KERING (KER.PA)
FR0000121485 - Common Stock
Overall KER gets a fundamental rating of 4 out of 10. We evaluated KER against 42 industry peers in the Textiles, Apparel & Luxury Goods industry. KER has a medium profitability rating, but doesn't score so well on its financial health evaluation. KER is not valued too expensively and it also shows a decent growth rate. KER also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KER had positive earnings in the past year.
In the past year KER had a positive cash flow from operations.
Each year in the past 5 years KER has been profitable.
KER 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 7.21%, KER is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.61%, KER is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
The Return On Invested Capital of KER (10.32%) is comparable to the rest of the industry.
KER had an Average Return On Invested Capital over the past 3 years of 13.24%. This is in line with the industry average of 11.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.21% | ||
| ROE | 19.61% | ||
| ROIC | 10.32% |
ROA(3y)9.36%
ROA(5y)8.85%
ROE(3y)23.07%
ROE(5y)21.97%
ROIC(3y)13.24%
ROIC(5y)13.34%
1.3 Margins
KER has a better Profit Margin (15.25%) than 78.05% of its industry peers.
In the last couple of years the Profit Margin of KER has declined.
The Operating Margin of KER (23.84%) is better than 78.05% of its industry peers.
KER's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 76.29%, KER belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
KER's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.84% | ||
| PM (TTM) | 15.25% | ||
| GM | 76.29% |
OM growth 3Y0.82%
OM growth 5Y-3.4%
PM growth 3Y-2.43%
PM growth 5Y-10.92%
GM growth 3Y1.67%
GM growth 5Y0.44%
2. Health
2.1 Basic Checks
KER has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for KER has been increased compared to 1 year ago.
The number of shares outstanding for KER has been reduced compared to 5 years ago.
The debt/assets ratio for KER is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of KER is 9.64, which is on the high side as it means it would take KER, 9.64 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 9.64, KER is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.96 indicates that KER is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.96, KER is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 9.64 | ||
| Altman-Z | N/A |
ROIC/WACC1.61
WACC6.43%
2.3 Liquidity
KER has a Current Ratio of 1.38. This is a normal value and indicates that KER is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of KER (1.38) is comparable to the rest of the industry.
KER has a Quick Ratio of 1.38. 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 0.86. This is comparable to the rest of the industry: KER outperforms 58.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
KER shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.78%.
KER shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.27% yearly.
Looking at the last year, KER shows a decrease in Revenue. The Revenue has decreased by -3.86% in the last year.
KER shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.44% yearly.
EPS 1Y (TTM)-17.78%
EPS 3Y16.59%
EPS 5Y2.27%
EPS growth Q2Q-28%
Revenue 1Y (TTM)-3.86%
Revenue growth 3Y14.31%
Revenue growth 5Y7.44%
Revenue growth Q2Q-9.5%
3.2 Future
Based on estimates for the next years, KER will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.28% on average per year.
The Revenue is expected to grow by 7.10% on average over the next years.
EPS Next Y-14.07%
EPS Next 2Y-0.49%
EPS Next 3Y4.24%
EPS Next 5Y14.28%
Revenue Next Year-0.4%
Revenue Next 2Y3.14%
Revenue Next 3Y4.45%
Revenue Next 5Y7.1%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.46, KER is valued correctly.
78.05% of the companies in the same industry are more expensive than KER, based on the Price/Earnings ratio.
KER's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.20.
The Price/Forward Earnings ratio is 15.67, which indicates a correct valuation of KER.
KER's Price/Forward Earnings ratio is rather cheap when compared to the industry. KER is cheaper than 80.49% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, KER is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 15.67 |
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 | 22.49 | ||
| EV/EBITDA | 8.33 |
4.3 Compensation for Growth
The decent profitability rating of KER may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.94
EPS Next 2Y-0.49%
EPS Next 3Y4.24%
5. Dividend
5.1 Amount
KER has a Yearly Dividend Yield of 4.11%, which is a nice return.
Compared to an average industry Dividend Yield of 3.00, KER pays a better dividend. On top of this KER pays more dividend than 82.93% of the companies listed in the same industry.
KER's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
5.2 History
On average, the dividend of KER grows each year by 18.45%, which is quite nice.
Dividend Growth(5Y)18.45%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
KER pays out 57.39% of its income as dividend. This is a bit on the high side, but may be sustainable.
KER's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP57.39%
EPS Next 2Y-0.49%
EPS Next 3Y4.24%
KERING
EPA:KER (4/26/2024, 10:36:06 AM)
336.7
+9.4 (+2.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap41.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 15.67 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)5.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.21% | ||
| ROE | 19.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.84% | ||
| PM (TTM) | 15.25% | ||
| GM | 76.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-17.78%
EPS 3Y16.59%
EPS 5Y
EPS growth Q2Q
EPS Next Y-14.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.86%
Revenue growth 3Y14.31%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y