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.

Ralph Lauren Corp.

NIKE, Inc.

Kontoor Brands, Inc.

Skechers U.S.A., Inc.

Columbia Sportswear Co.

VF Corp.

Crocs, 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 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.

21.5%

-0.12

48.24%

S&P 500

25.41%

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

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 13.47

RAW MATERIAL COST(Y)

Fallen by -18.4% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.61 times

DEBTORS TURNOVER RATIO(HY)

Highest at 13.47 times

OPERATING PROFIT MARGIN(Q)

Highest at 17.47 %

EPS(Q)

Highest at USD 1.65

-10What is not working for the Company

INTEREST(HY)

At USD 37.29 MM has Grown at 79.54%

ROCE(HY)

Lowest at 46.98%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 32.11%

NET SALES(Q)

Lowest at USD 612.46 MM

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

Dividend per share

Highest at USD 13.47 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit Margin

Highest at 17.47 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at USD 1.65

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Highest at 3.61 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 13.47 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -18.4% (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 37.29 MM has Grown at 79.54%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

Lowest at USD 612.46 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Dividend Payout Ratio

Lowest at 32.11%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)