KOHLS CORP (KSS) Stock Fundamental Analysis
NYSE:KSS - New York Stock Exchange, Inc. - US5002551043 - Common Stock - Currency: USD
KSS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 31 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year KSS was profitable.
KSS had a positive operating cash flow in the past year.
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 0.80%, KSS perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
KSS's Return On Equity of 2.87% is in line compared to the rest of the industry. KSS outperforms 51.61% of its industry peers.
The Return On Invested Capital of KSS (4.29%) is worse than 61.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KSS is significantly below the industry average of 11.67%.
The 3 year average ROIC (3.96%) for KSS is below the current ROIC(4.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 2.87% | ||
| ROIC | 4.29% |
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 (0.67%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KSS has declined.
KSS's Operating Margin of 3.14% is in line compared to the rest of the industry. KSS outperforms 45.16% of its industry peers.
In the last couple of years the Operating Margin of KSS has declined.
With a Gross Margin value of 40.44%, KSS perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
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 | 3.14% | ||
| PM (TTM) | 0.67% | ||
| GM | 40.44% |
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.
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
KSS has an Altman-Z score of 1.49. 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 1.49, KSS perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
KSS has a debt to FCF ratio of 23.92. This is a negative value and a sign of low solvency as KSS would need 23.92 years to pay back of all of its debts.
With a Debt to FCF ratio value of 23.92, KSS perfoms like the industry average, outperforming 45.16% of the companies in the same industry.
A Debt/Equity ratio of 1.03 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 1.03, KSS is doing worse than 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 23.92 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.55
WACC7.81%
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.
KSS has a worse Current ratio (1.08) than 80.65% of its industry peers.
A Quick Ratio of 0.14 indicates that KSS may have some problems paying its short term obligations.
KSS's Quick ratio of 0.14 is on the low side compared to the rest of the industry. KSS is outperformed by 93.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
KSS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.37%.
The earnings per share for KSS have been decreasing by -21.05% on average. This is quite bad
The Revenue has decreased by -7.18% in the past year.
The Revenue has been decreasing by -4.08% on average over the past years.
EPS 1Y (TTM)-47.37%
EPS 3Y-41.2%
EPS 5Y-21.05%
EPS Q2Q%-43.11%
Revenue 1Y (TTM)-7.18%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-9.37%
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 17.81% yearly.
Based on estimates for the next years, KSS will show a decrease in Revenue. The Revenue will decrease by -2.21% on average per year.
EPS Next Y-81.46%
EPS Next 2Y-45.16%
EPS Next 3Y-26.77%
EPS Next 5Y17.81%
Revenue Next Year-5.03%
Revenue Next 2Y-2.79%
Revenue Next 3Y-2.21%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 4.69 indicates a rather cheap valuation of KSS.
Compared to the rest of the industry, the Price/Earnings ratio of KSS indicates a rather cheap valuation: KSS is cheaper than 90.32% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KSS to the average of the S&P500 Index (28.92), we can say KSS is valued rather cheaply.
A Price/Forward Earnings ratio of 25.27 indicates a quite expensive valuation of KSS.
The rest of the industry has a similar Price/Forward Earnings ratio as KSS.
KSS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.69 | ||
| Fwd PE | 25.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KSS is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KSS indicates a rather cheap valuation: KSS is cheaper than 96.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.3 | ||
| EV/EBITDA | 3.74 |
4.3 Compensation for Growth
A cheap valuation may be justified as KSS's earnings are expected to decrease with -26.77% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-45.16%
EPS Next 3Y-26.77%
5. Dividend
5.1 Amount
KSS has a Yearly Dividend Yield of 7.72%, which is a nice return.
In the last 3 months the price of KSS has falen by -48.31%. 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 6.43. 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 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.72% |
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
203.67% of the earnings are spent on dividend by KSS. This is not a sustainable payout ratio.
DP203.67%
EPS Next 2Y-45.16%
EPS Next 3Y-26.77%
7.03
+0.32 (+4.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners107.41%
Inst Owner Change0.05%
Ins Owners2.11%
Ins Owner Change32.66%
Market Cap782.58M
Analysts48.7
Price Target8.45 (20.2%)
Short Float %50.18%
Short Ratio5.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.72% |
Yearly Dividend2
Dividend Growth(5Y)-5.49%
DP203.67%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.3%
Min EPS beat(2)-29.1%
Max EPS beat(2)28.5%
EPS beat(4)2
Avg EPS beat(4)-162.92%
Min EPS beat(4)-682.13%
Max EPS beat(4)31.04%
EPS beat(8)6
Avg EPS beat(8)-38.56%
EPS beat(12)8
Avg EPS beat(12)-61.2%
EPS beat(16)12
Avg EPS beat(16)117%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-3.29%
Min Revenue beat(4)-5.64%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-2.29%
Revenue beat(12)2
Avg Revenue beat(12)-0.78%
Revenue beat(16)5
Avg Revenue beat(16)1.03%
PT rev (1m)-0.36%
PT rev (3m)-42.34%
EPS NQ rev (1m)-3.56%
EPS NQ rev (3m)-88.64%
EPS NY rev (1m)-79.69%
EPS NY rev (3m)-80.17%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-5.3%
Revenue NY rev (1m)-3.63%
Revenue NY rev (3m)-3.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.69 | ||
| Fwd PE | 25.27 | ||
| P/S | 0.05 | ||
| P/FCF | 4.3 | ||
| P/OCF | 1.21 | ||
| P/B | 0.21 | ||
| P/tB | 0.21 | ||
| EV/EBITDA | 3.74 |
EPS(TTM)1.5
EY21.34%
EPS(NY)0.28
Fwd EY3.96%
FCF(TTM)1.63
FCFY23.26%
OCF(TTM)5.82
OCFY82.8%
SpS145.72
BVpS34.15
TBVpS34.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 2.87% | ||
| ROCE | 4.88% | ||
| ROIC | 4.29% | ||
| ROICexc | 4.34% | ||
| ROICexgc | 4.34% | ||
| OM | 3.14% | ||
| PM (TTM) | 0.67% | ||
| GM | 40.44% | ||
| FCFM | 1.12% |
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%
ROICexcg growth 3Y-33.7%
ROICexcg 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 Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 23.92 | ||
| Debt/EBITDA | 3.13 | ||
| Cap/Depr | 62.72% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 1.63 | ||
| Cash Conversion | 51.76% | ||
| Profit Quality | 166.97% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 1.49 |
F-Score5
WACC7.81%
ROIC/WACC0.55
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)-47.37%
EPS 3Y-41.2%
EPS 5Y-21.05%
EPS Q2Q%-43.11%
EPS Next Y-81.46%
EPS Next 2Y-45.16%
EPS Next 3Y-26.77%
EPS Next 5Y17.81%
Revenue 1Y (TTM)-7.18%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-9.37%
Revenue Next Year-5.03%
Revenue Next 2Y-2.79%
Revenue Next 3Y-2.21%
Revenue Next 5YN/A
EBIT growth 1Y-29.01%
EBIT growth 3Y-32.84%
EBIT growth 5Y-15.93%
EBIT Next Year122.84%
EBIT Next 3Y32.9%
EBIT Next 5Y22.31%
FCF growth 1Y-69.2%
FCF growth 3Y-52.2%
FCF growth 5Y-25.67%
OCF growth 1Y-44.52%
OCF growth 3Y-34.17%
OCF growth 5Y-17.12%