Kering SA (KER) AI Stock Analysis

• Market Cap: €20.99B
• Dividend Yield: 6.72%
• Average Volume (3M): 380.11K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 1.68
• Revenue Growth: -12.12%
• EPS Growth: -62.09%
• Country: FR
• Employees: 44,627
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Luxury Goods
• EPS (TTM): 9.24
• Shares Outstanding: 123,420,780
• 10 Day Avg. Volume: 272,605
• 30 Day Avg. Volume: 380,112
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €187.00
• Price Target Upside: 6.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

Kering SA's overall stock score reflects a challenging environment with significant pressure on financial performance due to declining revenues and profitability. The stock is in a bearish technical position, with indicators pointing to a downward trend. However, the company's valuation is supported by a reasonable P/E ratio and a high dividend yield, which may attract income-focused investors. The ability to maintain cash flow and a stable balance sheet are positive factors, but improvements in revenue growth and operational efficiency are critical for future performance.

Positive Factors

Creative Direction

There is optimism for the creative and tasteful direction of Gucci and accelerating the release of three new handbag platforms in September is a key positive.

Market Trends

October is encouraging relative to 3Q with some potential stabilization in the US and China, and higher newness could be resonating with consumers.

Stock Valuation

Valuation looks supportive and may limit downside, especially on EV/sales, even though the stock is unlikely to outperform until positive revisions occur.

Negative Factors

Brand Performance

Double-digit negative trends persist at Gucci as carryover product has been less appealing than expected.

Revenue Outlook

The Gucci revenue outlook is lowered to -3% next year and the first half is expected to be worse.

Sales Performance

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 Business Overview & Revenue Model

Company Description

Kering 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 Money

Kering 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 financials present a mixed picture. The income statement reflects declining revenues and pressure on profitability margins, although the gross profit margin remains strong. The balance sheet is stable with balanced leverage, but profitability on shareholder investments has decreased. Cash flow analysis shows robust cash generation despite a decline in free cash flow. Overall, maintaining positive cash flows and a stable financial foundation are positives, but there's a need for improvement in revenue growth and operational efficiency.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.19B	19.57B	20.35B	17.65B	13.10B
	Gross Profit
12.68B	14.93B	15.20B	13.07B	9.51B
	EBIT
2.31B	4.75B	5.59B	4.80B	3.30B
	EBITDA
4.67B	6.43B	7.00B	6.15B	4.58B
	Net Income Common Stockholders
1.13B	2.98B	3.61B	3.18B	2.15B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.56B	3.92B	4.34B	5.25B	3.44B
	Total Assets
43.35B	41.37B	33.94B	31.07B	28.01B
	Total Debt
20.14B	17.82B	11.19B	9.59B	9.26B
	Net Debt
16.62B	13.90B	6.86B	4.34B	5.82B
	Total Liabilities
27.62B	25.36B	19.16B	17.33B	15.97B
	Stockholders Equity
14.90B	15.21B	14.00B	13.35B	11.82B
Cash Flow		Free Cash Flow
1.40B	1.85B	3.21B	3.94B	2.10B
	Operating Cash Flow
4.71B	4.46B	4.28B	4.88B	2.89B
	Investing Cash Flow
-3.19B	-7.30B	-2.77B	-451.50M	-196.50M
	Financing Cash Flow
-1.90B	2.38B	-2.14B	-2.93B	-1.62B

Kering SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 175.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 175.46 is above the 20-day moving average (MA) of 168.39, below the 50-day MA of 199.91, and below the 200-day MA of 226.65, indicating a neutral trend. The MACD of -5.01 indicates Negative momentum. The RSI at 46.23 is Neutral, neither overbought nor oversold. The STOCH value of 44.98 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	81 Outperform	$255.33B	56.16	28.67%	0.98%	12.98%	6.62%
MC	75 Outperform	€247.70B	19.73	19.53%	2.69%	-1.71%	-17.20%
CDI	71 Outperform	€80.93B	15.54	22.73%	2.90%	-1.71%	-17.39%
KER	62 Neutral	€20.99B	18.53	7.52%	6.72%	-12.12%	-62.09%
Sector *	61 Neutral	$6.59B	11.77	3.06%	3.98%	2.56%	-20.85%