Demystifying Kohl's: Insights From 7 Analyst Reviews

In the last three months, 7 analysts have published ratings on Kohl's KSS, offering a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have recently evaluated Kohl's and provided 12-month price targets. The average target is $17.14, accompanied by a high estimate of $25.00 and a low estimate of $12.00. This current average has decreased by 17.83% from the previous average price target of $20.86.

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Kohl's by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Kohl's. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Kohl's compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Kohl's's stock. This examination reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Kohl's's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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Delving into Kohl's's Background

Kohl's operates about 1,178 department stores in 49 states that sell moderately priced private-label and national brand clothing, shoes, accessories, cosmetics, and home furnishings. Most of these stores are in strip centers. Kohl's also operates a large digital sales business. Women's apparel is Kohl's largest category, having generated 26% of its 2023 sales. The retailer, headquartered in Menomonee Falls, Wisconsin, opened its first department store in 1962.

Kohl's: A Financial Overview

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Decline in Revenue: Over the 3 months period, Kohl's faced challenges, resulting in a decline of approximately -8.49% in revenue growth as of 31 October, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Kohl's's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 0.59%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 0.58%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Kohl's's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.15%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a high debt-to-equity ratio of 2.05, Kohl's faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.