KOHLS CORP (KSS) Stock Fundamental Analysis
NYSE:KSS - New York Stock Exchange, Inc. - US5002551043 - Common Stock - Currency: USD
Taking everything into account, KSS scores 3 out of 10 in our fundamental rating. KSS was compared to 31 industry peers in the Broadline Retail industry. There are concerns on the financial health of KSS while its profitability can be described as average. KSS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year KSS was profitable.
In the past year KSS had a positive cash flow from operations.
In multiple years KSS reported negative net income over the last 5 years.
In the past 5 years KSS always reported a positive cash flow from operatings.
1.2 Ratios
KSS has a Return On Assets (0.80%) which is in line with its industry peers.
KSS has a Return On Equity (2.87%) which is in line with its industry peers.
KSS has a Return On Invested Capital of 4.29%. This is in the lower half of the industry: KSS underperforms 61.29% of its industry peers.
KSS had an Average Return On Invested Capital over the past 3 years of 3.96%. This is significantly below the industry average of 11.80%.
The last Return On Invested Capital (4.29%) for KSS is above the 3 year average (3.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 2.87% | ||
| ROIC | 4.29% |
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 of 0.67%. This is comparable to the rest of the industry: KSS outperforms 54.84% of its industry peers.
In the last couple of years the Profit Margin of KSS has declined.
Looking at the Operating Margin, with a value of 3.14%, KSS is in line with its industry, outperforming 45.16% of the companies in the same industry.
KSS's Operating Margin has declined in the last couple of years.
The Gross Margin of KSS (40.44%) is comparable to the rest of the 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 | 3.14% | ||
| PM (TTM) | 0.67% | ||
| 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
KSS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KSS remains at a similar level compared to 1 year ago.
The number of shares outstanding for KSS has been reduced compared to 5 years ago.
Compared to 1 year ago, KSS has about the same debt to assets ratio.
2.2 Solvency
KSS has an Altman-Z score of 1.50. This is a bad value and indicates that KSS is not financially healthy and even has some risk of bankruptcy.
KSS has a Altman-Z score (1.50) which is in line with its industry peers.
KSS has a debt to FCF ratio of 23.92. This is a negative value and a sign of low solvency as KSS would need 23.92 years to pay back of all of its debts.
KSS has a worse Debt to FCF ratio (23.92) than 61.29% of its industry peers.
KSS has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
KSS's Debt to Equity ratio of 1.03 is on the low side compared to the rest of the industry. KSS is outperformed by 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 23.92 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.55
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.08 indicates that KSS should not have too much problems paying its short term obligations.
KSS's Current ratio of 1.08 is on the low side compared to the rest of the industry. KSS is outperformed by 80.65% of its industry peers.
A Quick Ratio of 0.14 indicates that KSS may have some problems paying its short term obligations.
KSS has a Quick ratio of 0.14. This is amonst the worse of the industry: KSS underperforms 93.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The earnings per share for KSS have decreased strongly by -47.37% in the last year.
KSS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -21.05% yearly.
KSS shows a decrease in Revenue. In the last year, the revenue decreased by -7.18%.
The Revenue has been decreasing by -4.08% on average over the past years.
EPS 1Y (TTM)-47.37%
EPS 3Y-41.2%
EPS 5Y-21.05%
EPS Q2Q%-43.11%
Revenue 1Y (TTM)-7.18%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-9.37%
3.2 Future
The Earnings Per Share is expected to grow by 17.81% on average over the next years. This is quite good.
Based on estimates for the next years, KSS will show a decrease in Revenue. The Revenue will decrease by -2.21% on average per year.
EPS Next Y-81.46%
EPS Next 2Y-45.16%
EPS Next 3Y-26.77%
EPS Next 5Y17.81%
Revenue Next Year-5.03%
Revenue Next 2Y-2.79%
Revenue Next 3Y-2.21%
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.
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
The Price/Earnings ratio is 4.55, which indicates a rather cheap valuation of KSS.
93.55% of the companies in the same industry are more expensive than KSS, based on the Price/Earnings ratio.
KSS is valuated cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
KSS is valuated rather expensively with a Price/Forward Earnings ratio of 24.54.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KSS is on the same level as its industry peers.
KSS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.55 | ||
| Fwd PE | 24.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KSS is valued cheaper than 93.55% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KSS indicates a rather cheap valuation: KSS is cheaper than 96.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.17 | ||
| EV/EBITDA | 3.77 |
4.3 Compensation for Growth
A cheap valuation may be justified as KSS's earnings are expected to decrease with -26.77% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-45.16%
EPS Next 3Y-26.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.93%, KSS is a good candidate for dividend investing.
In the last 3 months the price of KSS has falen by -41.56%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.74, KSS pays a better dividend. On top of this KSS pays more dividend than 96.77% of the companies listed in the same industry.
KSS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.93% |
5.2 History
The dividend of KSS decreases each year by -5.49%.
KSS has paid a dividend for at least 10 years, which is 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 203.67% of its income as dividend. This is not a sustainable payout ratio.
DP203.67%
EPS Next 2Y-45.16%
EPS Next 3Y-26.77%
NYSE:KSS (5/6/2025, 12:43:05 PM)
6.825
-0.23 (-3.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners107.41%
Inst Owner Change-3.28%
Ins Owners2.11%
Ins Owner Change32.66%
Market Cap759.76M
Analysts47.83
Price Target7.9 (15.75%)
Short Float %48.33%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.93% |
Yearly Dividend2
Dividend Growth(5Y)-5.49%
DP203.67%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.3%
Min EPS beat(2)-29.1%
Max EPS beat(2)28.5%
EPS beat(4)2
Avg EPS beat(4)-162.92%
Min EPS beat(4)-682.13%
Max EPS beat(4)31.04%
EPS beat(8)6
Avg EPS beat(8)-38.56%
EPS beat(12)8
Avg EPS beat(12)-61.2%
EPS beat(16)12
Avg EPS beat(16)117%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-3.29%
Min Revenue beat(4)-5.64%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-2.29%
Revenue beat(12)2
Avg Revenue beat(12)-0.78%
Revenue beat(16)5
Avg Revenue beat(16)1.03%
PT rev (1m)-6.87%
PT rev (3m)-44.34%
EPS NQ rev (1m)0.97%
EPS NQ rev (3m)-78.61%
EPS NY rev (1m)-26.18%
EPS NY rev (3m)-80.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.55 | ||
| Fwd PE | 24.54 | ||
| P/S | 0.05 | ||
| P/FCF | 4.17 | ||
| P/OCF | 1.17 | ||
| P/B | 0.2 | ||
| P/tB | 0.2 | ||
| EV/EBITDA | 3.77 |
EPS(TTM)1.5
EY21.98%
EPS(NY)0.28
Fwd EY4.08%
FCF(TTM)1.63
FCFY23.96%
OCF(TTM)5.82
OCFY85.29%
SpS145.72
BVpS34.15
TBVpS34.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 2.87% | ||
| ROCE | 4.88% | ||
| ROIC | 4.29% | ||
| ROICexc | 4.34% | ||
| ROICexgc | 4.34% | ||
| OM | 3.14% | ||
| PM (TTM) | 0.67% | ||
| GM | 40.44% | ||
| FCFM | 1.12% |
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 Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 23.92 | ||
| Debt/EBITDA | 3.13 | ||
| Cap/Depr | 62.72% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 1.63 | ||
| Cash Conversion | 51.76% | ||
| Profit Quality | 166.97% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 1.5 |
F-Score5
WACC7.81%
ROIC/WACC0.55
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)-47.37%
EPS 3Y-41.2%
EPS 5Y-21.05%
EPS Q2Q%-43.11%
EPS Next Y-81.46%
EPS Next 2Y-45.16%
EPS Next 3Y-26.77%
EPS Next 5Y17.81%
Revenue 1Y (TTM)-7.18%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-9.37%
Revenue Next Year-5.03%
Revenue Next 2Y-2.79%
Revenue Next 3Y-2.21%
Revenue Next 5YN/A
EBIT growth 1Y-29.01%
EBIT growth 3Y-32.84%
EBIT growth 5Y-15.93%
EBIT Next Year122.84%
EBIT Next 3Y32.9%
EBIT Next 5Y22.31%
FCF growth 1Y-69.2%
FCF growth 3Y-52.2%
FCF growth 5Y-25.67%
OCF growth 1Y-44.52%
OCF growth 3Y-34.17%
OCF growth 5Y-17.12%