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KTB

Kontoor BrandsNYSE:KTB Stock Report

Last Price

US$49.43

Market Cap

US$2.8b

7D

-4.1%

1Y

17.5%

Updated

19 Jan, 2022

Data

Company Financials +
KTB fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends4/6

KTB Stock Overview

Kontoor Brands, Inc., a lifestyle apparel company, designs, manufactures, procures, markets, and distributes apparel under the Wrangler and Lee brands in the United States and internationally.

Kontoor Brands Competitors

V.F

NYSE:VFC

US$27.7b

Tapestry

NYSE:TPR

US$10.3b

Levi Strauss

NYSE:LEVI

US$8.9b

Capri Holdings

NYSE:CPRI

US$8.5b

Price History & Performance

Summary of all time highs, changes and price drops for Kontoor Brands
Historical stock prices
Current Share PriceUS$49.43
52 Week HighUS$69.16
52 Week LowUS$35.48
Beta1.26
1 Month Change4.24%
3 Month Change-4.02%
1 Year Change17.52%
3 Year Changen/a
5 Year Changen/a
Change since IPO22.05%

Recent News & Updates

Jan 19
Is Kontoor Brands, Inc. (NYSE:KTB) Trading At A 25% Discount?

Is Kontoor Brands, Inc. (NYSE:KTB) Trading At A 25% Discount?

Does the January share price for Kontoor Brands, Inc. ( NYSE:KTB ) reflect what it's really worth? Today, we will...

Dec 24

Kontoor Brands: Now Is Your Time To Accumulate

KTB has been punished in recent weeks. While I don't see a rally in the short-term, there's a lot to like here. Very cheap valuation and high yield are among the positives with long-term upside.

Dec 19
Should You Investigate Kontoor Brands, Inc. (NYSE:KTB) At US$50.73?

Should You Investigate Kontoor Brands, Inc. (NYSE:KTB) At US$50.73?

While Kontoor Brands, Inc. ( NYSE:KTB ) might not be the most widely known stock at the moment, it received a lot of...

Shareholder Returns

KTBUS LuxuryUS Market
7D-4.1%-3.0%-3.5%
1Y17.5%4.4%10.2%

Return vs Industry: KTB exceeded the US Luxury industry which returned 4.4% over the past year.

Return vs Market: KTB exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is KTB's price volatile compared to industry and market?
KTB volatility
KTB Average Weekly Movement5.4%
Luxury Industry Average Movement6.0%
Market Average Movement6.6%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: KTB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: KTB's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
201814,000Scott Baxterhttps://www.kontoorbrands.com

Kontoor Brands, Inc., a lifestyle apparel company, designs, manufactures, procures, markets, and distributes apparel under the Wrangler and Lee brands in the United States and internationally. The company sells its products primarily through mass and mid-tier retailers, specialty stores, department stores, and retailer-owned and third-party e-commerce sites, as well as through direct-to-consumer channels, including full-price and outlet stores, and its websites. As of January 2, 2021, it operated 86 retail stores across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions.

Kontoor Brands Fundamentals Summary

How do Kontoor Brands's earnings and revenue compare to its market cap?
KTB fundamental statistics
Market CapUS$2.83b
Earnings (TTM)US$194.63m
Revenue (TTM)US$2.46b

14.6x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KTB income statement (TTM)
RevenueUS$2.46b
Cost of RevenueUS$1.35b
Gross ProfitUS$1.10b
ExpensesUS$906.19m
EarningsUS$194.63m

Last Reported Earnings

Oct 02, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.40
Gross Margin44.83%
Net Profit Margin7.93%
Debt/Equity Ratio428.6%

How did KTB perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

47%

Payout Ratio

Valuation

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

24.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KTB ($49.43) is trading below our estimate of fair value ($65.82)

Significantly Below Fair Value: KTB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KTB is good value based on its PE Ratio (14.6x) compared to the US Luxury industry average (16.7x).

PE vs Market: KTB is good value based on its PE Ratio (14.6x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: KTB is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: KTB is overvalued based on its PB Ratio (15.3x) compared to the US Luxury industry average (1.8x).


Future Growth

How is Kontoor Brands forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KTB's forecast earnings growth (5.7% per year) is above the savings rate (2%).

Earnings vs Market: KTB's earnings (5.7% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: KTB's revenue (3.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: KTB's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KTB's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Kontoor Brands performed over the past 5 years?

-20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KTB has high quality earnings.

Growing Profit Margin: KTB's current net profit margins (7.9%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: KTB's earnings have declined by 20.7% per year over the past 5 years.

Accelerating Growth: KTB's earnings growth over the past year (257.5%) exceeds its 5-year average (-20.7% per year).

Earnings vs Industry: KTB earnings growth over the past year (257.5%) exceeded the Luxury industry 57.1%.


Return on Equity

High ROE: Whilst KTB's Return on Equity (105.34%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Kontoor Brands's financial position?


Financial Position Analysis

Short Term Liabilities: KTB's short term assets ($988.3M) exceed its short term liabilities ($504.6M).

Long Term Liabilities: KTB's short term assets ($988.3M) exceed its long term liabilities ($923.8M).


Debt to Equity History and Analysis

Debt Level: KTB's net debt to equity ratio (312%) is considered high.

Reducing Debt: Insufficient data to determine if KTB's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: KTB's debt is well covered by operating cash flow (40.6%).

Interest Coverage: KTB's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet


Dividend

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

3.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KTB's dividend (3.72%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: KTB's dividend (3.72%) is in the top 25% of dividend payers in the US market (3.48%)


Stability and Growth of Payments

Stable Dividend: KTB has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: KTB has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.2%), KTB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KTB's dividends in 3 years are forecast to be well covered by earnings (44% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Scott Baxter (56 yo)

3.42yrs

Tenure

US$5,827,659

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 sin...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD5.83M) is about average for companies of similar size in the US market ($USD5.14M).

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


Leadership Team

Experienced Management: KTB's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: KTB's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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 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
  • Implied Market Cap: US$2.833b
  • Shares outstanding: 57.32m
  • Website: https://www.kontoorbrands.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:51
End of Day Share Price2022/01/19 00:00
Earnings2021/10/02
Annual Earnings2021/01/02


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.