KOHLS CORP (KSS) Stock Fundamental Analysis
USA - NYSE:KSS - US5002551043 - Common Stock
17.5 USD
-0.56 (-3.1%)
17.5387 USD
+0.04 (+0.22%)
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 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.
The reported net income has been mixed in the past 5 years: KSS reported negative net income in multiple years.
Each year in the past 5 years KSS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.55%, KSS is in line with its industry, outperforming 43.33% of the companies in the same industry.
The Return On Equity of KSS (5.30%) is comparable to the rest of the industry.
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 10.39%.
The last Return On Invested Capital (4.31%) for KSS is above the 3 year average (3.96%), which is a sign of increasing profitability.
| 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
KSS has a Profit Margin (1.31%) which is comparable to the rest of the industry.
KSS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.28%, KSS perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
KSS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 40.48%, KSS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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
KSS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KSS remains at a similar level compared to 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 1.64, 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 1.64, KSS is in line with its industry, outperforming 50.00% of the companies in the same industry.
KSS has a debt to FCF ratio of 8.52. This is a slightly negative value and a sign of low solvency as KSS would need 8.52 years to pay back of all of its debts.
KSS has a Debt to FCF ratio (8.52) which 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.
Looking at the Debt to Equity ratio, with a value of 1.02, KSS is doing worse than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.47
WACC9.23%
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 has a Current ratio of 1.36. This is in the lower half of the industry: KSS underperforms 66.67% of its industry peers.
A Quick Ratio of 0.19 indicates that KSS may have some problems paying its short term obligations.
KSS's Quick ratio of 0.19 is on the low side compared to the rest of the industry. KSS is outperformed by 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
The Revenue has decreased by -7.23% in the past year.
Measured over the past years, KSS shows a decrease in Revenue. The Revenue has been decreasing by -4.08% on average per year.
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.
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-50.67%
EPS Next 2Y-30.78%
EPS Next 3Y-27.03%
EPS Next 5Y17.67%
Revenue Next Year-4.81%
Revenue Next 2Y-3.12%
Revenue Next 3Y-1.29%
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
A Price/Earnings ratio of 11.08 indicates a reasonable 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 cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.35, KSS is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as KSS.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, KSS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 24.35 |
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 | 4.09 | ||
| EV/EBITDA | 4.74 |
4.3 Compensation for Growth
A cheap valuation may be justified as KSS's earnings are expected to decrease with -27.03% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-30.78%
EPS Next 3Y-27.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.99%, KSS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 12.36, KSS pays a better dividend. On top of this KSS pays more dividend than 90.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, KSS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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
66.83% of the earnings are spent on dividend by KSS. This is not a sustainable payout ratio.
DP66.83%
EPS Next 2Y-30.78%
EPS Next 3Y-27.03%
17.5
-0.56 (-3.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners106.61%
Inst Owner Change-0.66%
Ins Owners3.31%
Ins Owner Change8.1%
Market Cap1.96B
Revenue(TTM)15.89B
Net Income(TTM)208.00M
Analysts50
Price Target13.46 (-23.09%)
Short Float %31.98%
Short Ratio5.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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)0%
PT rev (3m)75.66%
EPS NQ rev (1m)-7.9%
EPS NQ rev (3m)-11.94%
EPS NY rev (1m)1.74%
EPS NY rev (3m)65.2%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 24.35 | ||
| P/S | 0.12 | ||
| P/FCF | 4.09 | ||
| P/OCF | 2.16 | ||
| P/B | 0.5 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | 4.74 |
EPS(TTM)1.58
EY9.03%
EPS(NY)0.72
Fwd EY4.11%
FCF(TTM)4.28
FCFY24.47%
OCF(TTM)8.09
OCFY46.25%
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 | 1.64 |
F-Score5
WACC9.23%
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-50.67%
EPS Next 2Y-30.78%
EPS Next 3Y-27.03%
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-4.81%
Revenue Next 2Y-3.12%
Revenue Next 3Y-1.29%
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 3Y30.3%
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 -50.67% 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%.