Education
About Us
Working with TipRanks
Follow Us
Kering Sa Unsponsored ADR (PPRUY)
:PPRUY
Top Page
Kering
(OTC:PPRUY)
59Neutral
Kering (PPRUY) vs. S&P 500 (SPY)
Market Cap
$24.34B
Dividend Yield4.16%
Average Volume (3M)20.54K
Price to Earnings (P/E)19.8
Beta (1Y)1.11
Revenue Growth-12.08%
EPS Growth-62.09%
CountryUS
Employees44,627
SectorConsumer Cyclical
Sector Strength66
IndustryLuxury Goods
Share Statistics
EPS (TTM)1.00
Shares Outstanding1,234,207,800
10 Day Avg. Volume0
30 Day Avg. Volume20,537
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.52
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.20Price Target Upside11.90% Upside
Rating ConsensusHold
Number of Analyst Covering1
Kering Business Overview & Revenue Model
Company DescriptionKering 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 MoneyKering generates revenue primarily through the sale of high-end fashion and leather goods, which account for a significant portion of its income. The company's revenue streams are largely derived from its luxury brand portfolio, with Gucci being the most prominent contributor. These brands sell products through a combination of directly operated stores, e-commerce platforms, and wholesale distribution channels. The company's strategy involves strong brand positioning, innovative design, and selective distribution to maintain exclusivity and desirability. Additionally, Kering leverages licensing agreements and collaborations with designers and celebrities to enhance brand visibility and drive sales. The company's focus on sustainability and ethical practices also appeals to a growing consumer base interested in responsible luxury consumption.
Kering Financial Statement Overview
Summary
Kering exhibits robust profitability and a stable financial position, with strong gross and EBIT margins. While leverage is manageable, the rising debt levels and fluctuating revenue growth pose potential risks. Cash flow generation remains healthy, yet the decline in free cash flow warrants attention.Income Statement
Kering's income statement shows strong profitability with a consistently high gross profit margin and a solid EBIT margin. However, the revenue growth rate has been fluctuating, with a decline in the latest year, indicating potential challenges in maintaining sales momentum.75
Positive
Balance Sheet
The balance sheet reflects a stable financial position, with a moderate debt-to-equity ratio and a decent equity ratio. However, the increase in total debt over recent years suggests rising leverage, which could pose future risks if not managed carefully.70
Positive
Cash Flow
Kering's cash flow statement indicates a stable operating cash flow to net income ratio, suggesting efficient cash generation. However, the recent decline in free cash flow growth rate points to potential challenges in sustaining free cash flows, partly due to high capital expenditures.65
Positive
| 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 | 4.64B | 5.59B | 4.80B | 3.30B | EBITDA |
| 4.67B | 6.57B | 6.98B | 6.13B | 4.56B | 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 | 17.16B | 11.19B | 9.59B | 9.26B | Net Debt |
| 16.62B | 13.23B | 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 Technical Analysis
Negative
19.84
Price Trends
23.52
Negative
24.18
Negative
25.67
Negative
Market Momentum
-0.99
Negative
44.67
Neutral
96.25
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPRUY, the sentiment is Negative. The current price of 19.84 is above the 20-day moving average (MA) of 19.29, below the 50-day MA of 23.52, and below the 200-day MA of 25.67, indicating a neutral trend. The MACD of -0.99 indicates Negative momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 96.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PPRUY.
Kering Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $14.26B | 19.99 | 39.82% | 2.03% | 0.74% | -12.69% | |
61 Neutral | $2.53B | 5.56 | 2.62% | 1.96% | -6.52% | -104.24% | |
60 Neutral | $6.85B | 11.71 | 3.16% | 4.15% | 2.39% | -21.87% | |
59 Neutral | $24.34B | 19.85 | 7.60% | 4.16% | -12.08% | -62.09% | |
59 Neutral | $702.59M | ― | -8.28% | ― | 12.01% | -23.53% | |
51 Neutral | $704.58M | ― | 32.94% | ― | 9.32% | 25.94% | |
49 Neutral | $1.75B | ― | -67.22% | ― | -12.34% | -574.65% |
* Consumer Cyclical Sector Average
Performance Comparison
PPRUY
Kering
19.84
-15.14
-43.28%
TPR
Tapestry
68.88
28.97
72.59%
CPRI
Capri Holdings
14.87
-20.96
-58.50%
SIG
Signet Jewelers
59.05
-41.38
-41.20%
REAL
RealReal
6.23
2.38
61.82%
MYTE
MYT Netherlands
8.24
3.93
91.18%
Kering Earnings Call Summary
Earnings Call Date:Feb 11, 2025
(Q4-2024)
| % Change Since: -21.24%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
Kering faced significant challenges in 2024, with notable declines in revenue and operating income across several brands, particularly Gucci and Saint Laurent. However, there were also positive developments in Kering Eyewear, Bottega Veneta, and Kering Beauté, along with strong cash flow generation.Q4-2024 Updates
Positive Updates
Kering Eyewear Success
Kering Eyewear celebrated its 10th anniversary by surpassing all targets set in 2015. It has become number two worldwide in Eyewear and number one in the Luxury segment with a highly profitable business.
Bottega Veneta Growth
Bottega Veneta achieved a 6% comparable revenue growth in 2024, with retail up 10%, driven by the high desirability of leather goods and a continued increase in Average Unit Retail (AUR).
Kering Beauté Progress
Creed posted high single-digit comparable growth, and the launch of high-end Bottega Veneta fragrances exceeded expectations, contributing positively to Kering Beauté's performance.
Strong Cash Flow Generation
Free cash flow from operations stood at €1.4 billion or €3.6 billion excluding real estate, highlighting successful inventory management and disciplined CapEx.
Negative Updates
Gucci Revenue Decline
Gucci's revenue for 2024 was down 21% comparable, with retail down 21% and wholesale decreasing by 28%, driven by a reduction in the number of doors and the challenging market environment.
Saint Laurent Performance Decline
Saint Laurent's full year revenue was down 9% comparable, with wholesale down 25% due to channel rationalization and the challenging U.S. market.
Overall Revenue Decrease
Full year revenue at €17.2 billion was down 12% in both reported and comparable terms, with Asia-Pacific's share down five percentage points.
Operating Income Decline
Recurring operating income was €2.6 billion, down 46% year-on-year, with a 900 basis point margin dilution, impacted by adverse mix effects and less positive hedging gains.
Company Guidance
In the call, Kering's leadership outlined a comprehensive strategy for navigating challenging market conditions in 2024, emphasizing long-term brand health over short-term compromises. Key metrics highlighted include a full-year revenue of €17.2 billion, down 12% year-on-year, with recurring operating income at €2.6 billion, yielding a 14.9% margin. Gucci's revenue was reported at €7.7 billion, down 21% on a comparable basis, significantly impacting the group's performance. The group also achieved a strong free cash flow from operations of €1.4 billion, excluding real estate, while net financial debt at year-end stood at €10.5 billion. Kering's strategic focus for 2025 includes further rationalization of their retail and wholesale networks, aiming to stabilize operational efficiency and improve gross margin rates. Key operational metrics included a 40% reduction in Gucci inventory over two years and a planned closure of 50 stores in 2025, emphasizing exclusivity and the elevation of the client experience.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.