Michael Kors Holdings Ltd

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KORS : NYSE : Consumer Goods
$35.62 -0.36 | -1.0%
Today's Range: 35.6 - 36.16
Avg. Daily Volume: 2425800.0
06/29/17 - 12:21 PM ET

Financial Analysis


MICHAEL KORS HOLDINGS LTD's gross profit margin for the fourth quarter of its fiscal year 2016 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 0.90 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 20.19% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)1064.81198.67
EBITDA ($mil)14.7294.55
EBIT ($mil)-42.6244.08
Net Income ($mil)-26.8177.02


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)229.6702.0
Total Assets ($mil)2409.62566.8
Total Debt ($mil)133.12.3
Equity ($mil)1592.61995.7


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin58.258.16
EBITDA Margin1.3824.57
Operating Margin-4.020.36
Sales Turnover1.861.84
Return on Assets22.9232.69
Return on Equity34.6942.04
Debt Q4 FY16 Q4 FY15
Current Ratio2.063.83
Debt/Capital0.080.0
Interest Expense0.00.58
Interest Coverage0.0417.95


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)155.83176.44
Div / share0.00.0
EPS-0.170.98
Book value / share10.2211.31
Institutional Own % n/a n/a
Avg Daily Volume2341318.02880577.0

Valuation


HOLD. MICHAEL KORS HOLDINGS LTD's P/E ratio indicates a significant discount compared to an average of 28.77 for the Textiles, Apparel & Luxury Goods industry and a significant discount compared to the S&P 500 average of 25.75. Conducting a second comparison, its price-to-book ratio of 3.41 indicates a premium versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 5.17. 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 10.72 Peers 28.77   KORS 5.28 Peers 16.68

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 9.56 Peers 19.61   KORS 1.26 Peers 2.02

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 3.41 Peers 5.17   KORS -26.97 Peers 12.44

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 1.21 Peers 2.07   KORS -4.64 Peers 17.80

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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