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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

On Holding AG

Deckers Outdoor Corp.

NIKE, Inc.

Ralph Lauren Corp.

Crocs, Inc.

Skechers U.S.A., Inc.

Columbia Sportswear Co.

VF Corp.

Kontoor Brands, Inc.

PVH Corp.

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 -23.63%, its profits have risen by 4.9% ; the PEG ratio of the company is 2.4

Below par performance in long term as well as near term

Along with generating -23.63% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Kontoor Brands, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kontoor Brands, Inc.

-15.67%

-0.12

48.24%

S&P 500

16.51%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.49%

EBIT Growth (5y)

18.70%

EBIT to Interest (avg)

7.89

Debt to EBITDA (avg)

1.76

Net Debt to Equity (avg)

0.94

Sales to Capital Employed (avg)

2.04

Tax Ratio

18.93%

Dividend Payout Ratio

51.56%

Pledged Shares

Institutional Holding

100.00%

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

6.50

EV to EBIT

11.57

EV to EBITDA

10.36

EV to Capital Employed

2.90

EV to Sales

1.50

PEG Ratio

Dividend Yield

ROCE (Latest)

25.09%

ROE (Latest)

45.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 446.14 MM

DIVIDEND PER SHARE(HY)

Highest at USD 11.34

RAW MATERIAL COST(Y)

Fallen by -9.52% (YoY

-15What is not working for the Company

INTEREST(HY)

At USD 32.41 MM has Grown at 32.41%

ROCE(HY)

Lowest at 40.96%

INTEREST COVERAGE RATIO(Q)

Lowest at 450.61

CASH AND EQV(HY)

Lowest at USD 114.87 MM

NET SALES(Q)

Lowest at USD 582.32 MM

OPERATING PROFIT(Q)

Lowest at USD 71.94 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.35 %

PRE-TAX PROFIT(Q)

Lowest at USD 61.06 MM

NET PROFIT(Q)

Lowest at USD 48.15 MM

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

Dividend per share

Highest at USD 11.34 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 446.14 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Raw Material Cost

Fallen by -9.52% (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 Coverage Ratio

Lowest at 450.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 32.41 MM has Grown at 32.41%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

Lowest at USD 582.32 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 71.94 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 12.35 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 61.06 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 48.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 114.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents