KONTOOR BRANDS INC (KTB) Stock Fundamental Analysis
NYSE:KTB - US50050N1037 - Common Stock
77.25 USD
+0.52 (+0.68%)
77.25 USD
0 (0%)
Taking everything into account, KTB scores 6 out of 10 in our fundamental rating. KTB was compared to 49 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KTB was profitable.
In the past year KTB had a positive cash flow from operations.
Each year in the past 5 years KTB has been profitable.
Each year in the past 5 years KTB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of KTB (9.25%) is better than 87.76% of its industry peers.
Looking at the Return On Equity, with a value of 50.42%, KTB belongs to the top of the industry, outperforming 95.92% of the companies in the same industry.
KTB has a better Return On Invested Capital (14.38%) than 81.63% 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 12.14%.
The 3 year average ROIC (24.48%) for KTB is well above the current ROIC(14.38%). The reason for the recent decline needs to be investigated.
| 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's Profit Margin of 9.48% is amongst the best of the industry. KTB outperforms 89.80% of its industry peers.
KTB's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 14.08%, KTB belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of KTB has grown nicely.
KTB has a Gross Margin of 45.88%. This is comparable to the rest of the industry: KTB outperforms 42.86% of 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
Compared to 1 year ago, KTB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.01 indicates that KTB is not in any danger for bankruptcy at the moment.
KTB has a Altman-Z score (3.01) which is in line with 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.
KTB has a Debt to FCF ratio of 4.58. This is in the better half of the industry: KTB outperforms 61.22% of its industry peers.
KTB has a Debt/Equity ratio of 2.74. This is a high value indicating a heavy dependency on external financing.
KTB has a worse Debt to Equity ratio (2.74) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 4.58 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.41
WACC10.18%
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.
With a decent Current ratio value of 2.18, KTB is doing good in the industry, outperforming 61.22% of the companies in the same industry.
KTB has a Quick Ratio of 2.18. 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 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 15.44%, which is quite good.
KTB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.95% yearly.
Looking at the last year, KTB shows a small growth in Revenue. The Revenue has grown by 3.44% in the last year.
KTB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.46% yearly.
EPS 1Y (TTM)15.44%
EPS 3Y4.46%
EPS 5Y4.95%
EPS Q2Q%23.47%
Revenue 1Y (TTM)3.44%
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.
The Revenue is expected to grow by 2.61% on average over the next years.
EPS Next Y12.46%
EPS Next 2Y10.22%
EPS Next 3Y10.95%
EPS Next 5Y8.59%
Revenue Next Year19.22%
Revenue Next 2Y15.09%
Revenue Next 3Y11.08%
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
With a Price/Earnings ratio of 14.97, KTB is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of KTB indicates a somewhat cheap valuation: KTB is cheaper than 73.47% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.13. KTB is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.00, KTB is valued correctly.
Based on the Price/Forward Earnings ratio, KTB is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
KTB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 13 |
4.2 Price Multiples
KTB's Enterprise Value to EBITDA is on the same level as the industry average.
KTB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KTB is cheaper than 77.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.38 | ||
| EV/EBITDA | 13.34 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of KTB may justify a higher PE ratio.
PEG (NY)1.2
PEG (5Y)3.02
EPS Next 2Y10.22%
EPS Next 3Y10.95%
5. Dividend
5.1 Amount
KTB has a Yearly Dividend Yield of 2.71%.
KTB's Dividend Yield is rather good when compared to the industry average which is at 3.18. KTB pays more dividend than 85.71% of the companies in the same industry.
KTB's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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
45.39% of the earnings are spent on dividend by KTB. This is a bit on the high side, but may be sustainable.
DP45.39%
EPS Next 2Y10.22%
EPS Next 3Y10.95%
77.25
+0.52 (+0.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners93.13%
Inst Owner Change5.6%
Ins Owners1.66%
Ins Owner Change-5.96%
Market Cap4.29B
Analysts74
Price Target82.79 (7.17%)
Short Float %6.64%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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)23.07%
Min EPS beat(2)2.14%
Max EPS beat(2)43.99%
EPS beat(4)4
Avg EPS beat(4)13.84%
Min EPS beat(4)1.7%
Max EPS beat(4)43.99%
EPS beat(8)6
Avg EPS beat(8)9.12%
EPS beat(12)8
Avg EPS beat(12)10.32%
EPS beat(16)12
Avg EPS beat(16)11.26%
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)2.96%
PT rev (3m)13.68%
EPS NQ rev (1m)-14.54%
EPS NQ rev (3m)-9.38%
EPS NY rev (1m)3.65%
EPS NY rev (3m)4.98%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)24.84%
Revenue NY rev (1m)1.69%
Revenue NY rev (3m)6.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 13 | ||
| P/S | 1.62 | ||
| P/FCF | 14.38 | ||
| P/OCF | 13.46 | ||
| P/B | 8.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.34 |
EPS(TTM)5.16
EY6.68%
EPS(NY)5.94
Fwd EY7.69%
FCF(TTM)5.37
FCFY6.95%
OCF(TTM)5.74
OCFY7.43%
SpS47.7
BVpS8.97
TBVpS-7.95
PEG (NY)1.2
PEG (5Y)3.02
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 | 3.01 |
F-Score5
WACC10.18%
ROIC/WACC1.41
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 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 Year19.22%
Revenue Next 2Y15.09%
Revenue Next 3Y11.08%
Revenue Next 5Y2.61%
EBIT growth 1Y10.9%
EBIT growth 3Y10.41%
EBIT growth 5Y11.13%
EBIT Next Year23.25%
EBIT Next 3Y13.28%
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%