Kohl's Corporation operates department stores in the United States, offering private label, exclusive, and national brand apparel, footwear, accessories, beauty, and home products to children, men, and women customers. The company was founded in 1962 and is based in Menomonee Falls, Wisconsin.
KSS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for KOHLS Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that KOHLS Corp ranked in the 20th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for KSS, they are:
Its compound free cash flow growth rate, as measured over the past 5.46 years, is -0.12% -- higher than only 13.22% of stocks in our DCF forecasting set.
30% of the company's capital comes from equity, which is greater than merely 13.4% of stocks in our cash flow based forecasting set.
As a business, KOHLS Corp experienced a tax rate of about 113% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 96.64% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GPK, BBW, DNKN, FLWS, and PZZA can be thought of as valuation peers to KSS, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Source: Barron's The coronavirus has practically brought the U.S. economy to a standstill, hurting retailers, in particular. Several traditional retailers were struggling prior to the pandemic, including Kohl's (KSS). The company reported quarterly revenue of $3.41 billion, down 23% Y/Y. Results were negatively impacted by temporary store closings. Stores operated...
Shock Exchange on Seeking Alpha | September 14, 2020
Image source The stocks of department stores have been no place to hide during 2020. Department stores have been suffering for years as the outdated business model they operate has been shown to be inferior in a digital-first retailing environment. The pandemic, of course, has only accelerated this. One such...
The ratings on six P&I classes were affirmed and the rating on one P&I class was confirmed due to the pool's share of defeasance and the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), being within acceptable ranges. The rating on two P&I classes, Cl. E and Cl. F, were downgraded due to anticipated losses from specially serviced and troubled loans.
Even before COVID-19, retail was in a tough spot. Turning up the heat, the virus and the ensuing store closures have had a devastating impact on the space. High unemployment rates and a shift in consumer shopping behavior have done little to help the situation. But just how destructive has the crisis been? According to a July report from S&P Global Market Intelligence, so far, 2020 has seen 40 retailers file for bankruptcy. This figure has already exceeded the number of retail bankruptcies in both 2019 and 2018. Based on tracking data from S&P Global, this year’s number could top the 48 filings in 2010, which was driven by the lethal impacts of the Great Recession. With a second wave of COVID-19 infections only intensifying pressures, more filings could be on the way. Bearing this in m...