Kering S.A. (KER.PA) stock analysis

In our weekly check, Kering S.A. is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 9 pass, warnings: 7, red flags: 8.

About Kering S.A.

Kering S.A. is a Consumer Cyclical company (Luxury Goods) based in France, listed on PAR as KER.PA.

What our checks show for KER.PA

Red flags

• Net debt is 5.2x a year of EBITDA (debt/equity 1.24). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 17.5 points over 5 years, to 0.5%: the company keeps less of each sale as profit.
• The gross margin fell by 20.3 points, to 53.7%: costs are rising faster than prices.
• Revenue fell 10.3% a year over the last 3 years.
• The net margin is only 0.5%: little room if costs rise.
• The dividend takes 913% of profit: little cushion if profit falls.
• The stock has fallen as much as 80% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 4.8%.

Warning signs

• Operating profit covers interest only 2.9 times: a weak year could make the payments hard.
• Analysts expect only about 3.5% a year of growth in revenue.
• Earnings per share fell 72.8% a year over the last 3 years.
• Net profit fell 72.9% a year over the last 3 years.
• The price swings a lot: 44.8% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.
• Thinly traded (about 328 thousand shares a day): buying and selling can move the price.

Strengths

• Operating cash flow is 34.89x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 175% a year over the next years.
• Analysts expect the net margin to improve by 8.9 points from today's 0.5%.
• Free cash flow is 11.5% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $24.45 billion.
• Pay in shares is only 0% of free cash flow.

Similar companies

TPR · UHR.SW · PNDORA.CO · CFR.SW · SIG · RMS.PA

Questions

What grade does Kering S.A. (KER.PA) have?

In our weekly check, Kering S.A. is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 9 pass, warnings: 7, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of KER.PA stock?

This week's biggest flags for Kering S.A.: High debt, Margins falling, Gross margin falling. In total 15 of 24 checks show a warning or a red flag.

What does Kering S.A. do?

Kering S.A. is a Consumer Cyclical company (Luxury Goods) based in France, listed on PAR as KER.PA.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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