Don't Miss These Facts About Kohl's

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.