KSS Fundamental Research Investment Analysis, Kohl's Corp.

Kohl's Corporation (KSS)

The Razor's Edge

2-Year Price History

Recent Price
(4/28 6:40PM) -2.3%
$43.82
52-Week Price
$24.28 - $56.00
Market Capitalization
$13.7 Billion
Dividend Yield
0.00%
Most Recent Dividend
$0.00

About Kohl's Corp.

Kohl's Corporation is considered to operate in the Services sector. They specifically operate in the Department Stores business segment contained within the Retail industry.

The Company operates family-oriented department stores that sell moderately-priced apparel, footwear and accessories for women, men and children; soft home products such as sheets and pillows; and housewares.

Ockham's Rating

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KSS Revenue

As we have often noted, in our valuation methodology, "Cash is King." Well, it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, KSS the high and low end of the Price to Sales per share ratios are 1.83x and 1.06x respectively.

Notice that KSS's current Price to Sales per share ratio is 0.77x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $45.43, KSS is 47% below where we would expect to see it. This will beneficially factor into our final analysis of KSS as it is not often that this stock sinks to these levels.

KSS Cash Earnings

As the old saying goes, "Cash is King!" However, we prefer to capture a few other items within our analysis to identify "cash earnings". Nevertheless, an analysis of Cash Earnings is absolutely pivotal to assessing a company's value, and currently KSS is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for KSS, the current level of Cash Earnings compared to its historical levels helps identify where KSS is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 20.57 and a historical low Cash Earnings per share ratio of 11.85, an investor can relate where value becomes optimal.

So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for KSS? From the Ockham perspective, we are looking specifically at KSS to see if the market is recognizing the huge disparity between KSS's past stock price to Cash Earnings ratio to today's levels. At a difference of 41% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at KSS. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.

KSS Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. As far as our investing methodology goes, it is not necessary to pay a dividend in order to get a favorable rating, so as for right now KSS gets a neutral rating for the dividend portion of the model. As you can see, we are not receiving historical dividend information from our data provider on KSS at this time.

Peer Comparison

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Kohl's Corp. Industry Grouping

(4/27/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding KSS) 8.03 4.67 » 22.17 0.68 0.33 » 1.53 6.05% 60.87%
*10 year range does not include current year values
Best Buy Company, Inc. BBY $15.8 Billion $38.27 8.57 3.59 » 32.92 0.33 0.15 » 1.21 13.83% 23.60%
The Kroger Company KR $14.0 Billion $21.46 5.19 3.58 » 13.13 0.18 0.16 » 0.47 7.16% 18.49%
Kohl's Corp. KSS $13.7 Billion $44.86 9.69 5.19 » 47.47 0.77 0.45 » 3.90 9.77% 15.90%
The TJX Companies, Inc. TJX $11.1 Billion $27.00 8.71 5.49 » 15.99 0.57 0.39 » 1.05 7.35% 37.28%
The Gap, Inc. GPS $10.4 Billion $14.89 6.91 4.24 » 31.28 0.72 0.45 » 3.36 -1.73% 20.06%
AutoZone, Inc. AZO $9.0 Billion $164.16 10.74 6.46 » 17.55 1.61 0.48 » 1.57 3.63% 204.92%
>
Ockham Ratings & Analysis Report
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The latest TV Media Discussion

11:36:37 AM KSS $43.41 Kohl's Corp.
5 days ago (04/23)
“…Housing market, retailers want you to shop in their stores, but not to use their credit card to that's tricky, because cards are an important part of sales strategy for stores like KOHL'S, jp penny and macy's who send customers use coupon and use co-branded cards as a tool to incentivize consumers. Making more expensive to spend …”
2:56:16 PM KSS $42.95 Kohl's Corp.
8 days ago (04/20)
“…The retailers have moved too far. I would sell macy's, penny's, KOHL'S,er a er aair bossal. That's not a -- >> burger king is a very different stock. >> people feel that the bargain is to go to red lobster or to …”
5:08:24 PM KSS $45.12 Kohl's Corp.
Fast Money
19 days ago (04/09)
“…Instead of up three. The street expected them to blow away expectations just like they did last month. They didn't do that. The staples, groceries, one thing that stood out at KOHL'S, walmart and jc penneys, the fact that home goods are selling. Maybe nothing, maybe a little bright spot? >> man cave and you want it nice and comfortable and plush. …”
4:32:38 PM KSS $45.40 Kohl's Corp.
19 days ago (04/09)
“…Groceryies and drugs were the top movers. Walmart highlighted home furnishings for a bright spot, a trend echoed by KOHL'S and the buckle posted its 20th straight month of growth. Most winners were in the affordable fashion category. March's stock rally didn't really make too much of a …”
5:11:28 PM KSS $45.12 Kohl's Corp.
Fast Money
20 days ago (04/08)
“…>> two ways to play it. Really aggressive the hot topics >> last question. What's your top name in the >> top names are three names. Big lots, KOHL'S, and walmart. We think big lots is going to benefit from the rebound in the home category and we also think KOHL'S and walmart are very well positioned. >> and at these levels they're >> absolutely. >> great job, charles, thank >> next trade here, outside of gm the automakers are starting to gain some traction. …”
5:10:22 PM KSS $45.12 Kohl's Corp.
Fast Money
20 days ago (04/08)
“…We saw after hours hot top ix blew away numbers. Teen spending. Is that another aspect? >> yeah, I think you start to see the apparel category rebound. We'll hear from jcpenney's and KOHL'S and macy's tomorrow those are the ones I specifically cover and I think the trend is they're starting to stabilize. They're not getting materially better but less bad is good right now and I think that's important for these -- for >> the one thing seems to be …”
5:09:19 PM KSS $45.12 Kohl's Corp.
Fast Money
20 days ago (04/08)
“…These stocks. The consumer seems to be one of the first things we're starting to see in retail is some of the categories we first saw softness, the home category start to rebound. We saw bed bath today. We heard from jcpenney, KOHL'S, and walmart earlier in february, and we think we'll hear tomorrow that the home category is starting to stabilize. That was the first category to go in, we think it's the first to come out. So we are starting to see some …”
3:25:11 PM KSS $45.18 Kohl's Corp.
26 days ago (04/02)
“…72-year run for the show. Now you can watch more fox business instead of "guiding light." KOHL'S is up. Their sales rating were raised. A new amendment is passed as both houses of congress go head-to-head in the battle …”
4:54:43 PM KSS $43.14 Kohl's Corp.
3/27/2009 4:54 PM
“…The retail win neshts department store space. They're led by jcpenney. Also those winner, KOHL'S and nordstrom. So basically, if you can eat it, if you can drink it, if you can bathe with it, maria, the lesson learned here, is you need it and so do investors. At least in their portfolios for back to you. …”
3:44:13 PM KSS $39.59 Kohl's Corp.
3/17/2009 3:44 PM
“…Stock to 24. That's up from 20 based on the home improvement retailer's market share gain and strong capital discipline he says. Stock up 6%. Also upgrading retailer KOHL'S to buy from a hold raising the target to 44 dollars up from 46. Downgrading goldman sachs today …”
8:02:03 AM KSS $36.95 Kohl's Corp.
3/17/2009 8:02 AM
“…Rating including home depot. Home depot has been trading slightly lower, very thin volume for home depot. Some other names to keep an eye on, their rival, lowe's, KOHL'S, best buy and target raise today a buy. Also keep an eye on alcoa shares dropping by 12% after they came out saying they see a first quarter loss. Slashing that quarterly …”
3:01:31 PM KSS $36.95 Kohl's Corp.
3/10/2009 3:01 PM
“…What is doing well. Macy's up 10%. Dillard's, dillard's -- yeah. It used to shop there in ohio. Goodness, you don't see this happening often. 26% gain. Gap, target, KOHL'S looking this is interesting. Home builder index looking decent here. We have double-digit percentage gains for the …”
11:26:09 AM KSS $36.02 Kohl's Corp.
3/10/2009 11:26 AM
“…Doing bargain hunting, maybe picking up citigroup at 1.30. Take a look at other movers here on wall street that are making some actions, obviously, office depot talking about the quarterly outlook. Looking good there. KOHL'S getting raised. These are some of the names we're watching and continuing to watch dow chemical and rohm & haas, the crowds were so big yesterday when they were halted on the news pending and just so many names to the upside. …”
6:50:06 AM KSS $33.58 Kohl's Corp.
Squawk Box
3/10/2009 6:50 AM
“…Although the movie business -- >> have you seen the box office and the one over the weekend, too. "watchmen." KOHL'S, upgraded from buy to neutral. And dr. Pepper/snapple upgraded to buy from neutral at goldman their target price is at 18 and …”
12:04:00 PM KSS $35.15 Kohl's Corp.
3/5/2009 12:04 PM
“…Additional details on additional there was a little good news on the retails. Walmart had great numbers, up family dollar increased their guidance. KOHL'S had pretty good numbers. The department stores like nordstrom did not and they are to the downside, including the teen retailers did fairly …”
11:05:33 AM KSS $35.64 Kohl's Corp.
3/5/2009 11:05 AM
“…Leave it to the teenagers. It doesn't click with them what's happening in the overall economy. >> you have walmart up, family dollar increased their guidance. KOHL'S did pretty well. Nordstrom's down, the department stores, they're all terrible. >> china, china was a big reason we saw this market increasing looks like that stimulus everyone ha been hoping for, …”
11:04:56 AM KSS $35.71 Kohl's Corp.
3/5/2009 11:04 AM
“…>> it wasn't all bad news. It wasn't just walmart by the way that had comments. Family dollar and, yeah, okay, >> so people are shopping at big time discounters. >> KOHL'S had good news, target wasn't that bad overall. If you look at the team resalers, they went out, the teens went out and their numbers were better. >> I don't want to gild the …”
10:27:48 AM KSS $36.13 Kohl's Corp.
3/5/2009 10:27 AM
“…>> you know, that's an excellent nobody's asked that question. A great question and the question really is, whose positioning themselves to go the own, j.C. Penney and KOHL'S, because they're everyday value, proprietary brands. Differentiating themselves. Wal-mart, great results short-term, going to have challenges to keep that momentum going, but doing a lot to do …”
10:07:22 AM KSS $36.61 Kohl's Corp.
3/5/2009 10:07 AM
“…But before I go, let me mention the retail stocks here because we had a little bit of good news. Walmart had good numbers. They raised their dividend. Family dollar guided higher. KOHL'S has positive comments. Department stores like nordstrom were below expectations. No additional stimulus plans from china for the moment. Tradertalk.Cnbc.Com. …”
9:32:11 AM KSS $36.35 Kohl's Corp.
3/5/2009 9:32 AM
“…Raised the dividend. There's a positive point here family dollar also came out with positive guidance above KOHL'S, a number of positive comments on the retail front, a bit on the surprising side. Results e seeded our KOHL'S is opening up 1%. Also better with its teen retailers, again a bit of a surprise, aeropostale, american eagle, hot topic, wet seal, I don't want to make too much of …”
9:24:52 AM KSS $35.81 Kohl's Corp.
3/5/2009 9:24 AM
“…Trendy items. >> I think margaret's right, the home category was a bright spot not only at walmart but a couple of the department stores, macy's jcpenney and KOHL'S pointing ow home as a category. To go back to walmart, the key there is their comment about traffic being probably close to three to four points of that five comp. That's probably the best traffic …”
9:09:39 AM KSS $35.78 Kohl's Corp.
3/5/2009 9:09 AM
“…5.1%, better than 2.2%. We had good comments from some of the companies. Family dollar discounter, up 8%. They raised their overall KOHL'S said february sales exceeded our expectations. KOHL'S said that, trading up a also better than expected were that's a surprise. Aeropostale, a little worse than …”
6:51:37 AM KSS $35.81 Kohl's Corp.
Squawk Box
3/5/2009 6:51 AM
“…>> who is going to look the best when all is said and done? >> it's still going to be about the discounters. Wal-mart will still be the the most traffic. >> what about KOHL'S? I see you think they're going to >> they will look better than the other department stores. Their rate of decline won't be as severe, and their margins are holding in well. We think we'll see that do well. …”
9:38:54 AM KSS $35.11 Kohl's Corp.
3/3/2009 9:38 AM
“…Autozone reported o'reilly. We think the new retail environment is a survival of the we like stocks like KOHL'S. They can take shares out here in the west. It's a share taking economy. A value-driven economy. We like some of the value …”
10:24:42 AM KSS $34.75 Kohl's Corp.
2/27/2009 10:24 AM
“…As well, you can see that was number three as the loser as we opened here and now, you can see gm is still down, also watching other movers such as gap, KOHL'S, chico's, gap with the same-store sales number and price targets getting cut over at jefferson and citi and friedman and you can see gas now down 6% and general motors down 8%, a little off the lows of the …”
9:32:12 AM KSS $33.02 Kohl's Corp.
2/27/2009 9:32 AM
“…Beyond the financials, beyond the economic and the gdp situation, then you have to maybe look at some of the retailers. Two retail results out after the earnings calls, KOHL'S and gap trading lower. KOHL'S with a weak forecast. They expect '09 to be just as the gap not giving guidance. But the absence of guidance is, well, almost suicide in this both of those stocks are getting hit here today. …”
9:31:51 AM KSS $33.07 Kohl's Corp.
2/27/2009 9:31 AM
“…As morningstar analysts are saying or the precursor to filing for bankruptcy. General motors down 10%. Other movers worth watching here, some of the retailers, gap, KOHL'S, chico's, by the way, here from gap and KOHL'S, getting the numbers out. Sips the sales numbers and chico's an upgrade and verizon an upgrade and to the down side, the only winner in chico's, down …”
5:00:13 PM KSS $32.97 Kohl's Corp.
Fast Money
2/26/2009 5:00 PM
“…Share, but the stock is up 2% after-hours. Earnings of 34 cents a share, 2 cents above forecasts and same-store sales fell 14% in the fourth quarter and KOHL'S shares are down $2 after the retailer reported earnings drop of $1.Per share. That's cnbc.Com news now first in business news worldwide and …”
4:32:15 PM KSS $32.84 Kohl's Corp.
2/26/2009 4:32 PM
“…>> kohl, beating the street in their last quarterly revenue. Quarter and full year trailing analyst estimates. Shares dropping for KOHLS. Lastly, citadel the radio broadcasting company will be suspended from the new york stock exchange. …”
6:05:00 PM KSS $36.13 Kohl's Corp.
Mad Money
2/13/2009 6:05 PM
“…Aggregate numbers this week were better than january, the truth is, and we all know it, the stores are empty. No one's buying much of anything. Goldman, amazingly, this week took KOHL'S to a sell! Heck, I mean, KOHL'S is where women get their fat pants. That never goes out of style! Target's not that much better. Did you know next week the bond …”
2:53:30 PM KSS $35.04 Kohl's Corp.
2/12/2009 2:53 PM
“…Minutes ago. Because it caused the market to the market's still going down. But it was an interesting catalyst. >> so now, speaking of goldman, goldman has downgraded KOHL'S -- >> to a sell. >> most people go to KOHL'S to get fat pants. That's what -- >> what? >> everyone knows that. You go to KOHL'S to buy your fat >> what are fat pants? Well, that's a -- never mind. >> for a day when you're feeling >> amen. KOHL'S doesn't advertise it like that happens to be my spin. But they did go to a sell. They said the valuation was very stretched. And I think this made a lot of sense. Stretched meaning fat pants. >> that was almost slanderous. >> KOHL'S is where you get them. Okay. >> good thing i've got waterproof mascara on, jim. >> they did a secondary and the paying down $750 million in debt. I've only seen the ceo of …”
12:45:41 PM KSS $35.85 Kohl's Corp.
2/12/2009 12:45 PM
“…Great, but the that d.A. Thatah-dahhat -- data shows coming out they don't do >> people say move into retail. Goldman sachs, you're mentioning fine firms today. They put KOHL'S as a sell. Points out KOHL'S, jcpenney, even nordstrom are way, way ahead of themselves. I think there's ramifications to trying to get early. You could end up being in masco …”
11:29:10 AM KSS $35.87 Kohl's Corp.
2/12/2009 11:29 AM
“…That would have been a great here it is. It's really, as you would agree an unusual looking laptops, comes in a bunch of KOHL'S, beautiful, high res screen, a good roomie keyboard for something this little. Unfortunately, a weak processor which they need today put in so …”
9:42:31 AM KSS $35.98 Kohl's Corp.
2/12/2009 9:42 AM
“…Connell: welcome back. Take a look at the stocks in the news today. Shares of KOHL'S are trading lower, they were cut to conviction sell by neutral from goldman sachs and the results not pretty. What about shares of marriott. Trading lower as well. …”
9:32:35 AM KSS $38.20 Kohl's Corp.
2/5/2009 9:32 AM
“…A few actually raised their guidance or said it would be at the high end of expectations. Gap, KOHL'S, macy's, aeropostale, I have a list of those who did it. Tjx and ross stores, their margins are even improving. Those are the big discounters. …”
9:07:11 AM KSS $38.20 Kohl's Corp.
2/5/2009 9:07 AM
“…American eagle, pacific sunwear, and a few raised their guidance or said it would come in higher than previously guided. Arrow postal says that, macy's says that, KOHL'S and gap. Be interesting what they say about 2009 because they didn't give us that comment there. Did you see visa and mastercard. They seemed to be doing better …”
8:41:12 AM KSS $38.20 Kohl's Corp.
2/5/2009 8:41 AM
“…It is really really tough to get any kind of a trend here. There's one that's kind of emerging is there's been a number of retailers that have reported drops that aren't as big as expected. KOHL'S would fit in that category for example. 13.4% on the down side but not down quite as much as some analysts thought so the stock looks like it will be up a little bit. …”
3:02:45 PM KSS $37.18 Kohl's Corp.
2/2/2009 3:02 PM
“…Bad because the competitors are going to be down even more. Now, thompson's -- we'll get the numbers for retail sales for a lot of these companies out on but saks, KOHL'S, nordstrom, penney's, we're talking double-digit declines, and these are the current analysts' most of them think that they're probably underestimating because they've been consistently underestimating the numbers. So bear in mind, when macy's says they're down 6% to 8% and …”
View All Kohl's Corp. News

Key Fundamentals

KSS - Kohl's Corporation Fundamentals
Price (4/28 6:40PM) $43.82
Volume (4/28 6:40PM) 5.7 Million
Last Close Price $44.86
10 Day Average Volume 4.7 Million
13 Week Price Range $32.50 - $46.50
52 Week Price Range $24.28 - $56.00
LTM Revenue $16.4 Billion
 
Shares Outstanding (01/2009) 304.7 Million
Market Capitalization $13.7 Billion
Shares Held By Institutions 279.3 Million
Institutional Holders 688
% Shares Held By Institutions 91.70%
Earnings Per Share (EPS) $2.89
P/E Ratio 15.50
Book Value Per Share $22.12
 
Gross Margin 37.00%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 1.02
Fiscal Year Ends January