Kering SA (KER) AI Stock Analysis

• Market Cap: €26.04B
• Dividend Yield: 2.77%
• Average Volume (3M): 417.22K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 1.70
• Revenue Growth: -14.56%
• EPS Growth: -64.91%
• Country: FR
• Employees: 44,627
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Luxury Goods
• EPS (TTM): 3.86
• Shares Outstanding: 123,420,780
• 10 Day Avg. Volume: 334,118
• 30 Day Avg. Volume: 417,224
• PEG Ratio: -0.51
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.79
• 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: €183.56
• Price Target Upside: -15.21% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 18

• Rating: 76 Outperform
• Price Target: €251.00 ▲(15.94%Upside)

Kering SA's stock score is driven by strong technical momentum, indicating positive short-term trends. Financial performance shows mixed results with pressures on margins, but a robust gross profit margin and cash flow generation. Valuation metrics suggest the stock may be overvalued, which could limit future growth potential. The absence of new earnings call insights or corporate events means that these factors did not influence the score.

Positive Factors

Financial Position

DPS of EUR6 was declared for 2024 on better free cash flow and solid financial position.

Investments in Brand

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 Innovation

New creative director Demna Gvasalia at Gucci is seen positively with upcoming collections expected to rejuvenate interest.

Negative Factors

Brand Underperformance

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.

Operating Challenges

Gucci is experiencing margin deleverage due to top-line pressures with operating margin expected to drop this year.

Revenue Decline

Kering saw a 14% y/y decline in group revenue to EUR3.9bn on both reported and constant currency bases, seeing Asia-Pacific down 25%, Western Europe and North America declined 13% each, and Japan dropped 11%.

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 SA generates revenue primarily through the sale of luxury goods across its portfolio of brands. The company's key revenue streams include direct retail sales through its network of branded boutiques, wholesale distribution to authorized retailers, and online sales through e-commerce platforms. Kering capitalizes on its strong brand equity, heritage, and design excellence to attract affluent consumers. Strategic partnerships and collaborations with designers and artists, as well as targeted marketing campaigns, further enhance brand visibility and consumer engagement. Additionally, Kering invests in sustainable practices and innovation, which not only appeal to environmentally conscious consumers but also support long-term profitability by aligning with evolving market trends.

Kering SA Financial Statement Overview

Summary

Kering SA's financials show mixed performance. Despite strong gross profit and cash flow generation, declining revenue and decreased profitability margins suggest challenges. The balance sheet remains stable with balanced leverage, but improvement in operational efficiency is needed.

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
EBITDA	4.67B	6.43B	7.00B	6.15B	4.58B
Net Income	1.13B	2.98B	3.61B	3.18B	2.15B
Balance Sheet
Total Assets	43.35B	41.37B	33.94B	31.07B	28.01B
Cash, Cash Equivalents and Short-Term Investments	3.56B	3.92B	4.34B	5.25B	3.44B
Total Debt	20.14B	17.82B	11.19B	9.59B	9.26B
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: Positive
• Last Price: 216.50
• 50DMA: Positive
• 100DMA: Positive
• 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 216.5 is above the 20-day moving average (MA) of 203.97, above the 50-day MA of 189.25, and above the 200-day MA of 210.46, indicating a bullish trend. The MACD of 7.71 indicates Negative momentum. The RSI at 64.33 is Neutral, neither overbought nor oversold. The STOCH value of 66.75 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
KER	76 Outperform	€26.04B	35.73	4.91%	2.77%	-14.56%	-64.91%
Sector *	65 Neutral	€7.75B	13.68	8.46%	3.28%	3.88%	-27.41%
HESAF	―	$256.78B	53.38	27.36%	1.17%	―	―
0NPL	―	€82.09B	18.01	19.54%	2.77%	―	―
0OMK	―	€121.58B	50.45	6.19%	1.60%	―	―
0HAU	―	€237.18B	21.70	16.88%	2.62%	―	―
7EK	―	€94.84M	24.44	12.79%	―	―	―