KERING (PPX.DE) Stock Fundamental Analysis
FRA:PPX - Deutsche Boerse Ag - FR0000121485 - Common Stock - Currency: EUR
Overall PPX gets a fundamental rating of 3 out of 10. We evaluated PPX against 42 industry peers in the Textiles, Apparel & Luxury Goods industry. There are concerns on the financial health of PPX while its profitability can be described as average. PPX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PPX was profitable.
In the past year PPX had a positive cash flow from operations.
PPX had positive earnings in each of the past 5 years.
PPX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PPX's Return On Assets of 2.61% is on the low side compared to the rest of the industry. PPX is outperformed by 61.90% of its industry peers.
PPX has a Return On Equity (7.60%) which is in line with its industry peers.
The Return On Invested Capital of PPX (5.20%) is worse than 61.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PPX is in line with the industry average of 10.55%.
The 3 year average ROIC (10.05%) for PPX is well above the current ROIC(5.20%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 7.6% | ||
| ROIC | 5.2% |
ROA(3y)6.82%
ROA(5y)7.67%
ROE(3y)17.67%
ROE(5y)19%
ROIC(3y)10.05%
ROIC(5y)11.02%
1.3 Margins
Looking at the Profit Margin, with a value of 6.59%, PPX is in line with its industry, outperforming 59.52% of the companies in the same industry.
In the last couple of years the Profit Margin of PPX has declined.
PPX's Operating Margin of 14.48% is fine compared to the rest of the industry. PPX outperforms 64.29% of its industry peers.
In the last couple of years the Operating Margin of PPX has declined.
PPX has a Gross Margin of 73.75%. This is amongst the best in the industry. PPX outperforms 80.95% of its industry peers.
PPX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.48% | ||
| PM (TTM) | 6.59% | ||
| GM | 73.75% |
OM growth 3Y-19.39%
OM growth 5Y-13.44%
PM growth 3Y-28.46%
PM growth 5Y-14.63%
GM growth 3Y-0.14%
GM growth 5Y-0.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PPX is still creating some value.
Compared to 1 year ago, PPX has about the same amount of shares outstanding.
Compared to 5 years ago, PPX has less shares outstanding
The debt/assets ratio for PPX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.55, we must say that PPX is in the distress zone and has some risk of bankruptcy.
PPX has a worse Altman-Z score (1.55) than 71.43% of its industry peers.
PPX has a debt to FCF ratio of 13.88. This is a negative value and a sign of low solvency as PPX would need 13.88 years to pay back of all of its debts.
PPX's Debt to FCF ratio of 13.88 is on the low side compared to the rest of the industry. PPX is outperformed by 80.95% of its industry peers.
PPX has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.11, PPX is doing worse than 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 13.88 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.78
WACC6.67%
2.3 Liquidity
PPX has a Current Ratio of 1.11. This is a normal value and indicates that PPX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.11, PPX is doing worse than 83.33% of the companies in the same industry.
PPX has a Quick Ratio of 1.11. This is a bad value and indicates that PPX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.69, PPX is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for PPX have decreased strongly by -57.30% in the last year.
Measured over the past years, PPX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.03% on average per year.
The Revenue for PPX has decreased by -12.12% in the past year. This is quite bad
The Revenue has been growing slightly by 1.60% on average over the past years.
EPS 1Y (TTM)-57.3%
EPS 3Y-26.58%
EPS 5Y-16.03%
EPS Q2Q%-66.89%
Revenue 1Y (TTM)-12.12%
Revenue growth 3Y-0.86%
Revenue growth 5Y1.6%
Sales Q2Q%-13.31%
3.2 Future
PPX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.93% yearly.
Based on estimates for the next years, PPX will show a small growth in Revenue. The Revenue will grow by 4.44% on average per year.
EPS Next Y-11.6%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
EPS Next 5Y26.93%
Revenue Next Year-8.52%
Revenue Next 2Y-2.02%
Revenue Next 3Y0.88%
Revenue Next 5Y4.44%
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.
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
A Price/Earnings ratio of 16.19 indicates a correct valuation of PPX.
Based on the Price/Earnings ratio, PPX is valued a bit cheaper than 64.29% of the companies in the same industry.
PPX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.31, the valuation of PPX can be described as rather expensive.
PPX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PPX is cheaper than 73.81% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PPX to the average of the S&P500 Index (22.15), we can say PPX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | 18.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PPX is on the same level as its industry peers.
PPX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.24 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.25%
EPS Next 3Y9.21%
5. Dividend
5.1 Amount
PPX has a Yearly Dividend Yield of 3.46%.
The stock price of PPX dropped by -36.21% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.46, PPX pays a better dividend. On top of this PPX pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, PPX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
5.2 History
On average, the dividend of PPX grows each year by 6.01%, which is quite nice.
Dividend Growth(5Y)6.01%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
PPX pays out 151.46% of its income as dividend. This is not a sustainable payout ratio.
PPX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP151.46%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
FRA:PPX (5/30/2025, 7:00:00 PM)
172.9
-1.16 (-0.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners25.98%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap21.34B
Analysts52.94
Price Target201.61 (16.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
Yearly Dividend14
Dividend Growth(5Y)6.01%
DP151.46%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-11.41%
PT rev (3m)-20.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-17.36%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-5.59%
Revenue NY rev (3m)-9.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | 18.31 | ||
| P/S | 1.24 | ||
| P/FCF | 15.24 | ||
| P/OCF | 4.53 | ||
| P/B | 1.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.34 |
EPS(TTM)10.68
EY6.18%
EPS(NY)9.44
Fwd EY5.46%
FCF(TTM)11.34
FCFY6.56%
OCF(TTM)38.15
OCFY22.07%
SpS139.31
BVpS120.76
TBVpS-5.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 7.6% | ||
| ROCE | 7.37% | ||
| ROIC | 5.2% | ||
| ROICexc | 5.4% | ||
| ROICexgc | 10.07% | ||
| OM | 14.48% | ||
| PM (TTM) | 6.59% | ||
| GM | 73.75% | ||
| FCFM | 8.14% |
ROA(3y)6.82%
ROA(5y)7.67%
ROE(3y)17.67%
ROE(5y)19%
ROIC(3y)10.05%
ROIC(5y)11.02%
ROICexc(3y)11.71%
ROICexc(5y)13.25%
ROICexgc(3y)23.84%
ROICexgc(5y)27.41%
ROCE(3y)14.46%
ROCE(5y)15.94%
ROICexcg growth 3Y-34.7%
ROICexcg growth 5Y-22.91%
ROICexc growth 3Y-32.92%
ROICexc growth 5Y-21.33%
OM growth 3Y-19.39%
OM growth 5Y-13.44%
PM growth 3Y-28.46%
PM growth 5Y-14.63%
GM growth 3Y-0.14%
GM growth 5Y-0.1%
F-Score3
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 13.88 | ||
| Debt/EBITDA | 3.58 | ||
| Cap/Depr | 156.6% | ||
| Cap/Sales | 19.25% | ||
| Interest Coverage | 4.08 | ||
| Cash Conversion | 102.33% | ||
| Profit Quality | 123.57% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.55 |
F-Score3
WACC6.67%
ROIC/WACC0.78
Cap/Depr(3y)121.37%
Cap/Depr(5y)96.61%
Cap/Sales(3y)12.62%
Cap/Sales(5y)9.83%
Profit Quality(3y)91.35%
Profit Quality(5y)99.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-57.3%
EPS 3Y-26.58%
EPS 5Y-16.03%
EPS Q2Q%-66.89%
EPS Next Y-11.6%
EPS Next 2Y5.25%
EPS Next 3Y9.21%
EPS Next 5Y26.93%
Revenue 1Y (TTM)-12.12%
Revenue growth 3Y-0.86%
Revenue growth 5Y1.6%
Sales Q2Q%-13.31%
Revenue Next Year-8.52%
Revenue Next 2Y-2.02%
Revenue Next 3Y0.88%
Revenue Next 5Y4.44%
EBIT growth 1Y-47.22%
EBIT growth 3Y-20.08%
EBIT growth 5Y-12.06%
EBIT Next Year50.68%
EBIT Next 3Y22.84%
EBIT Next 5Y25.36%
FCF growth 1Y-24.24%
FCF growth 3Y-29.17%
FCF growth 5Y-3.26%
OCF growth 1Y5.61%
OCF growth 3Y-1.14%
OCF growth 5Y12.54%