One-glance verdict
Undervalued
$41.16 our estimate vs market $20.09
Wall Street consensus: $23.33 (-43.3% lower than our fair-value estimate)
51% below our estimate, below the bear case
Fundamentals snapshot
Kering SA
PPRUY · PNK · Consumer Cyclical · Luxury Goods
Current price
$20.09
52-week range
$19.53 - $37.68
Market cap
$24.63B
Balance sheet
Stretched
2.62x Stretched
Net debt $10.58B. 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 1.7% 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 SA is a French company that owns famous luxury brands like Gucci and Saint Laurent, selling fancy clothes, bags, and jewelry across the world. Their main income comes from selling these high-end products, and it matters because their ability to keep selling a lot of these items helps them maintain healthy profit margins (the money left over after paying for the cost of making and selling their goods).
How the company got here
Kering's story began in 1962, not with luxury handbags, but with timber trading. Founded by François Pinault, the company, then known as Pinault S.A., gradually expanded into retail and distribution. A major turning point came in 1999 with the acquisition of Gucci, marking a decisive shift towards the luxury market. Over the years, the company acquired other renowned fashion and jewelry houses, eventually rebranding as Kering in 2013 to reflect its focus on luxury goods. This transformation from a timber and retail business into a global luxury powerhouse is a testament to its strategic evolution.
What it actually does
Kering is a global leader in luxury goods, managing a portfolio of prestigious brands. These brands design, manufacture, and sell high-end fashion, leather goods, jewelry, and eyewear. Think of the iconic handbags, designer clothing, exquisite jewelry, and stylish sunglasses you see in high-end boutiques and department stores – Kering is behind many of them. The company operates worldwide, selling its products through its own stores, online, and select wholesale partners.
Gucci
Gucci is Kering's flagship brand and a significant contributor to its overall revenue, often representing about half of the group's sales. This Italian luxury house is renowned for its fashion, leather goods, and accessories, including its iconic handbags, shoes, and ready-to-wear clothing. Gucci products are recognized globally for their distinctive style and craftsmanship, appealing to a wide range of luxury consumers.
Saint Laurent
Saint Laurent is another major fashion house within the Kering group, known for its sophisticated and modern designs in ready-to-wear, leather goods, and accessories. The brand has achieved significant sales, making it a key player in Kering's portfolio. Saint Laurent embodies a chic and elegant aesthetic, appealing to customers who appreciate timeless yet contemporary luxury fashion.
Bottega Veneta
Bottega Veneta is celebrated for its exquisite leather goods, particularly its handbags, which are known for their distinctive 'Intrecciato' (intertwined) weaving technique. The brand also offers ready-to-wear, shoes, and accessories, all characterized by understated luxury and exceptional craftsmanship. Bottega Veneta represents a more subtle, artisanal approach to luxury within Kering's diverse brand stable.
Balenciaga
Balenciaga is recognized for its avant-garde and often trend-setting designs in fashion and accessories. The brand pushes creative boundaries with its ready-to-wear, leather goods, and footwear, appealing to a fashion-forward clientele. Balenciaga is known for its innovative approach to luxury, often blending high fashion with streetwear influences.
Alexander McQueen
Alexander McQueen is a British luxury fashion house known for its dramatic, romantic, and often provocative designs. The brand offers ready-to-wear, leather goods, and accessories that showcase exceptional tailoring and a unique artistic vision. Alexander McQueen appeals to those who appreciate bold, conceptual fashion and exquisite craftsmanship.
Other Houses (Jewelry & Tailoring)
Beyond its major fashion brands, Kering also owns several esteemed jewelry houses, including Boucheron, Pomellato, and Qeelin. These brands specialize in fine and high jewelry, offering exquisite pieces that broaden Kering's reach in the luxury market. Additionally, Kering has a presence in high-end menswear through brands like Brioni, known for its expertly tailored suits.
Kering Eyewear
Kering Eyewear is a distinct business unit that designs, manufactures, and distributes eyewear for Kering's own brands, as well as for select external luxury brands. This segment allows Kering to capture more value in the eyewear category, offering a range of sunglasses and optical frames that align with the luxury positioning of its portfolio houses. It has become a significant business within the group.
What management is betting on now
Kering's current strategy, known as 'ReconKering,' focuses on reigniting brand desirability and strengthening operational execution across its portfolio. This involves a renewed emphasis on creativity, craftsmanship, and product excellence, while also adapting to 'Next Luxury' trends like new technologies and evolving client expectations. Management is investing in key brands, particularly Gucci, to revitalize its appeal, and is also focused on enhancing capabilities in areas like sourcing, logistics, and sustainability to ensure long-term growth and leadership in the luxury sector.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $41.16 vs current price $20.09
Wall Street consensus is the average analyst price target: $23.33 (-43.3% lower than our fair-value estimate).
Our most-likely fair value is $41.16 a share — about 104.9% above today's price of $20.09, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $10.6B. Interest coverage 2.6x.
Net debt
$10.58B
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 $20.10B Interest coverage 2.62x This is the baseline the peer rows are being compared against.
Total debt $41.71B Interest coverage 15.35x +486% vs PPRUY Carries about 5.9x more debt cushion than PPRUY.
Total debt $15.17B Interest coverage 15.20x +480% vs PPRUY Carries about 5.8x more debt cushion than PPRUY.
Total debt $1.50B 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 $9.20B 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 1.7% 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
22.19x
P/B
1.51x
P/S
1.70x
EV/EBITDA
13.85x
PEG ratio
0.23x
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
$20.10B
Total cash
$9.52B
Growth
How the business has been compounding
Revenue TTM
$16.23B
Revenue 5Y CAGR
-10.3%
EPS TTM
-0.35
EPS 5Y CAGR
-72.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.48B
Free CF TTM
$2.55B
FCF margin
15.7%
Dividend
Shareholder payout
Yield
1.7%
Payout ratio
129.8%
Last ex-div date
2026-06-01