ENXTPA:KER

Stock Analysis Report

Executive Summary

Kering SA develops, designs, manufactures, markets, and sells apparel and accessories worldwide.

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Kering's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

KER

-1.1%

FR Luxury

-0.03%

FR Market


1 Year Return

29.7%

KER

32.6%

FR Luxury

10.4%

FR Market

Return vs Industry: KER underperformed the French Luxury industry which returned 32.6% over the past year.

Return vs Market: KER exceeded the French Market which returned 10.4% over the past year.


Shareholder returns

KERIndustryMarket
7 Day0.9%-1.1%-0.03%
30 Day1.5%0.9%-0.8%
90 Day-9.2%-3.2%-0.8%
1 Year32.6%29.7%34.9%32.6%14.2%10.4%
3 Year183.2%149.5%112.6%100.8%42.3%28.5%
5 Year288.2%225.1%207.0%165.7%72.6%46.3%

Price Volatility Vs. Market

How volatile is Kering's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kering undervalued compared to its fair value and its price relative to the market?

6.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KER (€475.85) is trading below our estimate of fair value (€510.68)

Significantly Below Fair Value: KER is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KER is poor value based on its PE Ratio (29.2x) compared to the Luxury industry average (28.5x).

PE vs Market: KER is poor value based on its PE Ratio (29.2x) compared to the French market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: KER is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: KER is overvalued based on its PB Ratio (6.4x) compared to the FR Luxury industry average (1.6x).


Next Steps

Future Growth

How is Kering forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KER's forecast earnings growth (15.5% per year) is above the savings rate (0.7%).

Earnings vs Market: KER's earnings (15.5% per year) are forecast to grow faster than the French market (11.5% per year).

High Growth Earnings: KER's earnings are forecast to grow, but not significantly.

Revenue vs Market: KER's revenue (5.4% per year) is forecast to grow faster than the French market (4.4% per year).

High Growth Revenue: KER's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KER's Return on Equity is forecast to be high in 3 years time (24.3%)


Next Steps

Past Performance

How has Kering performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KER's earnings have grown significantly by 26.8% per year over the past 5 years.

Accelerating Growth: KER's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KER had negative earnings growth (-4.1%) over the past year, making it difficult to compare to the Luxury industry average (4.3%).


Return on Equity

High ROE: KER's Return on Equity (21.8%) is considered high.


Return on Assets

ROA vs Industry: KER has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: KER has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Kering's financial position?


Financial Position Analysis

Short Term Liabilities: KER's short term assets (€7.4B) do not cover its short term liabilities (€8.7B)

Long Term Liabilities: KER's short term assets (7.4B) do not cover its long term liabilities (8.0B)


Debt to Equity History and Analysis

Debt Level: KER's debt to equity ratio (48.5%) is considered high

Reducing Debt: KER's debt to equity ratio has increased from 45.9% to 48.5% over the past 5 years.

Debt Coverage: KER's debt is well covered by operating cash flow (86%).

Interest Coverage: KER's interest payments on its debt are well covered by EBIT (40.4x coverage).


Balance Sheet

Inventory Level: KER has a high level of physical assets or inventory.

Debt Coverage by Assets: KER's debt is covered by short term assets (assets are 1.609940x debt).


Next Steps

Dividend

What is Kering's current dividend yield, its reliability and sustainability?

2.21%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.5%markettop25%4.7%industryaverage1.5%forecastin3Years2.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KER's dividend (2.21%) is higher than the bottom 25% of dividend payers in the French market (1.54%).

High Dividend: KER's dividend (2.21%) is low compared to the top 25% of dividend payers in the French market (4.72%).

Stable Dividend: KER's dividends per share have been stable in the past 10 years.

Growing Dividend: KER's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43%), KER's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KER's dividends in 3 years are forecast to be covered by earnings (50.6% payout ratio).


Next Steps

Management

What is the CEO of Kering's salary, the management and board of directors tenure and is there insider trading?

7.4yrs

Average management tenure


CEO

François-Henri Pinault (57yo)

14.6yrs

Tenure

€12,180,916

Compensation

Mr. François-Henri Pinault has been the Chairman and Chief Executive Officer of Kering SA since May 19, 2005 and March 21, 2005 respectively. He serves as Chairman of Group PPR and Chief Executive of Group ...


CEO Compensation Analysis

Compensation vs. Market: François-Henri's total compensation ($USD13.57M) is about average for companies of similar size in the French market ($USD3.54M).

Compensation vs Earnings: François-Henri's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

7.4yrs

Average Tenure

52yo

Average Age

Experienced Management: KER's management team is seasoned and experienced (7.4 years average tenure).


Board Age and Tenure

9.4yrs

Average Tenure

56.5yo

Average Age

Experienced Board: KER's board of directors are considered experienced (9.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • François-Henri Pinault (57yo)

    Chairman & CEO

    • Tenure: 14.6yrs
    • Compensation: €12.18m
  • Jean-François Palus (58yo)

    Group MD & Director

    • Tenure: 10.4yrs
    • Compensation: €9.82m
  • Jean-Marc Duplaix (48yo)

    Chief Financial Officer

    • Tenure: 7.7yrs
  • Laurent Claquin (48yo)

    Head of Kering Americas

    • Tenure: 12.1yrs
  • Eric Sandrin (54yo)

    Legal Director

    • Tenure: 5.3yrs
  • Marie-Claire Daveu (48yo)

    Chief Sustainability Officer & Head of International Institutional Affairs

    • Tenure: 7.1yrs
  • Sophie Bouchillou (56yo)

    Human Resources Project Coordinator

    • Tenure: 0yrs
    • Compensation: €43.19k
  • Béatrice Lazat (57yo)

    Chief People Officer

    • Tenure: 3.6yrs
  • Valérie Duport (50yo)

    Chief Communications & Image Officer

    • Tenure: 3.4yrs
  • Claire Lacaze (48yo)

    Event Production Manager & Employees Representing Director

    • Tenure: 1.3yrs
    • Compensation: €17.32k

Board Members

  • Baudouin Prot (68yo)

    Independent Director

    • Tenure: 14.4yrs
    • Compensation: €49.49k
  • François-Henri Pinault (57yo)

    Chairman & CEO

    • Tenure: 14.6yrs
    • Compensation: €12.18m
  • Jean-Pierre Denis (59yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: €104.56k
  • Jean-François Palus (58yo)

    Group MD & Director

    • Tenure: 10.4yrs
    • Compensation: €9.82m
  • Héloïse Temple-Boyer (41yo)

    Vice-Chairman of the Board

    • Tenure: 0.8yrs
  • François Pinault (83yo)

    Honorary Chairman

    • Tenure: 0yrs
  • Yseulys Costes (47yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: €74.19k
  • Alexandre Bompard (47yo)

    Chairman of FNAC and Chief Executive Officer of FNAC

    • Tenure: 8.9yrs
  • Sophie L’Hélias (56yo)

    Lead Independent Director

    • Tenure: 0.7yrs
    • Compensation: €104.56k
  • Claire Lacaze (48yo)

    Event Production Manager & Employees Representing Director

    • Tenure: 1.3yrs
    • Compensation: €17.32k

Company Information

Kering SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kering SA
  • Ticker: KER
  • Exchange: ENXTPA
  • Founded: 1963
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: €59.490b
  • Shares outstanding: 125.02m
  • Website: https://www.kering.com

Number of Employees


Location

  • Kering SA
  • 40 rue de Sèvres
  • Paris
  • Ile-de-France
  • 75007
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KERENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1992
0IIHLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
KERBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1992
PPXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
PPRU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
KERPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
PPXXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
KERWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
KER NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
PPRU.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Kering SA develops, designs, manufactures, markets, and sells apparel and accessories worldwide. The company offers shoes; leather goods, including handbags and wallets, and other leather products; eyewear ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:45
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.