Kering SA (KER) AI Stock Analysis

• Market Cap: €35.05B
• Dividend Yield: 2.03%
• Average Volume (3M): 361.83K
• Price to Earnings (P/E): 484.6
• Beta (1Y): 1.53
• Revenue Growth: -14.56%
• EPS Growth: -64.91%
• Country: FR
• Employees: 44,627
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 1.23
• Shares Outstanding: 123,420,780
• 10 Day Avg. Volume: 399,670
• 30 Day Avg. Volume: 361,831
• PEG Ratio: -5.45
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 2.50
• P/FCF Ratio: 21.84
• 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: €282.50
• Price Target Upside: -1.19% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 7.45
• Revenue Forecast (FY): €15.02B

• Rating: 48 Neutral
• Price Target: €282.00 ▼(-1.36% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily held back by sharply weaker profitability and higher leverage, which raise financial risk. Extremely high valuation (P/E ~481.9) further pressures the score. Technicals are mixed/neutral and do not provide a strong counterbalance.

Positive Factors

Strong premium brand portfolio

Kering's portfolio of globally recognized luxury brands provides durable pricing power, multi-segment exposure and brand equity that supports long-term demand across cycles. This structural brand strength underpins margins, customer loyalty and strategic flexibility in product and channel investments.

Large asset and equity base

A substantial asset and equity base gives Kering enduring financial capacity to invest in creative talent, retail footprint and digital platforms, pursue selective M&A, and absorb cyclical shocks. Scale supports working capital needs and long-term strategic initiatives without immediate liquidity strain.

Positive free cash flow generation

Although below prior peaks, sustained positive free cash flow demonstrates operational cash conversion and discipline in costs and working capital. This durable cash generation supports reinvestment in brands, dividend capacity and opportunities to reduce leverage over a multi-quarter horizon.

Negative Factors

Sharp profitability deterioration

A rapid margin collapse signals structural pressure on pricing, mix or cost control that impairs earnings power. Persistently lower margins reduce cash available for investment and debt reduction, and raise execution risk as the company must restore margins to historically strong levels to regain financial resilience.

Rising leverage and higher debt load

Material increase in debt and leverage reduces financial flexibility and heightens sensitivity to interest costs and industry downturns. Higher leverage constrains capital allocation choices, limits ability to pursue opportunistic investments, and increases refinancing and covenant risk over the medium term.

Weaker operating cash flow; earnings-to-cash gap

Declining operating cash flow and subpar conversion of earnings into cash indicate weaker earnings quality and less internal funding for capex, dividends or debt paydown. This structural cash-generation gap reduces buffers against shocks and may necessitate more external financing or tougher cost measures.

Kering SA Business Overview & Revenue Model

Company Description

Kering SA develops, designs, manufactures, markets, and sells apparel and accessories. The company offers shoes; leather goods, including handbags and wallets, purses, and other leather products; eyewear, textile accessories, etc.; and jewelry and watches, as well as ready-to-wear products for men and women. It also provides perfumes and cosmetics. The company provides Gucci, Saint Laurent, Bottega Veneta, Alexander McQueen, Balenciaga, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Girard-Perregaux, Ulysse Nardin, and Kering Eyewear branded products. It sells its products through stores and e-commerce sites. As of December 31, 2021, it operated 1,565 stores. Kering SA sells its products in the Asia-Pacific, Western Europe, North America, Japan, and internationally. The company was formerly known as PPR SA and changed its name to Kering SA in June 2013. Kering SA was founded in 1963 and is based in Paris, France.

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

Income statement weakness is the main drag: 2025 revenue declined (~-6.9% YoY) and profitability deteriorated sharply (net margin ~0.5% vs ~6.6% in 2024; EBIT margin ~11.1% vs ~14.9%). Balance sheet risk has increased as leverage rose materially (debt-to-equity ~1.60x). Cash flow remains positive but is weaker, with operating cash flow down (~€2.5B vs ~€4.7B) and imperfect earnings-to-cash conversion.

Income Statement

Profitability has deteriorated sharply: 2025 revenue fell to ~€14.7B (about -6.9% YoY) and net margin compressed to ~0.5% versus ~6.6% in 2024 and mid-teens levels in 2021–2023. Operating profitability also stepped down meaningfully (EBIT margin ~11.1% in 2025 vs ~14.9% in 2024 and >23% in 2022–2023), pointing to weaker pricing/mix and/or higher costs. Strengths include still-positive operating margins and a history of strong profitability, but the current trajectory shows significant earnings pressure and reduced resilience.

Balance Sheet

Leverage has risen notably: total debt increased to ~€23.6B in 2025 from ~€11.2B in 2022, with debt-to-equity moving up to ~1.60x (vs ~0.80x in 2022). Equity has been relatively stable (~€14.7B in 2025), but the higher debt load reduces balance-sheet flexibility at a time when profits are under pressure. Positives include a sizable equity base and large asset base (~€41.2B), but the upward leverage trend is a key risk.

Cash Flow

Cash generation remains positive but has weakened: operating cash flow dropped to ~€2.5B in 2025 from ~€4.7B in 2024, consistent with the earnings downturn. Free cash flow improved to ~€1.68B in 2025 (strong growth vs 2024), showing some cost/working-capital discipline, but free cash flow remains below prior peaks (e.g., ~€3.94B in 2021). A further concern is that free cash flow was lower than net income in 2025 (free cash flow to net income ~0.67), indicating earnings are not fully translating into cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.68B	17.19B	19.57B	20.35B	17.65B
Gross Profit	7.88B	12.68B	14.93B	15.20B	13.07B
EBITDA	3.67B	4.67B	6.43B	7.00B	6.15B
Net Income	72.00M	1.13B	2.98B	3.61B	3.18B
Balance Sheet
Total Assets	41.18B	43.35B	41.37B	33.94B	31.07B
Cash, Cash Equivalents and Short-Term Investments	4.31B	3.56B	3.92B	4.34B	5.25B
Total Debt	23.60B	20.14B	17.82B	11.19B	9.59B
Total Liabilities	25.67B	27.62B	25.36B	19.16B	17.33B
Stockholders Equity	14.71B	14.90B	15.21B	14.00B	13.35B
Cash Flow
Free Cash Flow	1.68B	1.40B	1.85B	3.21B	3.94B
Operating Cash Flow	2.51B	4.71B	4.46B	4.28B	4.88B
Investing Cash Flow	1.17B	-3.19B	-7.30B	-2.77B	-451.50M
Financing Cash Flow	-2.76B	-1.90B	2.38B	-2.14B	-2.93B

Kering SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 285.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 285.9 is above the 20-day moving average (MA) of 274.98, below the 50-day MA of 286.25, and above the 200-day MA of 254.90, indicating a neutral trend. The MACD of 1.45 indicates Negative momentum. The RSI at 54.72 is Neutral, neither overbought nor oversold. The STOCH value of 76.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:KER.

Kering SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMS	76 Outperform	€214.41B	47.49	25.50%	1.24%	10.31%	0.54%
CDI	64 Neutral	€93.27B	20.59	19.54%	2.33%	-3.24%	-21.65%
MC	63 Neutral	€270.47B	24.89	16.88%	2.06%	-3.24%	-21.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
EL	61 Neutral	€104.06B	44.65	6.19%	1.46%	5.45%	2.86%
KER	48 Neutral	€35.05B	484.58	4.91%	2.03%	-14.56%	-64.91%