ScoreWhy is Kontoor Brands, Inc. ?
1
High Management Efficiency with a high ROCE of 35.25%
2
Poor long term growth as Net Sales has grown by an annual rate of 4.33% over the last 5 years
3
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%
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
5
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 ReportHow 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, Low Return
Absolute
Risk Adjusted
Volatility
Kontoor Brands, Inc.
23.82%
-0.12
48.24%
S&P 500
17.36%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.28%
EBIT Growth (5y)
15.94%
EBIT to Interest (avg)
7.89
Debt to EBITDA (avg)
1.76
Net Debt to Equity (avg)
0.94
Sales to Capital Employed (avg)
2.09
Tax Ratio
18.93%
Dividend Payout Ratio
46.28%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
35.25%
ROE (avg)
87.87%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
9.43
EV to EBIT
16.75
EV to EBITDA
14.96
EV to Capital Employed
3.34
EV to Sales
2.26
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
19.92%
ROE (Latest)
49.71%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 9.17
DIVIDEND PAYOUT RATIO(Y)
Highest at 78.92%
RAW MATERIAL COST(Y)
Fallen by -3.32% (YoY
NET SALES(Q)
Highest at USD 853.12 MM
OPERATING PROFIT(Q)
Highest at USD 119.05 MM
-17What is not working for the Company
ROCE(HY)
Lowest at 49.11%
INTEREST COVERAGE RATIO(Q)
Lowest at 580.26
DEBT-EQUITY RATIO
(HY)
Highest at 267.74 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 9.17 times
INTEREST(Q)
Highest at USD 20.52 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 13.95 %
EPS(Q)
Lowest at USD 0.66
Here's what is working for Kontoor Brands, Inc.
Dividend per share
Highest at USD 9.17 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 853.12 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 853.12 MM has Grown at 27.22%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 119.05 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Dividend Payout Ratio
Highest at 78.92%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -3.32% (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
Depreciation
Highest at USD 14.7 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 14.7 MM has Grown at 44.25%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for Kontoor Brands, Inc.
Interest
At USD 20.52 MM has Grown at 44%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 580.26
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 20.52 MM
in the last five periods and Increased by 44% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit Margin
Lowest at 13.95 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
EPS
Lowest at USD 0.66
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Highest at 267.74 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 9.17 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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