Kontoor Brands, Inc.

Consumer Discretionary
Apparel
www.kontoorbrands.com

Earnings Score
Moat Score
Safety Score

Market Cap $3.58B
PE 15
Debt $745.00M
Cash $334.07M
EV $3.99B
FCF $349.44M

Earnings

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Sales & Net Margins

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Earnings	$245.80M
EBIT	$342.29M
ROE	61%
ROA	21%
FCF	$349.44M
Equity	$400.06M
Growth Stability	43%
PE	14.57
PEG	0.31
PB	8.95
P/FCF	10.25
P/S	1.37
Price/Cash	0.09
Debt/Equity	1.86
Debt/FCF	2.13
Net Margins	9%
Gross Margins	45%
Op. Margins	13%
Earnings CAGR	20%
Sales Growth YoY	4%
Sales Growth QoQ	4%
Sales CAGR	1%
FCF CAGR	-4%
Equity CAGR	-12%
Earnings Stability	-0.17
Earnings Growth YoY	-7%
Earnings Growth QoQ	-9%
Earnings CAGR 5Y	47%

Sales CAGR 5Y	4%
FCF CAGR 5Y	3%
Equity CAGR 5Y	56%
Earnings CAGR 3Y	0%
Sales CAGR 3Y	0%
FCF CAGR 3Y	62%
Equity CAGR 3Y	35%
Market Cap	$3.58B
Revenue	$2.61B
Dividend Yield	3%
Payout Ratio	46%
Assets	$1.65B
Total Debt	$745.00M
Cash	$334.07M
Shares Outstanding	55.31M
EV	3.99B
Earnings Score	6%
Moat Score	95%
Safety Score	61%
Final Score	54%
Working Capital	670.38M
Current Ratio	2.7
Gross Profit	$1.16B
Shares Growth 3y	-0%
Equity Growth QoQ	12%
Equity Growth YoY	8%

Assets & ROA

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Stockholders Equity & ROE

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Kontoor Brands Inc is a lifestyle apparel company. It is engaged in designing, manufacturing, sourcing, marketing, and distribution of its portfolio of brands, including Wrangler and Lee. It manufactures its products in owned and leased facilities and distributes the products through both brick and mortar and e-commerce retailers. It generates the majority of its revenue from the Wrangler segment. The company's geographical segments are the United States and International, of which most of its revenue comes from the United States.

SEC Filings

Direct access to Kontoor Brands, Inc. (KTB) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 28
- 10-Q Sep 28
- 10-Q Jun 29
- 10-Q Mar 30
2023
- 10-K Dec 30
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01
2022
- 10-K Dec 31
- 10-Q Oct 01
- 10-Q Jul 02
- 10-Q Apr 02
- 10-K Jan 01

Sector Comparison

How does Kontoor Brands, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Kontoor Brands, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 20%

Stability -17%

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Kontoor Brands, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Kontoor Brands, Inc..

Years

Calculation mode

= $2.7B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$349M	$336M	$323M	$310M	$298M	$287M	$275M	$265M	$254M	$244M	$235M	$2.3B
DCF		$305M	$267M	$233M	$204M	$178M	$155M	$136M	$119M	$104M	$91M	$906M
Value	$2.7B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	4%	10%	4%	3%	8%	9%	9%	9%	9%
ROA	-	14%	11%	8%	18%	23%	19%	21%	21%
ROE	-	15%	140%	80%	132%	98%	62%	61%	61%

Net Margins (9.43%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	-	1.21	4.24	2.93	12.42	2.46	2.13	2.13
Debt over Equity	-	0	13.2	11.2	5.4	3.23	2.18	1.86	1.86
Growth Stability	-	-	-	43%	100%	100%	100%	100%	43%

Neutral Debt/FCF ratio (2.13)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Bad Debt/Equity ratio (1.86)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (43%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	-2%	-8%	-18%	18%	6%	-1%	0%	4%
Earnings YoY growth	-	126%	-63%	-30%	188%	26%	-6%	6%	47%
Equity YoY growth	-	27%	-96%	22%	75%	69%	48%	8%	56%
FCF YoY growth	-	-	-744%	-70%	22%	-76%	405%	6%	3%