Michael Kors Holdings Ltd

Find Ratings Reports
KORS : NYSE : Consumer Goods
$38.3 | %
Today's Range: 37.81 - 38.435
Avg. Daily Volume: 2741400.0
02/17/17 - 4:01 PM ET

Financial Analysis


MICHAEL KORS HOLDINGS LTD's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. MICHAEL KORS HOLDINGS LTD has weak liquidity. Currently, the Quick Ratio is 0.94 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 6.24% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1352.81397.48
EBITDA ($mil)398.1454.32
EBIT ($mil)342.4409.31
Net Income ($mil)271.3294.59


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)369.9696.82
Total Assets ($mil)2771.02534.22
Total Debt ($mil)147.83.98
Equity ($mil)1852.11975.54


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin59.5659.53
EBITDA Margin29.4232.51
Operating Margin25.3129.29
Sales Turnover1.671.81
Return on Assets27.2933.33
Return on Equity40.8342.75
Debt Q3 FY16 Q3 FY15
Current Ratio2.043.93
Debt/Capital0.070.0
Interest Expense3.40.63
Interest Coverage100.71647.64


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)162.44179.41
Div / share0.00.0
EPS1.641.59
Book value / share11.411.01
Institutional Own % n/a n/a
Avg Daily Volume2733674.02829765.0

Valuation


HOLD. MICHAEL KORS HOLDINGS LTD's P/E ratio indicates a significant discount compared to an average of 24.61 for the Textiles, Apparel & Luxury Goods industry and a significant discount compared to the S&P 500 average of 26.35. Conducting a second comparison, its price-to-book ratio of 3.35 indicates a premium versus the S&P 500 average of 2.94 and a significant discount versus the industry average of 5.24. 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 8.68 Peers 24.61   KORS 5.41 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 9.27 Peers 21.36   KORS NM Peers 3.15

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KORS 3.35 Peers 5.24   KORS 0.68 Peers 10.80

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 1.34 Peers 2.22   KORS 0.72 Peers 6.29

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

 

 

Latest Stock Upgrades/Downgrades