KOHLS CORP (KSS) Stock Fundamental Analysis
NYSE:KSS - New York Stock Exchange, Inc. - US5002551043 - Common Stock - Currency: USD
KSS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 28 industry peers in the Broadline Retail industry. KSS has a medium profitability rating, but doesn't score so well on its financial health evaluation. KSS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year KSS was profitable.
KSS had a positive operating cash flow in the past year.
In multiple years KSS reported negative net income over the last 5 years.
Each year in the past 5 years KSS had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.89%, KSS perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
KSS has a Return On Equity of 3.20%. This is comparable to the rest of the industry: KSS outperforms 50.00% of its industry peers.
KSS has a Return On Invested Capital of 4.36%. This is comparable to the rest of the industry: KSS outperforms 42.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KSS is significantly below the industry average of 11.32%.
The 3 year average ROIC (3.96%) for KSS is below the current ROIC(4.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 3.2% | ||
| ROIC | 4.36% |
ROA(3y)0.98%
ROA(5y)1.62%
ROE(3y)3.5%
ROE(5y)5.5%
ROIC(3y)3.96%
ROIC(5y)4.98%
1.3 Margins
KSS has a Profit Margin (0.75%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KSS has declined.
KSS has a Operating Margin (3.27%) which is in line with its industry peers.
In the last couple of years the Operating Margin of KSS has declined.
Looking at the Gross Margin, with a value of 40.44%, KSS is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of KSS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.27% | ||
| PM (TTM) | 0.75% | ||
| GM | 40.44% |
OM growth 3Y-28.67%
OM growth 5Y-12.36%
PM growth 3Y-48.17%
PM growth 5Y-27.94%
GM growth 3Y-0.57%
GM growth 5Y0.61%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KSS is destroying value.
Compared to 1 year ago, KSS has about the same amount of shares outstanding.
KSS has less shares outstanding than it did 5 years ago.
KSS has about the same debt/assets ratio as last year.
2.2 Solvency
KSS has an Altman-Z score of 1.53. This is a bad value and indicates that KSS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.53, KSS is in line with its industry, outperforming 42.86% of the companies in the same industry.
The Debt to FCF ratio of KSS is 40.58, which is on the high side as it means it would take KSS, 40.58 years of fcf income to pay off all of its debts.
KSS has a worse Debt to FCF ratio (40.58) than 67.86% of its industry peers.
A Debt/Equity ratio of 1.10 is on the high side and indicates that KSS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.10, KSS is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 40.58 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.49
WACC8.84%
2.3 Liquidity
KSS has a Current Ratio of 1.09. This is a normal value and indicates that KSS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.09, KSS is doing worse than 75.00% of the companies in the same industry.
A Quick Ratio of 0.14 indicates that KSS may have some problems paying its short term obligations.
The Quick ratio of KSS (0.14) is worse than 96.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The earnings per share for KSS have decreased strongly by -35.08% in the last year.
Measured over the past years, KSS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -21.05% on average per year.
Looking at the last year, KSS shows a decrease in Revenue. The Revenue has decreased by -7.03% in the last year.
Measured over the past years, KSS shows a decrease in Revenue. The Revenue has been decreasing by -4.08% on average per year.
EPS 1Y (TTM)-35.08%
EPS 3Y-41.2%
EPS 5Y-21.05%
EPS Q2Q%45.83%
Revenue 1Y (TTM)-7.03%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-4.06%
3.2 Future
KSS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.95% yearly.
The Revenue is expected to decrease by -1.72% on average over the next years.
EPS Next Y-70.14%
EPS Next 2Y-41.3%
EPS Next 3Y-20.54%
EPS Next 5Y17.95%
Revenue Next Year-5.08%
Revenue Next 2Y-3.1%
Revenue Next 3Y-1.72%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 8.55, the valuation of KSS can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of KSS indicates a rather cheap valuation: KSS is cheaper than 82.14% of the companies listed in the same industry.
KSS is valuated cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.64, which means the current valuation is very expensive for KSS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KSS is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of KSS to the average of the S&P500 Index (35.29), we can say KSS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 26.64 |
4.2 Price Multiples
89.29% of the companies in the same industry are more expensive than KSS, based on the Enterprise Value to EBITDA ratio.
67.86% of the companies in the same industry are more expensive than KSS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.65 | ||
| EV/EBITDA | 4.32 |
4.3 Compensation for Growth
KSS's earnings are expected to decrease with -20.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.3%
EPS Next 3Y-20.54%
5. Dividend
5.1 Amount
KSS has a Yearly Dividend Yield of 3.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 14.82, KSS pays a better dividend. On top of this KSS pays more dividend than 92.86% of the companies listed in the same industry.
KSS's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
5.2 History
The dividend of KSS decreases each year by -5.49%.
KSS has been paying a dividend for at least 10 years, so it has a reliable track record.
KSS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-5.49%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
KSS pays out 149.59% of its income as dividend. This is not a sustainable payout ratio.
DP149.59%
EPS Next 2Y-41.3%
EPS Next 3Y-20.54%
13.77
-0.69 (-4.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners108.49%
Inst Owner Change-1.32%
Ins Owners3.3%
Ins Owner Change19.7%
Market Cap1.54B
Analysts48.7
Price Target7.66 (-44.37%)
Short Float %46.15%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
Yearly Dividend2
Dividend Growth(5Y)-5.49%
DP149.59%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)39.96%
Min EPS beat(2)28.5%
Max EPS beat(2)51.41%
EPS beat(4)3
Avg EPS beat(4)20.46%
Min EPS beat(4)-29.1%
Max EPS beat(4)51.41%
EPS beat(8)6
Avg EPS beat(8)-48.46%
EPS beat(12)9
Avg EPS beat(12)-49.88%
EPS beat(16)12
Avg EPS beat(16)-26.53%
Revenue beat(2)0
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)-0.07%
Revenue beat(8)0
Avg Revenue beat(8)-2.23%
Revenue beat(12)2
Avg Revenue beat(12)-0.78%
Revenue beat(16)4
Avg Revenue beat(16)0.33%
PT rev (1m)6.21%
PT rev (3m)10.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.13%
EPS NY rev (1m)0%
EPS NY rev (3m)32.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 26.64 | ||
| P/S | 0.1 | ||
| P/FCF | 13.65 | ||
| P/OCF | 2.74 | ||
| P/B | 0.41 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | 4.32 |
EPS(TTM)1.61
EY11.69%
EPS(NY)0.52
Fwd EY3.75%
FCF(TTM)1.01
FCFY7.32%
OCF(TTM)5.02
OCFY36.49%
SpS143.45
BVpS33.73
TBVpS33.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 3.2% | ||
| ROCE | 5.08% | ||
| ROIC | 4.36% | ||
| ROICexc | 4.42% | ||
| ROICexgc | 4.42% | ||
| OM | 3.27% | ||
| PM (TTM) | 0.75% | ||
| GM | 40.44% | ||
| FCFM | 0.7% |
ROA(3y)0.98%
ROA(5y)1.62%
ROE(3y)3.5%
ROE(5y)5.5%
ROIC(3y)3.96%
ROIC(5y)4.98%
ROICexc(3y)4.02%
ROICexc(5y)5.42%
ROICexgc(3y)4.02%
ROICexgc(5y)5.42%
ROCE(3y)4.45%
ROCE(5y)5.55%
ROICexcg growth 3Y-33.7%
ROICexcg growth 5Y-15.18%
ROICexc growth 3Y-33.7%
ROICexc growth 5Y-15.18%
OM growth 3Y-28.67%
OM growth 5Y-12.36%
PM growth 3Y-48.17%
PM growth 5Y-27.94%
GM growth 3Y-0.57%
GM growth 5Y0.61%
F-Score5
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 40.58 | ||
| Debt/EBITDA | 3.31 | ||
| Cap/Depr | 61.64% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 1.7 | ||
| Cash Conversion | 44.82% | ||
| Profit Quality | 93.39% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 1.53 |
F-Score5
WACC8.84%
ROIC/WACC0.49
Cap/Depr(3y)80.66%
Cap/Depr(5y)70.48%
Cap/Sales(3y)3.58%
Cap/Sales(5y)3.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-35.08%
EPS 3Y-41.2%
EPS 5Y-21.05%
EPS Q2Q%45.83%
EPS Next Y-70.14%
EPS Next 2Y-41.3%
EPS Next 3Y-20.54%
EPS Next 5Y17.95%
Revenue 1Y (TTM)-7.03%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-4.06%
Revenue Next Year-5.08%
Revenue Next 2Y-3.1%
Revenue Next 3Y-1.72%
Revenue Next 5YN/A
EBIT growth 1Y-20.54%
EBIT growth 3Y-32.84%
EBIT growth 5Y-15.93%
EBIT Next Year123.65%
EBIT Next 3Y31.44%
EBIT Next 5Y22.28%
FCF growth 1Y171.07%
FCF growth 3Y-52.2%
FCF growth 5Y-25.67%
OCF growth 1Y4.26%
OCF growth 3Y-34.17%
OCF growth 5Y-17.12%