Michael Kors Holdings Ltd

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KORS : NYSE : Consumer Goods
$50.26 0.00 | 0.00%
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 3,686,500
08/25/16 - 4:00 PM ET

Financial Analysis


MICHAEL KORS HOLDINGS LTD's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. MICHAEL KORS HOLDINGS LTD has weak liquidity. Currently, the Quick Ratio is 0.77 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 16.01% 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 FY16 Q1 FY15
Net Sales ($mil)987.9985.98
EBITDA ($mil)248.6290.18
EBIT ($mil)198.2248.62
Net Income ($mil)147.1174.36


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)337.1808.54
Total Assets ($mil)2690.72556.67
Total Debt ($mil)248.60.0
Equity ($mil)1754.62089.19


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin59.8561.22
EBITDA Margin25.1629.43
Operating Margin20.0625.22
Sales Turnover1.751.74
Return on Assets30.1733.93
Return on Equity46.2641.53
Debt Q1 FY16 Q1 FY15
Current Ratio1.795.35
Debt/Capital0.120.0
Interest Expense0.30.11
Interest Coverage660.672280.95


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)169.0193.37
Div / share0.00.0
EPS0.830.87
Book value / share10.3810.8
Institutional Own % n/a n/a
Avg Daily Volume3727335.03135554.0

Valuation


HOLD. MICHAEL KORS HOLDINGS LTD's P/E ratio indicates a significant discount compared to an average of 28.14 for the Textiles, Apparel & Luxury Goods industry and a significant discount compared to the S&P 500 average of 25.30. To use another comparison, its price-to-book ratio of 4.75 indicates a significant premium versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 6.41. The price-to-sales ratio is below the S&P 500 average and is well below 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 11.18 Peers 28.14   KORS 6.64 Peers 39.06

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 10.20 Peers 23.48   KORS 3.32 Peers 2.73

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KORS 4.75 Peers 6.41   KORS 3.76 Peers 7.80

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 1.77 Peers 2.69   KORS 6.21 Peers 8.01

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 trails its peers on the basis of sales growth

 

 

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