KERING (1KER.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1KER - FR0000121485 - Common Stock
280.85 EUR
+8.85 (+3.25%)
Overall 1KER gets a fundamental rating of 3 out of 10. We evaluated 1KER against 52 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. 1KER is quite expensive at the moment. It does show a decent growth rate.
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.
- In the past 5 years 1KER always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.72%, 1KER is doing worse than 60.78% of the companies in the same industry.
- 1KER has a worse Return On Equity (4.94%) than 64.71% of its industry peers.
- The Return On Invested Capital of 1KER (3.65%) is worse than 70.59% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1KER is in line with the industry average of 11.64%.
- The 3 year average ROIC (10.05%) for 1KER is well above the current ROIC(3.65%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 4.94% | ||
| ROIC | 3.65% |
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 (4.62%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of 1KER has declined.
- Looking at the Operating Margin, with a value of 11.07%, 1KER is in line with its industry, outperforming 50.98% of the companies in the same industry.
- 1KER's Operating Margin has declined in the last couple of years.
- 1KER has a better Gross Margin (73.03%) than 76.47% of its industry peers.
- 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 | 11.07% | ||
| PM (TTM) | 4.62% | ||
| GM | 73.03% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1KER is 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.
- 1KER has a worse debt/assets ratio than last year.
2.2 Solvency
- 1KER has an Altman-Z score of 1.83. This is not the best score and indicates that 1KER is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 1.83, 1KER is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- 1KER has a debt to FCF ratio of 13.86. This is a negative value and a sign of low solvency as 1KER would need 13.86 years to pay back of all of its debts.
- 1KER's Debt to FCF ratio of 13.86 is on the low side compared to the rest of the industry. 1KER is outperformed by 68.63% of its industry peers.
- A Debt/Equity ratio of 1.12 is on the high side and indicates that 1KER has dependencies on debt financing.
- The Debt to Equity ratio of 1KER (1.12) is worse than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 13.86 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.52
WACC6.99%
2.3 Liquidity
- 1KER has a Current Ratio of 1.32. This is a normal value and indicates that 1KER is financially healthy and should not expect problems in meeting its short term obligations.
- 1KER's Current ratio of 1.32 is on the low side compared to the rest of the industry. 1KER is outperformed by 70.59% of its industry peers.
- A Quick Ratio of 0.87 indicates that 1KER may have some problems paying its short term obligations.
- The Quick ratio of 1KER (0.87) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The earnings per share for 1KER have decreased strongly by -59.67% 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.
- 1KER shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.56%.
- The Revenue has been growing slightly by 1.60% on average over the past years.
EPS 1Y (TTM)-59.67%
EPS 3Y-26.58%
EPS 5Y-16.03%
EPS Q2Q%-49.31%
Revenue 1Y (TTM)-14.56%
Revenue growth 3Y-0.86%
Revenue growth 5Y1.6%
Sales Q2Q%-15.97%
3.2 Future
- 1KER is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.83% yearly.
- 1KER is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.24% yearly.
EPS Next Y-45.58%
EPS Next 2Y-10.81%
EPS Next 3Y3.27%
EPS Next 5Y9.83%
Revenue Next Year-12.78%
Revenue Next 2Y-5.37%
Revenue Next 3Y-1.3%
Revenue Next 5Y2.24%
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 39.50, which means the current valuation is very expensive for 1KER.
- Based on the Price/Earnings ratio, 1KER is valued a bit more expensive than 60.78% of the companies in the same industry.
- When comparing the Price/Earnings ratio of 1KER to the average of the S&P500 Index (27.21), we can say 1KER is valued slightly more expensively.
- The Price/Forward Earnings ratio is 33.06, which means the current valuation is very expensive for 1KER.
- 62.75% of the companies in the same industry are cheaper than 1KER, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1KER is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.5 | ||
| Fwd PE | 33.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1KER is valued a bit more expensive than the industry average as 60.78% of the companies are valued more cheaply.
- 1KER's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.05 | ||
| EV/EBITDA | 12.54 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.81%
EPS Next 3Y3.27%
5. Dividend
5.1 Amount
- 1KER has a Yearly Dividend Yield of 2.14%.
- 1KER's Dividend Yield is comparable with the industry average which is at 1.99.
- Compared to an average S&P500 Dividend Yield of 1.81, 1KER has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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 100.96% of its income as dividend. This is not a sustainable payout ratio.
- 1KER's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP100.96%
EPS Next 2Y-10.81%
EPS Next 3Y3.27%
KERING / 1KER.MI FAQ
What is the ChartMill fundamental rating of KERING (1KER.MI) stock?
ChartMill assigns a fundamental rating of 3 / 10 to 1KER.MI.
What is the valuation status of KERING (1KER.MI) stock?
ChartMill assigns a valuation rating of 1 / 10 to KERING (1KER.MI). This can be considered as Overvalued.
What is the profitability of 1KER stock?
KERING (1KER.MI) has a profitability rating of 4 / 10.
What is the valuation of KERING based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KERING (1KER.MI) is 39.5 and the Price/Book (PB) ratio is 2.35.
Is the dividend of KERING sustainable?
The dividend rating of KERING (1KER.MI) is 4 / 10 and the dividend payout ratio is 100.96%.