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These Fundamentals Make Kering SA (EPA:KER) Truly Worth Looking At

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I've been keeping an eye on Kering SA (EPA:KER) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe KER has a lot to offer. Basically, it is a financially-healthy company with a great history and a buoyant future outlook. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Kering here.

Outstanding track record with flawless balance sheet

Over the past year, KER has grown its earnings by 57%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 26%, which is an optimistic signal for the future.

ENXTPA:KER Past and Future Earnings, June 12th 2019
ENXTPA:KER Past and Future Earnings, June 12th 2019

KER's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that KER manages its cash and cost levels well, which is a crucial insight into the health of the company. KER's has produced operating cash levels of 0.86x total debt over the past year, which implies that KER's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ENXTPA:KER Historical Debt, June 12th 2019
ENXTPA:KER Historical Debt, June 12th 2019

Next Steps:

For Kering, I've put together three fundamental factors you should further examine:

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  1. Valuation: What is KER worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether KER is currently mispriced by the market.

  2. Dividend Income vs Capital Gains: Does KER return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from KER as an investment.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KER? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.