Kering SA (KER) AI Stock Analysis

• Market Cap: €27.64B
• Dividend Yield: 2.66%
• Average Volume (3M): 268.69K
• Price to Earnings (P/E): 37.7
• Beta (1Y): 1.63
• Revenue Growth: -14.56%
• EPS Growth: -64.91%
• Country: FR
• Employees: 44,627
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Luxury Goods
• EPS (TTM): 3.86
• Shares Outstanding: 123,420,780
• 10 Day Avg. Volume: 204,729
• 30 Day Avg. Volume: 268,691
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 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: €191.19
• Price Target Upside: -16.69% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 18

• Rating: 76 Outperform
• Price Target: €251.00 ▲(9.37% 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.

Leadership and Innovation

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

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

Market Environment

The company faces external headwinds such as weakening US demand and continued weakness in Chinese mall traffic.

Operational Challenges

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.

Revenue 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 goods holding company based in France, recognized for its diverse portfolio of prestigious brands in the fashion, leather goods, jewelry, and watches sectors. The company operates through several renowned labels, including Gucci, Saint Laurent, Bottega Veneta, Balenciaga, and Tiffany & Co. Kering focuses on high-end products characterized by exceptional craftsmanship and creativity, catering to affluent consumers worldwide.

How the Company Makes Money

Kering generates revenue primarily through the sale of luxury goods across its various brands. The company's revenue model is multifaceted, consisting mainly of retail sales from its branded boutiques, e-commerce platforms, and wholesale distribution to select high-end department stores and specialty retailers. Key revenue streams include ready-to-wear apparel, leather goods, accessories, and jewelry. Additionally, Kering benefits from strong brand equity and consumer loyalty, allowing for premium pricing. The company also explores strategic partnerships and collaborations that enhance brand visibility and market reach, contributing to its earnings. Seasonal collections and limited-edition releases further drive consumer demand and sales. Overall, Kering's focus on sustainability and innovation plays a significant role in its financial performance, appealing to a growing segment of environmentally conscious consumers.

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: 229.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 229.5 is above the 20-day moving average (MA) of 216.02, above the 50-day MA of 203.50, and above the 200-day MA of 209.62, indicating a bullish trend. The MACD of 5.17 indicates Negative momentum. The RSI at 64.91 is Neutral, neither overbought nor oversold. The STOCH value of 85.08 is Negative, 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	€27.64B	37.71	4.91%	2.66%	-14.56%	-64.91%
Sector *	61 Neutral	$17.75B	12.51	-5.49%	3.06%	1.43%	-14.10%
HESAF	―	$252.25B	52.43	27.36%	1.09%	―	―
0NPL	―	€84.72B	18.52	19.54%	―	―	―
0OMK	―	€122.83B	51.98	6.19%	―	―	―
0HAU	―	€242.90B	22.17	16.88%	―	―	―
7EK	―	€93.43M	24.44	12.79%	―	―	―