KSS  Kohl's Corporation

Exchange

NYSE

Sector

Consumer Services

Industry

Department/Specialty Retail Stores

Market Cap.

7.59B

Vuru Grade

66.03/100

Current Price

$42.99
+2.08 (+5.08%)

Growth Price

$58.04
Undervalued by 35.01%

Stability Price

$53.02
Undervalued by 23.32%

Company Metrics

  • P/E 13.08
  • P/S 0.38
  • P/B 1.41
  • EPS 3.29
  • Cash ROIC 9.75%
  • Cash Ratio 0.26
  • Dividend 2 / 4.79%
  • Avg. Vol. 4.64M
  • Shares 176.55M
  • Market Cap. 7.59B

Company Description

Kohl's Corporation operates department stores in the United States. The company's stores offer private and exclusive, as well as national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares primarily to middle-income customers. As of January 29, 2011, it operated 1,089 stores in 49 states. The company also offers o... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Kohl's Corporation (KSS) Reports Q4 Earnings Beat
Investorplace.com - Feb 23, 2017
Kohl's Corporation, KSS, KSS stock Earnings per share reported by Kohl's Corporation for the fourth quarter of 2016 was $1.44.
Kohl's Corporation Reports Financial Results - Business Wire (press release)
Kohl's Corp. (KSS) Beats Q4 Earnings Despite Comps Decline - Yahoo Finance
Why Dollar Tree, Gap, and Kohl's Corporation Stock All Just Jumped
Madison.com - Feb 24, 2017
Shares of retailers Kohl's Corporation (NYSE: KSS), Gap (NYSE: GPS), and Dollar Tree (NASDAQ: DLTR) are all moving higher in mid-day trading Friday.
Earnings Reaction History: Kohl's Corporation, 57.1% Follow-Through Indicator ...
Nasdaq - Feb 23, 2017
Kohl's Corporation ( KSS ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement ...
Kohl's, Macy's turn landlords
Seeking Alpha - Feb 23, 2017
Department store operators Kohl's (NYSE:KSS) and Macy's (NYSE:M) are betting on a potential money-spinner - carving out prime space within their sprawling stores and leasing them to other retailers.
Forward Earnings Estimate of Kohls Corporation(KSS)
Highland Mirror - Feb 23, 2017
Kohls Corporation(KSS): For the most recent quarter end, Kohls Corporation reported Annual Earnings of $0.8. Based on the filings, last years Annual Earnings was, $4.01.
Option Market: Kohl's Corporation Risk Hits A Reduced Level
CML News - Feb 24, 2017
We're going to look at a proprietary risk rating for the next 30-days built by Capital Market Laboratories (CMLviz) based on a large number of interactions of data points, many of which come directly from the option market for Kohl's Corporation (NYSE ...
Analyst Activity – Telsey Advisory Group Lowers Its Price Target On Kohl's ...
Market Exclusive - Feb 17, 2017
Today, Telsey Advisory Group lowered its price target on Kohl's Corporation (NYSE:KSS) to $43.00 per share. There are 6 sell ratings, 11 hold ratings, 6 buy ratings on the stock.
Can Kohl's Survive Until 2020?
Seeking Alpha - Feb 12, 2017
It has certainly been a tough year for many retailers and apparel companies. After the stock market whipped these companies around, many, like Kohl's (NYSE:KSS), are now what can be considered "high yielders". At almost a 5% yield, Kohl's now yields ...
Trading Options During Earnings in Kohl's Corporation (NYSE:KSS)
CML News - Feb 22, 2017
We're going to examine buying and selling out of the money strangles in Kohl's Corporation and find out once and for all what the winning trades have been during earnings releases.
Revenue Approximations Analysis: Spirit Realty Capital, Inc. (SRC), Kohl's ...
StockNewsJournal - Feb 24, 2017
Kohl's Corporation (NYSE:KSS), maintained return on investment for the last twelve months at 5.57, higher than what Reuters data shows regarding industry's average.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for KSS to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate KSS's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$42.99 Current Price

$58.04 Growth Price (DCF)

Undervalued by 35.01%


Growth Rate Assumed by Market: -24.35%


Future Free Cash Flow Growth Rate: -1.5%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$53.02 Stability Price (EPV)

Undervalued by 23.32%


Discount Rate: 15.0%

$60.62 Book Price

Undervalued by 41.01%


Poor Cash Return on Invested Capital over the past 5 years

KSS has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

KSS has only created $9.75 of cash for every $100 invested.
Figures in USD. Fiscal year ends in January
20122013201420152016
Free Cash Flow 1.22B 480.00M 1.24B 1.34B 784.00M
divided by
Invested Capital 10.30B 10.83B 10.67B 10.17B 10.19B
Cash ROIC 11.81% 4.43% 11.63% 13.20% 7.70%

Excellent Return on Equity over the past 5 years

Over the past 5 years, KSS has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

KSS has generated $15.17 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in January
20122013201420152016
Net Income 1.17B 986.00M 889.00M 867.00M 673.00M
divided by
Stockholders' Equity 6.51B 6.05B 5.98B 5.99B 5.49B
Return on Equity 17.93% 16.30% 14.87% 14.47% 12.26%

Excellent Business Performance over the past 10 years

KSS has been able to maintain profitability in good times and bad. This could mean KSS has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

KSS has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Free Cash Flow 1.96B -307.32M 687.00M 1.57B 915.00M 1.22B 480.00M 1.24B 1.34B 784.00M

Weak Balance Sheet

KSS's financial position is not ideal. The key is to check whether KSS is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Cash 620.40M 663.67M 676.00M 2.27B 2.28B 1.21B 537.00M 971.00M 1.41B 707.00M
Current Assets 3.40B 3.72B 3.70B 5.49B 5.65B 4.78B 4.72B 5.29B 5.70B 5.08B
Total Assets 9.04B 10.56B 11.33B 13.16B 13.56B 14.09B 13.91B 14.38B 14.43B 13.61B
Current Liabilities 1.92B 1.77B 1.82B 2.39B 2.71B 2.59B 2.54B 2.74B 2.86B 2.71B
Total Liabilities 3.44B 4.46B 4.60B 5.31B 5.46B 7.59B 7.86B 8.40B 8.44B 8.12B
Stockholder' Equity 5.60B 6.10B 6.74B 7.85B 8.10B 6.51B 6.05B 5.98B 5.99B 5.49B
Current Ratio 1.77 2.10 2.04 2.29 2.08 1.84 1.86 1.93 1.99 1.87
TL-to-TA 0.38 0.42 0.41 0.40 0.40 0.54 0.57 0.58 0.58 0.60

Consistent Reinvestment of Profits over the past 10 years

KSS has consistently retained profits. This may put KSS in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, KSS can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Retained Earnings 5.48B 6.56B 7.45B 8.44B 9.55B 10.20B 10.88B 11.46B 12.01B 12.33B
Retained Earnings Growth - 19.78% 13.48% 13.31% 13.20% 6.72% 6.70% 5.37% 4.76% 2.67%

Competitive Industry over the past 10 years

KSS is likely operating in an industry with medium to low barriers to entry. This may mean that KSS doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that KSS invests heavily in R&D and Sales, General & Administrative expenses.

Only $5.50 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Net Income 1.11B 1.08B 885.00M 991.00M 1.11B 1.17B 986.00M 889.00M 867.00M 673.00M
divided by
Revenue 15.54B 16.47B 16.39B 17.18B 18.39B 18.80B 19.28B 19.03B 19.02B 19.20B
Net Profit Margin 7.13% 6.58% 5.40% 5.77% 6.06% 6.21% 5.11% 4.67% 4.56% 3.50%

Satisfactory Pricing Power over the past 10 years

Consistency is vital. KSS has been able to maintain gross margins fairly consistently, which is a strong indication of their ability to raise prices with inflation. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$36.93 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Gross Profit 5.65B 6.01B 6.06B 6.50B 7.03B 7.18B 6.99B 6.94B 6.93B 6.94B
divided by
Revenue 15.54B 16.47B 16.39B 17.18B 18.39B 18.80B 19.28B 19.03B 19.02B 19.20B
Gross Margin 36.37% 36.51% 36.95% 37.83% 38.24% 38.18% 36.26% 36.49% 36.40% 36.13%

High Capital Intensity over the past 10 years

KSS spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

90.79% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Capital Expenditure 1.14B 1.54B 1.01B 666.00M 761.00M 927.00M 785.00M 643.00M 682.00M 690.00M
divided by
Net Income 1.11B 1.08B 885.00M 991.00M 1.11B 1.17B 986.00M 889.00M 867.00M 673.00M
Capital Expenditure Ratio 103.03% 142.24% 114.58% 67.20% 68.31% 79.43% 79.61% 72.33% 78.66% 102.53%

No Dividend History over the past 10 years

KSS has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 334.77M 319.72M 307.00M 306.00M 306.00M 271.00M 237.00M 220.00M 204.00M 195.00M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 44.31 34.11 54.04 53.47 49.35 42.28 56.44 60.72 48.39 49.38
Dividend Yield - - - - - - - - - -

Strong History of Stock Buybacks over the past 10 years

KSS has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Shares Outstanding 334.77M 319.72M 307.00M 306.00M 306.00M 271.00M 237.00M 220.00M 204.00M 195.00M
Stock Bought Back - 4.71% 4.14% 0.33% - 12.92% 14.35% 7.73% 7.84% 4.62%
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