One-glance verdict
Undervalued
$33.93 our estimate vs market $26.67
Wall Street consensus: $29.07 (-14.3% lower than our fair-value estimate)
21% below our estimate, below the bear case
Fundamentals snapshot
Kering SA
PPRUY · PNK · Consumer Cyclical · Luxury Goods
Current price
$26.67
52-week range
$26.22 - $40.70
Market cap
$32.70B
Balance sheet
Stretched
2.62x Stretched
Net debt $10.83B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Free cash flow was positive in 4/10 years.
- Reward Dividend yield is 1.3% with 15-year payout history.
- Risk Net debt grew 101.8% over 3 years.
- Risk Operating margin compressed from 27.5% to 12.8% over 3 years.
What this company does
Kering SA
Kering is a global luxury group that owns famous high-end brands like Gucci, Saint Laurent, and Balenciaga. The company makes money by selling fashion, leather goods like handbags, and jewelry to wealthy customers around the world. Because its success is tied to the strength of these few iconic brands, its financial performance heavily depends on their popularity and ability to command high prices, which can be affected by changing fashion trends and the overall economy.
How the company got here
Kering started in 1962 as a timber trading business in France, founded by François Pinault. It grew by buying other companies and eventually shifted into the retail business in the 1990s, changing its name to Pinault-Printemps-Redoute (PPR). The major turning point came in 1999 when it bought a large stake in the Gucci Group, marking its entry into the luxury goods world. In 2013, the company renamed itself Kering to reflect its new focus on managing a portfolio of luxury brands, a process it completed by becoming a pure luxury player in 2018.
What it actually does
Kering is a global company that owns and develops a collection of famous luxury houses in fashion, leather goods, jewelry, and eyewear. Think of it as a parent company that helps its well-known brands, like Gucci and Saint Laurent, design, make, and sell high-end products worldwide. These products include everything from handbags and ready-to-wear clothing to watches and necklaces. Kering supports its brands with group-wide resources for things like sourcing materials, logistics (the process of getting products from the factory to the store), and real estate.
Fashion & Leather Goods
This is Kering's largest and most important business area, featuring its most famous brands. It includes iconic names like Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, and Brioni. These 'Houses' sell high-end clothing, handbags, shoes, and other leather accessories to customers who value craftsmanship and brand heritage. Gucci is the biggest brand in this segment and contributes roughly half of Kering's total revenue (the money brought in from sales), making its performance crucial for the entire company.
Kering Jewelry
This segment is focused on high-end jewelry and watches from renowned brands like Boucheron, Pomellato, DoDo, and Qeelin. These brands create and sell fine jewelry, from rings and necklaces to exclusive high-jewelry pieces, to a global clientele. While smaller than the fashion and leather goods division, this part of the business helps Kering diversify beyond fashion trends. It represents a growing slice of the company's focus on 'hard luxury' items that have enduring value.
Kering Eyewear
Started in 2014, this division was a strategic move to bring the design, production, and distribution of eyewear in-house rather than licensing it to other companies. Kering Eyewear creates sunglasses and prescription frames for all of Kering's own brands and also for other outside luxury labels. This gives the company more control over the quality and profitability of its eyewear products, capturing more of the value chain (the series of steps that add value to a product).
What management is betting on now
Management's current strategy, called "ReconKering", is focused on reigniting the desirability of its brands, especially Gucci, which has seen a drop in sales. They are concentrating on creativity, product excellence, and strengthening the brand's unique identity to attract luxury shoppers. The company is also investing in building its internal capabilities in areas like technology and client intelligence to better understand and serve its customers. A key priority is to improve profitability by being more disciplined in its operations and carefully managing where its products are sold to maintain exclusivity.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $33.93 vs current price $26.67
Wall Street consensus is the average analyst price target: $29.07 (-14.3% lower than our fair-value estimate).
Our most-likely fair value is $33.93 a share — about 27.2% above today's price of $26.67, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $10.8B. Interest coverage 2.6x.
Net debt
$10.83B
Interest coverage
2.62x
Kering SA's profit covers its interest bill about 2.6 times over.
Stretched
Worse cushion
Baseline
Better cushion
PPRUY
BASELINE
Kering SA
Total debt $20.58B Interest coverage 2.62x This is the baseline the peer rows are being compared against.
Total debt $42.69B Interest coverage 15.35x +486% vs PPRUY Carries about 5.9x more debt cushion than PPRUY.
Total debt $15.53B Interest coverage 15.20x +480% vs PPRUY Carries about 5.8x more debt cushion than PPRUY.
Total debt $1.39B Interest coverage 1.01x -61% vs PPRUY Carries about 2.6x less debt cushion than PPRUY.
Total debt $3.96B Interest coverage 34.68x +1,225% vs PPRUY Carries about 13.2x more debt cushion than PPRUY.
Total debt $9.25B Interest coverage 5.02x +92% vs PPRUY Carries about 1.9x more debt cushion than PPRUY.
What you should know
The case for and against PPRUY
2 Rewards
3 Risks
Rewards
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 1.3% with 15-year payout history.
Risks
-
Net debt grew 101.8% over 3 years.
-
Operating margin compressed from 27.5% to 12.8% over 3 years.
-
Return on equity was -1.6% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
23.26x
P/B
1.96x
P/S
2.26x
EV/EBITDA
17.09x
PEG ratio
0.26x
Profitability
How much profit each dollar creates
Gross margin
72.1%
Operating margin
12.8%
Net margin
-1.5%
ROE
-1.6%
ROA
2.5%
Health
Liquidity and balance-sheet strength
Debt / equity
1.17x
Current ratio
2.05x
Quick ratio
1.38x
Total debt
$20.58B
Total cash
$9.74B
Growth
How the business has been compounding
Revenue TTM
$16.61B
Revenue 5Y CAGR
-10.3%
EPS TTM
-0.30
EPS 5Y CAGR
-72.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.56B
Free CF TTM
$2.61B
FCF margin
15.7%
Dividend
Shareholder payout
Yield
1.3%
Payout ratio
100.3%
Last ex-div date
2026-06-01