KERING (1KER.MI) Stock Fundamental Analysis
BIT:1KER - Euronext Milan - FR0000121485 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1KER. 1KER was compared to 39 industry peers in the Textiles, Apparel & Luxury Goods industry. 1KER has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1KER is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1KER was profitable.
In the past year 1KER had a positive cash flow from operations.
1KER had positive earnings in each of the past 5 years.
Each year in the past 5 years 1KER had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.61%, 1KER is in line with its industry, outperforming 43.59% of the companies in the same industry.
With a Return On Equity value of 7.60%, 1KER perfoms like the industry average, outperforming 43.59% of the companies in the same industry.
With a Return On Invested Capital value of 5.20%, 1KER perfoms like the industry average, outperforming 41.03% of the companies in the same industry.
1KER had an Average Return On Invested Capital over the past 3 years of 10.05%. This is in line with the industry average of 10.52%.
The last Return On Invested Capital (5.20%) for 1KER is well below the 3 year average (10.05%), which needs to be investigated, but indicates that 1KER 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
1KER's Profit Margin of 6.59% is fine compared to the rest of the industry. 1KER outperforms 61.54% of its industry peers.
1KER's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 14.48%, 1KER is doing good in the industry, outperforming 64.10% of the companies in the same industry.
In the last couple of years the Operating Margin of 1KER has declined.
Looking at the Gross Margin, with a value of 73.75%, 1KER belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Gross Margin of 1KER has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1KER is still creating some value.
1KER has about the same amout of shares outstanding than it did 1 year ago.
1KER has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1KER has a worse debt to assets ratio.
2.2 Solvency
1KER has an Altman-Z score of 1.56. This is a bad value and indicates that 1KER is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.56, 1KER is not doing good in the industry: 64.10% of the companies in the same industry are doing better.
1KER has a debt to FCF ratio of 13.88. This is a negative value and a sign of low solvency as 1KER would need 13.88 years to pay back of all of its debts.
1KER has a worse Debt to FCF ratio (13.88) than 82.05% of its industry peers.
A Debt/Equity ratio of 1.11 is on the high side and indicates that 1KER has dependencies on debt financing.
1KER has a Debt to Equity ratio of 1.11. This is in the lower half of the industry: 1KER underperforms 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 13.88 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.76
WACC6.84%
2.3 Liquidity
A Current Ratio of 1.11 indicates that 1KER should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, 1KER is not doing good in the industry: 79.49% of the companies in the same industry are doing better.
1KER has a Quick Ratio of 1.11. This is a bad value and indicates that 1KER is not financially healthy enough and could expect problems in meeting its short term obligations.
1KER has a worse Quick ratio (0.69) than 69.23% 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 1KER have decreased strongly by -57.30% in the last year.
1KER shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.03% yearly.
Looking at the last year, 1KER shows a very negative growth in Revenue. The Revenue has decreased by -12.12% in the last year.
1KER shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
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
The Earnings Per Share is expected to grow by 26.93% on average over the next years. This is a very strong growth
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 Year-3.1%
Revenue Next 2Y0.91%
Revenue Next 3Y2.96%
Revenue Next 5Y4.44%
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 16.53, which indicates a correct valuation of 1KER.
1KER's Price/Earnings ratio is a bit cheaper when compared to the industry. 1KER is cheaper than 64.10% of the companies in the same industry.
1KER is valuated rather cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.70, the valuation of 1KER can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1KER indicates a somewhat cheap valuation: 1KER is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.74. 1KER is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 18.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1KER.
1KER's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.56 | ||
| EV/EBITDA | 8.44 |
4.3 Compensation for Growth
The decent profitability rating of 1KER may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.25%
EPS Next 3Y9.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.36%, 1KER has a reasonable but not impressive dividend return.
The stock price of 1KER dropped by -31.27% 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.
1KER's Dividend Yield is rather good when compared to the industry average which is at 3.49. 1KER pays more dividend than 82.05% of the companies in the same industry.
1KER's Dividend Yield is a higher than the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
5.2 History
On average, the dividend of 1KER grows each year by 6.01%, which is quite nice.
Dividend Growth(5Y)6.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1KER pays out 151.46% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1KER is growing, but earnings are growing more, so the dividend growth is sustainable.
DP151.46%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
BIT:1KER (5/5/2025, 7:00:00 PM)
176.56
-2.24 (-1.25%)
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 Cap21.79B
Analysts52.94
Price Target227.6 (28.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
Yearly Dividend14
Dividend Growth(5Y)6.01%
DP151.46%
Div Incr Years0
Div Non Decr Years0
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)-11.21%
PT rev (3m)-8.51%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-13.31%
EPS NY rev (3m)-26.12%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-4.13%
Revenue NY rev (3m)-4.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 18.7 | ||
| P/S | 1.27 | ||
| P/FCF | 15.56 | ||
| P/OCF | 4.63 | ||
| P/B | 1.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.44 |
EPS(TTM)10.68
EY6.05%
EPS(NY)9.44
Fwd EY5.35%
FCF(TTM)11.34
FCFY6.42%
OCF(TTM)38.15
OCFY21.61%
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 | 1.56 |
F-Score3
WACC6.84%
ROIC/WACC0.76
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 Year-3.1%
Revenue Next 2Y0.91%
Revenue Next 3Y2.96%
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%