KSS  Kohl's Corporation

Exchange

NYSE

Sector

Consumer Services

Industry

Department/Specialty Retail Stores

Market Cap.

7.04B

Vuru Grade

68.85/100

Current Price

$41.76
+0.26 (+0.63%)

Growth Price

$83.39
Undervalued by 99.69%

Stability Price

$47.53
Undervalued by 13.81%

Company Metrics

  • P/E 10.69
  • P/S 0.38
  • P/B 1.39
  • EPS 3.91
  • Cash ROIC 10.29%
  • Cash Ratio 0.36
  • Dividend 2.2 / 5.17%
  • Avg. Vol. 3.92M
  • Shares 168.58M
  • Market Cap. 7.04B

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) Shares Bought by Advisors Asset Management Inc.
Week Herald - Aug 1, 2017
Kohl's Corporation logo Advisors Asset Management Inc. raised its holdings in shares of Kohl's Corporation (NYSE:KSS) by 22.0% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC).
Kohl's perks up after Telsey upgrade - Seeking Alpha
Kohl's Stock Upgraded: What You Need to Know - Motley Fool
Why Kohl's Corporation Shares Were Slipping Today
Motley Fool - Nov 9, 2017
Shares of Kohl's Corporation (NYSE:KSS) were heading south today after the department-store chain came up short on earnings in its third-quarter earnings report.
Q3 Earnings Miss Sends Kohl's Corporation Stock Falling - Investorplace.com
Kohl's Remains The Best Pick In The Department Stores Segment
Seeking Alpha - Nov 15, 2017
Kohl's reported a relatively strong quarter with comps in positive territory for the first time in years. The company is managing well the transition to an omnichannel model and is taking advantage of competitors' store closures to increase its market ...
Buy or Sell? What Analysts Recommends: Aetna Inc. (AET), Kohl's Corporation (KSS)
StockNewsJournal - 22 hours ago
Kohl's Corporation (NYSE:KSS), maintained return on investment for the last twelve months at 6.15, higher than what Reuters data shows regarding industry's average.
Kohl's Corporation (KSS) Shares Sold by Pzena Investment Management LLC
The Ledger Gazette - 18 hours ago
Kohl's Corporation logo Pzena Investment Management LLC reduced its holdings in shares of Kohl's Corporation (NYSE:KSS) by 1.2% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC).
Kohl's Corporation (KSS) Earns “Sell” Rating from Royal Bank Of Canada - StockNewsTimes
Kohl's Corporation (KSS) Shares Sold by Breton Hill Capital Ltd. - Week Herald
Traders Secrets on Kohl's Corporation (KSS), Rand Logistics, Inc. (RLOG)
StockNewsJournal - Nov 20, 2017
Kohl's Corporation (KSS) have shown a high EPS growth of -6.30% in the last 5 years and has earnings decline of -10.00% yoy.
Kohl's Corp. (KSS) Lags Q3 Earnings Estimate, Narrows View
Nasdaq - Nov 9, 2017
Kohl's Corporation KSS , a department store chain that operates specialty department stores and an e-commerce site in the United States, delivered third-quarter fiscal 2017 adjusted earnings of 70 cents per share, declined nearly 13% year over year and ...
Kohl's (KSS) Posts Dismal Q3 Earnings, Updates Guidance - Zacks.com
Important Trade and Target Levels To Watch: Kohl's Corporation (KSS), Zions ...
Post Analyst - 18 hours ago
Kohl's Corporation (NYSE:KSS) traded at an unexpectedly low level on 11/20/2017 when the stock experienced a 1.37% gain to a closing price of $44.32.
Kohl's Claws Back From Morning Lows After Q3 Miss
Benzinga - Nov 9, 2017
Kohl's Corporation (NYSE: KSS) shares are trading lower by only 10 cents at $40.09 in Thursday's session. Before the open, the company reported a Q3 EPS miss of 2 cents along with a slight beat for sales.
These Stocks Are Turning The Corner: Kohl's Corporation (KSS), Opko Health ...
Post Analyst - Nov 20, 2017
Kohl's Corporation (NYSE:KSS) recent gain occurred on high volume with 4.19 million contracts changing hands on 17-Nov-17.
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.

$41.76 Current Price

$83.39 Growth Price (DCF)

Undervalued by 99.69%


Growth Rate Assumed by Market: -47.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$47.53 Stability Price (EPV)

Undervalued by 13.81%


Discount Rate: 15.0%

$57.03 Book Price

Undervalued by 36.56%


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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