KERING (KER.PA) Stock Fundamental Analysis
EPA:KER - Euronext Paris - Matif - FR0000121485 - Common Stock - Currency: EUR
Taking everything into account, KER scores 4 out of 10 in our fundamental rating. KER was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. While KER is still in line with the averages on profitability rating, there are concerns on its financial health. KER has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year KER was profitable.
KER had a positive operating cash flow in the past year.
In the past 5 years KER has always been profitable.
In the past 5 years KER always reported a positive cash flow from operatings.
1.2 Ratios
KER's Return On Assets of 2.61% is in line compared to the rest of the industry. KER outperforms 44.44% of its industry peers.
KER has a Return On Equity (7.60%) which is in line with its industry peers.
With a Return On Invested Capital value of 5.20%, KER perfoms like the industry average, outperforming 42.22% of the companies in the same industry.
KER had an Average Return On Invested Capital over the past 3 years of 10.05%. This is in line with the industry average of 10.46%.
The last Return On Invested Capital (5.20%) for KER is well below the 3 year average (10.05%), which needs to be investigated, but indicates that KER 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
KER has a Profit Margin of 6.59%. This is in the better half of the industry: KER outperforms 71.11% of its industry peers.
KER's Profit Margin has declined in the last couple of years.
KER's Operating Margin of 14.48% is fine compared to the rest of the industry. KER outperforms 68.89% of its industry peers.
In the last couple of years the Operating Margin of KER has declined.
KER has a Gross Margin of 73.75%. This is amongst the best in the industry. KER outperforms 86.67% of its industry peers.
KER'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
KER has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for KER remains at a similar level compared to 1 year ago.
Compared to 5 years ago, KER has less shares outstanding
Compared to 1 year ago, KER has a worse debt to assets ratio.
2.2 Solvency
KER has an Altman-Z score of 1.55. This is a bad value and indicates that KER is not financially healthy and even has some risk of bankruptcy.
KER has a worse Altman-Z score (1.55) than 73.33% of its industry peers.
KER has a debt to FCF ratio of 13.88. This is a negative value and a sign of low solvency as KER would need 13.88 years to pay back of all of its debts.
The Debt to FCF ratio of KER (13.88) is worse than 77.78% of its industry peers.
KER has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of KER (1.11) is worse than 68.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 13.88 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.79
WACC6.55%
2.3 Liquidity
A Current Ratio of 1.11 indicates that KER should not have too much problems paying its short term obligations.
KER's Current ratio of 1.11 is on the low side compared to the rest of the industry. KER is outperformed by 77.78% of its industry peers.
KER has a Quick Ratio of 1.11. This is a bad value and indicates that KER is not financially healthy enough and could expect problems in meeting its short term obligations.
KER has a Quick ratio of 0.69. This is in the lower half of the industry: KER underperforms 68.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
KER shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.30%.
Measured over the past years, KER shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.03% on average per year.
KER shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.12%.
KER 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
KER 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 Year-8.52%
Revenue Next 2Y-2.02%
Revenue Next 3Y0.88%
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
Based on the Price/Earnings ratio of 16.23, the valuation of KER can be described as correct.
KER's Price/Earnings ratio is a bit cheaper when compared to the industry. KER is cheaper than 71.11% of the companies in the same industry.
When comparing the Price/Earnings ratio of KER to the average of the S&P500 Index (25.82), we can say KER is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.36 indicates a rather expensive valuation of KER.
Based on the Price/Forward Earnings ratio, KER is valued a bit cheaper than the industry average as 75.56% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of KER to the average of the S&P500 Index (21.76), we can say KER is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.23 | ||
| Fwd PE | 18.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KER.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KER is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.28 | ||
| EV/EBITDA | 8.41 |
4.3 Compensation for Growth
The decent profitability rating of KER 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
KER has a Yearly Dividend Yield of 3.41%.
The stock price of KER dropped by -37.44% 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.
KER's Dividend Yield is rather good when compared to the industry average which is at 3.32. KER pays more dividend than 82.22% of the companies in the same industry.
KER's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
On average, the dividend of KER grows each year by 6.01%, which is quite nice.
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 KER. This is not a sustainable payout ratio.
KER's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP151.46%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
EPA:KER (5/23/2025, 7:00:00 PM)
173.3
-2.22 (-1.26%)
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 Cap21.39B
Analysts52.94
Price Target201.35 (16.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
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)-16.77%
PT rev (3m)-19.52%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-26.12%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-9.49%
Revenue NY rev (3m)-9.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.23 | ||
| Fwd PE | 18.36 | ||
| P/S | 1.24 | ||
| P/FCF | 15.28 | ||
| P/OCF | 4.54 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.41 |
EPS(TTM)10.68
EY6.16%
EPS(NY)9.44
Fwd EY5.45%
FCF(TTM)11.34
FCFY6.55%
OCF(TTM)38.15
OCFY22.02%
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
WACC6.55%
ROIC/WACC0.79
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-8.52%
Revenue Next 2Y-2.02%
Revenue Next 3Y0.88%
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%