Kontoor Brands, Inc. (KTB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Deckers Outdoor Corp.

On Holding AG

Ralph Lauren Corp.

Crocs, Inc.

Skechers U.S.A., Inc.

Columbia Sportswear Co.

NIKE, Inc.

VF Corp.

PVH Corp.

Kontoor Brands, Inc.

Ermenegildo Zegna NV

Why is Kontoor Brands, Inc. ?

High Management Efficiency with a high ROCE of 35.25%

Poor long term growth as Net Sales has grown by an annual rate of 4.33% over the last 5 years

The company has declared negative results in Mar'2025 after 2 consecutive positive quarters

ROCE(HY) Lowest at 58.07%
INTEREST COVERAGE RATIO(Q) Lowest at 655.61
DIVIDEND PAYOUT RATIO(Y) Lowest at 39.4%

With ROCE of 42.10%, it has a very expensive valuation with a 5.14 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -16.80%, its profits have risen by 4.9% ; the PEG ratio of the company is 2.4

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -16.80% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kontoor Brands, Inc. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kontoor Brands, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Kontoor Brands, Inc.

-19.57%

0.18

47.23%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.33%

EBIT Growth (5y)

19.25%

EBIT to Interest (avg)

7.89

Debt to EBITDA (avg)

1.76

Net Debt to Equity (avg)

0.94

Sales to Capital Employed (avg)

2.16

Tax Ratio

18.93%

Dividend Payout Ratio

46.28%

Pledged Shares

Institutional Holding

98.75%

ROCE (avg)

35.25%

ROE (avg)

87.87%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.02

EV to EBIT

12.20

EV to EBITDA

10.87

EV to Capital Employed

5.14

EV to Sales

1.63

PEG Ratio

2.36

Dividend Yield

ROCE (Latest)

42.10%

ROE (Latest)

58.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 10.08

RAW MATERIAL COST(Y)

Fallen by -5.24% (YoY

EPS(Q)

Highest at USD 1.32

-11What is not working for the Company

ROCE(HY)

Lowest at 58.07%

INTEREST COVERAGE RATIO(Q)

Lowest at 655.61

DIVIDEND PAYOUT RATIO(Y)

Lowest at 39.4%

DEBT-EQUITY RATIO (HY)

Highest at 285.09 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.45 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.08 times

INTEREST(Q)

Highest at USD 14.25 MM

Here's what is working for Kontoor Brands, Inc.

Dividend per share

Highest at USD 10.08 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

EPS

Highest at USD 1.32

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -5.24% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Kontoor Brands, Inc.

Interest

At USD 14.25 MM has Grown at 39.31%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 655.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 14.25 MM

in the last five periods and Increased by 39.31% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 285.09 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 2.45 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 10.08 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 39.4%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)