Michael Kors Holdings Ltd

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KORS : NYSE : Consumer Goods
$52.33 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 3,902,500
07/27/16 - 4:02 PM ET

Financial Analysis


MICHAEL KORS HOLDINGS LTD's gross profit margin for the fourth quarter of its fiscal year 2015 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 is extremely liquid. Currently, the Quick Ratio is 2.34 which clearly shows the ability to cover any 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 10.94% 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 Q4 FY15 Q4 FY14
Net Sales ($mil)1198.671080.98
EBITDA ($mil)294.55294.04
EBIT ($mil)244.08256.17
Net Income ($mil)177.02182.64


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)702.0978.92
Total Assets ($mil)2566.82691.89
Total Debt ($mil)2.30.0
Equity ($mil)1995.72240.97


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin58.1658.36
EBITDA Margin24.5727.2
Operating Margin20.3623.7
Sales Turnover1.841.62
Return on Assets32.6932.72
Return on Equity42.0439.31
Debt Q4 FY15 Q4 FY14
Current Ratio3.836.11
Debt/Capital0.00.0
Interest Expense0.580.0
Interest Coverage417.950.0


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)176.44199.66
Div / share0.00.0
EPS0.980.9
Book value / share11.3111.22
Institutional Own % n/a n/a
Avg Daily Volume3892609.03693507.0

Valuation


HOLD. MICHAEL KORS HOLDINGS LTD's P/E ratio indicates a significant discount compared to an average of 26.45 for the Textiles, Apparel & Luxury Goods industry and a significant discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 4.54 indicates a significant premium versus the S&P 500 average of 2.81 and a discount versus the industry average of 5.95. The current price-to-sales ratio is similar to the S&P 500 average, but it is 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 11.54 Peers 26.45   KORS 7.38 Peers 20.70

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 10.32 Peers 23.54   KORS 3.21 Peers 2.30

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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KORS 4.54 Peers 5.95   KORS 3.72 Peers 8.68

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 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 1.92 Peers 2.37   KORS 7.79 Peers 8.47

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 discount to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

KORS is keeping pace with its peers on the basis of sales growth.

 

 

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