📊 KTB Key Takeaways
Is KTB a Good Investment? Thesis Analysis
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).
Why Buy 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
KTB Investment Risks to Consider
- 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
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
KTB Financial Metrics
💡 AI Analyst Insight
Kontoor Brands, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
KTB Profitability Ratios
KTB vs Default Sector
How Kontoor Brands, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KTB Overvalued or Undervalued?
Based on fundamental analysis, Kontoor Brands, Inc. has mixed fundamental signals relative to the Default 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.
KTB Balance Sheet & Liquidity
KTB 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
KTB Quarterly 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.
KTB Capital Allocation
KTB SEC 10-K & 10-Q Filing 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 an AI rating of HOLD with 68% 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.
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.
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 HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. 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 HOLD 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 Default stocks?
Vs Default sector averages: Net margin 7.2% (avg: 12%), ROE 40.3% (avg: 15%), current ratio 1.82 (avg: 1.8).