📊 KTB Key Takeaways
Is Kontoor Brands, Inc. (KTB) a Good Investment?
Kontoor demonstrates strong revenue growth (+20.9% YoY) but concerning margin compression with declining net income (-7.5% YoY), indicating operational leverage challenges. High financial leverage (1.85x D/E) combined with weak interest coverage (2.9x) and minimal cash reserves ($56.4M against $1.1B debt) create vulnerability to operational headwinds or credit events.
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.
Kontoor Brands, Inc. Key Strengths (KTB)
- Robust top-line growth of 20.9% YoY demonstrates strong market demand
- Positive free cash flow generation of $40.3M supports debt servicing capacity
- Healthy current ratio of 1.87x indicates adequate short-term liquidity position
- 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
- Significant margin compression: revenue up 20.9% but net income down 7.5%, suggesting deteriorating unit economics or rising costs
- High leverage ratio of 1.85x D/E with weak interest coverage of 2.9x leaves minimal cushion for earnings deterioration
- Large cash-to-debt gap: only $56.4M cash against $1.1B long-term debt creates refinancing risk and limits financial flexibility
- 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
- Operating margin trend and gross margin expansion potential
- Free cash flow conversion and working capital efficiency (FCF margin currently 6.6% vs net margin 15.1%)
- Debt service coverage ratio and interest coverage trajectory relative to debt reduction progress
- 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 |
|---|---|---|---|
| Q1 2026 | $423.0M | $42.9M | $0.76 |
| 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 |
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 Grade of A from Claude (B) and ChatGPT (A) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KTB's key strengths?
Claude: Robust top-line growth of 20.9% YoY demonstrates strong market demand. Positive free cash flow generation of $40.3M supports debt servicing capacity. 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: Significant margin compression: revenue up 20.9% but net income down 7.5%, suggesting deteriorating unit economics or rising costs. High leverage ratio of 1.85x D/E with weak interest coverage of 2.9x leaves minimal cushion for earnings deterioration. 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 $613.3M.
Does KTB pay dividends?
Kontoor Brands, Inc. pays dividends, with $29.3M 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 $1.65.
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 KTB's fundamental grade?
Based on our AI fundamental analysis in May 2026, Kontoor Brands, Inc. has a A grade with 72% 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 14.9% (sector avg: 15%), net margin of 15.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is KTB's AI grade for 2026?
Our dual AI analysis gives Kontoor Brands, Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is KTB's free cash flow?
Kontoor Brands, Inc.'s operating cash flow is $46.3M, with capital expenditures of $6.0M. FCF margin is 6.6%.
How does KTB compare to other Market stocks?
Vs Default sector averages: Net margin 15.1% (avg: 12%), ROE 14.9% (avg: 15%), current ratio 1.87 (avg: 1.8).
Is Kontoor Brands, Inc. carrying too much debt?
KTB has a debt-to-equity ratio of 1.85x, which is above the Market sector average of 0.7x. However, the current ratio of 1.87 suggests adequate short-term liquidity.