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Kering SA KER

Morningstar Rating
€335.05 −0.80 (0.24%)
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Company Report

Gucci Recovery Is Key to Kering's Investment Thesis

Kering Group’s portfolio of luxury brands provides it with a narrow moat and a good platform for future growth. The flagship Gucci brand accounts for over 50% of revenue and almost 70% of the company's earnings, but brands like Saint Laurent (over EUR 3 billion revenue), Bottega Veneta, and Balenciaga are also set to support growth in future.

Price vs Fair Value

KER is trading at a 154% premium.
Price
€335.05
Fair Value
€357.00
Uncertainty
Medium
1-Star Price
€918.70
5-Star Price
€382.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Gucci is one of the top three global luxury brands by customer awareness, with a global footprint of over 500 stores and strong margins.

Bears

Gucci could struggle to recover brand appeal after the current downturn, and as its new creative director's collections could not be successful.

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News

Trading Information

Previous Close Price
€335.85
Day Range
€333.40341.30
52-Week Range
€299.20546.80
Bid/Ask
€333.00 / €339.00
Market Cap
€41.07 Bil
Volume/Avg
100,590 / 238,323

Key Statistics

Price/Earnings (Normalized)
13.53
Price/Sales
2.10
Dividend Yield (Trailing)
4.18%
Dividend Yield (Forward)
4.18%
Total Yield
4.20%

Company Profile

Kering is the world’s second-largest luxury goods conglomerate after LVMH. Its flagship brand is Gucci, which accounts for over 50% of revenue and almost 70% of operating profits. Its other leading brands include Bottega Veneta and Saint Laurent. Other smaller luxury brands (in ready-to-wear, leather goods, and jewellery) generate 19% of sales. Alexander McQueen, Balenciaga, and Boucheron are part of Kering’s portfolio.
Sector
Consumer Cyclical
Industry
Luxury Goods
Stock Style Box
Large Value
Total Number of Employees
49,000

Competitors

Valuation

Metric
KER
01913
CFR
Price/Earnings (Normalized)
13.5324.7816.29
Price/Book Value
2.704.424.09
Price/Sales
2.103.684.09
Price/Cash Flow
9.1613.6015.75
Price/Earnings
KER
01913
CFR

Financial Strength

Metric
KER
01913
CFR
Quick Ratio
0.680.841.80
Current Ratio
1.381.492.65
Interest Coverage
12.4413.1010.78
Quick Ratio
KER
01913
CFR

Profitability

Metric
KER
01913
CFR
Return on Assets (Normalized)
8.33%9.47%8.89%
Return on Equity (Normalized)
20.97%19.42%18.94%
Return on Invested Capital (Normalized)
11.34%11.74%10.39%
Return on Assets
KER
01913
CFR
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