{"id":59,"date":"2005-08-06T12:48:27","date_gmt":"2005-08-06T19:48:27","guid":{"rendered":"https:\/\/stockherd.com\/moosepond\/?p=59"},"modified":"2005-08-06T12:48:27","modified_gmt":"2005-08-06T19:48:27","slug":"kohls-corporation","status":"publish","type":"post","link":"https:\/\/stockherd.com\/moosepond\/2005\/08\/06\/kohls-corporation\/","title":{"rendered":"Kohl&#8217;s Corporation"},"content":{"rendered":"<p><a href=\"http:\/\/www.kohlscorporation.com\/InvestorRelations\/Investor01.htm\"><img decoding=\"async\" alt=\"PFE Logo\" title=\"Kohl's Corporation\" src=\"https:\/\/stockherd.com\/moosepond\/files\/img\/kss_logo.gif\" border=\"0\" style=\"float: right; margin: 0px 0px 0px 0px;\" \/><\/a> Here is one of several stocks for consideration.  Kohl&#8217;s Corporation (KSS) keeps popping up on screens for quality growth companies.  Kohl&#8217;s operates 669 family-oriented specialty department stores in virtually all areas of the U.S. except the Pacific Northwest and Florida. It sells name-brand merchandise with emphasis on value pricing.  The fundamentals look good for Kohl&#8217;s with a projected average return over the next five years of 16.2%. Value Line rates Kohl&#8217;s financial strength &#8220;A&#8221; and earnings predictability 85 (out of 100).  Value Line also projects revenue growth at 17%.  Kohl&#8217;s has an RQR quality rating of 80.4.  See annotated <a href=\"https:\/\/stockherd.com\/moosepond\/files\/ssg\/kss_20050805.pdf\">stock selection guide<\/a>. <\/p>\n<p>Different analysts have different expectations for Kohl&#8217;s.  For example, the First Call analysists&#8217; consensus for the 5-year earnings growth rate is 19.2%.  In contrast, Morningstar only gives Kohl&#8217;s a mediocre rating.  MS rates Kohl&#8217;s with three star and puts it&#8217;s fair value at $51.00 (below its current price of $55.63.)  MS has assumed 12% revenue growth.  The attached SSG assumes 17% based on the Value Line estimate.  (Note: PAR on the SSG would drop to 11.2% with 12% sales growth.)  More interesting are MS&#8217; bull and bear comments.<\/p>\n<p><strong>Bulls Say<\/strong><\/p>\n<ul>\n<li>Kohl&#8217;s has recovered after its 2003 missteps. Although revenue growth continues to be a little disappointing, margins and inventory levels recovered nicely.<\/li>\n<li>Kohl&#8217;s still has plenty of room to expand into new and existing markets, so it should be able to open stores at a brisk pace over the next few years.<\/li>\n<li>Earnings have grown faster than sales, thanks to widening margins. MS expects the company to continue to leverage its SG&#038;A spending as the store base expands, but increasing competition may make it tougher to expand gross margins.<\/li>\n<li>Kohl&#8217;s off-the-mall format distinguishes it from the rest of the department-store industry, which is dominated by mall-based stores that consumers have found less convenient in recent years.<\/li>\n<\/ul>\n<p><strong>Bears Say<\/strong><\/p>\n<ul>\n<li>Recent lackluster same-store sales results illustrate that Kohl&#8217;s is not immune to slowdowns in consumer spending.<\/li>\n<li>Some traditional department-store chains have copied elements of the firm&#8217;s strategy in an effort to regain lost share, so competition may continue to heat up.<\/li>\n<li>Retail powerhouse Wal-Mart is coming on strong in apparel retail. Wal-Mart&#8217;s operational efficiency trounces that of Kohl&#8217;s.<\/li>\n<li>The company stumbled in late 2003, cluttering stores with excessive inventory and creating a less-pleasant shopping environment. Management is correcting the problem, but this shows that smart executive teams can still falter.<\/li>\n<\/ul>\n<p><strong>Bottom line.<\/strong>  KSS is a quality growth stock.  Whether it falls into the buy zone depends on the assumed revenue growth.  Based on the Value Line estimates for growth and net profit margins, KSS is a buy up to $62.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here is one of several stocks for consideration. Kohl&#8217;s Corporation (KSS) keeps popping up on screens for quality growth companies. Kohl&#8217;s operates 669 family-oriented specialty department stores in virtually all areas of the U.S. except the Pacific Northwest and Florida. It sells name-brand merchandise with emphasis on value pricing. The fundamentals look good for Kohl&#8217;s [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_jetpack_memberships_contains_paid_content":false,"_links_to":"","_links_to_target":""},"categories":[6],"tags":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts\/59"}],"collection":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/comments?post=59"}],"version-history":[{"count":0,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts\/59\/revisions"}],"wp:attachment":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/media?parent=59"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/categories?post=59"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/tags?post=59"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}