KONTOOR BRANDS INC (KTB) Stock Fundamental Analysis
NYSE:KTB - New York Stock Exchange, Inc. - US50050N1037 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to KTB. KTB was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. KTB gets an excellent profitability rating and is at the same time showing great financial health properties. KTB may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, KTB could be worth investigating further for value and quality investing!.
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.
In the past 5 years KTB always reported a positive cash flow from operatings.
1.2 Ratios
KTB has a better Return On Assets (13.68%) than 92.00% of its industry peers.
With an excellent Return On Equity value of 53.71%, KTB belongs to the best of the industry, outperforming 98.00% of the companies in the same industry.
KTB has a better Return On Invested Capital (23.97%) than 94.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KTB is significantly above the industry average of 10.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.68% | ||
| ROE | 53.71% | ||
| ROIC | 23.97% |
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 8.82%. This is amongst the best in the industry. KTB outperforms 86.00% of its industry peers.
In the last couple of years the Profit Margin of KTB has grown nicely.
KTB has a Operating Margin of 14.23%. This is amongst the best in the industry. KTB outperforms 86.00% of its industry peers.
In the last couple of years the Operating Margin of KTB has grown nicely.
The Gross Margin of KTB (45.61%) 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 | 14.23% | ||
| PM (TTM) | 8.82% | ||
| GM | 45.61% |
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.
KTB has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 4.66 indicates that KTB is not in any danger for bankruptcy at the moment.
KTB's Altman-Z score of 4.66 is amongst the best of the industry. KTB outperforms 86.00% of its industry peers.
The Debt to FCF ratio of KTB is 2.00, which is an excellent value as it means it would take KTB, only 2.00 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.00, KTB is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
KTB has a Debt/Equity ratio of 1.72. This is a high value indicating a heavy dependency on external financing.
KTB's Debt to Equity ratio of 1.72 is on the low side compared to the rest of the industry. KTB is outperformed by 80.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for KTB, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 4.66 |
ROIC/WACC2.95
WACC8.12%
2.3 Liquidity
A Current Ratio of 2.78 indicates that KTB has no problem at all paying its short term obligations.
The Current ratio of KTB (2.78) is better than 76.00% of its industry peers.
KTB has a Quick Ratio of 1.65. 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 better Quick ratio (1.65) than 82.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
KTB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.44%, 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.
Looking at the last year, KTB shows a small growth in Revenue. The Revenue has grown by 0.00% in the last year.
Measured over the past years, KTB shows a small growth in Revenue. The Revenue has been growing by 0.46% on average per year.
EPS 1Y (TTM)15.44%
EPS 3Y4.46%
EPS 5Y4.95%
EPS Q2Q%23.47%
Revenue 1Y (TTM)0%
Revenue growth 3Y1.74%
Revenue growth 5Y0.46%
Sales Q2Q%8.46%
3.2 Future
The Earnings Per Share is expected to grow by 8.59% on average over the next years. This is quite good.
Based on estimates for the next years, KTB will show a small growth in Revenue. The Revenue will grow by 2.61% on average per year.
EPS Next Y8.5%
EPS Next 2Y9.15%
EPS Next 3Y10.1%
EPS Next 5Y8.59%
Revenue Next Year17.25%
Revenue Next 2Y14.21%
Revenue Next 3Y10.51%
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 13.10.
KTB's Price/Earnings ratio is rather cheap when compared to the industry. KTB is cheaper than 82.00% of the companies in the same industry.
KTB is valuated cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.60, the valuation of KTB can be described as reasonable.
Based on the Price/Forward Earnings ratio, KTB is valued a bit cheaper than the industry average as 76.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.04. KTB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 11.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KTB is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, KTB is valued cheaper than 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.19 | ||
| EV/EBITDA | 9.54 |
4.3 Compensation for Growth
The 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)1.54
PEG (5Y)2.64
EPS Next 2Y9.15%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
KTB has a Yearly Dividend Yield of 3.67%.
KTB's Dividend Yield is rather good when compared to the industry average which is at 3.88. KTB pays more dividend than 88.00% of the companies in the same industry.
KTB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
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
KTB pays out 49.32% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP49.32%
EPS Next 2Y9.15%
EPS Next 3Y10.1%
67.6
+3.61 (+5.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners92.27%
Inst Owner Change0.31%
Ins Owners1.67%
Ins Owner Change6.11%
Market Cap3.76B
Analysts74
Price Target80.24 (18.7%)
Short Float %6.64%
Short Ratio5.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
Yearly Dividend2.02
Dividend Growth(5Y)N/A
DP49.32%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.92%
Min EPS beat(2)1.7%
Max EPS beat(2)2.14%
EPS beat(4)4
Avg EPS beat(4)5.4%
Min EPS beat(4)1.7%
Max EPS beat(4)10.26%
EPS beat(8)5
Avg EPS beat(8)3.5%
EPS beat(12)8
Avg EPS beat(12)7.41%
EPS beat(16)12
Avg EPS beat(16)14.3%
Revenue beat(2)0
Avg Revenue beat(2)-1.13%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)-0.74%
Revenue beat(4)2
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-1.53%
Max Revenue beat(4)0.8%
Revenue beat(8)4
Avg Revenue beat(8)-1.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.43%
Revenue beat(16)8
Avg Revenue beat(16)0.11%
PT rev (1m)0%
PT rev (3m)2.12%
EPS NQ rev (1m)0.73%
EPS NQ rev (3m)-24.56%
EPS NY rev (1m)0.16%
EPS NY rev (3m)6.02%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)15.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 11.6 | ||
| P/S | 1.44 | ||
| P/FCF | 10.19 | ||
| P/OCF | 9.65 | ||
| P/B | 8.8 | ||
| P/tB | 18.21 | ||
| EV/EBITDA | 9.54 |
EPS(TTM)5.16
EY7.63%
EPS(NY)5.83
Fwd EY8.62%
FCF(TTM)6.64
FCFY9.82%
OCF(TTM)7.01
OCFY10.37%
SpS46.78
BVpS7.68
TBVpS3.71
PEG (NY)1.54
PEG (5Y)2.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.68% | ||
| ROE | 53.71% | ||
| ROCE | 28.79% | ||
| ROIC | 23.97% | ||
| ROICexc | 33.18% | ||
| ROICexgc | 43.52% | ||
| OM | 14.23% | ||
| PM (TTM) | 8.82% | ||
| GM | 45.61% | ||
| FCFM | 14.18% |
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-Score9
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 2 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 48.43% | ||
| Cap/Sales | 0.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.39% | ||
| Profit Quality | 160.87% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 4.66 |
F-Score9
WACC8.12%
ROIC/WACC2.95
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)15.44%
EPS 3Y4.46%
EPS 5Y4.95%
EPS Q2Q%23.47%
EPS Next Y8.5%
EPS Next 2Y9.15%
EPS Next 3Y10.1%
EPS Next 5Y8.59%
Revenue 1Y (TTM)0%
Revenue growth 3Y1.74%
Revenue growth 5Y0.46%
Sales Q2Q%8.46%
Revenue Next Year17.25%
Revenue Next 2Y14.21%
Revenue Next 3Y10.51%
Revenue Next 5Y2.61%
EBIT growth 1Y12.37%
EBIT growth 3Y10.41%
EBIT growth 5Y11.13%
EBIT Next Year23.25%
EBIT Next 3Y13.28%
EBIT Next 5YN/A
FCF growth 1Y1042.9%
FCF growth 3Y11.9%
FCF growth 5Y-14.11%
OCF growth 1Y10347%
OCF growth 3Y9.06%
OCF growth 5Y-13.89%