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Michael Kors Holdings Ltd
KORS : NYSE : Services

$90.54 0.61 | 0.68%
Today's Range: 90.00 - 91.34
Avg. Daily Volume: 3,165,000
04/21/14 - 11:36 AM ET

Financial Analysis

MICHAEL KORS HOLDINGS LTD's gross profit margin for the third quarter of its fiscal year 2013 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 4.07 which clearly shows the ability to cover any short-term cash needs. KORS managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 75.71% 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.

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Income Statement Q3 FY13 Q3 FY12
Net Sales ($mil)1012.23636.78
EBITDA ($mil)364.9218.61
EBIT ($mil)343.24204.84
Net Income ($mil)229.64130.03

Balance Sheet Q3 FY13 Q3 FY12
Cash & Equiv. ($mil)828.34405.78
Total Assets ($mil)2006.961187.66
Total Debt ($mil)0.00.0
Equity ($mil)1623.95924.2

Profitability Q3 FY13 Q3 FY12
Gross Profit Margin61.260.22
EBITDA Margin36.0434.33
Operating Margin33.9132.17
Sales Turnover1.491.65
Return on Assets29.9728.63
Return on Equity37.0436.8
Debt Q3 FY13 Q3 FY12
Current Ratio5.814.81
Interest Expense0.110.31
Interest Coverage3148.99658.65

Share Data Q3 FY13 Q3 FY12
Shares outstanding (mil)203.85200.27
Div / share0.00.0
Book value / share7.974.61
Institutional Own % n/a n/a
Avg Daily Volume3259864.04517049.0


BUY. This stock's P/E ratio indicates a premium compared to an average of 30.31 for the Textiles, Apparel & Luxury Goods industry and a significant premium compared to the S&P 500 average of 18.59. For additional comparison, its price-to-book ratio of 11.31 indicates a significant premium versus the S&P 500 average of 2.56 and a significant premium versus the industry average of 5.63. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KORS 30.75 Peers 30.31   KORS 32.99 Peers 23.39

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

KORS is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
KORS 23.41 Peers 26.49   KORS 0.53 Peers 1.64

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KORS 11.31 Peers 5.63   KORS 73.37 Peers 14.83

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KORS 6.14 Peers 2.74   KORS 52.22 Peers 13.76

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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