FR0000121485 - Common Stock

We assign a fundamental rating of **4** out of 10 to **KER**. **KER** was compared to 40 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** is valued correctly, but it does not seem to be growing. **KER** also has an excellent dividend rating.

In the past year **KER** was profitable.

In the past year **KER** had a positive cash flow from operations.

In the past 5 years **KER** has always been profitable.

In the past 5 years **KER** always reported a positive cash flow from operatings.

The **Return On Invested Capital** of **KER** (**7.33%**) is comparable to the rest of the industry.

The **Average Return On Invested Capital** over the past 3 years for **KER** is above the industry average of **10.99%**.

The last **Return On Invested Capital** (**7.33%**) for **KER** is well below the 3 year average (**13.24%**), which needs to be investigated, but indicates that **KER** had better years and this may not be a problem.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 4.93% | ||

ROE | 13.93% | ||

ROIC | 7.33% |

ROA(3y)9.36%

ROA(5y)8.85%

ROE(3y)23.07%

ROE(5y)21.97%

ROIC(3y)13.24%

ROIC(5y)13.34%

In the last couple of years the **Profit Margin** of **KER** has declined.

The **Operating Margin** of **KER** (**19.36%**) is better than **72.50%** of its industry peers.

With an excellent **Gross Margin** value of **75.37%**, **KER** belongs to the best of the industry, outperforming **82.50%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 19.36% | ||

PM (TTM) | 11.25% | ||

GM | 75.37% |

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%

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so **KER** is creating value.

Looking at the **Debt to FCF ratio**, with a value of **8.51**, **KER** is doing worse than **67.50%** of the companies in the same industry.

A Debt/Equity ratio of **1.11** is on the high side and indicates that **KER** has dependencies on debt financing.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 1.11 | ||

Debt/FCF | 8.51 | ||

Altman-Z | 1.91 |

ROIC/WACC1.16

WACC6.31%

A Current Ratio of **1.38** indicates that **KER** should not have too much problems paying its short term obligations.

A Quick Ratio of **0.87** indicates that **KER** may have some problems paying its short term obligations.

The **Quick ratio** of **KER** (**0.87**) is comparable to the rest of the industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 1.38 | ||

Quick Ratio | 0.87 |

The earnings per share for **KER** have decreased strongly by **-39.59%** in the last year.

The **Earnings Per Share** has been growing slightly by **2.27%** on average over the past years.

Looking at the last year, **KER** shows a very negative growth in **Revenue**. The Revenue has decreased by **-10.25%** in the last year.

Measured over the past years, **KER** shows a small growth in **Revenue**. The Revenue has been growing by **7.44%** on average per year.

EPS 1Y (TTM)-39.59%

EPS 3Y16.59%

EPS 5Y2.27%

EPS Q2Q%-51.03%

Revenue 1Y (TTM)-10.25%

Revenue growth 3Y14.31%

Revenue growth 5Y7.44%

Sales Q2Q%-11.02%

Based on estimates for the next years, **KER** will show a small growth in **Earnings Per Share**. The EPS will grow by **7.09%** on average per year.

EPS Next Y-52.52%

EPS Next 2Y-26.89%

EPS Next 3Y-12.72%

EPS Next 5Y7.09%

Revenue Next Year-12.24%

Revenue Next 2Y-5.34%

Revenue Next 3Y-1.64%

Revenue Next 5Y4.73%

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 decreasing: in the next years the growth will be less than in the last years.

82.50% of the companies in the same industry are more expensive than **KER**, based on the **Price/Earnings** ratio.

Compared to an average S&P500 **Price/Earnings** ratio of **29.30**, **KER** is valued rather cheaply.

Based on the **Price/Forward Earnings** ratio of **16.53**, the valuation of **KER** can be described as correct.

Compared to the rest of the industry, the **Price/Forward Earnings** ratio of **KER** indicates a somewhat cheap valuation: **KER** is cheaper than 72.50% of the companies listed in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 12.59 | ||

Fwd PE | 16.53 |

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 12.41 | ||

EV/EBITDA | 7.29 |

PEG (NY)N/A

PEG (5Y)5.56

EPS Next 2Y-26.89%

EPS Next 3Y-12.72%

With a **Yearly Dividend Yield** of **5.83%**, **KER** is a good candidate for dividend investing.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 5.83% |

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

DP82.66%

EPS Next 2Y-26.89%

EPS Next 3Y-12.72%

**KERING**

EPA:KER (11/8/2024, 7:00:00 PM)

**221**

**-19.1 (-7.96%) **

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 Cap27.28B

Analysts

Price Target

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 5.83% |

Dividend Growth(5Y)

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Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

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EPS beat(8)

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EPS beat(12)

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EPS beat(16)

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Revenue beat(2)

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Revenue beat(4)

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Revenue beat(12)

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Revenue beat(16)

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EPS NQ rev (3m)

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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 | 12.59 | ||

Fwd PE | 16.53 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

EV/EBITDA |

EPS(TTM)

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EPS(NY)

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SpS

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PEG (NY)N/A

PEG (5Y)5.56

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 4.93% | ||

ROE | 13.93% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 19.36% | ||

PM (TTM) | 11.25% | ||

GM | 75.37% | ||

FCFM |

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

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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 Turnover0.44

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 1.11 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 1.38 | ||

Quick Ratio | 0.87 | ||

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)

High Growth Momentum

Growth

EPS 1Y (TTM)-39.59%

EPS 3Y16.59%

EPS 5Y

EPS Q2Q%

EPS Next Y-52.52%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)-10.25%

Revenue growth 3Y14.31%

Revenue growth 5Y

Sales Q2Q%

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

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EBIT Next 3Y

EBIT Next 5Y

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