Red Flag: Does Insider Trading Signal Heightened Risk for Kohl’s Investors?

E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for Kohl’s isn’t exceptional, but it’s stronger than the debt-to-equity ratios for J.C. Penney Company (NYSE:JCP) and Macy’s (NYSE:M).

Debt-To-Equity

Cash

Long-Term Debt

KSS

.73

$550 Million

$4.58 Billion

JCP

.84

$525 Million

$2.94 Billion

M

1.25

$1.26 Billion

$6.94 Billion

 

T = Technicals on the Stock Chart Are Weak

Kohl’s hasn’t performed well over the past three years. Macy’s has dominated this competition over that timeframe.

1 Month

Year-To-Date

1 Year

3 Year

KSS

-13.47%

-6.58%

-4.23%

-11.90%

JCP

24.18%

-40.14%

-34.82%

-17.76%

M

-4.19%

23.78%

30.30%

140.10%

 

At $44.32, Kohl’s is currently trading below all its averages.        

50-Day SMA

49.88

100-Day SMA

50.79

200-Day SMA

49.44

 

E = Earnings Have Been Steady

Revenue and earnings have been steadily increasing. The pace has been frustrating to some investors, but unlike J.C. Penney, Kohl’s is consistently profitable.

2008

2009

2010

2011

2012

Revenue ($)in billions

16.47

16.39

17.18

18.39

18.80

Diluted EPS ($)

3.39

2.89

3.17

3.66

4.30

 

Looking at the last quarter on a YoY basis, we see an increase in revenue and earnings, which is a great sign.  

10/2011

1/2012

4/2012

7/2012

10/2012

Revenue ($)in billions

4.38

6.02

4.24

4.21

4.49

Diluted EPS ($)

.80

1.73

.63

1.00

.91