KOHLS CORP (KSS) Stock Fundamental Analysis
NYSE:KSS - New York Stock Exchange, Inc. - US5002551043 - Common Stock - Currency: USD
Overall KSS gets a fundamental rating of 3 out of 10. We evaluated KSS against 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
KSS had positive earnings in the past year.
In the past year KSS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: KSS reported negative net income in multiple years.
In the past 5 years KSS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.80%, KSS is in line with its industry, outperforming 48.39% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.87%, KSS is in line with its industry, outperforming 51.61% of the companies in the same industry.
KSS's Return On Invested Capital of 4.29% is on the low side compared to the rest of the industry. KSS is outperformed by 61.29% 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 11.56%.
The 3 year average ROIC (3.96%) for KSS is below the current ROIC(4.29%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 0.67%, KSS is in line with its industry, outperforming 51.61% of the companies in the same industry.
In the last couple of years the Profit Margin of KSS has declined.
KSS's Operating Margin of 3.14% is in line compared to the rest of the industry. KSS outperforms 45.16% of its industry peers.
In the last couple of years the Operating Margin of KSS has declined.
With a Gross Margin value of 40.44%, KSS perfoms like the industry average, outperforming 51.61% 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 | 3.14% | ||
| 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.
KSS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KSS has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.50, we must say that KSS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of KSS (1.50) is comparable to the rest of the industry.
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.
The Debt to FCF ratio of KSS (23.92) is comparable to the rest of the industry.
KSS has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.03, KSS is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 23.92 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.54
WACC8%
2.3 Liquidity
A Current Ratio of 1.08 indicates that KSS should not have too much problems paying its short term obligations.
KSS has a worse Current ratio (1.08) than 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
KSS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.37%.
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.
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
Based on estimates for the next years, KSS will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.81% on average per year.
Based on estimates for the next years, KSS will show a decrease in Revenue. The Revenue will decrease by -1.93% on average per year.
EPS Next Y-77.4%
EPS Next 2Y-42.31%
EPS Next 3Y-16.07%
EPS Next 5Y17.81%
Revenue Next Year-4.97%
Revenue Next 2Y-2.89%
Revenue Next 3Y-1.93%
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.
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 5.42, the valuation of KSS can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of KSS indicates a rather cheap valuation: KSS is cheaper than 96.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.25, KSS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 23.98, the valuation of KSS can be described as rather expensive.
KSS's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, KSS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.42 | ||
| Fwd PE | 23.98 |
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 87.10% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KSS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.97 | ||
| EV/EBITDA | 3.85 |
4.3 Compensation for Growth
A cheap valuation may be justified as KSS's earnings are expected to decrease with -16.07% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-42.31%
EPS Next 3Y-16.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.17%, KSS is a good candidate for dividend investing.
In the last 3 months the price of KSS has falen by -28.75%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
KSS's Dividend Yield is rather good when compared to the industry average which is at 7.79. KSS pays more dividend than 93.55% of the companies in the same industry.
KSS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.17% |
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 203.67% of its income as dividend. This is not a sustainable payout ratio.
DP203.67%
EPS Next 2Y-42.31%
EPS Next 3Y-16.07%
8.13
+0.09 (+1.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners107.41%
Inst Owner Change2.35%
Ins Owners2.11%
Ins Owner Change38.24%
Market Cap905.03M
Analysts47.83
Price Target6.94 (-14.64%)
Short Float %51.12%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.17% |
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)-17.9%
PT rev (3m)-50.21%
EPS NQ rev (1m)49.84%
EPS NQ rev (3m)11.32%
EPS NY rev (1m)21.9%
EPS NY rev (3m)-75.24%
Revenue NQ rev (1m)0.93%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-3.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.42 | ||
| Fwd PE | 23.98 | ||
| P/S | 0.06 | ||
| P/FCF | 4.97 | ||
| P/OCF | 1.4 | ||
| P/B | 0.24 | ||
| P/tB | 0.24 | ||
| EV/EBITDA | 3.85 |
EPS(TTM)1.5
EY18.45%
EPS(NY)0.34
Fwd EY4.17%
FCF(TTM)1.63
FCFY20.11%
OCF(TTM)5.82
OCFY71.6%
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
WACC8%
ROIC/WACC0.54
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-77.4%
EPS Next 2Y-42.31%
EPS Next 3Y-16.07%
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-4.97%
Revenue Next 2Y-2.89%
Revenue Next 3Y-1.93%
Revenue Next 5YN/A
EBIT growth 1Y-29.01%
EBIT growth 3Y-32.84%
EBIT growth 5Y-15.93%
EBIT Next Year124.45%
EBIT Next 3Y31.9%
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%