KERING (PPX.DE) Stock Fundamental Analysis
FRA:PPX - Deutsche Boerse Ag - FR0000121485 - Common Stock - Currency: EUR
Overall PPX gets a fundamental rating of 3 out of 10. We evaluated PPX against 42 industry peers in the Textiles, Apparel & Luxury Goods industry. There are concerns on the financial health of PPX while its profitability can be described as average. PPX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PPX had positive earnings in the past year.
PPX had a positive operating cash flow in the past year.
PPX had positive earnings in each of the past 5 years.
Each year in the past 5 years PPX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PPX (2.61%) is comparable to the rest of the industry.
With a Return On Equity value of 7.60%, PPX perfoms like the industry average, outperforming 43.18% of the companies in the same industry.
PPX has a Return On Invested Capital of 5.36%. This is comparable to the rest of the industry: PPX outperforms 40.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 7.6% | ||
| ROIC | 5.36% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PPX has a better Profit Margin (6.59%) than 63.64% of its industry peers.
PPX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 14.48%, PPX is in the better half of the industry, outperforming 70.45% of the companies in the same industry.
PPX's Operating Margin has declined in the last couple of years.
The Gross Margin of PPX (73.75%) is better than 86.36% of its industry peers.
PPX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.48% | ||
| PM (TTM) | 6.59% | ||
| GM | 73.75% |
OM growth 3Y-19.39%
OM growth 5Y-13.44%
PM growth 3Y-28.46%
PM growth 5Y-14.63%
GM growth 3Y-0.14%
GM growth 5Y-0.1%
2. Health
2.1 Basic Checks
PPX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for PPX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
PPX has an Altman-Z score of 1.74. This is a bad value and indicates that PPX is not financially healthy and even has some risk of bankruptcy.
PPX has a Altman-Z score of 1.74. This is in the lower half of the industry: PPX underperforms 68.18% of its industry peers.
PPX has a debt to FCF ratio of 14.39. This is a negative value and a sign of low solvency as PPX would need 14.39 years to pay back of all of its debts.
PPX has a Debt to FCF ratio of 14.39. This is in the lower half of the industry: PPX underperforms 75.00% of its industry peers.
PPX has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.05, PPX is not doing good in the industry: 70.45% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 14.39 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.69
WACC7.79%
2.3 Liquidity
PPX has a Current Ratio of 1.11. This is a normal value and indicates that PPX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.11, PPX is doing worse than 79.55% of the companies in the same industry.
PPX has a Quick Ratio of 1.11. This is a bad value and indicates that PPX is not financially healthy enough and could expect problems in meeting its short term obligations.
PPX has a Quick ratio of 0.69. This is in the lower half of the industry: PPX underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
PPX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -62.09%.
Measured over the past years, PPX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.87% on average per year.
Looking at the last year, PPX shows a very negative growth in Revenue. The Revenue has decreased by -12.12% in the last year.
PPX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
EPS 1Y (TTM)-62.09%
EPS 3Y-28.71%
EPS 5Y-12.87%
EPS Q2Q%-78.75%
Revenue 1Y (TTM)-12.12%
Revenue growth 3Y-0.86%
Revenue growth 5Y1.6%
Sales Q2Q%-13.31%
3.2 Future
The Earnings Per Share is expected to grow by 28.24% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.33% on average over the next years.
EPS Next Y4.12%
EPS Next 2Y13.98%
EPS Next 3Y12.37%
EPS Next 5Y28.24%
Revenue Next Year1.08%
Revenue Next 2Y3.55%
Revenue Next 3Y4.56%
Revenue Next 5Y6.33%
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
Based on the Price/Earnings ratio of 26.89, the valuation of PPX can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PPX is on the same level as its industry peers.
PPX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
PPX is valuated rather expensively with a Price/Forward Earnings ratio of 21.75.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPX indicates a somewhat cheap valuation: PPX is cheaper than 63.64% of the companies listed in the same industry.
PPX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.89 | ||
| Fwd PE | 21.75 |
4.2 Price Multiples
PPX's Enterprise Value to EBITDA ratio is in line with the industry average.
PPX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.91 | ||
| EV/EBITDA | 10.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as PPX's earnings are expected to grow with 12.37% in the coming years.
PEG (NY)6.52
PEG (5Y)N/A
EPS Next 2Y13.98%
EPS Next 3Y12.37%
5. Dividend
5.1 Amount
PPX has a Yearly Dividend Yield of 2.32%. Purely for dividend investing, there may be better candidates out there.
PPX's Dividend Yield is a higher than the industry average which is at 3.02.
PPX's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
The dividend of PPX is nicely growing with an annual growth rate of 18.45%!
Dividend Growth(5Y)18.45%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
PPX pays out 151.46% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PPX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP151.46%
EPS Next 2Y13.98%
EPS Next 3Y12.37%
FRA:PPX (3/7/2025, 7:00:00 PM)
248.5
-10.8 (-4.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners25.98%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap30.67B
Analysts54.29
Price Target256.54 (3.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend13.99
Dividend Growth(5Y)18.45%
DP151.46%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.36%
PT rev (3m)1.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-10.6%
EPS NY rev (3m)-14.55%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.89 | ||
| Fwd PE | 21.75 | ||
| P/S | 1.78 | ||
| P/FCF | 21.91 | ||
| P/OCF | 6.51 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.26 |
EPS(TTM)9.24
EY3.72%
EPS(NY)11.42
Fwd EY4.6%
FCF(TTM)11.34
FCFY4.56%
OCF(TTM)38.15
OCFY15.35%
SpS139.31
BVpS120.76
TBVpS-5.35
PEG (NY)6.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 7.6% | ||
| ROCE | 7.37% | ||
| ROIC | 5.36% | ||
| ROICexc | 5.99% | ||
| ROICexgc | 12.37% | ||
| OM | 14.48% | ||
| PM (TTM) | 6.59% | ||
| GM | 73.75% | ||
| FCFM | 8.14% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-19.39%
OM growth 5Y-13.44%
PM growth 3Y-28.46%
PM growth 5Y-14.63%
GM growth 3Y-0.14%
GM growth 5Y-0.1%
F-Score3
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 14.39 | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 156.6% | ||
| Cap/Sales | 19.25% | ||
| Interest Coverage | 4.08 | ||
| Cash Conversion | 102.33% | ||
| Profit Quality | 123.57% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.74 |
F-Score3
WACC7.79%
ROIC/WACC0.69
Cap/Depr(3y)121.37%
Cap/Depr(5y)96.61%
Cap/Sales(3y)12.62%
Cap/Sales(5y)9.83%
Profit Quality(3y)91.35%
Profit Quality(5y)99.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-62.09%
EPS 3Y-28.71%
EPS 5Y-12.87%
EPS Q2Q%-78.75%
EPS Next Y4.12%
EPS Next 2Y13.98%
EPS Next 3Y12.37%
EPS Next 5Y28.24%
Revenue 1Y (TTM)-12.12%
Revenue growth 3Y-0.86%
Revenue growth 5Y1.6%
Sales Q2Q%-13.31%
Revenue Next Year1.08%
Revenue Next 2Y3.55%
Revenue Next 3Y4.56%
Revenue Next 5Y6.33%
EBIT growth 1Y-47.22%
EBIT growth 3Y-20.08%
EBIT growth 5Y-12.06%
EBIT Next Year86.23%
EBIT Next 3Y30.49%
EBIT Next 5Y25.36%
FCF growth 1Y-24.24%
FCF growth 3Y-29.17%
FCF growth 5Y-3.26%
OCF growth 1Y5.61%
OCF growth 3Y-1.14%
OCF growth 5Y12.54%