Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model. NEW YORK ( TheStreet) -- Kohl's (NYSE: KSS) has been reiterated by TheStreet Ratings as a buy with a ratings score of B+ . The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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- KSS's revenue growth has slightly outpaced the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 2.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- KOHL'S CORP has improved earnings per share by 13.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, KOHL'S CORP increased its bottom line by earning $4.38 versus $3.69 in the prior year. This year, the market expects an improvement in earnings ($4.62 versus $4.38).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Multiline Retail industry average. The net income increased by 1.9% when compared to the same quarter one year prior, going from $211.00 million to $215.00 million.
- 38.10% is the gross profit margin for KOHL'S CORP which we consider to be strong. Regardless of KSS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KSS's net profit margin of 4.80% compares favorably to the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Multiline Retail industry and the overall market, KOHL'S CORP's return on equity exceeds that of both the industry average and the S&P 500.
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