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 28 industry peers in the Broadline Retail industry. While KSS is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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
KSS has a Return On Assets (0.89%) which is in line with its industry peers.
KSS has a Return On Equity (3.20%) which is in line with its industry peers.
KSS's Return On Invested Capital of 4.36% is in line compared to the rest of the industry. KSS outperforms 42.86% 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 11.59%.
The last Return On Invested Capital (4.36%) for KSS is above the 3 year average (3.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 3.2% | ||
| ROIC | 4.36% |
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 (0.75%) is comparable to the rest of the industry.
KSS's Profit Margin has declined in the last couple of years.
KSS's Operating Margin of 3.27% is in line compared to the rest of the industry. KSS outperforms 46.43% of its industry peers.
KSS's Operating Margin has declined in the last couple of years.
KSS has a Gross Margin of 40.44%. This is comparable to the rest of the industry: KSS outperforms 42.86% of its industry peers.
KSS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.27% | ||
| PM (TTM) | 0.75% | ||
| 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
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.
The number of shares outstanding for KSS has been reduced compared to 5 years ago.
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 1.50. This is a bad value and indicates that KSS is not financially healthy and even has some risk of bankruptcy.
KSS has a Altman-Z score of 1.50. This is comparable to the rest of the industry: KSS outperforms 50.00% of its industry peers.
The Debt to FCF ratio of KSS is 40.58, which is on the high side as it means it would take KSS, 40.58 years of fcf income to pay off all of its debts.
KSS has a Debt to FCF ratio of 40.58. This is in the lower half of the industry: KSS underperforms 64.29% of its industry peers.
A Debt/Equity ratio of 1.10 is on the high side and indicates that KSS has dependencies on debt financing.
KSS has a worse Debt to Equity ratio (1.10) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 40.58 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.53
WACC8.24%
2.3 Liquidity
KSS has a Current Ratio of 1.09. 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 Current ratio of 1.09. This is amonst the worse of the industry: KSS underperforms 82.14% of its industry peers.
KSS has a Quick Ratio of 1.09. 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 (0.14) is worse than 96.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| 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 -35.08%.
KSS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -21.05% yearly.
Looking at the last year, KSS shows a decrease in Revenue. The Revenue has decreased by -7.03% in the last year.
The Revenue has been decreasing by -4.08% on average over the past years.
EPS 1Y (TTM)-35.08%
EPS 3Y-41.2%
EPS 5Y-21.05%
EPS Q2Q%45.83%
Revenue 1Y (TTM)-7.03%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-4.06%
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 17.95% on average per year.
KSS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.77% yearly.
EPS Next Y-70.14%
EPS Next 2Y-41.3%
EPS Next 3Y-16.39%
EPS Next 5Y17.95%
Revenue Next Year-5.22%
Revenue Next 2Y-3.2%
Revenue Next 3Y-2.77%
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.
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
KSS is valuated cheaply with a Price/Earnings ratio of 5.94.
KSS's Price/Earnings ratio is rather cheap when compared to the industry. KSS is cheaper than 96.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, KSS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 18.51, the valuation of KSS can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KSS indicates a somewhat cheap valuation: KSS is cheaper than 60.71% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. KSS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.94 | ||
| Fwd PE | 18.51 |
4.2 Price Multiples
89.29% of the companies in the same industry are more expensive than KSS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KSS is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.49 | ||
| EV/EBITDA | 3.95 |
4.3 Compensation for Growth
KSS's earnings are expected to decrease with -16.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.3%
EPS Next 3Y-16.39%
5. Dividend
5.1 Amount
KSS has a Yearly Dividend Yield of 5.18%, which is a nice return.
KSS's Dividend Yield is rather good when compared to the industry average which is at 12.99. KSS pays more dividend than 92.86% of the companies in the same industry.
KSS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
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
KSS pays out 149.59% of its income as dividend. This is not a sustainable payout ratio.
DP149.59%
EPS Next 2Y-41.3%
EPS Next 3Y-16.39%
9.57
-0.08 (-0.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners107.58%
Inst Owner Change0%
Ins Owners3.33%
Ins Owner Change38.35%
Market Cap1.07B
Analysts47.83
Price Target7.22 (-24.56%)
Short Float %47.09%
Short Ratio5.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
Yearly Dividend2
Dividend Growth(5Y)-5.49%
DP149.59%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)39.96%
Min EPS beat(2)28.5%
Max EPS beat(2)51.41%
EPS beat(4)3
Avg EPS beat(4)20.46%
Min EPS beat(4)-29.1%
Max EPS beat(4)51.41%
EPS beat(8)6
Avg EPS beat(8)-48.46%
EPS beat(12)9
Avg EPS beat(12)-49.88%
EPS beat(16)12
Avg EPS beat(16)-26.53%
Revenue beat(2)0
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)-0.07%
Revenue beat(8)0
Avg Revenue beat(8)-2.23%
Revenue beat(12)2
Avg Revenue beat(12)-0.78%
Revenue beat(16)4
Avg Revenue beat(16)0.33%
PT rev (1m)0%
PT rev (3m)-14.65%
EPS NQ rev (1m)-2.56%
EPS NQ rev (3m)-17.13%
EPS NY rev (1m)32.1%
EPS NY rev (3m)18.87%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.94 | ||
| Fwd PE | 18.51 | ||
| P/S | 0.07 | ||
| P/FCF | 9.49 | ||
| P/OCF | 1.9 | ||
| P/B | 0.28 | ||
| P/tB | 0.28 | ||
| EV/EBITDA | 3.95 |
EPS(TTM)1.61
EY16.82%
EPS(NY)0.52
Fwd EY5.4%
FCF(TTM)1.01
FCFY10.54%
OCF(TTM)5.02
OCFY52.51%
SpS143.45
BVpS33.73
TBVpS33.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 3.2% | ||
| ROCE | 5.08% | ||
| ROIC | 4.36% | ||
| ROICexc | 4.42% | ||
| ROICexgc | 4.42% | ||
| OM | 3.27% | ||
| PM (TTM) | 0.75% | ||
| GM | 40.44% | ||
| FCFM | 0.7% |
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 Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 40.58 | ||
| Debt/EBITDA | 3.31 | ||
| Cap/Depr | 61.64% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 1.7 | ||
| Cash Conversion | 44.82% | ||
| Profit Quality | 93.39% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 1.5 |
F-Score5
WACC8.24%
ROIC/WACC0.53
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)-35.08%
EPS 3Y-41.2%
EPS 5Y-21.05%
EPS Q2Q%45.83%
EPS Next Y-70.14%
EPS Next 2Y-41.3%
EPS Next 3Y-16.39%
EPS Next 5Y17.95%
Revenue 1Y (TTM)-7.03%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-4.06%
Revenue Next Year-5.22%
Revenue Next 2Y-3.2%
Revenue Next 3Y-2.77%
Revenue Next 5YN/A
EBIT growth 1Y-20.54%
EBIT growth 3Y-32.84%
EBIT growth 5Y-15.93%
EBIT Next Year124.45%
EBIT Next 3Y32.21%
EBIT Next 5Y22.28%
FCF growth 1Y171.07%
FCF growth 3Y-52.2%
FCF growth 5Y-25.67%
OCF growth 1Y4.26%
OCF growth 3Y-34.17%
OCF growth 5Y-17.12%