NYSE:KSS

Stock Analysis Report

Executive Summary

Kohl's Corporation operates as an omni-channel retailer in the United States.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.4%

KSS

-2.1%

US Multiline Retail

1.7%

US Market


1 Year Return

-32.8%

KSS

20.7%

US Multiline Retail

23.6%

US Market

Return vs Industry: KSS underperformed the US Multiline Retail industry which returned 26.9% over the past year.

Return vs Market: KSS underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

KSSIndustryMarket
7 Day1.4%-2.1%1.7%
30 Day-7.1%-5.0%3.5%
90 Day-8.3%-4.1%11.7%
1 Year-29.3%-32.8%23.7%20.7%26.2%23.6%
3 Year33.1%16.0%60.7%49.1%53.2%43.3%
5 Year-3.3%-21.9%34.9%17.4%75.5%56.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KSS ($46.53) is trading below our estimate of fair value ($103.43)

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


Price To Earnings Ratio

PE vs Industry: KSS is good value based on its PE Ratio (10.6x) compared to the Multiline Retail industry average (12.9x).

PE vs Market: KSS is good value based on its PE Ratio (10.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KSS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KSS is good value based on its PB Ratio (1.4x) compared to the US Multiline Retail industry average (1.4x).


Next Steps

Future Growth

How is Kohl's forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-0.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if KSS's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if KSS's earnings are forecast to grow faster than the US market

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

Revenue vs Market: KSS's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: KSS's revenue is forecast to decline over the next 3 years (-0.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KSS's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

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

1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KSS has high quality earnings.

Growing Profit Margin: KSS's current net profit margins (3.5%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: KSS's earnings have grown by 1.6% per year over the past 5 years.

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

Earnings vs Industry: KSS had negative earnings growth (-30%) over the past year, making it difficult to compare to the Multiline Retail industry average (-9%).


Return on Equity

High ROE: KSS's Return on Equity (13%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kohl's's financial position?


Financial Position Analysis

Short Term Liabilities: KSS's short term assets ($5.8B) exceed its short term liabilities ($4.1B).

Long Term Liabilities: KSS's short term assets ($5.8B) do not cover its long term liabilities ($6.3B).


Debt to Equity History and Analysis

Debt Level: KSS's debt to equity ratio (34.7%) is considered satisfactory.

Reducing Debt: KSS's debt to equity ratio has reduced from 48.1% to 34.7% over the past 5 years.

Debt Coverage: KSS's debt is well covered by operating cash flow (93.2%).

Interest Coverage: KSS's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet

Inventory Level: KSS has a high level of physical assets or inventory.

Debt Coverage by Assets: KSS's debt is covered by short term assets (assets are 3.1x debt).


Next Steps

Dividend

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

5.70%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years6.3%

Current dividend yield vs market & industry

Notable Dividend: KSS's dividend (5.76%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: KSS's dividend (5.76%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KSS has been paying a dividend for less than 10 years.

Growing Dividend: KSS's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.6%), KSS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KSS's dividends in 3 years are forecast to be covered by earnings (72.2% payout ratio).


Next Steps

Management

What is the CEO of Kohl's's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Michelle Gass (51yo)

1.7yrs

Tenure

US$12,340,445

Compensation

Ms. Michelle D. Gass has been a Director at PepsiCo, Inc. since March 6, 2019. Ms. Gass serves as Chief Executive Officer and Director of Kohl's Corporation since May 16, 2018. Ms. Gass was the Chief Merch ...


CEO Compensation Analysis

Compensation vs Market: Michelle's total compensation ($USD12.34M) is above average for companies of similar size in the US market ($USD6.46M).

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


Management Age and Tenure

1.8yrs

Average Tenure

55yo

Average Age

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


Board Age and Tenure

6.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: KSS's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

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.


Management Team

  • Paul Gaffney (52yo)

    Senior EVP & Chief Technology Officer

    • Tenure: 0.3yrs
  • Bruce Besanko (60yo)

    Senior Advisor

    • Tenure: 2.5yrs
    • Compensation: US$4.59m
  • Mark Rupe

    Vice President of Investor Relations

    • Michelle Gass (51yo)

      CEO & Director

      • Tenure: 1.7yrs
      • Compensation: US$12.34m
    • Marc Chini (60yo)

      Senior EVP & Chief People Officer

      • Tenure: 2yrs
    • Doug Howe (58yo)

      Chief Merchandising Officer

      • Tenure: 1.7yrs
      • Compensation: US$8.70m
    • Greg Revelle (41yo)

      Senior EVP & Chief Marketing Officer

      • Tenure: 2.8yrs
      • Compensation: US$6.26m
    • Arthur Lewis

      Executive Vice President of Development

      • Jason Kelroy

        Executive VP

        • Tenure: 4.4yrs
      • Jill Timm

        Senior EVP & Chief Financial Officer

        • Tenure: 0.2yrs

      Board Members

      • Frank Sica (68yo)

        Independent Chairman of the Board

        • Tenure: 1.7yrs
        • Compensation: US$394.99k
      • John Schlifske (60yo)

        Independent Director

        • Tenure: 9yrs
        • Compensation: US$247.50k
      • Steven Burd (69yo)

        Independent Director

        • Tenure: 19yrs
        • Compensation: US$250.00k
      • Peter Boneparth (59yo)

        Independent Director

        • Tenure: 11.7yrs
        • Compensation: US$268.76k
      • Steve Watson (74yo)

        Independent Director

        • Tenure: 13.9yrs
        • Compensation: US$261.25k
      • Stephanie Streeter (61yo)

        Independent Director

        • Tenure: 12.5yrs
        • Compensation: US$272.51k
      • Michelle Gass (51yo)

        CEO & Director

        • Tenure: 1.7yrs
        • Compensation: US$12.34m
      • Chuck Floyd (59yo)

        Independent Director

        • Tenure: 2.2yrs
        • Compensation: US$243.75k
      • Jonas Prising (54yo)

        Independent Director

        • Tenure: 4.4yrs
        • Compensation: US$266.26k
      • Adrianne Shapira (49yo)

        Independent Director

        • Tenure: 3.4yrs
        • Compensation: US$247.50k

      Company Information

      Kohl's Corporation's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Kohl's Corporation
      • Ticker: KSS
      • Exchange: NYSE
      • Founded: 1962
      • Industry: Department Stores
      • Sector: Retail
      • Market Cap: US$7.359b
      • Shares outstanding: 156.57m
      • Website: https://www.Kohls.com

      Number of Employees


      Location

      • Kohl's Corporation
      • N56 W17000 Ridgewood Drive
      • Menomonee Falls
      • Wisconsin
      • 53051
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      KSSNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1992
      KHPDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1992
      KSS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 1992
      0JRLLSE (London Stock Exchange)YesCommon StockGBUSDMay 1992
      K1SS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

      Biography

      Kohl's Corporation operates as an omni-channel retailer in the United States. Its stores and Website offer apparel, footwear, accessories, beauty, and home products. As of February 2, 2019, it operated 1,159 department stores; a Website Kohls.com; and 12 FILA outlets, and 4 Off-Aisle clearance centers. Kohl's Corporation was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/19 23:39
      End of Day Share Price2020/01/17 00:00
      Earnings2019/11/02
      Annual Earnings2019/02/02


      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.