Kontoor Brands Inc. Common Stock (KTB)

FairStock Score: 68/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look for understandable businesses, durable brands, and a price that leaves room for error. Kontoor sells familiar apparel under Wrangler, Lee, and Helly Hansen, which gives it shelf space and licensing income, but apparel remains competitive and consumer-cyclical. The cash generation is attractive: trailing-twelve-month free cash flow was $417.4M, an 11.2% FCF yield, and the dividend yield is 3.19% at the 2026-10-13 close of $68.47. Yet the balance sheet demands caution. Debt-to-equity is 2.06, FairStock's Altman Z-Score is 1.81, and its Piotroski F-Score is 5/9. FairStock's ROE of 49.52% is flattered by leverage, while its ROCE of 12.72% is more modest. Growth is mixed. In fiscal Q2 2026, the quarter ended 2026-07-04, revenue was $584.3M and net income was $64.8M, or $1.17 per diluted share. A year earlier, in fiscal Q2 2025, the quarter ended 2025-06-28, revenue was $492.6M but net income was $73.9M, or $1.32 per diluted share, so sales rose while profit fell. For FY2025, ended 2026-01-03, revenue was $3.2B, net income $227.5M, and diluted EPS $4.05; FY2024, ended 2024-12-28, had revenue $2.6B, net income $245.8M, and diluted EPS $4.36. FairStock's Lynch category is Stalwart, citing 27.3% annual profit growth over five years and 8.5% revenue growth, but the recent profit trend is negative. Valuation is not distressed: FairStock's P/E is 13.86, P/B is 6.05, and its Graham Number is $35.47, leaving a -93.04% margin of safety. I would want either better profit trends or a lower price before calling it a bargain.

In plain English: Kontoor Brands makes jeans and outdoor clothing, mainly under the Wrangler, Lee, and Helly Hansen names, and sells them through many retailers. The business is profitable and produces plenty of cash, but the latest quarter showed lower profit than a year earlier, and the company uses a lot of debt. At the closing price of $68.47 on 2026-10-13, the stock looks fair at best: it is not expensive compared with yearly profit, but it is expensive compared with the company's net assets and a conservative estimate of what its earnings and assets justify.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-04) · fiscal Q1 2026 10-Q (period ended 2026-04-04) · fiscal Q3 2025 10-Q (period ended 2025-09-27) · fiscal Q2 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2026-01-03) · FY2024 10-K (period ended 2024-12-28) · FY2023 10-K (period ended 2023-12-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer