KSS  Kohl's Corporation

Exchange

NYSE

Sector

Consumer Services

Industry

Department/Specialty Retail Stores

Market Cap.

6.58B

Vuru Grade

68.85/100

Current Price

$38.73
-0.14 (-0.36%)

Growth Price

$82.75
Undervalued by 113.65%

Stability Price

$47.16
Undervalued by 21.76%

Company Metrics

  • P/E 11.22
  • P/S 0.36
  • P/B 1.32
  • EPS 3.45
  • Cash ROIC 10.29%
  • Cash Ratio 0.36
  • Dividend 2.20 / 5.68 %
  • Avg. Vol. 4.60M
  • Shares 169.89M
  • Market Cap. 6.58B

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

Thinking Of Buying Kohl's? I Am
Seeking Alpha - May 19, 2017
Investing in brick-and-mortar apparel retailers this year has been challenging, to say the least. It seems as though Amazon (NASDAQ:AMZN) is eating everyone's lunch, and the secular shift toward online retail is leaving traditional retailers in the ...
Digging Up the Facts on Kohl's Corporation (KSS) - StockNewsJournal
Kohl's Corporation (KSS) Exposed Via Its Technical Chart - NY Stock News
Kohl's Corp. (KSS) Beats Q1 Earnings Despite Comps Decline
Nasdaq - May 11, 2017
Kohl's Corporation KSS is a U.S. based department store chain that operates specialty department stores and an e-commerce site in the U.S.
Kohl's Corporation Reports First Quarter Financial Results - Business Wire (press release)
Kohl's: Earnings Review
Seeking Alpha - May 12, 2017
Kohl's (NYSE:KSS) shares slid by nearly 8% on Thursday as investors digested the retailer's first quarter earnings report.
Macy's Inc, Kohl's Corporation Slump After Earnings Results - ValueWalk
Kohl's Corporation (KSS) And Its Technical Chart Is Now Center Stage - NY Stock News
Dividend Darling in Focus: Kohl's Corporation (NYSE:KSS)
Lenox Ledger - 15 hours ago
Kohl's Corporation (NYSE:KSS) currently has a 10 year dividend growth rate of -0.80548. This number is calculated using the geometric average which provides the typical value of dividend growth over the specified period using the product of their values.
Kohl's Corp. (KSS) Offers Prelim. Update from Annual Shareholders Meeting
StreetInsider.com - May 10, 2017
A proposal to ratify the appointment of Ernst & Young LLP as Kohl's independent registered public accounting firm received approximately 96 percent of the votes cast.
Why Traders Are Paying Attention To The Chart of Kohl's Corporation (KSS)
NY Stock News - May 9, 2017
Kohl's Corporation (KSS) has been having a set of eventful trading activity and it is clear from an examination of the charts that traders are now fully aware of the company's key metrics.
Current Update on Price Fluctuations: Kohl's Corporation's (KSS), Ashland ...
Is stories - 1 hour ago
Kohl's Corporation (KSS) closed business day at $38.73 with -0.36%. The firm exchanged a volume of 1.98 million shares at hands.
Diehard Bargain Hunter: Kohl's Corporation (NYSE:KSS), Vista Outdoor Inc ... - AllStockNews
Were Analysts Bullish Kohl's Corporation (NYSE:KSS) This Week? - Finance News Daily
Pitcairn Company Has Raised Its Kohls (KSS) Holding, Pictet Asset Management ...
Key Gazette - 15 hours ago
Pitcairn Company increased Kohls Corp (KSS) stake by 44.92% reported in 2016Q4 SEC filing. Pitcairn Company acquired 8,076 shares as Kohls Corp (KSS)'s stock declined 10.79%. The Pitcairn Company holds 26,053 shares with $1.29 million value, ...
Traders Secrets on Opko Health, Inc. (OPK), Kohl's Corporation (KSS)
StockNewsJournal - May 19, 2017
Kohl's Corporation (NYSE:KSS), maintained return on investment for the last twelve months at 5.74, higher than what Reuters data shows regarding industry's average.
So This is Why Opko Health, Inc. (OPK) Is So Strong - Normangee Star
Kohl's Sharply Lower After Mixed Q1 Report
Benzinga - May 11, 2017
The rapid decline off that high has seen the Kohl's stock continue to make new lows for the session, with the current one standing at $37.63 as of 11:37 a.m.
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.

$38.73 Current Price

$82.75 Growth Price (DCF)

Undervalued by 113.65%


Growth Rate Assumed by Market: -57.25%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$47.16 Stability Price (EPV)

Undervalued by 21.76%


Discount Rate: 15.0%

$57.03 Book Price

Undervalued by 47.24%


Growing Cash Return on Invested Capital over the past 5 years

KSS has continued to efficiently invest its financial resources in buildings, projects, and equipment, resulting in increasingly stronger returns. Look at its Annual Reports to determine future sustainability.

KSS has created $10.29 of cash for every $100 invested.
Figures in USD. Fiscal year ends in January
20132014201520162017
Free Cash Flow 480.00M 1.24B 1.34B 784.00M 1.38B
divided by
Invested Capital 10.83B 10.67B 10.17B 10.19B 9.53B
Cash ROIC 4.43% 11.63% 13.20% 7.70% 14.49%

Shrinking Return on Equity over the past 5 years

KSS has been shrinking returns with capital that shareholders have invested. This is a negative sign and demonstrates that both the business and management performance are weakening over time.

KSS has generated $13.73 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in January
20132014201520162017
Net Income 986.00M 889.00M 867.00M 673.00M 556.00M
divided by
Stockholders' Equity 6.05B 5.98B 5.99B 5.49B 5.18B
Return on Equity 16.30% 14.87% 14.47% 12.26% 10.74%

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
2008200920102011201220132014201520162017
Free Cash Flow -307.32M 687.00M 1.57B 915.00M 1.22B 480.00M 1.24B 1.34B 784.00M 1.38B

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
2008200920102011201220132014201520162017
Cash 663.67M 676.00M 2.27B 2.28B 1.21B 537.00M 971.00M 1.41B 707.00M 1.07B
Current Assets 3.72B 3.70B 5.49B 5.65B 4.78B 4.72B 5.29B 5.70B 5.08B 5.25B
Total Assets 10.56B 11.33B 13.16B 13.56B 14.09B 13.91B 14.38B 14.43B 13.61B 13.57B
Current Liabilities 1.77B 1.82B 2.39B 2.71B 2.59B 2.54B 2.74B 2.86B 2.71B 2.97B
Total Liabilities 4.46B 4.60B 5.31B 5.46B 7.59B 7.86B 8.40B 8.44B 8.12B 8.40B
Stockholder' Equity 6.10B 6.74B 7.85B 8.10B 6.51B 6.05B 5.98B 5.99B 5.49B 5.18B
Current Ratio 2.10 2.04 2.29 2.08 1.84 1.86 1.93 1.99 1.87 1.76
TL-to-TA 0.42 0.41 0.40 0.40 0.54 0.57 0.58 0.58 0.60 0.62

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
2008200920102011201220132014201520162017
Retained Earnings 6.56B 7.45B 8.44B 9.55B 10.20B 10.88B 11.46B 12.01B 12.33B 12.52B
Retained Earnings Growth - 13.48% 13.31% 13.20% 6.72% 6.70% 5.37% 4.76% 2.67% 1.57%

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 $5.08 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Net Income 1.08B 885.00M 991.00M 1.11B 1.17B 986.00M 889.00M 867.00M 673.00M 556.00M
divided by
Revenue 16.47B 16.39B 17.18B 18.39B 18.80B 19.28B 19.03B 19.02B 19.20B 18.69B
Net Profit Margin 6.58% 5.40% 5.77% 6.06% 6.21% 5.11% 4.67% 4.56% 3.50% 2.98%

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.

$36.91 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
2008200920102011201220132014201520162017
Gross Profit 6.01B 6.06B 6.50B 7.03B 7.18B 6.99B 6.94B 6.93B 6.94B 6.74B
divided by
Revenue 16.47B 16.39B 17.18B 18.39B 18.80B 19.28B 19.03B 19.02B 19.20B 18.69B
Gross Margin 36.51% 36.95% 37.83% 38.24% 38.18% 36.26% 36.49% 36.40% 36.13% 36.08%

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.

94.30% 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
2008200920102011201220132014201520162017
Capital Expenditure 1.54B 1.01B 666.00M 761.00M 927.00M 785.00M 643.00M 682.00M 690.00M 768.00M
divided by
Net Income 1.08B 885.00M 991.00M 1.11B 1.17B 986.00M 889.00M 867.00M 673.00M 556.00M
Capital Expenditure Ratio 142.24% 114.58% 67.20% 68.31% 79.43% 79.61% 72.33% 78.66% 102.53% 138.13%

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
2008200920102011201220132014201520162017
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 319.72M 307.00M 306.00M 306.00M 271.00M 237.00M 220.00M 204.00M 195.00M 179.00M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 34.11 54.04 53.47 49.35 42.28 56.44 60.72 48.39 49.38 36.49
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
2008200920102011201220132014201520162017
Shares Outstanding 319.72M 307.00M 306.00M 306.00M 271.00M 237.00M 220.00M 204.00M 195.00M 179.00M
Stock Bought Back - 4.14% 0.33% - 12.92% 14.35% 7.73% 7.84% 4.62% 8.94%
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