KONTOOR BRANDS INC (KTB)
US50050N1037 - Common Stock
KTB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KTB had positive earnings in the past year.
KTB had a positive operating cash flow in the past year.
KTB had positive earnings in each of the past 5 years.
KTB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KTB has a Return On Assets of 14.04%. This is amongst the best in the industry. KTB outperforms 92.00% of its industry peers.
The Return On Equity of KTB (62.10%) is better than 100.00% of its industry peers.
KTB has a better Return On Invested Capital (21.64%) 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 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.04% | ||
| ROE | 62.1% | ||
| ROIC | 21.64% |
ROA(3y)14.1%
ROA(5y)10.61%
ROE(3y)97.31%
ROE(5y)102.35%
ROIC(3y)22.7%
ROIC(5y)18.96%
1.3 Margins
The Profit Margin of KTB (8.86%) is better than 86.00% of its industry peers.
In the last couple of years the Profit Margin of KTB has remained more or less at the same level.
KTB has a Operating Margin of 12.85%. This is amongst the best in the industry. KTB outperforms 88.00% of its industry peers.
In the last couple of years the Operating Margin of KTB has remained more or less at the same level.
KTB's Gross Margin of 41.95% is on the low side compared to the rest of the industry. KTB is outperformed by 60.00% of its industry peers.
KTB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.85% | ||
| PM (TTM) | 8.86% | ||
| GM | 41.95% |
OM growth 3Y21.78%
OM growth 5Y0.08%
PM growth 3Y39.88%
PM growth 5Y-1.43%
GM growth 3Y0.44%
GM growth 5Y0.59%
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 more shares outstanding than it did 1 year ago.
The number of shares outstanding for KTB has been reduced compared to 5 years ago.
KTB has a better debt/assets ratio than last year.
2.2 Solvency
KTB has an Altman-Z score of 4.29. This indicates that KTB is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.29, KTB is doing good in the industry, outperforming 78.00% of the companies in the same industry.
The Debt to FCF ratio of KTB is 2.46, which is a good value as it means it would take KTB, 2.46 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 2.46, KTB perfoms like the industry average, outperforming 58.00% of the companies in the same industry.
KTB has a Debt/Equity ratio of 2.05. This is a high value indicating a heavy dependency on external financing.
KTB has a worse Debt to Equity ratio (2.05) than 86.00% of its industry peers.
Although KTB does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | 4.29 |
ROIC/WACC2.36
WACC9.16%
2.3 Liquidity
A Current Ratio of 2.66 indicates that KTB has no problem at all paying its short term obligations.
KTB has a Current ratio of 2.66. This is in the better half of the industry: KTB outperforms 62.00% of its industry peers.
A Quick Ratio of 1.38 indicates that KTB should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.38, KTB perfoms like the industry average, outperforming 58.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for KTB have decreased by -7.81% in the last year.
KTB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.56% yearly.
KTB shows a decrease in Revenue. In the last year, the revenue decreased by -0.91%.
KTB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.16% yearly.
EPS 1Y (TTM)-7.81%
EPS 3Y16.53%
EPS 5Y-2.56%
EPS growth Q2Q45.45%
Revenue 1Y (TTM)-0.91%
Revenue growth 3Y7.52%
Revenue growth 5Y-1.16%
Revenue growth Q2Q-8.45%
3.2 Future
The Earnings Per Share is expected to grow by 9.12% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.02% on average over the next years.
EPS Next Y14.07%
EPS Next 2Y11.98%
EPS Next 3Y9.12%
EPS Next 5YN/A
Revenue Next Year-2.45%
Revenue Next 2Y0.3%
Revenue Next 3Y1.02%
Revenue Next 5YN/A
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 13.21.
Based on the Price/Earnings ratio, KTB is valued a bit cheaper than the industry average as 72.00% of the companies are valued more expensively.
KTB is valuated rather cheaply when we compare the Price/Earnings ratio to 24.93, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.58, 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 72.00% of the companies are valued more expensively.
KTB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.21 | ||
| Fwd PE | 11.58 |
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.
64.00% of the companies in the same industry are more expensive than KTB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.53 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of KTB may justify a higher PE ratio.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y11.98%
EPS Next 3Y9.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.69%, KTB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.91, KTB pays a better dividend. On top of this KTB pays more dividend than 90.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, KTB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
5.2 History
KTB has been paying a dividend for over 5 years, so it has already some track record.
KTB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
47.01% of the earnings are spent on dividend by KTB. This is a bit on the high side, but may be sustainable.
DP47.01%
EPS Next 2Y11.98%
EPS Next 3Y9.12%
KONTOOR BRANDS INC
NYSE:KTB (4/16/2024, 3:10:02 PM)
After market: 54.56 0 (0%)54.56
+0.56 (+1.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.21 | ||
| Fwd PE | 11.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.94
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.04% | ||
| ROE | 62.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.85% | ||
| PM (TTM) | 8.86% | ||
| GM | 41.95% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-7.81%
EPS 3Y16.53%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.91%
Revenue growth 3Y7.52%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y