KOHLS Corp (NYSE: KSS)

Sector: Consumer Cyclical Industry: Department Stores CIK: 0000885639
Market Cap 4.95 Bn
P/B 0.80
P/E 4.67
P/S 0.26
ROIC (Qtr) -20.00
Div Yield % 8.10
Rev 1y % (Qtr) -3.64
Total Debt (Qtr) 6.80 Bn
Debt/Equity (Qtr) 1.73
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About

Kohl's Corporation, known by its stock symbol KSS, is a prominent player in the retail industry, operating a chain of department stores and an e-commerce platform. Headquartered in Wisconsin, Kohl's has been in operation since 1988, offering a broad array of moderately-priced private and national brand apparel, footwear, accessories, beauty, and home products. Kohl's generates revenue through the sale of its products, primarily sourced from domestic and international suppliers. The company's merchandise mix comprises both national brands and private...

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Investment thesis

Bull case

  • Operating cash flow of 1.23B provides strong 39.55x coverage of stock compensation 31M, indicating sustainable incentive practices.
  • Robust free cash flow of 819M exceeds capital expenditure of 407M by 2.01x, indicating strong organic growth funding capability.
  • Tangible assets of 14.14B provide robust 11.41x coverage of other current liabilities 1.24B, indicating strong asset backing.
  • Robust tangible asset base of 14.14B provides 14.13x coverage of working capital 1B, indicating strong operational backing.
  • Operating cash flow of 1.23B fully covers other non-current liabilities 330M by 3.72x, showing strong long-term stability.

Bear case

  • Operating cash flow of 1.23B barely covers its investment activities of (373M), with a coverage ratio of -3.29, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 144M against inventory of 3.90B, the 0.04 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 1.23B provides thin coverage of dividend payments of (98M) with a -12.51 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 538M show weak coverage of depreciation charges of 796M, with a 0.68 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 819M represents just -1.07x of debt issuance (769M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Department Stores
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 DDS Dillard'S, Inc. 48.00 Bn 437.54 7.74 0.55 Bn
2 M Macy's, Inc. 7.70 Bn 5.42 0.28 5.24 Bn
3 KSS KOHLS Corp 4.95 Bn 4.67 0.26 6.80 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.58 4.23
EV to Cash from Ops. EV/CFO 4.44 30.77
EV to Debt EV to Debt 1.20 30.81
EV to EBIT EV/EBIT 4.09 76.95
EV to EBITDA EV/EBITDA 2.91 35.56
EV to Free Cash Flow [EV/FCF] EV/FCF 8.48 36.97
EV to Market Cap EV to Market Cap 1.65 1.47
EV to Revenue EV/Rev 0.43 2.92
Price to Book Value [P/B] P/B 0.80 7.91
Price to Earnings [P/E] P/E 4.67 149.21
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.98 1.94
Dividend Payout Ratio % Div Payout % (Qtr) 50.00 54.10
Dividend per Basic Share Div per Share (Qtr) 0.88 9.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 11.97 29.26
Interest Coverage Int. cover (Qtr) 1.78 -30.04
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 9.35 18.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -17.24 13.96
Dividend Growth (1y) % Div 1y % (Qtr) -41.67 -4.22
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -17.22 49.20
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -7.49 9.48
EBIT Growth (1y) % EBIT 1y % (Qtr) -11.22 49.91
EBT Growth (1y) % EBT 1y % (Qtr) -15.77 99.18
EPS Growth (1y) % EPS 1y % (Qtr) -21.88 106.37
FCF Growth (1y) % FCF 1y % (Qtr) 108.93 127.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -5.32 -3.79
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.11 1.33
Cash Payout Ratio Cash Payout (Qtr) 0.06 0.19
Cash Ratio Cash Ratio (Qtr) 0.04 0.30
Current Ratio Curr Ratio (Qtr) 1.30 1.58
Debt to Equity Ratio Debt/Equity (Qtr) 1.73 1.07
Interest Cover Ratio Int Coverage (Qtr) 1.78 -30.04
Times Interest Earned Times Interest Earned (Qtr) 1.78 -30.04
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.50 9.63
EBIT Margin % EBIT Margin % (Qtr) 3.42 5.75
EBT Margin % EBT Margin % (Qtr) 1.49 5.00
Gross Margin % Gross Margin % (Qtr) 40.50 40.37
Net Profit Margin % Net Margin % (Qtr) 1.20 4.03