KOHLS CORP (KSS) Stock Fundamental Analysis
NYSE:KSS - US5002551043 - Common Stock
16.57 USD
+0.15 (+0.91%)
16.5204 USD
-0.05 (-0.3%)
We assign a fundamental rating of 3 out of 10 to KSS. KSS was compared to 28 industry peers in the Broadline Retail industry. While KSS is still in line with the averages on profitability rating, there are concerns on its financial health. KSS has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
KSS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KSS has a Return On Assets (1.55%) which is comparable to the rest of the industry.
KSS has a Return On Equity (5.30%) which is in line with its industry peers.
KSS's Return On Invested Capital of 4.31% is on the low side compared to the rest of the industry. KSS is outperformed by 60.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KSS is significantly below the industry average of 11.00%.
The 3 year average ROIC (3.96%) for KSS is below the current ROIC(4.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 5.3% | ||
| ROIC | 4.31% |
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 (1.31%) which is comparable to the rest of the industry.
KSS's Profit Margin has declined in the last couple of years.
The Operating Margin of KSS (3.28%) is comparable to the rest of the industry.
KSS's Operating Margin has declined in the last couple of years.
KSS has a Gross Margin (40.48%) which 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 | 3.28% | ||
| PM (TTM) | 1.31% | ||
| GM | 40.48% |
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 a debt to FCF ratio of 8.52. This is a slightly negative value and a sign of low solvency as KSS would need 8.52 years to pay back of all of its debts.
KSS has a Debt to FCF ratio (8.52) which is comparable to the rest of the industry.
KSS has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
KSS has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: KSS underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | N/A |
ROIC/WACC0.47
WACC9.13%
2.3 Liquidity
A Current Ratio of 1.36 indicates that KSS should not have too much problems paying its short term obligations.
KSS has a Current ratio of 1.36. This is in the lower half of the industry: KSS underperforms 64.29% of its industry peers.
A Quick Ratio of 0.19 indicates that KSS may have some problems paying its short term obligations.
The Quick ratio of KSS (0.19) is worse than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The earnings per share for KSS have decreased strongly by -38.04% in the last year.
The earnings per share for KSS have been decreasing by -21.05% on average. This is quite bad
The Revenue has decreased by -7.23% in the past 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)-38.04%
EPS 3Y-41.2%
EPS 5Y-21.05%
EPS Q2Q%-5.08%
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-5.05%
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 grow by 0.38% on average over the next years.
EPS Next Y-69.77%
EPS Next 2Y-41.44%
EPS Next 3Y-30.98%
EPS Next 5Y17.95%
Revenue Next Year-5.1%
Revenue Next 2Y-3.12%
Revenue Next 3Y-1.3%
Revenue Next 5Y0.38%
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 10.49, which indicates a very decent valuation of KSS.
KSS's Price/Earnings ratio is rather cheap when compared to the industry. KSS is cheaper than 89.29% of the companies in the same industry.
KSS is valuated cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 32.21, KSS can be considered very expensive at the moment.
KSS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of KSS to the average of the S&P500 Index (22.69), we can say KSS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 32.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KSS indicates a rather cheap valuation: KSS is cheaper than 89.29% of the companies listed 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 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.87 | ||
| EV/EBITDA | 4.6 |
4.3 Compensation for Growth
KSS's earnings are expected to decrease with -30.98% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.44%
EPS Next 3Y-30.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.05%, KSS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.38, KSS pays a better dividend. On top of this KSS pays more dividend than 89.29% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, KSS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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 66.83% of its income as dividend. This is not a sustainable payout ratio.
DP66.83%
EPS Next 2Y-41.44%
EPS Next 3Y-30.98%
16.57
+0.15 (+0.91%)
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 Cap1.86B
Analysts49.57
Price Target12.21 (-26.31%)
Short Float %32.63%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
Yearly Dividend2
Dividend Growth(5Y)-5.49%
DP66.83%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)70.57%
Min EPS beat(2)51.41%
Max EPS beat(2)89.73%
EPS beat(4)3
Avg EPS beat(4)35.13%
Min EPS beat(4)-29.1%
Max EPS beat(4)89.73%
EPS beat(8)6
Avg EPS beat(8)-53.87%
EPS beat(12)9
Avg EPS beat(12)-42.94%
EPS beat(16)12
Avg EPS beat(16)-27.31%
Revenue beat(2)0
Avg Revenue beat(2)-0.09%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)-0.07%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)1
Avg Revenue beat(12)-1.22%
Revenue beat(16)3
Avg Revenue beat(16)-0.28%
PT rev (1m)69.17%
PT rev (3m)69.17%
EPS NQ rev (1m)-7.3%
EPS NQ rev (3m)-181.52%
EPS NY rev (1m)1.23%
EPS NY rev (3m)33.73%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)-3.22%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 32.21 | ||
| P/S | 0.12 | ||
| P/FCF | 3.87 | ||
| P/OCF | 2.05 | ||
| P/B | 0.47 | ||
| P/tB | 0.47 | ||
| EV/EBITDA | 4.6 |
EPS(TTM)1.58
EY9.54%
EPS(NY)0.51
Fwd EY3.1%
FCF(TTM)4.28
FCFY25.86%
OCF(TTM)8.1
OCFY48.86%
SpS141.79
BVpS35.05
TBVpS35.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 5.3% | ||
| ROCE | 4.8% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.38% | ||
| ROICexgc | 4.38% | ||
| OM | 3.28% | ||
| PM (TTM) | 1.31% | ||
| GM | 40.48% | ||
| FCFM | 3.02% |
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 Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 8.52 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 59.55% | ||
| Cap/Sales | 2.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.26% | ||
| Profit Quality | 230.77% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | N/A |
F-Score5
WACC9.13%
ROIC/WACC0.47
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)-38.04%
EPS 3Y-41.2%
EPS 5Y-21.05%
EPS Q2Q%-5.08%
EPS Next Y-69.77%
EPS Next 2Y-41.44%
EPS Next 3Y-30.98%
EPS Next 5Y17.95%
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y-5.84%
Revenue growth 5Y-4.08%
Sales Q2Q%-5.05%
Revenue Next Year-5.1%
Revenue Next 2Y-3.12%
Revenue Next 3Y-1.3%
Revenue Next 5Y0.38%
EBIT growth 1Y-21.65%
EBIT growth 3Y-32.84%
EBIT growth 5Y-15.93%
EBIT Next Year123.65%
EBIT Next 3Y30.85%
EBIT Next 5Y22.28%
FCF growth 1Y9.09%
FCF growth 3Y-52.2%
FCF growth 5Y-25.67%
OCF growth 1Y-14.11%
OCF growth 3Y-34.17%
OCF growth 5Y-17.12%