Kering SA
🇫🇷 KER.PA · Paris · FR0000121485
Consumer
Scores
Key Metrics
Powered by EODHDP/E (TTM)
36.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
TTM period through: 2025-12-31
Forward P/E (estimated): 36.6
Based on analyst estimates
Yield (TTM)
1.14%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Net Debt/EBITDA (TTM)
5.2x
Latest quarter: 4.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 4.3x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (TTM)
1022.2%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Cash Flow Payout (TTM): 29.3%
FCF Coverage (TTM): 2.29x
ROE
0.2%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
12.6x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Kering SA is a global luxury goods group managing renowned fashion brands like Gucci and Saint Laurent. The company is experiencing severe structural deterioration, characterized by a massive earnings contraction, escalating debt levels, and significant consecutive dividend cuts. Operating in a discretionary, cyclical sector with a current yield of just 1.14%, the stock is highly unsuitable for conservative dividend strategies and presents excessive fundamental risks. Better opportunities exist in more stable, essential service businesses.
Sector Context
Kering SA is a global luxury conglomerate that owns, designs, and distributes high-end fashion, leather goods, and jewelry through brands like Gucci, Saint Laurent, and Bottega Veneta. The luxury fashion sector relies entirely on discretionary consumer spending and brand perception, making it highly cyclical and unpredictable. This lacks the essential, recession-resistant characteristics required for a conservative, income-focused dividend strategy.
📊 Strategy Analysis
- • Despite significant accounting losses, free cash flow currently covers the heavily reduced dividend with a cash flow payout ratio of 29.3%
⚠ What to Watch
- • Operates in the discretionary luxury fashion sector, which is explicitly excluded from the essential services strategy due to unpredictable, cyclical consumer demand.
- • Demonstrates severe structural deterioration, evidenced by a 5-year EPS CAGR of -52.9% and an announced impending 58.5% dividend cut for 2026.
- • Financial risk is highly elevated with Net Debt/EBITDA expanding to 5.25x (up from 0.8x in 2019), substantially exceeding the conservative 3.0x maximum threshold.
- • Current dividend yield of 1.14% falls far below the 3.0% minimum requirement for income generation.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.