ENXTPA:KER

Stock Analysis Report

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Market Cap

€94.3b

Last Updated

2021/07/31 19:16 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Solid track record with excellent balance sheet.


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

Stable Share Price: KER is less volatile than 75% of French stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: KER's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.2%

KER

0.03%

FR Luxury

0.5%

FR Market


1 Year Return

57.0%

KER

77.9%

FR Luxury

39.7%

FR Market

Return vs Industry: KER underperformed the French Luxury industry which returned 77.9% over the past year.

Return vs Market: KER exceeded the French Market which returned 40% over the past year.


Shareholder returns

KERIndustryMarket
7 Day1.2%0.03%0.5%
30 Day2.3%2.4%1.3%
90 Day13.5%12.2%5.5%
1 Year59.0%57.0%79.9%77.9%43.5%39.7%
3 Year73.0%64.6%107.4%97.5%33.4%20.7%
5 Year411.4%338.4%278.0%247.6%87.2%58.1%

Long-Term 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?

28.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KER (€756.2) is trading above our estimate of fair value (€517.29)

Significantly Below Fair Value: KER is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KER is good value based on its PE Ratio (28.3x) compared to the French Luxury industry average (31.7x).

PE vs Market: KER is poor value based on its PE Ratio (28.3x) compared to the French market (22x).


Price to Earnings Growth Ratio

PEG Ratio: KER is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: KER is overvalued based on its PB Ratio (7.5x) compared to the FR Luxury industry average (2.1x).


Future Growth

How is Kering forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KER's forecast earnings growth (10% per year) is above the savings rate (0.4%).

Earnings vs Market: KER's earnings (10% per year) are forecast to grow slower than the French market (15.3% per year).

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

Revenue vs Market: KER's revenue (7.5% per year) is forecast to grow faster than the French market (6.6% per year).

High Growth Revenue: KER's revenue (7.5% 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 (22.9%)


Past Performance

How has Kering performed over the past 5 years?

20.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KER has high quality earnings.

Growing Profit Margin: KER's current net profit margins (21.2%) are higher than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: KER's earnings have grown significantly by 20.1% per year over the past 5 years.

Accelerating Growth: KER's earnings growth over the past year (82.7%) exceeds its 5-year average (20.1% per year).

Earnings vs Industry: KER earnings growth over the past year (82.7%) underperformed the Luxury industry 98.2%.


Return on Equity

High ROE: KER's Return on Equity (26.7%) is considered high.


Financial Health

How is Kering's financial position?


Financial Position Analysis

Short Term Liabilities: KER's short term assets (€10.2B) exceed its short term liabilities (€7.0B).

Long Term Liabilities: KER's short term assets (€10.2B) exceed its long term liabilities (€9.2B).


Debt to Equity History and Analysis

Debt Level: KER's debt to equity ratio (42.3%) is considered high.

Reducing Debt: KER's debt to equity ratio has reduced from 51.7% to 42.3% over the past 5 years.

Debt Coverage: KER's debt is well covered by operating cash flow (86.1%).

Interest Coverage: KER's interest payments on its debt are well covered by EBIT (29.4x coverage).


Balance Sheet


Dividend

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

1.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KER's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.29%).

High Dividend: KER's dividend (1.06%) is low compared to the top 25% of dividend payers in the French market (3.87%).


Stability and Growth of Payments

Stable Dividend: KER's dividend payments have been volatile 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 low payout ratio (20.6%), 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 well covered by earnings (47.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.0yrs

Average management tenure


CEO

François-Henri Pinault (59 yo)

16.33yrs

Tenure

€5,368,500

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 and serves as President. He serves as Chairman of Group PPR and ...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether François-Henri's total compensation is reasonable compared to companies of similar size in the French market.

Compensation vs Earnings: François-Henri's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: KER's management team is seasoned and experienced (9 years average tenure).


Board Members

Experienced Board: KER's board of directors are seasoned and experienced ( 10.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: €94.312b
  • Shares outstanding: 124.72m
  • Website: https://www.kering.com

Number of Employees


Location

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

Listings


Biography

Kering SA develops, designs, manufactures, markets, and sells apparel and accessories. The company offers shoes; leather goods, including handbags and wallets, purses, 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 Analysis2021/07/31 19:16
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.