KONTOOR BRANDS INC (KTB) Stock Fundamental Analysis
USA - NYSE:KTB - US50050N1037 - Common Stock
84.54 USD
-0.24 (-0.28%)
84.54 USD
0 (0%)
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 scores excellent on profitability, 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
KTB had positive earnings in the past year.
In the past year KTB had a positive cash flow from operations.
KTB had positive earnings in each of the past 5 years.
In the past 5 years KTB always reported a positive cash flow from operatings.
1.2 Ratios
KTB has a Return On Assets of 9.25%. This is amongst the best in the industry. KTB outperforms 87.50% of its industry peers.
With an excellent Return On Equity value of 50.42%, KTB belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
KTB has a better Return On Invested Capital (14.38%) than 81.25% of its industry peers.
KTB had an Average Return On Invested Capital over the past 3 years of 24.48%. This is significantly above the industry average of 12.15%.
The last Return On Invested Capital (14.38%) 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 | 9.25% | ||
| ROE | 50.42% | ||
| ROIC | 14.38% |
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
KTB has a Profit Margin of 9.48%. This is amongst the best in the industry. KTB outperforms 87.50% of its industry peers.
In the last couple of years the Profit Margin of KTB has grown nicely.
KTB has a better Operating Margin (14.08%) than 85.42% of its industry peers.
KTB's Operating Margin has improved in the last couple of years.
KTB has a Gross Margin (45.88%) which is in line with its industry peers.
In the last couple of years the Gross Margin of KTB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.08% | ||
| PM (TTM) | 9.48% | ||
| GM | 45.88% |
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.
The number of shares outstanding for KTB has been reduced compared to 1 year ago.
KTB has less shares outstanding than it did 5 years ago.
KTB has a better debt/assets ratio than last year.
2.2 Solvency
KTB has an Altman-Z score of 3.12. This indicates that KTB is financially healthy and has little risk of bankruptcy at the moment.
KTB's Altman-Z score of 3.12 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 4.58, which is a neutral value as it means it would take KTB, 4.58 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.58, KTB is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
A Debt/Equity ratio of 2.74 is on the high side and indicates that KTB has dependencies on debt financing.
KTB has a worse Debt to Equity ratio (2.74) than 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 4.58 | ||
| Altman-Z | 3.12 |
ROIC/WACC1.36
WACC10.56%
2.3 Liquidity
KTB has a Current Ratio of 2.18. This indicates that KTB is financially healthy and has no problem in meeting its short term obligations.
KTB's Current ratio of 2.18 is fine compared to the rest of the industry. KTB outperforms 60.42% of its industry peers.
A Quick Ratio of 0.95 indicates that KTB may have some problems paying its short term obligations.
KTB has a Quick ratio (0.95) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
KTB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.12%, which is quite good.
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 been growing slightly by 3.44% in the past year.
The Revenue has been growing slightly by 0.46% on average over the past years.
EPS 1Y (TTM)18.12%
EPS 3Y4.46%
EPS 5Y4.95%
EPS Q2Q%35.71%
Revenue 1Y (TTM)3.44%
Revenue growth 3Y1.74%
Revenue growth 5Y0.46%
Sales Q2Q%8.46%
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 Y12.46%
EPS Next 2Y10.22%
EPS Next 3Y10.95%
EPS Next 5Y8.59%
Revenue Next Year19.26%
Revenue Next 2Y15.1%
Revenue Next 3Y11.09%
Revenue Next 5Y2.61%
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
KTB is valuated correctly with a Price/Earnings ratio of 16.01.
Based on the Price/Earnings ratio, KTB is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KTB to the average of the S&P500 Index (27.69), we can say KTB is valued slightly cheaper.
KTB is valuated correctly with a Price/Forward Earnings ratio of 14.23.
Based on the Price/Forward Earnings ratio, KTB is valued a bit cheaper than 62.50% of the companies in the same industry.
KTB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 14.23 |
4.2 Price Multiples
KTB's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, KTB is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.74 | ||
| EV/EBITDA | 14.35 |
4.3 Compensation for Growth
KTB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KTB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.28
PEG (5Y)3.23
EPS Next 2Y10.22%
EPS Next 3Y10.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, KTB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.30, KTB pays a better dividend. On top of this KTB pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, KTB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
KTB has paid a dividend for at least 10 years, which is 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
KTB pays out 45.39% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP45.39%
EPS Next 2Y10.22%
EPS Next 3Y10.95%
84.54
-0.24 (-0.28%)
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-3.21%
Ins Owners1.51%
Ins Owner Change-4.7%
Market Cap4.70B
Analysts74
Price Target84.49 (-0.06%)
Short Float %5.45%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend2.02
Dividend Growth(5Y)N/A
DP45.39%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.21%
Min EPS beat(2)2.14%
Max EPS beat(2)58.27%
EPS beat(4)4
Avg EPS beat(4)17.41%
Min EPS beat(4)1.7%
Max EPS beat(4)58.27%
EPS beat(8)6
Avg EPS beat(8)10.91%
EPS beat(12)8
Avg EPS beat(12)11.51%
EPS beat(16)12
Avg EPS beat(16)12.16%
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)2.65%
Revenue beat(4)2
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-1.53%
Max Revenue beat(4)2.65%
Revenue beat(8)5
Avg Revenue beat(8)-0.47%
Revenue beat(12)6
Avg Revenue beat(12)-0.09%
Revenue beat(16)8
Avg Revenue beat(16)0.19%
PT rev (1m)0%
PT rev (3m)5.07%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-14.62%
EPS NY rev (1m)0%
EPS NY rev (3m)3.65%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 14.23 | ||
| P/S | 1.77 | ||
| P/FCF | 15.74 | ||
| P/OCF | 14.73 | ||
| P/B | 9.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.35 |
EPS(TTM)5.28
EY6.25%
EPS(NY)5.94
Fwd EY7.03%
FCF(TTM)5.37
FCFY6.36%
OCF(TTM)5.74
OCFY6.79%
SpS47.7
BVpS8.97
TBVpS-7.95
PEG (NY)1.28
PEG (5Y)3.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.25% | ||
| ROE | 50.42% | ||
| ROCE | 17.28% | ||
| ROIC | 14.38% | ||
| ROICexc | 15.14% | ||
| ROICexgc | 27.94% | ||
| OM | 14.08% | ||
| PM (TTM) | 9.48% | ||
| GM | 45.88% | ||
| FCFM | 11.26% |
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%
ROICexcg growth 3Y7.1%
ROICexcg 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 Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 4.58 | ||
| Debt/EBITDA | 3.28 | ||
| Cap/Depr | 47.31% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.65% | ||
| Profit Quality | 118.82% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 3.12 |
F-Score5
WACC10.56%
ROIC/WACC1.36
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)18.12%
EPS 3Y4.46%
EPS 5Y4.95%
EPS Q2Q%35.71%
EPS Next Y12.46%
EPS Next 2Y10.22%
EPS Next 3Y10.95%
EPS Next 5Y8.59%
Revenue 1Y (TTM)3.44%
Revenue growth 3Y1.74%
Revenue growth 5Y0.46%
Sales Q2Q%8.46%
Revenue Next Year19.26%
Revenue Next 2Y15.1%
Revenue Next 3Y11.09%
Revenue Next 5Y2.61%
EBIT growth 1Y10.9%
EBIT growth 3Y10.41%
EBIT growth 5Y11.13%
EBIT Next Year27.27%
EBIT Next 3Y13.8%
EBIT Next 5YN/A
FCF growth 1Y406.03%
FCF growth 3Y11.9%
FCF growth 5Y-14.11%
OCF growth 1Y232.5%
OCF growth 3Y9.06%
OCF growth 5Y-13.89%