📊 KSS Key Takeaways
Is KOHLS Corp (KSS) a Good Investment?
Kohl's faces severe operational distress with negative free cash flow (-$158M), inability to generate operating cash flow (-$74M), and unprofitability (-0.4% net margin) despite $3.2B in revenue. Critical solvency concerns emerge from interest coverage of 0.2x and dangerously low quick ratio of 0.31x, indicating inadequate liquidity and inability to service debt from operations.
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.
KOHLS Corp Key Strengths (KSS)
- Modest debt leverage with Debt/Equity of 0.34x providing some balance sheet cushion
- Established asset base of $13.2B representing operational infrastructure
- Current ratio of 1.48x shows short-term liquidity is not immediately critical
- 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
- Interest coverage of 0.2x indicates company cannot cover debt obligations from operating income—insolvency risk
- Operating cash flow negative at -$74M paired with -$158M free cash flow means company is burning cash and cannot self-fund operations
- Quick ratio of 0.31x reveals severe working capital stress and inability to meet short-term obligations with liquid assets
- Net income negative (-$14M) and net margin negative (-0.4%) despite reported revenue, indicating core unprofitability
- Reported gross margin of 218.5% and revenue growth of 5491% contain mathematical anomalies raising data quality concerns
- 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
- Operating cash flow trend—must turn positive to indicate operational viability
- Interest coverage ratio—must improve above 1.0x to demonstrate debt serviceability
- Quick ratio trajectory—critical threshold is 0.50x minimum; current 0.31x is unsustainable
- Free cash flow—must reach positive territory to fund capex and debt reduction
- 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 |
|---|---|---|---|
| Q1 2026 | $3.2B | -$14.0M | $-0.13 |
| 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 |
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 Grade of C from Claude (D) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KSS's key strengths?
Claude: Modest debt leverage with Debt/Equity of 0.34x providing some balance sheet cushion. Established asset base of $13.2B representing operational infrastructure. 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: Interest coverage of 0.2x indicates company cannot cover debt obligations from operating income—insolvency risk. Operating cash flow negative at -$74M paired with -$158M free cash flow means company is burning cash and cannot self-fund operations. 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 $3.2B.
Does KSS pay dividends?
KOHLS Corp pays dividends, with $14.0M 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 $-0.13.
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 grade reflects both perspectives for balanced insights.
What is KSS's fundamental grade?
Based on our AI fundamental analysis in June 2026, KOHLS Corp has a C grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KSS stock overvalued or undervalued?
Valuation metrics for KSS: ROE of -0.3% (sector avg: 18%), net margin of -0.4% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is KSS's AI grade for 2026?
Our dual AI analysis gives KOHLS Corp a combined C grade 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 $-74.0M, with capital expenditures of $84.0M. FCF margin is -5.0%.
How does KSS compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -0.4% (avg: 8%), ROE -0.3% (avg: 18%), current ratio 1.48 (avg: 1.5).