS's Dividend Yield is rather good when compared to the industry average which is at 9.37. KSS pays more dividend than 93.33% of the companies in the same industry.
KSS's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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 66.83% of its income as dividend. This is not a sustainable payout ratio.
DP66.83%
EPS Next 2Y-30.66%
EPS Next 3Y-20.96%
16.43
+0.06 (+0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners106.61%
Inst Owner Change-0.76%
Ins Owners3.31%
Ins Owner Change8.1%
Market Cap1.84B
Revenue(TTM)15.89B
Net Income(TTM)208.00M
Analysts49.57
Price Target13.46 (-18.08%)
Short Float %31.98%
Short Ratio5.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend2
Dividend Growth(5Y)-5.49%
DP66.83%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)70.57%
Min EPS beat(2)51.41%
Max EPS beat(2)89.73%
EPS beat(4)3
Avg EPS beat(4)35.13%
Min EPS beat(4)-29.1%
Max EPS beat(4)89.73%
EPS beat(8)6
Avg EPS beat(8)-53.87%
EPS beat(12)9
Avg EPS beat(12)-42.94%
EPS beat(16)12
Avg EPS beat(16)-27.31%
Revenue beat(2)0
Avg Revenue beat(2)-0.09%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)-0.07%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)1
Avg Revenue beat(12)-1.22%
Revenue beat(16)3
Avg Revenue beat(16)-0.28%
PT rev (1m)6.85%
PT rev (3m)86.57%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-4.88%
EPS NY rev (1m)1.31%
EPS NY rev (3m)64.5%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 22.78 | ||
| P/S | 0.12 | ||
| P/FCF | 3.84 | ||
| P/OCF | 2.03 | ||
| P/B | 0.47 | ||
| P/tB | 0.47 | ||
| EV/EBITDA | 4.59 |
EPS(TTM)1.58
EY9.62%
EPS(NY)0.72
Fwd EY4.39%
FCF(TTM)4.28
FCFY26.07%
OCF(TTM)8.09
OCFY49.26%
SpS141.75
BVpS35.04
TBVpS35.04
PEG (NY)N/A
PEG (5Y)N/A
Graham Number35.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 5.3% | ||
| ROCE | 4.8% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.38% | ||
| ROICexgc | 4.38% | ||
| OM | 3.28% | ||
| PM (TTM) | 1.31% | ||
| GM | 40.48% | ||
| FCFM | 3.02% |
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 Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 8.52 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 59.55% | ||
| Cap/Sales | 2.69% | ||
| Interest Coverage | 1.76 | ||
| Cash Conversion | 73.26% | ||
| Profit Quality | 230.77% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 1.63 |
F-Score5
WACC9.08%
ROIC/WACC0.47
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)-38.04%
EPS 3Y-41.2%
EPS 5Y-21.05%
EPS Q2Q%-5.08%
EPS Next Y-50.88%
EPS Next 2Y-30.66%
EPS Next 3Y-20.96%
EPS Next 5Y17.67%
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-5.05%
Revenue Next Year-4.78%
Revenue Next 2Y-3.03%
Revenue Next 3Y-1.68%
Revenue Next 5Y0.45%
EBIT growth 1Y-21.65%
EBIT growth 3Y-32.84%
EBIT growth 5Y-15.93%
EBIT Next Year126.26%
EBIT Next 3Y30.18%
EBIT Next 5Y22.35%
FCF growth 1Y9.09%
FCF growth 3Y-52.2%
FCF growth 5Y-25.67%
OCF growth 1Y-14.11%
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 3 / 10.
What is the earnings growth outlook for KOHLS CORP?
The Earnings per Share (EPS) of KOHLS CORP (KSS) is expected to decline by -50.88% 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 66.83%.