KONTOOR BRANDS INC (KTB) Stock Fundamental Analysis
NYSE:KTB - New York Stock Exchange, Inc. - US50050N1037 - Common Stock
Overall KTB gets a fundamental rating of 6 out of 10. We evaluated KTB against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. KTB scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KTB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year KTB was profitable.
In the past year KTB had a positive cash flow from operations.
Each year in the past 5 years KTB has been profitable.
In the past 5 years KTB always reported a positive cash flow from operatings.
1.2 Ratios
KTB's Return On Assets of 15.16% is amongst the best of the industry. KTB outperforms 91.84% of its industry peers.
KTB has a Return On Equity of 70.21%. This is amongst the best in the industry. KTB outperforms 100.00% of its industry peers.
The Return On Invested Capital of KTB (23.20%) is better than 91.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KTB is significantly above the industry average of 11.58%.
The last Return On Invested Capital (23.20%) for KTB is above the 3 year average (22.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.16% | ||
| ROE | 70.21% | ||
| ROIC | 23.2% |
ROA(3y)14.1%
ROA(5y)10.61%
ROE(3y)97.31%
ROE(5y)102.35%
ROIC(3y)22.7%
ROIC(5y)18.96%
1.3 Margins
KTB has a Profit Margin of 9.72%. This is amongst the best in the industry. KTB outperforms 83.67% of its industry peers.
In the last couple of years the Profit Margin of KTB has remained more or less at the same level.
With an excellent Operating Margin value of 13.63%, KTB belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
In the last couple of years the Operating Margin of KTB has remained more or less at the same level.
Looking at the Gross Margin, with a value of 44.49%, KTB is in line with its industry, outperforming 40.82% of the companies in the same industry.
In the last couple of years the Gross Margin of KTB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.63% | ||
| PM (TTM) | 9.72% | ||
| GM | 44.49% |
OM growth 3Y21.78%
OM growth 5Y0.08%
PM growth 3Y39.88%
PM growth 5Y-1.43%
GM growth 3Y0.44%
GM growth 5Y0.59%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KTB is creating value.
Compared to 1 year ago, KTB has more shares outstanding
The number of shares outstanding for KTB has been reduced compared to 5 years ago.
KTB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.03 indicates that KTB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.03, KTB belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
KTB has a debt to FCF ratio of 1.57. This is a very positive value and a sign of high solvency as it would only need 1.57 years to pay back of all of its debts.
KTB has a Debt to FCF ratio of 1.57. This is in the better half of the industry: KTB outperforms 77.55% of its industry peers.
A Debt/Equity ratio of 2.09 is on the high side and indicates that KTB has dependencies on debt financing.
The Debt to Equity ratio of KTB (2.09) is worse than 83.67% of its industry peers.
Even though the debt/equity ratio score it not favorable for KTB, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 5.03 |
ROIC/WACC2.74
WACC8.46%
2.3 Liquidity
KTB has a Current Ratio of 2.50. This indicates that KTB is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.50, KTB is doing good in the industry, outperforming 65.31% of the companies in the same industry.
KTB has a Quick Ratio of 1.42. This is a normal value and indicates that KTB is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of KTB (1.42) is better than 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.42% over the past year.
KTB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.56% yearly.
Looking at the last year, KTB shows a decrease in Revenue. The Revenue has decreased by -3.41% in the last year.
The Revenue has been decreasing by -1.16% on average over the past years.
EPS 1Y (TTM)28.42%
EPS 3Y16.53%
EPS 5Y-2.56%
EPS Q2Q%30.48%
Revenue 1Y (TTM)-3.41%
Revenue growth 3Y7.52%
Revenue growth 5Y-1.16%
Sales Q2Q%2.39%
3.2 Future
KTB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.79% yearly.
Based on estimates for the next years, KTB will show a small growth in Revenue. The Revenue will grow by 1.21% on average per year.
EPS Next Y18.29%
EPS Next 2Y14.92%
EPS Next 3Y12.79%
EPS Next 5YN/A
Revenue Next Year-2.19%
Revenue Next 2Y0.35%
Revenue Next 3Y1.21%
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.
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
The Price/Earnings ratio is 17.95, which indicates a rather expensive current valuation of KTB.
63.27% of the companies in the same industry are more expensive than KTB, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KTB to the average of the S&P500 Index (27.96), we can say KTB is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.76, the valuation of KTB can be described as correct.
Based on the Price/Forward Earnings ratio, KTB is valued a bit cheaper than the industry average as 63.27% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.11. KTB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 15.76 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KTB.
Based on the Price/Free Cash Flow ratio, KTB is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.01 | ||
| EV/EBITDA | 13.18 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of KTB may justify a higher PE ratio.
A more expensive valuation may be justified as KTB's earnings are expected to grow with 12.79% in the coming years.
PEG (NY)0.98
PEG (5Y)N/A
EPS Next 2Y14.92%
EPS Next 3Y12.79%
5. Dividend
5.1 Amount
KTB has a Yearly Dividend Yield of 2.45%.
KTB's Dividend Yield is rather good when compared to the industry average which is at 2.88. KTB pays more dividend than 83.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, KTB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
KTB has paid a dividend for at least 10 years, which is a reliable track record.
KTB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
44.37% of the earnings are spent on dividend by KTB. This is a bit on the high side, but may be sustainable.
DP44.37%
EPS Next 2Y14.92%
EPS Next 3Y12.79%
KONTOOR BRANDS INC
NYSE:KTB (1/17/2025, 8:11:34 PM)
After market: 85.98 0 (0%)85.98
+1.14 (+1.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners94.48%
Inst Owner Change-0.05%
Ins Owners1.83%
Ins Owner Change-3.02%
Market Cap4.74B
Analysts76.36
Price Target96.32 (12.03%)
Short Float %6.03%
Short Ratio7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend1.95
Dividend Growth(5Y)N/A
DP44.37%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.89%
Min EPS beat(2)7.51%
Max EPS beat(2)10.26%
EPS beat(4)3
Avg EPS beat(4)9.26%
Min EPS beat(4)-7.63%
Max EPS beat(4)26.91%
EPS beat(8)4
Avg EPS beat(8)6.43%
EPS beat(12)8
Avg EPS beat(12)9.1%
EPS beat(16)12
Avg EPS beat(16)19.59%
Revenue beat(2)2
Avg Revenue beat(2)0.4%
Min Revenue beat(2)0%
Max Revenue beat(2)0.8%
Revenue beat(4)3
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-8.77%
Max Revenue beat(4)2.6%
Revenue beat(8)5
Avg Revenue beat(8)0%
Revenue beat(12)6
Avg Revenue beat(12)-0.19%
Revenue beat(16)10
Avg Revenue beat(16)0.75%
PT rev (1m)1.38%
PT rev (3m)19.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.74%
EPS NY rev (1m)0.03%
EPS NY rev (3m)1.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 15.76 | ||
| P/S | 1.84 | ||
| P/FCF | 10.01 | ||
| P/OCF | 9.57 | ||
| P/B | 13.28 | ||
| P/tB | 35.04 | ||
| EV/EBITDA | 13.18 |
EPS(TTM)4.79
EY5.57%
EPS(NY)5.45
Fwd EY6.34%
FCF(TTM)8.59
FCFY9.99%
OCF(TTM)8.98
OCFY10.45%
SpS46.76
BVpS6.47
TBVpS2.45
PEG (NY)0.98
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.16% | ||
| ROE | 70.21% | ||
| ROCE | 28.66% | ||
| ROIC | 23.2% | ||
| ROICexc | 29.74% | ||
| ROICexgc | 38.7% | ||
| OM | 13.63% | ||
| PM (TTM) | 9.72% | ||
| GM | 44.49% | ||
| FCFM | 18.38% |
ROA(3y)14.1%
ROA(5y)10.61%
ROE(3y)97.31%
ROE(5y)102.35%
ROIC(3y)22.7%
ROIC(5y)18.96%
ROICexc(3y)26.13%
ROICexc(5y)21.94%
ROICexgc(3y)37.8%
ROICexgc(5y)31.58%
ROCE(3y)28.11%
ROCE(5y)23.46%
ROICexcg growth 3Y21.12%
ROICexcg growth 5Y17.43%
ROICexc growth 3Y24.18%
ROICexc growth 5Y12.98%
OM growth 3Y21.78%
OM growth 5Y0.08%
PM growth 3Y39.88%
PM growth 5Y-1.43%
GM growth 3Y0.44%
GM growth 5Y0.59%
F-Score7
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 1.57 | ||
| Debt/EBITDA | 1.91 | ||
| Cap/Depr | 54.14% | ||
| Cap/Sales | 0.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 126.67% | ||
| Profit Quality | 189.08% | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 5.03 |
F-Score7
WACC8.46%
ROIC/WACC2.74
Cap/Depr(3y)91.88%
Cap/Depr(5y)115.65%
Cap/Sales(3y)1.33%
Cap/Sales(5y)1.69%
Profit Quality(3y)95.69%
Profit Quality(5y)263.43%
High Growth Momentum
Growth
EPS 1Y (TTM)28.42%
EPS 3Y16.53%
EPS 5Y-2.56%
EPS Q2Q%30.48%
EPS Next Y18.29%
EPS Next 2Y14.92%
EPS Next 3Y12.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.41%
Revenue growth 3Y7.52%
Revenue growth 5Y-1.16%
Sales Q2Q%2.39%
Revenue Next Year-2.19%
Revenue Next 2Y0.35%
Revenue Next 3Y1.21%
Revenue Next 5YN/A
EBIT growth 1Y4.5%
EBIT growth 3Y30.94%
EBIT growth 5Y-1.08%
EBIT Next Year15%
EBIT Next 3Y9.37%
EBIT Next 5YN/A
FCF growth 1Y692.33%
FCF growth 3Y21.13%
FCF growth 5YN/A
OCF growth 1Y468.01%
OCF growth 3Y13.79%
OCF growth 5YN/A