KSS is now undervalued and could go up 614%
Kohl's, headquartered in Menomonee Falls, Wisconsin, operates approximately 1,174 family-oriented department stores and employs 36,000 full-time staff, offering a mix of private and national brand merchandise. Its offerings include apparel, footwear, accessories, beauty, and home products, available both in stores and online.
Based on our analysis, Kohl’s Corporation (NYSE: KSS) has received an undervalued rating of 5 out of 5 stars from Cashu. Several key financial ratios highlight the company’s attractive valuation compared to its sector peers.
The Price-to-Earnings (PE) ratio for Kohl’s stands at 10.86, significantly lower than the sector average of 15.61. A lower PE ratio indicates that the stock may be undervalued relative to its earnings potential, suggesting that investors are paying less for each dollar of earnings compared to similar companies.
Additionally, Kohl’s Price-to-Book (PB) ratio is 0.38, compared to the sector average of 1.97. This ratio suggests that Kohl’s shares are trading at a fraction of its book value, indicating a strong potential for capital appreciation as the market may not fully recognize the company's asset value.
Kohl’s net profit margin of 0.67 is robust when compared to the sector average of 0.09, demonstrating effective cost management and the ability to retain earnings. Furthermore, the company’s Return on Equity (ROE) of 2.87, exceeding the sector average of 1.09, indicates that Kohl’s is generating a higher return for its shareholders.
The dividend yield of 13.77, compared to the sector average of 2.56, presents a compelling incentive for income-focused investors. Lastly, the Return on Assets (ROA) ratio of 0.80, contrasting with the sector’s -0.10, suggests efficient utilization of assets to generate profits.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary
