-0.77 | -1.26%
MICHAEL KORS HOLDINGS LTD's gross profit margin for the third quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. MICHAEL KORS HOLDINGS LTD is extremely liquid. Currently, the Quick Ratio is 3.00 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 146.28% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
| Income Statement | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Net Sales ($mil) | 636.78 | 373.61 |
| EBITDA ($mil) | 218.61 | 80.38 |
| EBIT ($mil) | 204.84 | 69.76 |
| Net Income ($mil) | 130.03 | 39.03 |
| Balance Sheet | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 405.78 | 105.67 |
| Total Assets ($mil) | 1187.66 | 590.36 |
| Total Debt ($mil) | 0.0 | 15.54 |
| Equity ($mil) | 924.2 | 375.26 |
| Profitability | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Gross Profit Margin | 60.22 | 59.4 |
| EBITDA Margin | 34.33 | 21.51 |
| Operating Margin | 32.17 | 18.67 |
| Sales Turnover | 1.65 | 0.0 |
| Return on Assets | 28.63 | 0.0 |
| Return on Equity | 36.8 | 0.0 |
| Debt | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Current Ratio | 4.81 | 2.4 |
| Debt/Capital | 0.0 | 0.04 |
| Interest Expense | 0.31 | 0.0 |
| Interest Coverage | 658.65 | 0.0 |
| Share Data | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Shares outstanding (mil) | 200.27 | 191.05 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.64 | 0.2 |
| Book value / share | 4.61 | 1.96 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 4999809.0 | 3999842.0 |
HOLD. This stock's P/E ratio indicates a premium compared to an average of 26.03 for the Textiles, Apparel & Luxury Goods industry and a significant premium compared to the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 12.84 indicates a significant premium versus the S&P 500 average of 2.44 and a significant premium versus the industry average of 5.58. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, MICHAEL KORS HOLDINGS LTD proves to trade at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| KORS 35.07 | Peers 26.03 | KORS 48.26 | Peers 21.93 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. KORS is trading at a significant premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. KORS is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| KORS 24.83 | Peers 33.22 | KORS 0.26 | Peers 1.85 | |||||||||||||||||||||
|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations. KORS is trading at a valuation on par with its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. KORS trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| KORS 12.84 | Peers 5.58 | KORS 745.00 | Peers 72.04 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. KORS is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. KORS is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| KORS 6.04 | Peers 2.73 | KORS 425.83 | Peers 39.24 | |||||||||||||||||||||
|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. KORS is trading at a significant premium to its industry. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. KORS has a sales growth rate that significantly exceeds its peers. |
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