KSS  Kohl's Corporation

Exchange

NYSE

Sector

Consumer Services

Industry

Department/Specialty Retail Stores

Market Cap.

6.71B

Vuru Grade

68.85/100

Current Price

$39.36
-1.10 (-2.72%)

Growth Price

$82.46
Undervalued by 109.51%

Stability Price

$47.00
Undervalued by 19.40%

Company Metrics

  • P/E 11.4
  • P/S 0.37
  • P/B 1.39
  • EPS 3.45
  • Cash ROIC 10.29%
  • Cash Ratio 0.36
  • Dividend 2.2 / 5.44%
  • Avg. Vol. 4.58M
  • Shares 170.48M
  • Market Cap. 6.71B

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

Lookout for Price Target? Electronic Arts Inc. (EA), Kohl's Corporation (KSS)
StockNewsJournal - 9 hours ago
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.
Kohl's Corporation (NYSE:KSS) Sees Unusual Trading Volume in Its Shares - Highlight Press
Kohl's Corporation (KSS) Earning Somewhat Positive News Coverage, Analysis Finds - StockNewsTimes
Kohl's taps grocery executive as its new chief financial officer
Milwaukee Journal Sentinel - Jun 27, 2017
Kohl's Corp. has tapped a Supervalu Inc. executive - one with large-corporation experience in an industry being disrupted by rapid-fire change - as its new chief financial officer.
Kohl's Corporation (NYSE:KSS) Stock Traded 6.8% Above Its 50 Day Average
First News 24 - Jul 24, 2017
There has been some selling insider activity on Kohl's Corporation (NYSE:KSS) recently. Director Stephen E. Watson disclosed the sale of 615 shares of (KSS).
Is It Time to go for Laredo Petroleum, Inc. (LPI), Kohl's Corporation (KSS)? - StockNewsJournal
Investors Buy Large Volume of Kohl's Corporation Put Options (KSS) - BNB Daily (blog)
Kohl's Corporation (NYSE:KSS) Sees Significantly Lower Trading Volume
First News 24 - 10 hours ago
Kohl's Corporation shares had a trading volume of 138K on Tuesday. Overall, volume was down 94.34% under the stocks normal daily volume.
The Bon-Ton Stores (NASDAQ:BONT) and Kohl's Corporation (KSS) Head to Head Review
The Cerbat Gem - 5 hours ago
Kohl's Corporation (NYSE: KSS) and The Bon-Ton Stores (NASDAQ:BONT) are both retail/wholesale companies, but which is the better stock?
Kohl's Corporation (KSS) and The Bon-Ton Stores (NASDAQ:BONT) Head-To-Head Survey - Markets Daily
Analyst Commentary On Kohl's Corporation (KSS), Entravision Communications ...
Post Analyst - 8 hours ago
Kohl's Corporation (NYSE:KSS) is gaining traction with investors, as evidenced by its 2.71 million shares volume. The daily trading volume average remained 4.6 million shares over the course of 3 months.
Technicals in Focus for Kohl's Corporation (KSS)
The USA Commerce - 9 hours ago
In the recent days, stock of Kohl's Corporation (KSS) has been startling everyone with its performance. There is a strong perception that the best way to monitor the stock performance is through keeping an eye on the stocks chart.
Kohl's Corporation (NYSE:KSS) Trading Volume Significantly Higher
Highlight Press - Jul 17, 2017
Trading volume for Kohl's Corporation was 2,868K on Friday. Trading volume was up 17.84% over the stocks average daily volume.
Kohl's Corporation Sees Unusually Large Options Volume (KSS) - BNB Daily (blog)
Kohl's CEO: While Competitors Are Closing Stores, We Are Investing In Ours
Benzinga - Jul 22, 2017
Kohl's Corporation (NYSE: KSS) has a reputation as being grouped within the troubled "mall store" category but in fact around 95 percent of stores are not located inside traditional malls, the company's own CEO Kevin Mansell said in a CNBC interview on ...
Insider Activity – Kohl's Corporation (NYSE:KSS)
Highlight Press - Jun 27, 2017
Here is the rundown on market activity for Kohl's Corporation (NYSE:KSS). Director Stephen E. Watson sold 615 shares at an average price of $38.73 on Tue the 27th.
Is Major Move Coming For Kohl's Corporation (KSS) After This Wedge Down Chart ... - Weekly Register
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.

$39.36 Current Price

$82.46 Growth Price (DCF)

Undervalued by 109.51%


Growth Rate Assumed by Market: -53.96%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$47.00 Stability Price (EPV)

Undervalued by 19.40%


Discount Rate: 15.0%

$57.03 Book Price

Undervalued by 44.88%


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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