KONTOOR BRANDS INC (KTB) Stock Fundamental Analysis
USA - NYSE:KTB - US50050N1037 - Common Stock
71.93 USD
-0.25 (-0.35%)
71.5682 USD
-0.36 (-0.5%)
Taking everything into account, KTB scores 6 out of 10 in our fundamental rating. KTB was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. KTB has an excellent profitability rating, but there are some minor concerns on its financial health. KTB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year KTB was profitable.
In the past year KTB had a positive cash flow from operations.
In the past 5 years KTB has always been profitable.
KTB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KTB's Return On Assets of 7.60% is amongst the best of the industry. KTB outperforms 83.33% of its industry peers.
The Return On Equity of KTB (41.10%) is better than 93.75% of its industry peers.
KTB's Return On Invested Capital of 14.53% is amongst the best of the industry. KTB outperforms 81.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KTB is significantly above the industry average of 12.40%.
The last Return On Invested Capital (14.53%) for KTB is well below the 3 year average (24.48%), which needs to be investigated, but indicates that KTB had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.6% | ||
| ROE | 41.1% | ||
| ROIC | 14.53% |
ROA(3y)14.82%
ROA(5y)12.32%
ROE(3y)73.81%
ROE(5y)86.73%
ROIC(3y)24.48%
ROIC(5y)21.27%
1.3 Margins
With an excellent Profit Margin value of 7.68%, KTB belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of KTB has grown nicely.
KTB has a better Operating Margin (13.30%) than 83.33% of its industry peers.
In the last couple of years the Operating Margin of KTB has grown nicely.
The Gross Margin of KTB (46.06%) is comparable to the rest of the industry.
KTB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.3% | ||
| PM (TTM) | 7.68% | ||
| GM | 46.06% |
OM growth 3Y8.52%
OM growth 5Y10.63%
PM growth 3Y6.1%
PM growth 5Y19.96%
GM growth 3Y0.3%
GM growth 5Y2.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KTB is creating value.
Compared to 1 year ago, KTB has less shares outstanding
Compared to 5 years ago, KTB has less shares outstanding
Compared to 1 year ago, KTB has an improved debt to assets ratio.
2.2 Solvency
KTB has an Altman-Z score of 2.85. This is not the best score and indicates that KTB is in the grey zone with still only limited risk for bankruptcy at the moment.
KTB's Altman-Z score of 2.85 is fine compared to the rest of the industry. KTB outperforms 62.50% of its industry peers.
The Debt to FCF ratio of KTB is 5.98, which is a neutral value as it means it would take KTB, 5.98 years of fcf income to pay off all of its debts.
KTB has a Debt to FCF ratio (5.98) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.53 is on the high side and indicates that KTB has dependencies on debt financing.
The Debt to Equity ratio of KTB (2.53) is worse than 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | 5.98 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.37
WACC10.63%
2.3 Liquidity
KTB has a Current Ratio of 1.91. This is a normal value and indicates that KTB is financially healthy and should not expect problems in meeting its short term obligations.
KTB has a Current ratio (1.91) which is in line with its industry peers.
A Quick Ratio of 0.82 indicates that KTB may have some problems paying its short term obligations.
The Quick ratio of KTB (0.82) is worse than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.69% over the past year.
Measured over the past 5 years, KTB shows a small growth in Earnings Per Share. The EPS has been growing by 4.95% on average per year.
The Revenue has grown by 9.91% in the past year. This is quite good.
The Revenue has been growing slightly by 0.46% on average over the past years.
EPS 1Y (TTM)11.69%
EPS 3Y4.46%
EPS 5Y4.95%
EPS Q2Q%5.11%
Revenue 1Y (TTM)9.91%
Revenue growth 3Y1.74%
Revenue growth 5Y0.46%
Sales Q2Q%27.31%
3.2 Future
KTB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.59% yearly.
KTB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.61% yearly.
EPS Next Y12.5%
EPS Next 2Y10.82%
EPS Next 3Y11.47%
EPS Next 5Y8.59%
Revenue Next Year19.38%
Revenue Next 2Y15.25%
Revenue Next 3Y11.31%
Revenue Next 5Y2.61%
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 13.44, which indicates a correct valuation of KTB.
72.92% of the companies in the same industry are more expensive than KTB, based on the Price/Earnings ratio.
KTB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.98, which indicates a very decent valuation of KTB.
KTB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KTB is cheaper than 70.83% of the companies in the same industry.
KTB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
KTB's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KTB indicates a somewhat cheap valuation: KTB is cheaper than 68.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.82 | ||
| EV/EBITDA | 12.4 |
4.3 Compensation for Growth
KTB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of KTB may justify a higher PE ratio.
PEG (NY)1.08
PEG (5Y)2.71
EPS Next 2Y10.82%
EPS Next 3Y11.47%
5. Dividend
5.1 Amount
KTB has a Yearly Dividend Yield of 2.95%.
Compared to an average industry Dividend Yield of 3.39, KTB pays a better dividend. On top of this KTB pays more dividend than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, KTB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
5.2 History
KTB has been paying a dividend for at least 10 years, so it has a reliable track record.
KTB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
53.00% of the earnings are spent on dividend by KTB. This is a bit on the high side, but may be sustainable.
DP53%
EPS Next 2Y10.82%
EPS Next 3Y11.47%
71.93
-0.25 (-0.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners98.67%
Inst Owner Change-3.15%
Ins Owners1.51%
Ins Owner Change-6.64%
Market Cap4.00B
Revenue(TTM)2.83B
Net Income(TTM)217.67M
Analysts78.33
Price Target91.55 (27.28%)
Short Float %5%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Yearly Dividend2.02
Dividend Growth(5Y)N/A
DP53%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.39%
Min EPS beat(2)4.5%
Max EPS beat(2)58.27%
EPS beat(4)4
Avg EPS beat(4)16.65%
Min EPS beat(4)1.7%
Max EPS beat(4)58.27%
EPS beat(8)7
Avg EPS beat(8)12.96%
EPS beat(12)8
Avg EPS beat(12)9.84%
EPS beat(16)12
Avg EPS beat(16)10.99%
Revenue beat(2)1
Avg Revenue beat(2)0.68%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)2.65%
Revenue beat(4)1
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-1.53%
Max Revenue beat(4)2.65%
Revenue beat(8)4
Avg Revenue beat(8)-0.78%
Revenue beat(12)6
Avg Revenue beat(12)-0.07%
Revenue beat(16)7
Avg Revenue beat(16)-0.2%
PT rev (1m)8.35%
PT rev (3m)14.09%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-14.52%
EPS NY rev (1m)0.04%
EPS NY rev (3m)3.69%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 11.98 | ||
| P/S | 1.41 | ||
| P/FCF | 17.82 | ||
| P/OCF | 16.03 | ||
| P/B | 7.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.4 |
EPS(TTM)5.35
EY7.44%
EPS(NY)6
Fwd EY8.35%
FCF(TTM)4.04
FCFY5.61%
OCF(TTM)4.49
OCFY6.24%
SpS50.99
BVpS9.53
TBVpS-7.98
PEG (NY)1.08
PEG (5Y)2.71
Graham Number33.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.6% | ||
| ROE | 41.1% | ||
| ROCE | 17.45% | ||
| ROIC | 14.53% | ||
| ROICexc | 15.1% | ||
| ROICexgc | 28.41% | ||
| OM | 13.3% | ||
| PM (TTM) | 7.68% | ||
| GM | 46.06% | ||
| FCFM | 7.92% |
ROA(3y)14.82%
ROA(5y)12.32%
ROE(3y)73.81%
ROE(5y)86.73%
ROIC(3y)24.48%
ROIC(5y)21.27%
ROICexc(3y)29.54%
ROICexc(5y)25.83%
ROICexgc(3y)41.99%
ROICexgc(5y)37.61%
ROCE(3y)29.47%
ROCE(5y)25.59%
ROICexgc growth 3Y7.1%
ROICexgc growth 5Y15.45%
ROICexc growth 3Y9.18%
ROICexc growth 5Y13.67%
OM growth 3Y8.52%
OM growth 5Y10.63%
PM growth 3Y6.1%
PM growth 5Y19.96%
GM growth 3Y0.3%
GM growth 5Y2.47%
F-Score5
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | 5.98 | ||
| Debt/EBITDA | 3.16 | ||
| Cap/Depr | 52.2% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.67% | ||
| Profit Quality | 103.05% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.85 |
F-Score5
WACC10.63%
ROIC/WACC1.37
Cap/Depr(3y)75.57%
Cap/Depr(5y)101.68%
Cap/Sales(3y)1.12%
Cap/Sales(5y)1.57%
Profit Quality(3y)100.49%
Profit Quality(5y)138.48%
High Growth Momentum
Growth
EPS 1Y (TTM)11.69%
EPS 3Y4.46%
EPS 5Y4.95%
EPS Q2Q%5.11%
EPS Next Y12.5%
EPS Next 2Y10.82%
EPS Next 3Y11.47%
EPS Next 5Y8.59%
Revenue 1Y (TTM)9.91%
Revenue growth 3Y1.74%
Revenue growth 5Y0.46%
Sales Q2Q%27.31%
Revenue Next Year19.38%
Revenue Next 2Y15.25%
Revenue Next 3Y11.31%
Revenue Next 5Y2.61%
EBIT growth 1Y7.31%
EBIT growth 3Y10.41%
EBIT growth 5Y11.13%
EBIT Next Year27.27%
EBIT Next 3Y13.8%
EBIT Next 5YN/A
FCF growth 1Y24.48%
FCF growth 3Y11.9%
FCF growth 5Y-14.11%
OCF growth 1Y14.21%
OCF growth 3Y9.06%
OCF growth 5Y-13.89%
KONTOOR BRANDS INC / KTB FAQ
What is the ChartMill fundamental rating of KONTOOR BRANDS INC (KTB) stock?
ChartMill assigns a fundamental rating of 6 / 10 to KTB.
What is the valuation status of KONTOOR BRANDS INC (KTB) stock?
ChartMill assigns a valuation rating of 6 / 10 to KONTOOR BRANDS INC (KTB). This can be considered as Fairly Valued.
What is the profitability of KTB stock?
KONTOOR BRANDS INC (KTB) has a profitability rating of 9 / 10.
What are the PE and PB ratios of KONTOOR BRANDS INC (KTB) stock?
The Price/Earnings (PE) ratio for KONTOOR BRANDS INC (KTB) is 13.44 and the Price/Book (PB) ratio is 7.55.
How sustainable is the dividend of KONTOOR BRANDS INC (KTB) stock?
The dividend rating of KONTOOR BRANDS INC (KTB) is 5 / 10 and the dividend payout ratio is 53%.