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Kontoor Brands Inc
NYSE:KTB

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Kontoor Brands Inc Logo
Kontoor Brands Inc
NYSE:KTB
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Price: 59.11 USD 2.32% Market Closed
Updated: Mar 1, 2024

Intrinsic Value

Kontoor Brands, Inc. engages in the design, manufacture, sourcing, marketing, and distribution of a portfolio of brands. [ Read More ]

The intrinsic value of one KTB stock under the Base Case scenario is 69.28 USD. Compared to the current market price of 59.11 USD, Kontoor Brands Inc is Undervalued by 15%.

Key Points:
KTB Intrinsic Value
Base Case
69.28 USD
Undervaluation 15%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Kontoor Brands Inc

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Fundamental Analysis

Kontoor Brands Expects Earnings Growth and Margin Expansion
2023-Q3 Earnings Call

Kontoor Brands Expects Earnings Growth and Margin Expansion

Kontoor Brands projects a 300 basis point growth in fourth-quarter gross margin, fueled by a strategic mix, pricing adjustments, and reduced input costs balanced with inventory management. The reduced costs and improved margin mix, especially direct-to-consumer (DTC) and international sales, herald significant expansion in 2024. The company foresees SG&A increases at a low single-digit rate. Adjusted earnings per share (EPS) for the full year are anticipated at $4.50, excluding a duty charge impacting EPS by about 15 cents, setting it at $4.35. Operating cash flow is projected at $335 million, with year-end inventory down by over 15% to $500 million. Kontoor also expects around $200 million cash in hand and $700 million in liquidity by year-end. For 2023's second half, the company anticipates 2% revenue growth, gross margin enhancement by nearly 200 basis points, and double-digit operating earnings growth, laying a foundation for continued progress into 2024.

Financials

Balance Sheet Decomposition
Kontoor Brands Inc

Current Assets 1B
Cash & Short-Term Investments 77.8m
Receivables 245.5m
Other Current Assets 709.8m
Non-Current Assets 592.8m
PP&E 173.5m
Intangibles 222m
Other Non-Current Assets 197.3m
Current Liabilities 389.3m
Accounts Payable 182.4m
Accrued Liabilities 188m
Other Current Liabilities 18.9m
Non-Current Liabilities 889m
Long-Term Debt 768.6m
Other Non-Current Liabilities 120.4m
Efficiency
Fundamental Scores

KTB Profitability Score
Profitability Due Diligence

Kontoor Brands Inc's profitability score is 66/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Year Average ROE
Exceptional ROE
Positive Gross Profit
Positive 3-Year Average ROIC
66/100
Profitability
Score

Kontoor Brands Inc's profitability score is 66/100. The higher the profitability score, the more profitable the company is.

KTB Solvency Score
Solvency Due Diligence

Kontoor Brands Inc's solvency score is 52/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Short-Term Solvency
Long-Term Solvency
High D/E
52/100
Solvency
Score

Kontoor Brands Inc's solvency score is 52/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

KTB Price Targets Summary
Kontoor Brands Inc

Wall Street analysts forecast KTB stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for KTB is 67.03 USD with a low forecast of 46.46 USD and a high forecast of 89.25 USD.

Lowest
Price Target
46.46 USD
21% Downside
Average
Price Target
67.03 USD
13% Upside
Highest
Price Target
89.25 USD
51% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

KTB Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
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Shareholder Return

KTB Price
Kontoor Brands Inc

1M 1M
-1%
6M 6M
+29%
1Y 1Y
+16%
3Y 3Y
+48%
5Y 5Y
+68%
10Y 10Y
+68%
Annual Price Range
59.11
52w Low
37.19
52w High
63.58
Price Metrics
Average Annual Return 4.66%
Standard Deviation of Annual Returns 22.63%
Max Drawdown -67%
Shares Statistics
Market Capitalization 3.3B USD
Shares Outstanding 56 180 200
Percentage of Shares Shorted 6.81%

KTB Return Decomposition
Main factors of price return

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KTB News

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Company Profile

Kontoor Brands Inc Logo
Kontoor Brands Inc

Country

United States of America

Industry

Textiles, Apparel & Luxury Goods

Market Cap

3.3B USD

Dividend Yield

3.11%

Description

Kontoor Brands, Inc. engages in the design, manufacture, sourcing, marketing, and distribution of a portfolio of brands. The company is headquartered in Greensboro, North Carolina and currently employs 14,000 full-time employees. The company went IPO on 2019-05-09. The firm operates through three segments: Wrangler, Lee, and Other. The Wrangler segment offers denim, apparel, and accessories for men and women. Wrangler branded products are available through wholesale arrangements with mass and mid-tier retailers, specialty stores, department stores, independently operated partnership stores, and e-commerce platforms, as well as through its Company-operated retail stores and websites. The Lee segment offers jeans, pants, shirts, shorts, and jackets for men, women, boys and girls, with boys and girls jackets licensed in the United States. The Company’s products are sold in the United States through mass merchants, specialty stores, mid-tier and traditional department stores, Company-operated stores and online. Its products are also sold internationally, primarily in the Europe, Middle East and Africa and Asia-Pacific regions.

Contact

NORTH CAROLINA
Greensboro
400 N Elm St
+13363323400.0
https://www.kontoorbrands.com/

IPO

2019-05-09

Employees

14 000

Officers

President, CEO & Chair of the Board
Mr. Scott H. Baxter
Executive VP, Global Brand President of Wrangler & Co-COO
Mr. Thomas E. Waldron
Executive VP, Global Brand President of Lee & Co-COO
Mr. Christopher M. Waldeck
Executive VP, General Counsel & Corporate Secretary
Mr. Thomas L. Doerr Jr.
Executive VP & CFO
Mr. Joseph A. Alkire
VP & Chief Accounting Officer
Denise Sumner
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VP of Corporate Finance & Investor Relations
Eric Tracy
Exec. VP of Global Communications, Public Affairs & ESG and President of Kontoor Brands Foundation
Ms. Mame Annan-Brown
Executive VP & Chief Human Resources Officer
Mr. Peter Kidd
Senior VP & Chief Supply Chain Officer
Mr. Ezio Garciamendez
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See Also

Discover More
What is the Intrinsic Value of one KTB stock?

The intrinsic value of one KTB stock under the Base Case scenario is 69.28 USD.

Is KTB stock undervalued or overvalued?

Compared to the current market price of 59.11 USD, Kontoor Brands Inc is Undervalued by 15%.