Now trading at a price of $18.41, Kohl's has moved -1.3% so far today.
Kohl's returned losses of -29.0% last year, with its stock price reaching a high of $35.77 and a low of $17.75. Over the same period, the stock underperformed the S&P 500 index by -48.0%. As of April 2023, the company's 50-day average price was $24.82. Kohl's Corporation operates as a omnichannel retailer in the United States. Based in Menomonee Falls, WI, the mid-cap Consumer Discretionary company has 97,000 full time employees. Kohl's has offered a 10.7% dividend yield over the last 12 months.
The Business Is Unprofitable and Its Balance Sheet Is Highly Leveraged:
| 2018-03-23 | 2019-03-22 | 2020-03-18 | 2021-03-18 | 2022-03-17 | 2023-03-16 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $19,095 | $20,229 | $19,974 | $15,955 | $19,433 | $18,098 |
| Gross Margins | 36.0% | 40.0% | 39.0% | 35.0% | 41.0% | 37.0% |
| Operating Margins | 7% | 7% | 6% | -2% | 9% | 1% |
| Net Margins | 4.0% | 4.0% | 3.0% | -1.0% | 5.0% | 0.0% |
| Net Income (MM) | $859 | $801 | $691 | -$163 | $938 | -$19 |
| Net Interest Expense (MM) | -$299 | -$256 | -$207 | -$284 | -$260 | -$304 |
| Depreciation & Amort. (MM) | -$991 | -$964 | -$917 | -$874 | -$838 | -$808 |
| Earnings Per Share | $5.11 | $4.85 | $4.37 | -$1.06 | $6.38 | -$0.13 |
| EPS Growth | n/a | -5.09% | -9.9% | -124.26% | 701.89% | -102.04% |
| Diluted Shares (MM) | 168 | 165 | 158 | 154 | 147 | 148 |
| Free Cash Flow (MM) | $2,363 | $2,685 | $2,512 | $1,475 | $2,841 | $1,065 |
| Capital Expenditures (MM) | -$672 | -$578 | -$855 | -$137 | -$570 | -$783 |
| Net Current Assets (MM) | -$2,590 | -$2,107 | -$4,456 | -$4,306 | -$5,370 | -$6,846 |
| Long Term Debt (MM) | $4,388 | $3,384 | $5,842 | $3,838 | $4,043 | $4,698 |
| Net Debt / EBITDA | 1.33 | 1.01 | 2.4 | 2.93 | 1.02 | 4.48 |
Kohl's has weak revenue growth and a flat capital expenditure trend, average net margins with a negative growth trend, and irregular cash flows. In addition, we note just enough current assets to cover current liabilities. We also note that the company has wider gross margins than its peer group working in its favor. However, the firm suffers from declining EPS growth and a highly leveraged balance sheet.
Kohl's does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $2.95, the company has a forward P/E ratio of 8.4. In comparison, the average P/E ratio for the Consumer Discretionary sector is 22.33. On the other hand, the market is undervaluing Kohl's in terms of its equity because its P/B ratio is 0.55. In comparison, the sector average is 3.12.
Kohl's Has an Average Rating of Hold:
The 13 analysts following Kohl's have set target prices ranging from $15.0 to $38.0 per share, for an average of $26.31 with a hold rating. As of April 2023, the company is trading -5.7% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Kohl's has an unusually large proportion of its shares sold short because 23.2% of the company's shares are sold short. Institutions own 103.5% of the company's shares, and the insider ownership rate stands at 1.95%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 12% stake in the company is worth $241,071,197.
