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How Kohl’s PE Multiple Compares with Peers’

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Forward PE multiples

On January 16, Kohl’s (KSS) 12-month forward PE ratio was 12.1x. Meanwhile, Nordstrom (JWN), Macy’s (M), and Dillard’s (DDS) have PE ratios of 12.1x, 7.3x, and 11.2x, respectively.

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EPS estimates for Kohl’s

For fiscal 2018, Wall Street analysts expect Kohl’s adjusted EPS to increase 32.0% year-over-year or YoY to $5.53. For fiscal 2019, analysts expect the company’s adjusted EPS to rise 4.2% YoY to $5.77.

Its bottom-line growth is expected to be cushioned by higher sales and a lower tax burden. For fiscal 2018, Kohl’s has estimated adjusted EPS at $5.50–$5.55. Share repurchases also provide a bit of upside. In the third quarter of fiscal 2018, the company repurchased 1.5 million shares. For fiscal 2018, the company expects to buy back stock worth $350 million to $400 million

A look at EPS estimates

Analysts expect Nordstrom’s adjusted EPS to rise 23.1% YoY to $3.57 in fiscal 2018. For fiscal 2019, its EPS are expected to increase 3.9% YoY to $3.71.

For Macy’s fiscal 2018, Wall Street analysts’ adjusted EPS growth estimate stands at 6.9% to $4.03. For fiscal 2019, its EPS could decrease 17.7% to $3.32.

For fiscal 2018, analysts expect Dillard’s adjusted EPS to increase 21.0% to $5.81. For fiscal 2019, its EPS are forecast to decline 2.7% to $5.65.

For fiscal 2018, JCPenney’s adjusted EPS is projected at -$0.99, compared with EPS of $0.22. For fiscal 2019, adjusted EPS is estimated at -$0.77.

Dividend yield

Kohl’s remains committed to paying dividends to stockholders. Kohl’s current dividend yield of 3.6% is based on the closing price of $67.46 as of January 16.

Meanwhile, Nordstrom’s current dividend yield stands at 3.3% while Macy’s current dividend yield is 6.2%. Dillard’s current dividend yield stands at 0.6% as of January 16. JCPenney has stopped paying dividends.

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