NYSE:KTB

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Executive Summary

Kontoor Brands, Inc. designs, manufactures, sources, markets, and distributes apparel under the Wrangler and Lee brands in the United States and internationally. More Details


Snowflake Analysis

Reasonable growth potential with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KTB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.3%

KTB

0.8%

US Luxury

3.9%

US Market


1 Year Return

-30.5%

KTB

17.3%

US Luxury

18.5%

US Market

Return vs Industry: KTB underperformed the US Luxury industry which returned 16.8% over the past year.

Return vs Market: KTB underperformed the US Market which returned 17.2% over the past year.


Shareholder returns

KTBIndustryMarket
7 Day6.3%0.8%3.9%
30 Day9.0%3.9%-4.3%
90 Day39.9%20.1%8.1%
1 Year-28.2%-30.5%18.6%17.3%21.2%18.5%
3 Yearn/a78.8%70.5%38.2%29.0%
5 Yearn/a52.2%42.3%84.3%63.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

188.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KTB ($24.2) is trading above our estimate of fair value ($18.48)

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


Price To Earnings Ratio

PE vs Industry: KTB is poor value based on its PE Ratio (188.8x) compared to the US Luxury industry average (31.7x).

PE vs Market: KTB is poor value based on its PE Ratio (188.8x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: KTB is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: KTB has negative assets, so we can't compare its PB Ratio to the US Luxury industry average.


Next Steps

Future Growth

How is Kontoor Brands forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

45.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KTB's forecast earnings growth (45.7% per year) is above the savings rate (2.2%).

Earnings vs Market: KTB's earnings (45.7% per year) are forecast to grow faster than the US market (22.1% per year).

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

Revenue vs Market: KTB's revenue (7.4% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: KTB's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KTB's Return on Equity is forecast to be very high in 3 years time (131.5%).


Next Steps

Past Performance

How has Kontoor Brands performed over the past 5 years?

-42.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KTB has a large one-off loss of $44.2M impacting its June 27 2020 financial results.

Growing Profit Margin: KTB's current net profit margins (0.3%) are lower than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: KTB's earnings have declined by 42.6% per year over the past 5 years.

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

Earnings vs Industry: KTB had negative earnings growth (-95.9%) over the past year, making it difficult to compare to the Luxury industry average (-54.2%).


Return on Equity

High ROE: KTB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Kontoor Brands's financial position?


Financial Position Analysis

Short Term Liabilities: KTB has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: KTB has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: KTB has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: KTB's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: KTB's debt is not well covered by operating cash flow (17.8%).

Interest Coverage: KTB's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.38%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KTB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KTB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KTB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KTB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: KTB is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KTB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Scott Baxter (55 yo)

2.75yrs

Tenure

US$6,254,034

Compensation

Mr. Scott H. Baxter serves as Independent Director at Callaway Golf Company since November 21, 2019. He has been President and Director of Kontoor Brands, Inc and serves as its Chief Executive Officer sinc ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD6.25M) is above average for companies of similar size in the US market ($USD4.57M).

Compensation vs Earnings: Insufficient data to compare Scott's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Baxter
President2.75yrsUS$6.25m0.34%
$ 4.6m
Rustin Welton
Executive VP & CFO1.75yrsUS$1.88m0.085%
$ 1.2m
Laurel Krueger
Executive VP1.75yrsUS$2.34m0.052%
$ 713.4k
Thomas Waldron
Executive VP & Global Brand President at Wrangler1.75yrsUS$1.93m0.10%
$ 1.4m
Chris Waldeck
Executive VP & Global Brand President of Lee1.75yrsUS$2.00m0.082%
$ 1.1m
Denise Sumner
VP & Chief Accounting Officerno datano datano data
Scott Shoener
Executive VP0.58yrno datano data
Vanessa McCutchen
Senior Director of Corporate Communicationsno datano datano data
Sara Bland
Executive Vice President of Global Strategyno datano datano data
Randy Fortenberry
Executive Vice President of Global Supply Chain1.75yrsno datano data
David Kovach
VP & Treasurerno datano datano data
Eric Tracy
Senior Director of Investor Relationsno datano datano data

1.8yrs

Average Tenure

51yo

Average Age

Experienced Management: KTB's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Kontoor Brands, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kontoor Brands, Inc.
  • Ticker: KTB
  • Exchange: NYSE
  • Founded: 2018
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$1.382b
  • Shares outstanding: 57.11m
  • Website: https://www.kontoorbrands.com

Number of Employees


Location

  • Kontoor Brands, Inc.
  • 400 North Elm Street
  • Greensboro
  • North Carolina
  • 27401
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KTBNYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 2019
0A1XLSE (London Stock Exchange)YesCommon SharesGBEURMay 2019
3KODB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2019

Biography

Kontoor Brands, Inc. designs, manufactures, sources, markets, and distributes apparel under the Wrangler and Lee brands in the United States and internationally. The company sells its products primarily th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/01 01:01
End of Day Share Price2020/09/30 00:00
Earnings2020/06/27
Annual Earnings2019/12/28


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.