Michael Kors Holdings Ltd

Find Ratings Reports
KORS : NYSE : Consumer Goods
$41.95 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 2877700.0
08/21/17 - 4:03 PM ET

Financial Analysis


MICHAEL KORS HOLDINGS LTD's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. MICHAEL KORS HOLDINGS LTD has weak liquidity. Currently, the Quick Ratio is 0.78 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 9.89% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)952.4987.9
EBITDA ($mil)197.0248.6
EBIT ($mil)149.4198.2
Net Income ($mil)125.5147.1


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)273.7337.1
Total Assets ($mil)2413.02690.7
Total Debt ($mil)155.8248.6
Equity ($mil)1580.91754.6


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin60.3459.85
EBITDA Margin20.6825.16
Operating Margin15.6920.06
Sales Turnover1.851.75
Return on Assets22.030.17
Return on Equity33.5846.26
Debt Q1 FY17 Q1 FY16
Current Ratio2.041.79
Debt/Capital0.090.12
Interest Expense1.10.0
Interest Coverage135.820.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)151.59169.0
Div / share0.00.0
EPS0.80.83
Book value / share10.4310.38
Institutional Own % n/a n/a
Avg Daily Volume2860387.02120552.0

Valuation


HOLD. MICHAEL KORS HOLDINGS LTD's P/E ratio indicates a significant discount compared to an average of 23.89 for the Textiles, Apparel & Luxury Goods industry and a significant discount compared to the S&P 500 average of 24.23. Conducting a second comparison, its price-to-book ratio of 4.16 indicates a premium versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 5.68. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, MICHAEL KORS HOLDINGS LTD proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KORS 13.46 Peers 23.89   KORS 7.26 Peers 19.18

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

KORS is trading at a significant discount to its peers.

 

Discount. 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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KORS 11.53 Peers 20.48   KORS 1.08 Peers 2.23

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

KORS is trading at a significant discount to 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KORS 4.16 Peers 5.68   KORS -26.99 Peers 1.80

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

KORS is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, KORS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KORS 1.47 Peers 2.16   KORS -5.43 Peers 8.04

Discount. 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 discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

KORS significantly trails its peers on the basis of sales growth

 

 

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