Kering SA (KER) AI Stock Analysis

• Market Cap: €37.11B
• Dividend Yield: 2.03%
• Average Volume (3M): 361.83K
• Price to Earnings (P/E): 50.9
• Beta (1Y): 1.58
• Revenue Growth: -14.56%
• EPS Growth: -64.91%
• Country: FR
• Employees: 44,627
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 3.86
• Shares Outstanding: 123,420,780
• 10 Day Avg. Volume: 399,670
• 30 Day Avg. Volume: 361,831
• PEG Ratio: -0.42
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 1.70
• P/FCF Ratio: 20.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €288.79
• Price Target Upside: -2.27% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: €309.00 ▲(4.57% Upside)

Kering SA's overall stock score reflects a combination of mixed financial performance, technical analysis, and valuation concerns. The company's strong gross profit margin and cash flow generation are positive, but declining revenues and high P/E ratio raise concerns. Technical indicators show mixed signals, with some positive momentum but potential short-term weakness.

Positive Factors

Strategic Partnership

The partnership with L’Oreal enhances Kering's market reach and product offerings in the luxury beauty sector, potentially driving long-term revenue growth and brand strength.

Brand Portfolio

A diverse portfolio of prestigious brands provides Kering with a strong competitive position in the luxury market, supporting sustained consumer demand and premium pricing.

Cash Flow Generation

Robust cash generation relative to net earnings indicates financial health and the ability to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in maintaining market share or consumer demand, potentially impacting long-term growth and profitability.

Profit Margin Pressure

Decreasing margins indicate operational inefficiencies or increased costs, which could hinder profitability and require strategic adjustments to improve financial performance.

Free Cash Flow Decline

A reduction in free cash flow limits the company's ability to fund new projects, pay dividends, or reduce debt, potentially affecting long-term financial flexibility.

Kering SA Business Overview & Revenue Model

Company Description

Kering SA is a global luxury goods holding company based in Paris, France. It operates in the fashion, leather goods, jewelry, and watches sectors through a portfolio of renowned brands, including Gucci, Saint Laurent, Bottega Veneta, and Balenciaga. Kering focuses on sustainable luxury, balancing profitability with social and environmental responsibility, and is committed to promoting creative excellence and innovation within its brands.

How the Company Makes Money

Kering generates revenue primarily through the sale of luxury goods across its various brands. The company’s main revenue streams come from retail sales, which include both brick-and-mortar stores and e-commerce platforms. Additionally, Kering benefits from wholesale distribution to high-end department stores and multi-brand retailers. The brand portfolio allows Kering to capture a diverse customer base, ranging from high-net-worth individuals to younger consumers attracted to luxury fashion. Significant partnerships with luxury retailers and collaborations with artists and designers also enhance brand visibility and sales. Furthermore, Kering invests in sustainable practices, which not only align with consumer preferences but also contribute to brand loyalty and long-term profitability.

Kering SA Financial Statement Overview

Summary

Kering SA's financials present a mixed picture. While profitability margins have faced pressure due to declining revenues, the company maintains a strong gross profit margin and solid cash flow generation. The balance sheet reflects a stable financial foundation with balanced leverage. Continued focus on revenue growth and operational efficiency will be crucial for improving financial performance.

Income Statement

Kering SA's income statement shows a decline in total revenue from 2023 to 2024, with revenue dropping from €19.566 billion to €17.194 billion. The gross profit margin remains strong at approximately 73.8% in 2024, and the net profit margin is about 6.6%. However, the decline in EBIT and EBITDA margins from 24.3% to 13.4% and 32.9% to 27.1%, respectively, suggests pressure on operational efficiency and profitability.

Balance Sheet

The balance sheet reflects a moderate financial structure with a debt-to-equity ratio of 1.35, indicating a relatively balanced use of debt and equity. The return on equity (ROE) stands at 7.6%, showing profitability on shareholder investments, albeit lower compared to previous years. The equity ratio is 34.4%, highlighting a stable capital structure but with room for improvement in terms of leveraging equity more effectively.

Cash Flow

Kering SA's cash flow analysis reveals a decrease in free cash flow from €1.848 billion in 2023 to €1.4 billion in 2024. The operating cash flow to net income ratio is strong at 4.15, indicating robust cash generation relative to net earnings. Despite a decline in free cash flow, the company's ability to maintain positive cash flow from operations is a positive indicator.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.76B	17.19B	19.57B	20.35B	17.65B	13.10B
Gross Profit	11.51B	12.68B	14.93B	15.20B	13.07B	9.51B
EBITDA	4.68B	4.67B	6.43B	7.00B	6.15B	4.58B
Net Income	729.00M	1.13B	2.98B	3.61B	3.18B	2.15B
Balance Sheet
Total Assets	42.43B	43.35B	41.37B	33.94B	31.07B	28.01B
Cash, Cash Equivalents and Short-Term Investments	4.24B	3.56B	3.92B	4.34B	5.25B	3.44B
Total Debt	19.89B	20.14B	17.82B	11.19B	9.59B	9.26B
Total Liabilities	26.82B	27.62B	25.36B	19.16B	17.33B	15.97B
Stockholders Equity	14.77B	14.90B	15.21B	14.00B	13.35B	11.82B
Cash Flow
Free Cash Flow	1.11B	1.40B	1.85B	3.21B	3.94B	2.10B
Operating Cash Flow	3.15B	4.71B	4.46B	4.28B	4.88B	2.89B
Investing Cash Flow	-1.01B	-3.19B	-7.30B	-2.77B	-451.50M	-196.50M
Financing Cash Flow	-1.76B	-1.90B	2.38B	-2.14B	-2.93B	-1.62B

Kering SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 295.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:KER, the sentiment is Neutral. The current price of 295.5 is below the 20-day moving average (MA) of 302.73, below the 50-day MA of 306.20, and above the 200-day MA of 229.65, indicating a neutral trend. The MACD of -2.97 indicates Positive momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 53.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:KER.

Kering SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMS	79 Outperform	$226.55B	50.65	27.36%	1.20%	10.31%	0.54%
MC	78 Outperform	€303.82B	27.77	16.88%	2.07%	-3.24%	-21.24%
CDI	76 Outperform	€105.00B	23.05	19.54%	2.31%	-3.24%	-21.65%
EL	68 Neutral	€139.78B	58.00	6.19%	1.31%	5.45%	2.86%
KER	62 Neutral	€37.11B	50.91	4.91%	2.03%	-14.56%	-64.91%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%