KONTOOR BRANDS INC (KTB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KTB - US50050N1037 - Common Stock
76.2 USD
+0.68 (+0.9%)
76.2 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to KTB. KTB was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. While KTB has a great profitability rating, there are some minor concerns on its financial health. KTB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year KTB was profitable.
KTB had a positive operating cash flow in the past year.
KTB had positive earnings in each of the past 5 years.
Each year in the past 5 years KTB had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.60%, KTB belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
KTB has a Return On Equity of 41.10%. This is amongst the best in the industry. KTB outperforms 91.30% of its industry peers.
The Return On Invested Capital of KTB (14.53%) is better than 82.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KTB is significantly above the industry average of 11.82%.
The 3 year average ROIC (24.48%) for KTB is well above the current ROIC(14.53%). The reason for the recent decline needs to be investigated.
| 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
Looking at the Profit Margin, with a value of 7.68%, KTB belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
In the last couple of years the Profit Margin of KTB has grown nicely.
KTB's Operating Margin of 13.30% is amongst the best of the industry. KTB outperforms 82.61% of its industry peers.
KTB's Operating Margin has improved in the last couple of years.
KTB has a Gross Margin (46.06%) 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 | 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
KTB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
KTB has less shares outstanding than it did 1 year ago.
KTB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KTB has an improved debt to assets ratio.
2.2 Solvency
KTB has an Altman-Z score of 2.91. 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 has a Altman-Z score (2.91) which is in line with its industry peers.
KTB has a debt to FCF ratio of 5.98. This is a neutral value as KTB would need 5.98 years to pay back of all of its debts.
The Debt to FCF ratio of KTB (5.98) 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.
KTB has a Debt to Equity ratio of 2.53. This is amonst the worse of the industry: KTB underperforms 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | 5.98 | ||
| Altman-Z | 2.91 |
ROIC/WACC1.3
WACC11.15%
2.3 Liquidity
A Current Ratio of 1.91 indicates that KTB should not have too much problems paying its short term obligations.
KTB has a Current ratio (1.91) which is comparable to the rest of the industry.
KTB has a Quick Ratio of 1.91. This is a bad value and indicates that KTB is not financially healthy enough and could expect problems in meeting its short term obligations.
KTB's Quick ratio of 0.82 is on the low side compared to the rest of the industry. KTB is outperformed by 69.57% 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 9.19% over the past year.
KTB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.95% yearly.
KTB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.91%.
KTB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.46% yearly.
EPS 1Y (TTM)9.19%
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
Based on estimates for the next years, KTB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.59% on average per year.
KTB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.61% yearly.
EPS Next Y13.47%
EPS Next 2Y11.53%
EPS Next 3Y11.89%
EPS Next 5Y8.59%
Revenue Next Year19.34%
Revenue Next 2Y15.15%
Revenue Next 3Y11.22%
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.
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
KTB is valuated correctly with a Price/Earnings ratio of 14.57.
Based on the Price/Earnings ratio, KTB is valued a bit cheaper than 73.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of KTB to the average of the S&P500 Index (26.49), we can say KTB is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.53 indicates a correct valuation of KTB.
76.09% of the companies in the same industry are more expensive than KTB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of KTB to the average of the S&P500 Index (23.69), we can say KTB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
KTB's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, KTB is valued a bit cheaper than the industry average as 71.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.88 | ||
| EV/EBITDA | 12.93 |
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)1.08
PEG (5Y)2.94
EPS Next 2Y11.53%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
KTB has a Yearly Dividend Yield of 2.81%.
KTB's Dividend Yield is rather good when compared to the industry average which is at 3.22. KTB pays more dividend than 86.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, KTB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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 2Y11.53%
EPS Next 3Y11.89%
76.2
+0.68 (+0.9%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners96.88%
Inst Owner Change-4.95%
Ins Owners1.49%
Ins Owner Change-6.8%
Market Cap4.24B
Revenue(TTM)2.83B
Net Income(TTM)217.67M
Analysts78.33
Price Target93.33 (22.48%)
Short Float %5.42%
Short Ratio5.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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)24.25%
Min EPS beat(2)4.5%
Max EPS beat(2)43.99%
EPS beat(4)4
Avg EPS beat(4)13.08%
Min EPS beat(4)1.7%
Max EPS beat(4)43.99%
EPS beat(8)7
Avg EPS beat(8)11.17%
EPS beat(12)8
Avg EPS beat(12)8.65%
EPS beat(16)12
Avg EPS beat(16)10.09%
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)1.95%
PT rev (3m)12.73%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-1.77%
EPS NY rev (1m)0.86%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 12.53 | ||
| P/S | 1.49 | ||
| P/FCF | 18.88 | ||
| P/OCF | 16.98 | ||
| P/B | 8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.93 |
EPS(TTM)5.23
EY6.86%
EPS(NY)6.08
Fwd EY7.98%
FCF(TTM)4.04
FCFY5.3%
OCF(TTM)4.49
OCFY5.89%
SpS50.97
BVpS9.53
TBVpS-7.98
PEG (NY)1.08
PEG (5Y)2.94
Graham Number33.48
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 | 2.91 |
F-Score5
WACC11.15%
ROIC/WACC1.3
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)9.19%
EPS 3Y4.46%
EPS 5Y4.95%
EPS Q2Q%5.11%
EPS Next Y13.47%
EPS Next 2Y11.53%
EPS Next 3Y11.89%
EPS Next 5Y8.59%
Revenue 1Y (TTM)9.91%
Revenue growth 3Y1.74%
Revenue growth 5Y0.46%
Sales Q2Q%27.31%
Revenue Next Year19.34%
Revenue Next 2Y15.15%
Revenue Next 3Y11.22%
Revenue Next 5Y2.61%
EBIT growth 1Y7.31%
EBIT growth 3Y10.41%
EBIT growth 5Y11.13%
EBIT Next Year29.22%
EBIT Next 3Y14.85%
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 5 / 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 14.57 and the Price/Book (PB) ratio is 8.
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%.