Kohl's Corporation Common Stock (KSS)

FairStock Score: 64/100 — STEADY

Key Financials

Strengths

• Generates $785 million in annual free cash flow (46.3% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Attractive 3.3% dividend yield providing steady income returns
• Established organization with 84,000 employees providing operational scale

Concerns

• Revenue declining at 4.2% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Kohl's Corporation Common Stock is a micro-cap consumer cyclical company valued at $1.7 billion. The business generates $15.5 billion in annual revenue with a 0.8% net margin and $785 million in free cash flow. From a quality standpoint, Kohl's shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.8 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 6.3x, with offers a 66% margin of safety vs Graham Number of $44. Growth dynamics show revenue growing at -4.2% and profit growth of 160.4%. The 3.3% dividend yield adds an income component for patient holders. Our composite FairStock Score of 64/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $785 million in annual free cash flow (46.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer