Kontoor Brands, Inc. Fundamental Analysis (NYSE: KTB)
Kontoor Brands, Inc. Fundamental Analysis (NYSE: KTB)
Kontoor Brands, Inc. (NYSE: KTB) shows moderate financial fundamentals with a PE ratio of 17.04, profit margin of 8.73%, and ROE of 45.96%. The company generates $3.1B in annual revenue with strong year-over-year growth of 20.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.2/100 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 KTB's fundamental strength across five key dimensions:
Efficiency Score
ExcellentKTB demonstrates superior asset utilization.
Valuation Score
ModerateKTB shows balanced valuation metrics.
Growth Score
ModerateKTB shows steady but slowing expansion.
Financial Health Score
ModerateKTB shows balanced financial health with some risks.
Profitability Score
ModerateKTB maintains healthy but balanced margins.
Key Financial Metrics
Is KTB Expensive or Cheap?
P/E Ratio
KTB trades at 17.04 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KTB's PEG of 2.49 indicates potential overvaluation.
Price to Book
The market values Kontoor Brands, Inc. at 7.34 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.10 times EBITDA. This is generally considered low.
How Well Does KTB Make Money?
Net Profit Margin
For every $100 in sales, Kontoor Brands, Inc. keeps $8.73 as profit after all expenses.
Operating Margin
Core operations generate 12.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $45.96 in profit for every $100 of shareholder equity.
ROA
Kontoor Brands, Inc. generates $10.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kontoor Brands, Inc. produces operating cash flow of $447.62M, showing steady but balanced cash generation.
Free Cash Flow
Kontoor Brands, Inc. generates strong free cash flow of $424.60M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.68 in free cash annually.
FCF Yield
KTB converts 9.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.46
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How KTB Stacks Against Its Sector Peers
| Metric | KTB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.04 | 26.48 | Better (Cheaper) |
| ROE | 45.96% | 966.00% | Weak |
| Net Margin | 8.73% | -4921.00% (disorted) | Weak |
| Debt/Equity | 2.06 | 0.62 | Weak (High Leverage) |
| Current Ratio | 1.83 | 2.33 | Neutral |
| ROA | 10.05% | 295.00% | Weak |
KTB outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kontoor Brands, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
54.40%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
243.88%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
149.45%
Industry Style: Cyclical, Growth, Discretionary
High Growth