Kering (PPRUY) AI Stock Analysis

• Market Cap: $28.07B
• Dividend Yield: 4.71%
• Average Volume (3M): 17.46K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 1.07
• Revenue Growth: -12.08%
• EPS Growth: -62.09%
• Country: US
• Employees: 44,627
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Luxury Goods
• EPS (TTM): 0.23
• Shares Outstanding: 1,234,207,800
• 10 Day Avg. Volume: 52,390
• 30 Day Avg. Volume: 17,463
• PEG Ratio: 0.11
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.82
• 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: $20.40
• Price Target Upside: -11.07% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $26.00 ▲(13.34%Upside)

The overall score reflects strong technical momentum and robust financial performance, despite valuation concerns and significant challenges highlighted in the earnings call. The company's strategic focus on operational efficiency and brand exclusivity provides a positive outlook, but risks from declining revenues and rising debt remain.

Kering 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 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 demonstrates robust profitability and a stable financial position with strong gross and EBIT margins. However, 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.

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.

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.

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	6.57B	6.98B	6.13B	4.56B
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	17.16B	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 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPRUY, the sentiment is Positive. The current price of 22.94 is above the 20-day moving average (MA) of 21.44, above the 50-day MA of 20.60, and below the 200-day MA of 23.50, indicating a neutral trend. The MACD of 0.76 indicates Negative momentum. The RSI at 62.44 is Neutral, neither overbought nor oversold. The STOCH value of 79.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPRUY.

Kering Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIG	75 Outperform	$3.36B	88.67	2.04%	1.57%	-3.98%	-93.50%
TPR	72 Outperform	$19.21B	24.33	40.27%	1.51%	2.67%	1.31%
PPRUY	71 Outperform	$28.07B	22.95	7.60%	4.71%	-12.08%	-62.09%
LUXE	63 Neutral	$633.53M	―	-8.75%	―	7.08%	-42.22%
Sector *	63 Neutral	$16.67B	10.96	-6.97%	3.00%	1.72%	-24.21%
CPRI	47 Neutral	$2.18B	―	-120.18%	―	-14.08%	-411.39%
REAL	47 Neutral	$592.62M	―	32.94%	―	11.89%	66.22%