ENXTPA:KER

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Established dividend payer with reasonable growth potential.


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

-7.7%

KER

-6.7%

FR Luxury

-4.5%

FR Market


1 Year Return

10.6%

KER

18.6%

FR Luxury

10.5%

FR Market

Return vs Industry: KER underperformed the French Luxury industry which returned 18.6% over the past year.

Return vs Market: KER matched the French Market which returned 10.5% over the past year.


Shareholder returns

KERIndustryMarket
7 Day-7.7%-6.7%-4.5%
30 Day-6.7%-6.9%-3.2%
90 Day-2.0%-5.7%-1.3%
1 Year12.8%10.6%21.8%18.6%14.4%10.5%
3 Year162.7%131.6%96.5%84.3%38.5%25.4%
5 Year250.9%194.7%140.7%117.5%47.2%26.5%

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?

7.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KER (€535.1) is trading below our estimate of fair value (€575.14)

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 (30.8x) compared to the Luxury industry average (26x).

PE vs Market: KER is poor value based on its PE Ratio (30.8x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: KER is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: KER is overvalued based on its PB Ratio (6.5x) compared to the FR Luxury industry average (1.7x).


Next Steps

Future Growth

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

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KER's forecast earnings growth (19.4% per year) is above the savings rate (-0.1%).

Earnings vs Market: KER's earnings (19.4% per year) are forecast to grow faster than the French market (12.9% per year).

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

Revenue vs Market: KER's revenue (6.7% per year) is forecast to grow faster than the French market (4.6% per year).

High Growth Revenue: KER's revenue (6.7% 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 (26.9%)


Next Steps

Past Performance

How has Kering performed over the past 5 years?

26.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KER has high quality earnings.

Growing Profit Margin: KER's current net profit margins (13.7%) are lower than last year (19.2%).


Past Earnings Growth Analysis

Earnings Trend: KER's earnings have grown significantly by 26.9% 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 (-16.7%) 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 (21.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kering's financial position?


Financial Position Analysis

Short Term Liabilities: KER's short term assets (€7.5B) do not cover its short term liabilities (€8.1B).

Long Term Liabilities: KER's short term assets (€7.5B) do not cover its long term liabilities (€8.6B).


Debt to Equity History and Analysis

Debt Level: KER's debt to equity ratio (48.8%) is considered high.

Reducing Debt: KER's debt to equity ratio has increased from 48.1% to 48.8% over the past 5 years.

Debt Coverage: KER's debt is well covered by operating cash flow (51.9%).

Interest Coverage: KER's interest payments on its debt are well covered by EBIT (29.4x 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 1.5x debt).


Next Steps

Dividend

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

2.15%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.6%markettop25%4.7%industryaverage1.6%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: KER's dividend (2.15%) is higher than the bottom 25% of dividend payers in the French market (1.6%).

High Dividend: KER's dividend (2.15%) is low compared to the top 25% of dividend payers in the French market (4.68%).


Stability and Growth of Payments

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 reasonable payout ratio (66.1%), KER's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KER's dividends in 3 years are forecast to be well covered by earnings (45.4% payout ratio).


Next Steps

Management

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

7.7yrs

Average management tenure


CEO

François-Henri Pinault (57yo)

14.9yrs

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 ($USD13.23M) is above average for companies of similar size in the French market ($USD3.32M).

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.


Leadership Team

NamePositionTenureCompensationOwnership
François-Henri Pinault
Chairman & CEO14.9yrs€12.18mno data
Jean-François Palus
Deputy CEO & Director10.8yrs€9.82m0.056% 37.1m
Claire Lacaze
Event Production Manager & Employees Representing Director1.6yrs€17.32kno data
Sophie Bouchillou
Human Resources Project Coordinator0yrs€43.19kno data
Jean-Marc Duplaix
Chief Financial Officer8yrsno datano data
Eric Sandrin
Legal Director5.7yrsno datano data
Valérie Duport
Chief Communications & Image Officer3.8yrsno datano data
Béatrice Lazat
Chief People Officer3.9yrsno datano data
Laurent Claquin
Head of Kering Americas12.4yrsno datano data
Marie-Claire Daveu
Chief Sustainability Officer & Head of International Institutional Affairs7.4yrsno datano data

7.7yrs

Average Tenure

52yo

Average Age

Experienced Management: KER's management team is seasoned and experienced (7.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
François-Henri Pinault
Chairman & CEO14.9yrs€12.18mno data
Jean-François Palus
Deputy CEO & Director10.8yrs€9.82m0.056% 37.1m
Claire Lacaze
Event Production Manager & Employees Representing Director1.6yrs€17.32kno data
Alexandre Bompard
Chairman of FNAC and Chief Executive Officer of FNAC9.3yrsno datano data
Baudouin Prot
Director14.8yrs€49.49k0.00048% 321.1k
Jean-Pierre Denis
Independent Director11.7yrs€104.56k0.00040% 267.6k
Héloïse Temple-Boyer
Vice-Chairman of the Board1.2yrsno datano data
François Pinault
Honorary Chairman0yrsno data0.029% 19.4m
Yseulys Costes
Independent Director9.8yrs€74.19k0.00040% 267.6k
Sophie L'Hélias
Lead Independent Director1yrs€104.56k0.00070% 468.3k

9.8yrs

Average Tenure

56.5yo

Average Age

Experienced Board: KER's board of directors are considered experienced (9.8 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: €66.897b
  • 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
KERSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
PPRU.YOTCPK (Pink Sheets LLC)UNSPON ADR EA REPR 0.1 ORD EUR0.00USUSDOct 2008
PPXBDB (Deutsche Boerse AG)UNSPON ADR EA REPR 0.1 ORD EUR0.00DEEUROct 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 and textile accessories; jewelry and watches; and T-shirts, sweatshirts, polo shirts, etc., as well as ready-to-wear products for men and women. It also provides fragrances and cosmetics. The company provides its products under the Gucci, Bottega Veneta, Yves Saint Laurent, Alexander McQueen, Balenciaga, Boucheron, Brioni, Christopher Kane, Pomellato, Qeelin, Sowind, Stella McCartney, Ulysse Nardin, Tomas Maier, Dodo, Girard-Perregaux, Puma, Volcom, and Kering brand names. It sells its products through department stores, multi-brand stores, and franchise stores, as well as retail channels and e-commerce Websites. The company was formerly known as PPR SA and changed its name to Kering SA in June 2013. Kering SA was founded in 1963 and is based in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 21:02
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.