KONTOOR BRANDS INC (KTB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KTB - US50050N1037 - Common Stock
61.83 USD
+0.11 (+0.18%)
61.6 USD
-0.23 (-0.37%)
Overall KTB gets a fundamental rating of 6 out of 10. We evaluated KTB against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. While KTB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. KTB is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year KTB was profitable.
KTB had a positive operating cash flow in the past year.
Each year in the past 5 years KTB has been profitable.
KTB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.60%, KTB belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
KTB has a better Return On Equity (41.10%) than 93.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.53%, KTB belongs to the top of the industry, outperforming 82.22% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KTB is significantly above the industry average of 11.62%.
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
Looking at the Profit Margin, with a value of 7.68%, KTB belongs to the top of the industry, outperforming 86.67% 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 84.44% of its industry peers.
KTB's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 46.06%, KTB perfoms like the industry average, outperforming 42.22% of the companies in the same industry.
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
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.
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 2.70. 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 of 2.70. This is comparable to the rest of the industry: KTB outperforms 55.56% of 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.
KTB has a Debt to FCF ratio (5.98) which is comparable to the rest of the industry.
KTB has a Debt/Equity ratio of 2.53. This is a high value indicating a heavy dependency on external financing.
KTB's Debt to Equity ratio of 2.53 is on the low side compared to the rest of the industry. KTB is outperformed by 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | 5.98 | ||
| Altman-Z | 2.7 |
ROIC/WACC1.29
WACC11.24%
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's Current ratio of 1.91 is in line compared to the rest of the industry. KTB outperforms 48.89% of its industry peers.
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.
The Quick ratio of KTB (0.82) is worse than 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
KTB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.19%, which is quite good.
The Earnings Per Share has been growing slightly by 4.95% on average over the past years.
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)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
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 Y13.47%
EPS Next 2Y11.2%
EPS Next 3Y11.33%
EPS Next 5Y8.59%
Revenue Next Year19.34%
Revenue Next 2Y15.05%
Revenue Next 3Y11.14%
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.
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 11.82, the valuation of KTB can be described as very reasonable.
KTB's Price/Earnings ratio is rather cheap when compared to the industry. KTB is cheaper than 82.22% of the companies in the same industry.
KTB is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
KTB is valuated reasonably with a Price/Forward Earnings ratio of 10.23.
Based on the Price/Forward Earnings ratio, KTB is valued cheaper than 88.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KTB to the average of the S&P500 Index (23.88), we can say KTB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 10.23 |
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 a bit cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.32 | ||
| EV/EBITDA | 11.03 |
4.3 Compensation for Growth
KTB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KTB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.88
PEG (5Y)2.39
EPS Next 2Y11.2%
EPS Next 3Y11.33%
5. Dividend
5.1 Amount
KTB has a Yearly Dividend Yield of 3.43%.
Compared to an average industry Dividend Yield of 1.53, KTB pays a better dividend. On top of this KTB pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, KTB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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 2Y11.2%
EPS Next 3Y11.33%
61.83
+0.11 (+0.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners97.12%
Inst Owner Change0%
Ins Owners1.29%
Ins Owner Change-6.91%
Market Cap3.44B
Revenue(TTM)2.83B
Net Income(TTM)217.67M
Analysts78.33
Price Target92.57 (49.72%)
Short Float %6.06%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend2.02
Dividend Growth(5Y)N/A
DP53%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)-0.82%
PT rev (3m)9.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 10.23 | ||
| P/S | 1.21 | ||
| P/FCF | 15.32 | ||
| P/OCF | 13.78 | ||
| P/B | 6.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.03 |
EPS(TTM)5.23
EY8.46%
EPS(NY)6.05
Fwd EY9.78%
FCF(TTM)4.04
FCFY6.53%
OCF(TTM)4.49
OCFY7.26%
SpS50.97
BVpS9.53
TBVpS-7.98
PEG (NY)0.88
PEG (5Y)2.39
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 | 2.7 |
F-Score5
WACC11.24%
ROIC/WACC1.29
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 2Y11.2%
EPS Next 3Y11.33%
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 2Y15.05%
Revenue Next 3Y11.14%
Revenue Next 5Y2.61%
EBIT growth 1Y7.31%
EBIT growth 3Y10.41%
EBIT growth 5Y11.13%
EBIT Next Year29.22%
EBIT Next 3Y14.57%
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 for KTB stock?
ChartMill assigns a valuation rating of 7 / 10 to KONTOOR BRANDS INC (KTB). This can be considered as Undervalued.
What is the profitability of KTB stock?
KONTOOR BRANDS INC (KTB) has a profitability rating of 9 / 10.
What is the earnings growth outlook for KONTOOR BRANDS INC?
The Earnings per Share (EPS) of KONTOOR BRANDS INC (KTB) is expected to grow by 13.47% in the next year.
Is the dividend of KONTOOR BRANDS INC sustainable?
The dividend rating of KONTOOR BRANDS INC (KTB) is 5 / 10 and the dividend payout ratio is 53%.