NYSE:KTB

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Executive Summary

Kontoor Brands, Inc., a lifestyle apparel company, 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 second-rate dividend payer.


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 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 has decreased from 11% to 5% over the past year.


Market Performance


7 Day Return

-1.0%

KTB

0.4%

US Luxury

-1.3%

US Market


1 Year Return

27.4%

KTB

42.0%

US Luxury

41.9%

US Market

Return vs Industry: KTB underperformed the US Luxury industry which returned 43.7% over the past year.

Return vs Market: KTB underperformed the US Market which returned 36.5% over the past year.


Shareholder returns

KTBIndustryMarket
7 Day-1.0%0.4%-1.3%
30 Day20.9%6.0%7.5%
90 Day3.3%4.4%15.9%
1 Year30.7%27.4%43.3%42.0%44.8%41.9%
3 Yearn/a74.6%67.0%49.1%41.0%
5 Yearn/a88.4%76.1%113.1%92.8%

Long-Term 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?

46.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KTB ($43.66) is trading above our estimate of fair value ($35.69)

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 (46.4x) compared to the US Luxury industry average (24x).

PE vs Market: KTB is poor value based on its PE Ratio (46.4x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: KTB is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: KTB is overvalued based on its PB Ratio (95.7x) compared to the US Luxury industry average (1.8x).


Next Steps

Future Growth

How is Kontoor Brands forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KTB's forecast earnings growth (22.1% per year) is above the savings rate (2%).

Earnings vs Market: KTB's earnings (22.1% per year) are forecast to grow faster than the US market (20% per year).

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

Revenue vs Market: KTB's revenue (5.6% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: KTB's revenue (5.6% 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 (102.9%).


Next Steps

Past Performance

How has Kontoor Brands performed over the past 5 years?

-45.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KTB has high quality earnings.

Growing Profit Margin: KTB's current net profit margins (2.6%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: KTB's earnings have declined by 45.7% 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 (-55.5%) over the past year, making it difficult to compare to the Luxury industry average (-19.8%).


Return on Equity

High ROE: Whilst KTB's Return on Equity (205.79%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Kontoor Brands's financial position?


Financial Position Analysis

Short Term Liabilities: KTB's short term assets ($1.0B) exceed its short term liabilities ($462.9M).

Long Term Liabilities: KTB's short term assets ($1.0B) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: KTB's debt to equity ratio (3986%) 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 (31.7%).

Interest Coverage: KTB's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

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

3.66%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: KTB's dividend (3.66%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: KTB's dividend (3.66%) is low compared to the top 25% of dividend payers in the US market (3.76%).


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 reasonable payout ratio (59.5%), KTB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KTB's dividends in 3 years are forecast to be covered by earnings (67.5% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Scott Baxter (55 yo)

3.08yrs

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 ($USD6.25M) is about average for companies of similar size in the US market ($USD4.99M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Scott Baxter
President3.08yrsUS$6.25m0.33%
$ 8.1m
Rustin Welton
Executive VP & CFO2.08yrsUS$1.88m0.085%
$ 2.1m
Laurel Krueger
Executive VP2.08yrsUS$2.34m0.048%
$ 1.2m
Thomas Waldron
Executive VP & Global Brand President at Wrangler2.08yrsUS$1.93m0.088%
$ 2.2m
Chris Waldeck
Executive VP & Global Brand President of Lee2.08yrsUS$2.00m0.082%
$ 2.0m
Denise Sumner
VP & Chief Accounting Officerno datano datano data
Eric Tracy
Senior Director of Investor Relationsno datano datano data
Scott Shoener
Executive VP0.92yrno 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 Chain2.08yrsno datano data
David Kovach
VP & Treasurerno datano datano data

2.1yrs

Average Tenure

51yo

Average Age

Experienced Management: KTB's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Baxter
President3.08yrsUS$6.25m0.33%
$ 8.1m
Robert Shearer
Independent Chairman of the Board2.08yrsUS$607.20k0.060%
$ 1.5m
Kathleen Barclay
Independent Directorno dataUS$136.48k0.014%
$ 350.4k
Shelley Stewart
Independent Directorno dataUS$126.48k0.014%
$ 350.4k
Juliana Chugg
Independent Directorno dataUS$181.12k0.041%
$ 1.0m
Richard Carucci
Independent Director2.08yrsUS$175.92k0.085%
$ 2.1m

2.1yrs

Average Tenure

63.5yo

Average Age

Experienced Board: KTB's board of directors are not considered experienced ( 2.1 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 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$2.498b
  • Shares outstanding: 57.21m
  • 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
3KOXTRA (XETRA Trading Platform)YesCommon SharesDEEURMay 2019

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/02 00:48
End of Day Share Price2021/03/01 00:00
Earnings2020/09/26
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.