KERING (1KER.MI) Stock Fundamental Analysis
BIT:1KER - Euronext Milan - FR0000121485 - Common Stock - Currency: EUR
1KER gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. While 1KER is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, 1KER is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1KER was profitable.
1KER had a positive operating cash flow in the past year.
In the past 5 years 1KER has always been profitable.
1KER had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.61%, 1KER is in line with its industry, outperforming 44.44% of the companies in the same industry.
The Return On Equity of 1KER (7.60%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.20%, 1KER is in line with its industry, outperforming 44.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1KER is in line with the industry average of 10.72%.
The 3 year average ROIC (10.05%) for 1KER is well above the current ROIC(5.20%). The reason for the recent decline needs to be investigated.
| 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 has a Profit Margin of 6.59%. This is in the better half of the industry: 1KER outperforms 64.44% of its industry peers.
In the last couple of years the Profit Margin of 1KER has declined.
1KER's Operating Margin of 14.48% is fine compared to the rest of the industry. 1KER outperforms 68.89% of its industry peers.
1KER's Operating Margin has declined in the last couple of years.
1KER's Gross Margin of 73.75% is amongst the best of the industry. 1KER outperforms 82.22% of its industry peers.
1KER'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
1KER 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, 1KER has about the same amount of shares outstanding.
Compared to 5 years ago, 1KER has less shares outstanding
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.
1KER has a Altman-Z score of 1.56. This is in the lower half of the industry: 1KER underperforms 68.89% of its industry peers.
The Debt to FCF ratio of 1KER is 13.88, which is on the high side as it means it would take 1KER, 13.88 years of fcf income to pay off all of its debts.
1KER has a Debt to FCF ratio of 13.88. This is in the lower half of the industry: 1KER underperforms 77.78% 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 worse Debt to Equity ratio (1.11) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 13.88 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.78
WACC6.67%
2.3 Liquidity
A Current Ratio of 1.11 indicates that 1KER should not have too much problems paying its short term obligations.
1KER's Current ratio of 1.11 is on the low side compared to the rest of the industry. 1KER is outperformed by 77.78% of its industry peers.
A Quick Ratio of 0.69 indicates that 1KER may have some problems paying its short term obligations.
The Quick ratio of 1KER (0.69) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
1KER shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.30%.
1KER shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.03% yearly.
The Revenue for 1KER has decreased by -12.12% in the past year. This is quite bad
Measured over the past years, 1KER shows a small growth in Revenue. The Revenue has been growing by 1.60% on average per year.
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
Based on estimates for the next years, 1KER will show a very strong growth in Earnings Per Share. The EPS will grow by 21.32% on average per year.
Based on estimates for the next years, 1KER will show a small growth in Revenue. The Revenue will grow by 3.74% on average per year.
EPS Next Y-11.6%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
EPS Next 5Y21.32%
Revenue Next Year-8.52%
Revenue Next 2Y-2.02%
Revenue Next 3Y0.88%
Revenue Next 5Y3.74%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 16.86, 1KER is valued correctly.
1KER's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of 1KER to the average of the S&P500 Index (26.34), we can say 1KER is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 19.08, the valuation of 1KER can be described as rather expensive.
Based on the Price/Forward Earnings ratio, 1KER is valued a bit cheaper than 66.67% of the companies in the same industry.
1KER's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 19.08 |
4.2 Price Multiples
1KER's Enterprise Value to EBITDA ratio is in line with the industry average.
1KER's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.88 | ||
| EV/EBITDA | 8.53 |
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
1KER has a Yearly Dividend Yield of 3.44%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of 1KER has falen by -27.08%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
1KER's Dividend Yield is a higher than the industry average which is at 3.52.
1KER's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
The dividend of 1KER is nicely growing with an annual growth rate of 6.01%!
Dividend Growth(5Y)6.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
151.46% of the earnings are spent on dividend by 1KER. 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 (6/18/2025, 7:00:00 PM)
180.1
-10.98 (-5.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners25.73%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap22.23B
Analysts53.33
Price Target197.47 (9.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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)-2.4%
PT rev (3m)-23.1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-17.36%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 19.08 | ||
| P/S | 1.29 | ||
| P/FCF | 15.88 | ||
| P/OCF | 4.72 | ||
| P/B | 1.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.53 |
EPS(TTM)10.68
EY5.93%
EPS(NY)9.44
Fwd EY5.24%
FCF(TTM)11.34
FCFY6.3%
OCF(TTM)38.15
OCFY21.19%
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
WACC6.67%
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 5Y21.32%
Revenue 1Y (TTM)-12.12%
Revenue growth 3Y-0.86%
Revenue growth 5Y1.6%
Sales Q2Q%-13.31%
Revenue Next Year-8.52%
Revenue Next 2Y-2.02%
Revenue Next 3Y0.88%
Revenue Next 5Y3.74%
EBIT growth 1Y-47.22%
EBIT growth 3Y-20.08%
EBIT growth 5Y-12.06%
EBIT Next Year50.68%
EBIT Next 3Y22.84%
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%