📊 KTB Key Takeaways
Is Kontoor Brands, Inc. (KTB) a Good Investment?
Kontoor exhibits strong revenue growth (+20.9% YoY) and exceptional free cash flow generation ($434.8M, 13.8% FCF margin), demonstrating operational capability. However, net income declined 7.5% despite robust top-line expansion, signaling margin compression and profitability concerns that warrant caution given the elevated leverage (2.02x D/E ratio) and liquidity constraints (0.87x quick ratio).
Revenue growth is strong and cash generation is excellent, with a double‑digit operating margin and high ROE indicating healthy core profitability. Although net income declined YoY due to margin pressure and leverage is elevated, liquidity and interest coverage are solid, and robust free cash flow supports deleveraging and reinvestment.
Why Buy Kontoor Brands, Inc. Stock? KTB Key Strengths
- Revenue growth of 20.9% YoY demonstrates strong market demand
- Free cash flow of $434.8M with 13.8% FCF margin shows efficient cash conversion
- Operating cash flow of $455.8M provides robust liquidity despite balance sheet leverage
- ROE of 40.3% indicates strong capital efficiency
- Interest coverage of 10.9x demonstrates adequate debt servicing capacity
- Robust free cash flow and 13.8% FCF margin
- Strong top-line growth (+20.9% YoY)
- Solid liquidity and interest coverage (1.82x current ratio; 10.9x coverage)
KTB Stock Risks: Kontoor Brands, Inc. Investment Risks
- Net income declined 7.5% YoY despite 20.9% revenue growth, indicating margin compression and cost structure deterioration
- Debt-to-Equity ratio of 2.02x with $1.1B long-term debt creates elevated financial risk and leverage vulnerability
- Quick ratio of 0.87x suggests potential working capital constraints and heavy inventory reliance
- Missing gross profit data limits visibility into product profitability and manufacturing efficiency
- Net margin of 7.2% is modest for the apparel/workwear sector, providing limited buffer for operational setbacks
- Margin compression from input costs and promotions
- Elevated leverage (2.02x D/E) and refinancing sensitivity
- Apparel cyclicality and wholesale channel/inventory risk
Key Metrics to Watch
- Gross margin trend and gross profit absolute levels to diagnose profit quality deterioration
- Debt reduction progress and leverage ratio trajectory toward healthier levels
- Net income trajectory to confirm whether margin compression is temporary or structural
- Cash conversion cycle and inventory levels to assess working capital efficiency
- Gross margin
- Net debt/EBITDA
Kontoor Brands, Inc. (KTB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Kontoor Brands, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
KTB Profit Margin, ROE & Profitability Analysis
KTB vs Market Sector: How Kontoor Brands, Inc. Compares
How Kontoor Brands, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kontoor Brands, Inc. Stock Overvalued? KTB Valuation Analysis 2026
Based on fundamental analysis, Kontoor Brands, Inc. has mixed fundamental signals relative to the Market 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.
Kontoor Brands, Inc. Balance Sheet: KTB Debt, Cash & Liquidity
KTB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kontoor Brands, Inc.'s revenue has grown significantly by 24% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.06 reflects profitable operations.
KTB Revenue Growth, EPS Growth & YoY Performance
KTB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $670.2M | $36.9M | $0.66 |
| Q2 2025 | $606.9M | $42.9M | $0.92 |
| Q1 2025 | $622.9M | $42.9M | $0.76 |
| Q3 2024 | $654.5M | $36.4M | $1.05 |
| Q2 2024 | $606.9M | $36.4M | $0.64 |
| Q1 2024 | $631.2M | $59.5M | $1.05 |
| Q3 2023 | $606.5M | $36.4M | $0.90 |
| Q2 2023 | $613.6M | $36.4M | $0.64 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kontoor Brands, Inc. Dividends, Buybacks & Capital Allocation
KTB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kontoor Brands, Inc. (CIK: 0001760965)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KTB
What is the AI rating for KTB?
Kontoor Brands, Inc. (KTB) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KTB's key strengths?
Claude: Revenue growth of 20.9% YoY demonstrates strong market demand. Free cash flow of $434.8M with 13.8% FCF margin shows efficient cash conversion. ChatGPT: Robust free cash flow and 13.8% FCF margin. Strong top-line growth (+20.9% YoY).
What are the risks of investing in KTB?
Claude: Net income declined 7.5% YoY despite 20.9% revenue growth, indicating margin compression and cost structure deterioration. Debt-to-Equity ratio of 2.02x with $1.1B long-term debt creates elevated financial risk and leverage vulnerability. ChatGPT: Margin compression from input costs and promotions. Elevated leverage (2.02x D/E) and refinancing sensitivity.
What is KTB's revenue and growth?
Kontoor Brands, Inc. reported revenue of $3.2B.
Does KTB pay dividends?
Kontoor Brands, Inc. pays dividends, with $116.1M distributed to shareholders in the trailing twelve months.
Where can I find KTB SEC filings?
Official SEC filings for Kontoor Brands, Inc. (CIK: 0001760965) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KTB's EPS?
Kontoor Brands, Inc. has a diluted EPS of $4.05.
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 KTB a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Kontoor Brands, Inc. has a BUY rating with 70% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is KTB stock overvalued or undervalued?
Valuation metrics for KTB: ROE of 40.3% (sector avg: 15%), net margin of 7.2% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy KTB stock in 2026?
Our dual AI analysis gives Kontoor Brands, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KTB's free cash flow?
Kontoor Brands, Inc.'s operating cash flow is $455.8M, with capital expenditures of $21.0M. FCF margin is 13.8%.
How does KTB compare to other Market stocks?
Vs Default sector averages: Net margin 7.2% (avg: 12%), ROE 40.3% (avg: 15%), current ratio 1.82 (avg: 1.8).
Is Kontoor Brands, Inc. carrying too much debt?
KTB has a debt-to-equity ratio of 2.02x, which is above the Market sector average of 0.7x. However, the current ratio of 1.82 suggests adequate short-term liquidity.
Why is KTB's return on equity (ROE) so high?
Kontoor Brands, Inc. has a return on equity of 40.3%, significantly above the Market sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 7.2% net margin.