📊 KSS Key Takeaways
Is KOHLS Corp (KSS) a Good Investment?
While Kohl's generates strong operating cash flow of $1.4B and has improved earnings YoY, the company exhibits concerning structural weaknesses: a net margin of only 1.8% leaves minimal error tolerance, return on equity of 6.7% and ROA of 2.0% indicate poor capital efficiency, and a quick ratio of 0.37x signals material liquidity constraints. The extreme 5491% revenue YoY growth requires verification and likely reflects data anomalies rather than operational strength.
Kohl’s fundamentals show stabilized profitability with $624M operating income and strong free cash flow ($1.01B, 6.5% margin) supported by manageable leverage. However, thin net margin (1.8%), modest returns (ROE 6.7%, ROA 2.0%), and low interest coverage (2.1x) leave limited cushion in a competitive, traffic-sensitive retail environment. Maintain a neutral stance pending sustained margin expansion and stronger coverage.
Why Buy KOHLS Corp Stock? KSS Key Strengths
- Strong free cash flow generation of $1.0B with 6.5% FCF margin provides operational flexibility
- Gross margin of 44.6% demonstrates reasonable product pricing power and cost management
- Moderate leverage with 0.35x debt-to-equity ratio and manageable debt structure
- Strong free cash flow generation and conversion
- Solid gross margin profile for department store (44.6%)
- Moderate leverage with healthy liquidity (D/E 0.35x; current ratio 1.46x)
KSS Stock Risks: KOHLS Corp Investment Risks
- Dangerously low quick ratio of 0.37x indicates reliance on inventory conversion and creates working capital vulnerability
- Net margin of 1.8% and operating margin of 4.0% provide insufficient buffer against competitive or macroeconomic pressures
- Poor capital returns with ROE of 6.7% and ROA of 2.0% suggest business is not generating adequate returns for shareholders
- Interest coverage of 2.1x limits debt servicing cushion if earnings deteriorate
- Department store retail sector facing structural secular decline from e-commerce disruption
- Thin net margin and low interest coverage (2.1x) heighten downturn risk
- Inventory-heavy model reflected in low quick ratio (0.37x)
- Sector headwinds: promotions, traffic volatility, and mix pressure
Key Metrics to Watch
- Quick ratio trend and working capital management
- Operating margin sustainability and cost structure in weak retail environment
- Free cash flow conversion and capital allocation decisions
- Gross margin and SG&A leverage
- Interest coverage and inventory turns
KOHLS Corp (KSS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
KOHLS Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
KSS Profit Margin, ROE & Profitability Analysis
KSS vs Consumer Sector: How KOHLS Corp Compares
How KOHLS Corp compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KOHLS Corp Stock Overvalued? KSS Valuation Analysis 2026
Based on fundamental analysis, KOHLS Corp has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
KOHLS Corp Balance Sheet: KSS Debt, Cash & Liquidity
KSS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: KOHLS Corp's revenue has declined by 13% over the 5-year period, indicating business contraction. The most recent EPS of $2.85 reflects profitable operations.
KSS Revenue Growth, EPS Growth & YoY Performance
KSS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.6B | $8.0M | $0.07 |
| Q2 2025 | $3.5B | $39.0M | $0.35 |
| Q1 2025 | $3.2B | -$15.0M | $-0.13 |
| Q3 2024 | $3.7B | $22.0M | $0.20 |
| Q2 2024 | $3.7B | $39.0M | $0.35 |
| Q1 2024 | $3.4B | $14.0M | $0.13 |
| Q3 2023 | $4.1B | $59.0M | $0.53 |
| Q2 2023 | $3.9B | $58.0M | $0.52 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KOHLS Corp Dividends, Buybacks & Capital Allocation
KSS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for KOHLS Corp (CIK: 0000885639)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KSS
What is the AI rating for KSS?
KOHLS Corp (KSS) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 67% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KSS's key strengths?
Claude: Strong free cash flow generation of $1.0B with 6.5% FCF margin provides operational flexibility. Gross margin of 44.6% demonstrates reasonable product pricing power and cost management. ChatGPT: Strong free cash flow generation and conversion. Solid gross margin profile for department store (44.6%).
What are the risks of investing in KSS?
Claude: Dangerously low quick ratio of 0.37x indicates reliance on inventory conversion and creates working capital vulnerability. Net margin of 1.8% and operating margin of 4.0% provide insufficient buffer against competitive or macroeconomic pressures. ChatGPT: Thin net margin and low interest coverage (2.1x) heighten downturn risk. Inventory-heavy model reflected in low quick ratio (0.37x).
What is KSS's revenue and growth?
KOHLS Corp reported revenue of $15.5B.
Does KSS pay dividends?
KOHLS Corp pays dividends, with $56.0M distributed to shareholders in the trailing twelve months.
Where can I find KSS SEC filings?
Official SEC filings for KOHLS Corp (CIK: 0000885639) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KSS's EPS?
KOHLS Corp has a diluted EPS of $2.38.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KSS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, KOHLS Corp has a SELL rating with 67% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KSS stock overvalued or undervalued?
Valuation metrics for KSS: ROE of 6.7% (sector avg: 18%), net margin of 1.8% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy KSS stock in 2026?
Our dual AI analysis gives KOHLS Corp a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KSS's free cash flow?
KOHLS Corp's operating cash flow is $1.4B, with capital expenditures of $372.0M. FCF margin is 6.5%.
How does KSS compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 1.8% (avg: 8%), ROE 6.7% (avg: 18%), current ratio 1.46 (avg: 1.5).