ENXTPA:KER

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential with mediocre 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.03%

KER

2.0%

FR Luxury

-0.04%

FR Market


1 Year Return

23.2%

KER

10.1%

FR Luxury

-6.4%

FR Market

Return vs Industry: KER exceeded the French Luxury industry which returned 10.3% over the past year.

Return vs Market: KER exceeded the French Market which returned -6.6% over the past year.


Shareholder returns

KERIndustryMarket
7 Day-0.03%2.0%-0.04%
30 Day0.2%4.4%0.6%
90 Day16.4%7.2%-0.03%
1 Year25.1%23.2%12.5%10.1%-4.3%-6.4%
3 Year83.8%62.3%71.9%61.2%7.1%-2.2%
5 Year313.6%249.5%142.2%121.0%31.9%13.8%

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?

40.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KER (€589) is trading above our estimate of fair value (€424.86)

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 (40.3x) compared to the FR Luxury industry average (44.6x).

PE vs Market: KER is poor value based on its PE Ratio (40.3x) compared to the French market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: KER is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: KER is overvalued based on its PB Ratio (7.4x) compared to the FR Luxury industry average (1.5x).


Next Steps

Future Growth

How is Kering forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

22.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KER's forecast earnings growth (22.4% per year) is above the savings rate (0.6%).

Earnings vs Market: KER's earnings (22.4% per year) are forecast to grow slower than the French market (24.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KER's revenue (9.5% per year) is forecast to grow faster than the French market (6.7% per year).

High Growth Revenue: KER's revenue (9.5% 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 (24%)


Next Steps

Past Performance

How has Kering performed over the past 5 years?

24.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KER has high quality earnings.

Growing Profit Margin: KER's current net profit margins (13.4%) are lower than last year (13.8%).


Past Earnings Growth Analysis

Earnings Trend: KER's earnings have grown significantly by 24.9% 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 (-10.8%) over the past year, making it difficult to compare to the Luxury industry average (-23.7%).


Return on Equity

High ROE: KER's Return on Equity (18.1%) is considered low.


Next Steps

Financial Health

How is Kering's financial position?


Financial Position Analysis

Short Term Liabilities: KER's short term assets (€8.1B) exceed its short term liabilities (€7.7B).

Long Term Liabilities: KER's short term assets (€8.1B) do not cover its long term liabilities (€9.3B).


Debt to Equity History and Analysis

Debt Level: KER's debt to equity ratio (64.8%) is considered high.

Reducing Debt: KER's debt to equity ratio has increased from 53.8% to 64.8% over the past 5 years.

Debt Coverage: KER's debt is well covered by operating cash flow (26.3%).

Interest Coverage: KER's interest payments on its debt are well covered by EBIT (53.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KER's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.54%).

High Dividend: KER's dividend (1.36%) is low compared to the top 25% of dividend payers in the French market (5.22%).


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 reasonably low payout ratio (30.8%), 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 (49.9% payout ratio).


Next Steps

Management

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

8.4yrs

Average management tenure


CEO

François-Henri Pinault (58 yo)

15.58yrs

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: François-Henri's total compensation ($USD6.35M) is above average for companies of similar size in the French market ($USD3.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
François-Henri Pinault
Chairman & CEO15.58yrs€5.37mno data
Jean-Francois Palus
Deputy CEO & Director11.42yrs€5.74m0.056%
€ 40.9m
Claire Lacaze
Event Production Manager & Employees Representing Director2.25yrs€17.32kno data
Sophie Bouchillou
Human Resources Project Coordinatorno data€43.19kno data
Jean-Marc Duplaix
Chief Financial Officer8.67yrsno datano data
Eric Sandrin
Legal Director6.33yrsno datano data
Valérie Duport
Chief Communications & Image Officer4.42yrsno datano data
Béatrice Lazat
Chief People Officer4.58yrsno datano data
Laurent Claquin
Head of Kering Americas13.08yrsno datano data
Marie-Claire Daveu
Chief Sustainability Officer & Head of International Institutional Affairs8.08yrsno datano data
Gregory Boutté
Chief Client & Digital Officer2.83yrsno datano data
Alexandre Bompard
Chairman of FNAC and Chief Executive Officer of FNAC9.92yrsno datano data

8.4yrs

Average Tenure

50yo

Average Age

Experienced Management: KER's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
François-Henri Pinault
Chairman & CEO15.58yrs€5.37mno data
Jean-Francois Palus
Deputy CEO & Director11.42yrs€5.74m0.056%
€ 40.9m
Claire Lacaze
Event Production Manager & Employees Representing Director2.25yrs€17.32kno data
Alexandre Bompard
Chairman of FNAC and Chief Executive Officer of FNAC9.92yrsno datano data
Baudouin Prot
Director15.42yrs€49.49k0.00048%
€ 353.4k
Jean-Pierre Denis
Director12.33yrs€104.56k0.00040%
€ 294.5k
Heloise Temple-Boyer
Vice-Chairman of the Board1.83yrsno datano data
François Pinault
Honorary Chairmanno datano data0.029%
€ 21.3m
John Elkington
Member of Sustainability Technical Advisory Groupno datano datano data
Yseulys Costes
Independent Director10.42yrs€74.19k0.00040%
€ 294.5k
Cheick Thiam
Independent Director0.33yrno datano data
Sophie L'Hélias
Lead Independent Director1.67yrs€104.56k0.00070%
€ 515.4k

10.2yrs

Average Tenure

58yo

Average Age

Experienced Board: KER's board of directors are seasoned and experienced ( 10.2 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: €73.634b
  • Shares outstanding: 125.01m
  • Website: https://www.kering.com

Number of Employees


Location

  • Kering SA
  • 40 rue de SEvres
  • 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
KERSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
PPRU.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008
PPXBDB (Deutsche Boerse AG)UNSPONSORED ADRDEEUROct 2008

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 20:38
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.