KOHLS CORP (KSS)
US5002551043 - Common Stock
We assign a fundamental rating of 4 out of 10 to KSS. KSS was compared to 34 industry peers in the Broadline Retail industry. KSS may be in some trouble as it scores bad on both profitability and health. KSS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year KSS was profitable.
KSS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: KSS reported negative net income in multiple 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 2.26%, KSS perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
KSS's Return On Equity of 8.14% is in line compared to the rest of the industry. KSS outperforms 54.55% of its industry peers.
KSS has a Return On Invested Capital of 5.30%. This is comparable to the rest of the industry: KSS outperforms 42.42% of its industry peers.
KSS had an Average Return On Invested Capital over the past 3 years of 6.43%. This is below the industry average of 11.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 8.14% | ||
| ROIC | 5.3% |
ROA(3y)2.79%
ROA(5y)2.41%
ROE(3y)9.25%
ROE(5y)7.46%
ROIC(3y)6.43%
ROIC(5y)5.63%
1.3 Margins
KSS's Profit Margin of 1.81% is in line compared to the rest of the industry. KSS outperforms 57.58% of its industry peers.
KSS's Profit Margin has declined in the last couple of years.
KSS's Operating Margin of 4.10% is in line compared to the rest of the industry. KSS outperforms 51.52% of its industry peers.
In the last couple of years the Operating Margin of KSS has declined.
KSS has a Gross Margin (39.93%) 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 | 4.1% | ||
| PM (TTM) | 1.81% | ||
| GM | 39.93% |
OM growth 3Y252.07%
OM growth 5Y-10.74%
PM growth 3YN/A
PM growth 5Y-14.46%
GM growth 3Y3.28%
GM growth 5Y0.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KSS is destroying value.
KSS has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, KSS has less shares outstanding
The debt/assets ratio for KSS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.94 indicates that KSS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.94, KSS is in line with its industry, outperforming 45.45% of the companies in the same industry.
KSS has a debt to FCF ratio of 7.60. This is a slightly negative value and a sign of low solvency as KSS would need 7.60 years to pay back of all of its debts.
KSS's Debt to FCF ratio of 7.60 is fine compared to the rest of the industry. KSS outperforms 60.61% of its industry peers.
KSS has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of KSS (1.13) is worse than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 7.6 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.55
WACC9.71%
2.3 Liquidity
KSS has a Current Ratio of 1.31. This is a normal value and indicates that KSS is financially healthy and should not expect problems in meeting its short term obligations.
KSS has a Current ratio of 1.31. This is in the lower half of the industry: KSS underperforms 66.67% of its industry peers.
A Quick Ratio of 0.20 indicates that KSS may have some problems paying its short term obligations.
With a Quick ratio value of 0.20, KSS is not doing good in the industry: 93.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 733.33% over the past year.
The earnings per share for KSS have been decreasing by -12.70% on average. This is quite bad
The Revenue has decreased by -3.44% in the past year.
KSS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.88% yearly.
EPS 1Y (TTM)733.33%
EPS 3YN/A
EPS 5Y-12.7%
EPS growth Q2Q167.07%
Revenue 1Y (TTM)-3.44%
Revenue growth 3Y3.08%
Revenue growth 5Y-2.88%
Revenue growth Q2Q-1.05%
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 13.78% yearly.
The Revenue is expected to grow by 0.60% on average over the next years.
EPS Next Y-17.18%
EPS Next 2Y-3.6%
EPS Next 3Y0.48%
EPS Next 5Y13.78%
Revenue Next Year-0.31%
Revenue Next 2Y0.13%
Revenue Next 3Y0.6%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 8.48, the valuation of KSS can be described as reasonable.
KSS's Price/Earnings ratio is rather cheap when compared to the industry. KSS is cheaper than 90.91% of the companies in the same industry.
KSS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.28.
Based on the Price/Forward Earnings ratio of 10.24, the valuation of KSS can be described as reasonable.
Based on the Price/Forward Earnings ratio, KSS is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.88. KSS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 10.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KSS is valued cheaper than 90.91% of the companies in the same industry.
90.91% 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 | 4.54 | ||
| EV/EBITDA | 4.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.6%
EPS Next 3Y0.48%
5. Dividend
5.1 Amount
KSS has a Yearly Dividend Yield of 8.11%, which is a nice return.
Compared to an average industry Dividend Yield of 4.11, KSS pays a better dividend. On top of this KSS pays more dividend than 96.97% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, KSS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.11% |
5.2 History
The dividend of KSS decreases each year by -3.89%.
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)-3.89%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
KSS pays out 69.40% of its income as dividend. This is not a sustainable payout ratio.
DP69.4%
EPS Next 2Y-3.6%
EPS Next 3Y0.48%
KOHLS CORP
NYSE:KSS (5/3/2024, 7:04:00 PM)
After market: 24.19 +0.01 (+0.04%)24.18
-0.47 (-1.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.11% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 | 8.48 | ||
| Fwd PE | 10.24 | ||
| 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)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 8.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.1% | ||
| PM (TTM) | 1.81% | ||
| GM | 39.93% | ||
| 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 Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.2 | ||
| 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)733.33%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-17.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.44%
Revenue growth 3Y3.08%
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