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KSS Stock Analysis 2026 - KOHLS Corp AI Rating

KSS NYSE Retail-Department Stores WI CIK: 0000885639
Recently Updated • Analysis: Apr 12, 2026 • SEC Data: 2026-01-31
SELL
70% Conf
Pending
Analysis scheduled

📊 KSS Key Takeaways

Revenue: $15.5B
Net Margin: 1.8%
Free Cash Flow: $1.0B
Current Ratio: 1.46x
Debt/Equity: 0.35x
EPS: $2.38
AI Rating: SELL with 70% confidence

Is KSS a Good Investment? Thesis Analysis

Claude

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.

Why Buy KSS? 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
  • + Moderate leverage with 0.35x debt-to-equity ratio and manageable debt structure

KSS Investment Risks to Consider

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
  • ! 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

Key Metrics to Watch

Claude
  • * 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

KSS Financial Metrics

Revenue
$15.5B
Net Income
$272.0M
EPS (Diluted)
$2.38
Free Cash Flow
$1.0B
Total Assets
$13.4B
Cash Position
$674.0M

💡 AI Analyst Insight

KOHLS Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

KSS Profitability Ratios

Gross Margin 44.6%
Operating Margin 4.0%
Net Margin 1.8%
ROE 6.7%
ROA 2.0%
FCF Margin 6.5%

KSS vs Consumer Sector

How KOHLS Corp compares to Consumer sector averages

Net Margin
KSS 1.8%
vs
Sector Avg 8.0%
KSS Sector
ROE
KSS 6.7%
vs
Sector Avg 18.0%
KSS Sector
Current Ratio
KSS 1.5x
vs
Sector Avg 1.5x
KSS Sector
Debt/Equity
KSS 0.4x
vs
Sector Avg 0.8x
KSS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is KSS Overvalued or Undervalued?

Based on fundamental analysis, KOHLS Corp has mixed fundamental signals relative to the Consumer sector in 2026.

Return on Equity
6.7%
Sector avg: 18%
Net Profit Margin
1.8%
Sector avg: 8%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.35x
Sector avg: 0.8x

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.

KSS Balance Sheet & Liquidity

Current Ratio
1.46x
Quick Ratio
0.37x
Debt/Equity
0.35x
Debt/Assets
0.0%
Interest Coverage
2.06x
Long-term Debt
$1.4B

KSS 5-Year Financial Trend & Growth Analysis

KSS 5-year financial data: Year 2021: Revenue $20.0B, Net Income $691.0M, EPS $4.37. Year 2022: Revenue $19.4B, Net Income -$163.0M, EPS $-1.06. Year 2023: Revenue $19.4B, Net Income $938.0M, EPS $6.32. Year 2024: Revenue $18.1B, Net Income -$19.0M, EPS $-0.15. Year 2025: Revenue $17.5B, Net Income $317.0M, EPS $2.85.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
6.5%
Free cash flow / Revenue

KSS Quarterly Performance

Quarterly financial performance data for KOHLS Corp including revenue, net income, and earnings per share.
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.

KSS Capital Allocation

Operating Cash Flow
$1.4B
Cash generated from operations
Capital Expenditures
$372.0M
Investment in assets
Dividends Paid
$56.0M
Returned to shareholders

KSS SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for KOHLS Corp (CIK: 0000885639)

📋 Recent SEC Filings

Date Form Document Action
Apr 10, 2026 DEF 14A kss-20260520xdef14a.htm View →
Apr 7, 2026 4 xslF345X06/form4.xml View →
Apr 3, 2026 4 xslF345X06/form4.xml View →
Apr 3, 2026 4 xslF345X06/form4.xml View →
Apr 3, 2026 4 xslF345X06/form4.xml View →

Frequently Asked Questions about KSS

What is the AI rating for KSS?

KOHLS Corp (KSS) has an AI rating of SELL with 70% 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.

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.

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 70% 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).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 12, 2026 | Data as of: 2026-01-31 | Powered by Claude AI