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Kering SA (FR:KER)
:KER

Kering SA (KER) AI Stock Analysis

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Kering SA

(LSE:KER)

Rating:67Neutral
Price Target:
€193.00
▲(10.50%Upside)
The overall stock score reflects a blend of mixed financial performance, bearish technical indicators, and fair valuation. The most significant factors include the need for revenue growth and improved operational efficiency, as well as the stock's current technical downtrend. Valuation provides some stability, making the stock suitable for long-term investors seeking income through dividends.
Positive Factors
Investment in Brands
Kering is focused on investing in its luxury fashion brands to enhance their desirability, exclusivity, and sustainability while delivering high-quality experiences for customers.
Leadership and Creativity
There is a constructive view on Demna's ability to drive relevance and excitement for Gucci, although his creative launch isn't slated until 4Q.
Product Launches
Handbag changes could help drive traffic and sales densities of stores, with key product launches planned.
Negative Factors
Earnings Pressure
There is a risk for continued declines at Gucci and YSL, which could drive further earnings pressure combined with lack of clear path to improvement in APAC.
External Market Challenges
The company faces external headwinds such as weakening US demand and continued weakness in Chinese mall traffic.
Sales Decline
Kering had a weak start to 2025, with group comparable sales down 14% and its flagship Gucci brand continues to underperform with a 25% decline.

Kering SA (KER) vs. iShares MSCI France ETF (EWQ)

Kering SA Business Overview & Revenue Model

Company DescriptionKering SA is a global luxury group based in France, specializing in the design, manufacture, and retail of high-end fashion and lifestyle products. The company operates through a portfolio of renowned brands including Gucci, Saint Laurent, Bottega Veneta, Balenciaga, and Alexander McQueen, among others. Kering focuses on sectors such as fashion, leather goods, jewelry, and watches, offering products that range from ready-to-wear clothing to accessories and footwear.
How the Company Makes MoneyKering SA generates revenue primarily through the sale of luxury goods across its portfolio of brands. The company's key revenue streams include direct retail, wholesale distribution, and online sales. Direct retail, through company-operated stores, accounts for a significant portion of Kering's income, as it allows for higher margins and direct consumer engagement. Wholesale distribution involves selling products to third-party retailers, which helps expand brand reach and accessibility. The company has also embraced digital channels, enhancing its e-commerce platforms to cater to the growing demand for online luxury shopping. Kering benefits from strategic brand positioning and marketing, leveraging the unique identity and heritage of its brands to appeal to affluent consumers globally. Additionally, the company may engage in selective licensing agreements and partnerships to broaden its market presence and product offerings.

Kering SA Financial Statement Overview

Summary
Kering SA's financial performance shows mixed results. The income statement indicates pressure on profitability with declining revenue and EBIT margins. However, a strong gross profit margin and solid cash flow generation are positives. The balance sheet demonstrates a stable financial structure with a moderate debt-to-equity ratio. Overall, financials highlight the need for revenue growth and improved operational efficiency.
Income Statement
65
Positive
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
70
Positive
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
72
Positive
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
17.19B19.57B20.35B17.65B13.10B
Gross Profit
12.68B14.93B15.20B13.07B9.51B
EBIT
2.31B4.75B5.59B4.80B3.30B
EBITDA
4.67B6.43B7.00B6.15B4.58B
Net Income Common Stockholders
1.13B2.98B3.61B3.18B2.15B
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.56B3.92B4.34B5.25B3.44B
Total Assets
43.35B41.37B33.94B31.07B28.01B
Total Debt
20.14B17.82B11.19B9.59B9.26B
Net Debt
16.62B13.90B6.86B4.34B5.82B
Total Liabilities
27.62B25.36B19.16B17.33B15.97B
Stockholders Equity
14.90B15.21B14.00B13.35B11.82B
Cash FlowFree Cash Flow
1.40B1.85B3.21B3.94B2.10B
Operating Cash Flow
4.71B4.46B4.28B4.88B2.89B
Investing Cash Flow
-3.19B-7.30B-2.77B-451.50M-196.50M
Financing Cash Flow
-1.90B2.38B-2.14B-2.93B-1.62B

Kering SA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price174.66
Price Trends
50DMA
173.56
Positive
100DMA
207.54
Negative
200DMA
216.81
Negative
Market Momentum
MACD
-0.41
Negative
RSI
47.16
Neutral
STOCH
67.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:KER, the sentiment is Negative. The current price of 174.66 is below the 20-day moving average (MA) of 175.78, above the 50-day MA of 173.56, and below the 200-day MA of 216.81, indicating a neutral trend. The MACD of -0.41 indicates Negative momentum. The RSI at 47.16 is Neutral, neither overbought nor oversold. The STOCH value of 67.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:KER.

Kering SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FRMC
75
Outperform
€235.09B18.7319.53%2.74%-1.71%-17.20%
FRRMS
71
Outperform
$246.96B53.7328.67%3.77%12.98%6.62%
FRCDI
71
Outperform
€79.71B15.3022.73%3.00%-1.71%-17.39%
FRKER
67
Neutral
€22.10B19.517.52%8.87%-12.12%-62.09%
FREL
67
Neutral
€115.49B48.116.00%1.58%4.38%1.71%
63
Neutral
$6.94B11.342.80%4.26%2.68%-24.70%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:KER
Kering SA
172.58
-122.85
-41.58%
FR:CDI
Christian Dior
433.80
-229.06
-34.56%
FR:EL
EssilorLuxottica SA
246.70
43.75
21.56%
FR:RMS
Hermes International
2,295.00
192.09
9.13%
FR:MC
LVMH Moet Hennessy Louis Vuitton
461.40
-238.69
-34.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.