Kirkland's (NasdaqGS:KIRK) - Share price, News & Analysis

KIRK fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

KIRK Stock Overview

Kirkland's, Inc. operates as a specialty retailer of home furnishings décor in the United States.

Rewards

Trading at 70.3% below our estimate of its fair value

Earnings have grown 4.2% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of 8.5% per year for the next 3 years

Significant insider selling over the past 3 months

Does not have a meaningful market cap ($89M)

Kirkland's Competitors

Williams-Sonoma

NYSE:WSM

US$8.7b

NYSE:RH

US$6.9b

Bed Bath & Beyond

NasdaqGS:BBBY

US$746.1m

Amazon.com

NasdaqGS:AMZN

US$1.1t

Price History & Performance

Summary of all time highs, changes and price drops for Kirkland's
Historical stock prices
Current Share Price	US$7.19
52 Week High	US$29.34
52 Week Low	US$6.66
Beta	1.77
1 Month Change	-17.45%
3 Month Change	-53.10%
1 Year Change	-74.36%
3 Year Change	47.04%
5 Year Change	-20.20%
Change since IPO	-51.58%

Recent News & Updates

Apr 24

Kirkland's' (NASDAQ:KIRK) Returns On Capital Are Heading Higher

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

	KIRK	US Specialty Retail	US Market
7D	0.1%	2.9%	2.7%
1Y	-74.4%	-23.0%	-8.1%

Return vs Industry: KIRK underperformed the US Specialty Retail industry which returned -25.7% over the past year.

Return vs Market: KIRK underperformed the US Market which returned -10.8% over the past year.

Price Volatility

Is KIRK's price volatile compared to industry and market?
KIRK volatility
KIRK Average Weekly Movement	9.0%
Specialty Retail Industry Average Movement	8.4%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: KIRK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: KIRK's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1966	2,750	Woody Woodward	https://www.kirklands.com

Kirkland's, Inc. operates as a specialty retailer of home furnishings décor in the United States. The company’s stores provide various merchandise, including holiday décor, furniture, textiles, ornamental wall décor, decorative accessories, art, mirrors, home fragrance, lighting, floral, housewares, and gifts. The company operates its stores under the Kirkland's, Kirkland's Home, Kirkland's Home Outlet, Kirkland's Outlet, and The Kirkland Collection names.

Kirkland's Fundamentals Summary

How do Kirkland's's earnings and revenue compare to its market cap?
KIRK fundamental statistics
Market Cap	US$88.58m
Earnings (TTM)	US$22.03m
Revenue (TTM)	US$558.18m

4.2x

P/E Ratio

0.2x

P/S Ratio

Is KIRK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KIRK income statement (TTM)
Revenue	US$558.18m
Cost of Revenue	US$369.75m
Gross Profit	US$188.43m
Other Expenses	US$166.40m
Earnings	US$22.03m

Last Reported Earnings

Jan 29, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.73
Gross Margin	33.76%
Net Profit Margin	3.95%
Debt/Equity Ratio	0%

How did KIRK perform over the long term?

See historical performance and comparison

Valuation

Is Kirkland's undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: KIRK ($7.19) is trading below our estimate of fair value ($24.24)

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

Price To Earnings Ratio

PE vs Industry: KIRK is good value based on its PE Ratio (4.2x) compared to the US Specialty Retail industry average (6.5x).

PE vs Market: KIRK is good value based on its PE Ratio (4.2x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: KIRK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: KIRK is good value based on its PB Ratio (1.1x) compared to the US Specialty Retail industry average (1.9x).

Future Growth

How is Kirkland's forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-8.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: KIRK's earnings are forecast to decline over the next 3 years (-8.5% per year).

Earnings vs Market: KIRK's earnings are forecast to decline over the next 3 years (-8.5% per year).

High Growth Earnings: KIRK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KIRK's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: KIRK's revenue is forecast to decline over the next 3 years (-0.5% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: KIRK's Return on Equity is forecast to be high in 3 years time (23.2%)

Past Performance

How has Kirkland's performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

4.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KIRK has high quality earnings.

Growing Profit Margin: KIRK's current net profit margins (3.9%) are higher than last year (3%).

Past Earnings Growth Analysis

Earnings Trend: KIRK's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: KIRK's earnings growth over the past year (34.7%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: KIRK earnings growth over the past year (34.7%) underperformed the Specialty Retail industry 82.9%.

Return on Equity

High ROE: KIRK's Return on Equity (27.2%) is considered high.

Financial Health

How is Kirkland's's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: KIRK's short term assets ($149.6M) exceed its short term liabilities ($134.6M).

Long Term Liabilities: KIRK's short term assets ($149.6M) exceed its long term liabilities ($115.4M).

Debt to Equity History and Analysis

Debt Level: KIRK is debt free.

Reducing Debt: KIRK had no debt 5 years ago.

Debt Coverage: KIRK has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: KIRK has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate KIRK'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 KIRK's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as KIRK has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Retail industry.

Management

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

1.3yrs

Average management tenure

CEO

Woody Woodward (64 yo)

3.58yrs

Tenure

US$2,585,228

Compensation

Mr. Steve C. Woodward, also known as Woody, serves as Chief Executive Officer at Kirkland's, Inc. since October 22, 2018 and serves as its President since January 16, 2020. Prior to joining Kirkland’s, Inc...

CEO Compensation Analysis

Compensation vs Market: Woody's total compensation ($USD2.59M) is above average for companies of similar size in the US market ($USD772.03K).

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

Leadership Team

Experienced Management: KIRK's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: KIRK's board of directors are considered experienced (5.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: KIRK insiders have sold more shares than they have bought in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/01/29
Annual Earnings	2022/01/29