KERING (PPX.DE) Stock Fundamental Analysis
FRA:PPX - Deutsche Boerse Ag - FR0000121485 - Common Stock - Currency: EUR
Taking everything into account, PPX scores 3 out of 10 in our fundamental rating. PPX was compared to 40 industry peers in the Textiles, Apparel & Luxury Goods industry. While PPX is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, PPX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year PPX was profitable.
In the past year PPX had a positive cash flow from operations.
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
With a Return On Assets value of 2.61%, PPX is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
PPX has a Return On Equity (7.60%) which is in line with its industry peers.
The Return On Invested Capital of PPX (5.20%) is worse than 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PPX is in line with the industry average of 10.85%.
The last Return On Invested Capital (5.20%) for PPX is well below the 3 year average (10.05%), which needs to be investigated, but indicates that PPX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 7.6% | ||
| ROIC | 5.2% |
ROA(3y)6.82%
ROA(5y)7.67%
ROE(3y)17.67%
ROE(5y)19%
ROIC(3y)10.05%
ROIC(5y)11.02%
1.3 Margins
PPX's Profit Margin of 6.59% is fine compared to the rest of the industry. PPX outperforms 65.00% 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 67.50% of the companies in the same industry.
In the last couple of years the Operating Margin of PPX has declined.
Looking at the Gross Margin, with a value of 73.75%, PPX belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PPX has about the same amount of shares outstanding.
The number of shares outstanding for PPX has been reduced compared to 5 years ago.
PPX has a worse debt/assets ratio than last year.
2.2 Solvency
PPX has an Altman-Z score of 1.55. This is a bad value and indicates that PPX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of PPX (1.55) is worse than 67.50% of its industry peers.
PPX has a debt to FCF ratio of 13.88. This is a negative value and a sign of low solvency as PPX would need 13.88 years to pay back of all of its debts.
PPX's Debt to FCF ratio of 13.88 is on the low side compared to the rest of the industry. PPX is outperformed by 80.00% of its industry peers.
PPX has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
PPX has a worse Debt to Equity ratio (1.11) than 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 13.88 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.78
WACC6.64%
2.3 Liquidity
A Current Ratio of 1.11 indicates that PPX should not have too much problems paying its short term obligations.
PPX has a Current ratio of 1.11. This is in the lower half of the industry: PPX underperforms 77.50% of its industry peers.
A Quick Ratio of 0.69 indicates that PPX may have some problems paying its short term obligations.
PPX has a Quick ratio of 0.69. This is in the lower half of the industry: PPX underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for PPX have decreased strongly by -57.30% in the last year.
Measured over the past years, PPX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.03% 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.
The Revenue has been growing slightly by 1.60% on average over the past years.
EPS 1Y (TTM)-57.3%
EPS 3Y-26.58%
EPS 5Y-16.03%
EPS Q2Q%-66.89%
Revenue 1Y (TTM)-12.12%
Revenue growth 3Y-0.86%
Revenue growth 5Y1.6%
Sales Q2Q%-13.31%
3.2 Future
PPX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.93% yearly.
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y-11.6%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
EPS Next 5Y26.93%
Revenue Next Year1.08%
Revenue Next 2Y3.55%
Revenue Next 3Y4.56%
Revenue Next 5Y4.44%
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 16.34 indicates a correct valuation of PPX.
Based on the Price/Earnings ratio, PPX is valued a bit cheaper than 62.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of PPX to the average of the S&P500 Index (28.79), we can say PPX is valued slightly cheaper.
PPX is valuated rather expensively with a Price/Forward Earnings ratio of 18.49.
Based on the Price/Forward Earnings ratio, PPX is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PPX to the average of the S&P500 Index (21.38), we can say PPX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 18.49 |
4.2 Price Multiples
PPX's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PPX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.39 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.25%
EPS Next 3Y9.21%
5. Dividend
5.1 Amount
PPX has a Yearly Dividend Yield of 3.46%.
The stock price of PPX dropped by -32.54% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.41, PPX pays a better dividend. On top of this PPX pays more dividend than 82.50% of the companies listed in the same industry.
PPX's Dividend Yield is a higher than the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
5.2 History
The dividend of PPX is nicely growing with an annual growth rate of 6.01%!
Dividend Growth(5Y)6.01%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
151.46% of the earnings are spent on dividend by PPX. 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 2Y5.25%
EPS Next 3Y9.21%
FRA:PPX (4/25/2025, 7:00:00 PM)
174.52
+1.54 (+0.89%)
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 Cap21.54B
Analysts53.53
Price Target227.57 (30.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
Yearly Dividend14
Dividend Growth(5Y)6.01%
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)-5.66%
PT rev (3m)-4.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-17.36%
EPS NY rev (3m)-29.38%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 18.49 | ||
| P/S | 1.25 | ||
| P/FCF | 15.39 | ||
| P/OCF | 4.57 | ||
| P/B | 1.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.34 |
EPS(TTM)10.68
EY6.12%
EPS(NY)9.44
Fwd EY5.41%
FCF(TTM)11.34
FCFY6.5%
OCF(TTM)38.15
OCFY21.86%
SpS139.31
BVpS120.76
TBVpS-5.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 7.6% | ||
| ROCE | 7.37% | ||
| ROIC | 5.2% | ||
| ROICexc | 5.4% | ||
| ROICexgc | 10.07% | ||
| OM | 14.48% | ||
| PM (TTM) | 6.59% | ||
| GM | 73.75% | ||
| FCFM | 8.14% |
ROA(3y)6.82%
ROA(5y)7.67%
ROE(3y)17.67%
ROE(5y)19%
ROIC(3y)10.05%
ROIC(5y)11.02%
ROICexc(3y)11.71%
ROICexc(5y)13.25%
ROICexgc(3y)23.84%
ROICexgc(5y)27.41%
ROCE(3y)14.46%
ROCE(5y)15.94%
ROICexcg growth 3Y-34.7%
ROICexcg growth 5Y-22.91%
ROICexc growth 3Y-32.92%
ROICexc growth 5Y-21.33%
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 | 1.11 | ||
| Debt/FCF | 13.88 | ||
| Debt/EBITDA | 3.58 | ||
| 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 | 1.55 |
F-Score3
WACC6.64%
ROIC/WACC0.78
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)-57.3%
EPS 3Y-26.58%
EPS 5Y-16.03%
EPS Q2Q%-66.89%
EPS Next Y-11.6%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
EPS Next 5Y26.93%
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 5Y4.44%
EBIT growth 1Y-47.22%
EBIT growth 3Y-20.08%
EBIT growth 5Y-12.06%
EBIT Next Year72.86%
EBIT Next 3Y27.46%
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%