Kate Spade & Company
Kate Spade & Company Fundamental Analysis
Kate Spade & Company (KATE) shows moderate financial fundamentals with a PE ratio of 15.42, profit margin of 11.12%, and ROE of 45.50%. The company generates N/A in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze KATE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentKATE demonstrates superior asset utilization.
Valuation Score
ExcellentKATE trades at attractive valuation levels.
Growth Score
WeakKATE faces weak or negative growth trends.
Financial Health Score
ExcellentKATE maintains a strong and stable balance sheet.
Profitability Score
WeakKATE struggles to sustain strong margins.
Key Financial Metrics
Is KATE Expensive or Cheap?
P/E Ratio
KATE trades at 15.42 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KATE's PEG of 0.22 indicates potential undervaluation.
Price to Book
The market values Kate Spade & Company at 5.51 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 0.41 times EBITDA. This is generally considered low.
How Well Does KATE Make Money?
Net Profit Margin
For every $100 in sales, Kate Spade & Company keeps $11.12 as profit after all expenses.
Operating Margin
Core operations generate 13.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $45.50 in profit for every $100 of shareholder equity.
ROA
Kate Spade & Company generates $13.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $1.55 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.45
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How KATE Stacks Against Its Sector Peers
| Metric | KATE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.42 | 24.36 | Better (Cheaper) |
| ROE | 45.50% | 1166.00% | Weak |
| Net Margin | 11.12% | 871.00% | Weak |
| Debt/Equity | 0.92 | 0.79 | Neutral |
| Current Ratio | 3.37 | 2.84 | Strong Liquidity |
| ROA | 13.83% | -30137.00% (disorted) | Strong |
KATE outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kate Spade & Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary