Kering SA (KER) AI Stock Analysis

• Market Cap: €22.10B
• Dividend Yield: 8.87%
• Average Volume (3M): 297.92K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.69
• Revenue Growth: -12.12%
• EPS Growth: -62.09%
• Country: FR
• Employees: 44,627
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Luxury Goods
• EPS (TTM): 2.08
• Shares Outstanding: 123,420,780
• 10 Day Avg. Volume: 308,404
• 30 Day Avg. Volume: 297,923
• PEG Ratio: 1.07
• Price to Book (P/B): 4.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.26
• 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: €173.88
• Price Target Upside: -0.45% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 17

• Rating: 67 Neutral
• 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 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 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

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: Negative
• Last Price: 174.66
• 50DMA: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MC	75 Outperform	€235.09B	18.73	19.53%	2.74%	-1.71%	-17.20%
RMS	71 Outperform	$246.96B	53.73	28.67%	3.77%	12.98%	6.62%
CDI	71 Outperform	€79.71B	15.30	22.73%	3.00%	-1.71%	-17.39%
KER	67 Neutral	€22.10B	19.51	7.52%	8.87%	-12.12%	-62.09%
EL	67 Neutral	€115.49B	48.11	6.00%	1.58%	4.38%	1.71%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%