Kontoor Brands (KTB) AI Stock Analysis

• Market Cap: $3.80B
• Dividend Yield: 3.16%
• Average Volume (3M): 669.01K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.83
• Revenue Growth: 1.19%
• EPS Growth: 3.19%
• Country: US
• Employees: 13,200
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.20
• Shares Outstanding: 55,561,370
• 10 Day Avg. Volume: 570,942
• 30 Day Avg. Volume: 669,012
• PEG Ratio: 0.31
• Price to Book (P/B): 8.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.39
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 2.58
• Enterprise Value/Ebitda: 1.99
• 1Y Price Target: $85.00
• Price Target Upside: 31.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $73.00 ▲(13.11%Upside)

Kontoor Brands' strong financial performance and positive earnings call guidance are significant strengths, offset slightly by technical indicators suggesting limited momentum. The company's valuation is reasonable, with an attractive dividend yield. Overall, the outlook is optimistic, driven by strategic acquisitions and robust profitability.

Positive Factors

Financial Stability

Kontoor Brands plans to pay down debt using free cash flow, indicating financial stability and strategic management.

Portfolio Expansion

The acquisition of the Helly Hansen brand diversifies and strengthens Kontoor Brands' portfolio expansion into global markets and new categories.

Negative Factors

Consumer Demand

The US consumer is meaningfully slowing down after the holiday season, impacting the company's performance.

Tariff Impact

Tariffs on goods sourced from Mexico could pose a significant financial challenge for Kontoor Brands if the 25% tariff is reinstated.

Kontoor Brands Business Overview & Revenue Model

Company Description

Kontoor Brands, Inc. (KTB) is a global lifestyle apparel company, primarily known for its iconic denim brands, Wrangler and Lee. Headquartered in Greensboro, North Carolina, the company designs, manufactures, and distributes a diverse range of clothing and accessories. Operating in the retail and consumer goods sectors, Kontoor Brands emphasizes quality, style, and sustainability in its product offerings, catering to a wide customer base across various demographics.

How the Company Makes Money

Kontoor Brands generates revenue through the sale of its apparel and accessories under the Wrangler and Lee brands. The company's primary revenue streams include wholesale distribution to major retailers, direct-to-consumer sales through its e-commerce platforms, and owned retail stores. In addition, Kontoor Brands leverages strategic partnerships and licensing agreements to expand its market reach and product offerings. The company focuses on brand strength, operational efficiency, and global market expansion to drive profitability and long-term growth.

Kontoor Brands Financial Statement Overview

Summary

Kontoor Brands maintains strong profitability and effective cash flow management, with a stable net profit margin and positive free cash flow growth. However, revenue growth has stagnated, and the high debt-to-equity ratio suggests leverage risk.

Income Statement

Kontoor Brands shows strong profitability with a consistent gross profit margin around 45% over the years. The net profit margin has been stable, reflecting effective cost management. However, revenue growth has stagnated, with a slight decline in the TTM period compared to previous years, indicating potential market challenges or saturation.

Balance Sheet

The company's debt-to-equity ratio is relatively high, suggesting leverage risk, but there has been improvement in equity levels over recent periods. Return on equity is strong due to solid net income figures, enhancing investor confidence. However, the equity ratio indicates a moderate level of asset financing through equity.

Cash Flow

Kontoor Brands has demonstrated positive free cash flow growth, supporting business operations and potential reinvestment opportunities. The ratio of operating cash flow to net income is favorable, ensuring operational efficiency. However, the free cash flow to net income ratio indicates room for improvement in converting profits into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
2.60B	2.61B	2.61B	2.63B	2.48B	2.10B
	Gross Profit
1.17B	1.16B	1.09B	1.13B	1.11B	863.69M
	EBIT
329.44M	342.29M	319.27M	356.67M	282.98M	123.83M
	EBITDA
369.06M	342.29M	350.35M	407.48M	320.57M	183.77M
	Net Income Common Stockholders
229.18M	245.80M	230.99M	245.49M	195.42M	67.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
356.71M	334.07M	215.05M	59.18M	185.32M	248.14M
	Total Assets
1.68B	1.65B	1.65B	1.58B	1.53B	1.55B
	Total Debt
791.53M	791.16M	841.68M	851.30M	848.75M	981.21M
	Net Debt
434.82M	457.09M	626.63M	792.12M	663.43M	733.07M
	Total Liabilities
1.25B	1.25B	1.27B	1.33B	1.38B	1.46B
	Stockholders Equity
426.67M	400.06M	371.91M	250.76M	148.14M	84.64M
Cash Flow		Free Cash Flow
368.68M	346.11M	319.17M	55.19M	246.99M	179.58M
	Operating Cash Flow
389.39M	368.23M	356.55M	83.58M	283.86M	241.97M
	Investing Cash Flow
-20.59M	-22.26M	-39.14M	-30.12M	-39.37M	-49.07M
	Financing Cash Flow
-223.62M	-240.35M	-155.70M	-170.91M	-304.07M	-57.69M

Kontoor Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 64.54
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KTB, the sentiment is Negative. The current price of 64.54 is below the 20-day moving average (MA) of 69.18, above the 50-day MA of 64.25, and below the 200-day MA of 75.40, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 40.25 is Neutral, neither overbought nor oversold. The STOCH value of 13.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KTB.

Kontoor Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZGN	76 Outperform	$3.51B	25.94	8.89%	1.50%	2.26%	-37.52%
KTB	71 Outperform	$3.80B	16.74	56.32%	3.16%	1.19%	3.19%
COLM	63 Neutral	$3.45B	16.09	12.34%	1.91%	-1.69%	-4.01%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
UA	62 Neutral	$2.86B	―	-9.95%	―	-7.47%	-131.70%
VFC	53 Neutral	$4.99B	―	-2.39%	2.81%	-8.42%	57.91%
HBI	52 Neutral	$1.76B	―	-23.24%	―	-33.72%	-892.32%

Kontoor Brands Corporate Events

Andrew E. Page Resigns from Kontoor Brands Board

On June 2, 2025, Andrew E. Page resigned from Kontoor Brands‘ Board of Directors, including all committees, due to a conflict of interest with Helly Hansen, a competitor to a brand where he serves as CFO. His resignation was voluntary and not due to any disagreements with the company’s operations or policies.

The most recent analyst rating on (KTB) stock is a Buy with a $108.00 price target. To see the full list of analyst forecasts on Kontoor Brands stock, see the KTB Stock Forecast page.