Kontoor Brands (KTB), mcap=$1.8bn, price $32.62 vs $40.80

Pitch:
– Global jeans brands
– Wrangler and Lee.
– Underinvested by the previous parent, which treated
KTB as a cash cow only.
– Spinned-off three years ago.
– New management brought clear performance improvements.
– Expected margin improvement over the next few years.
– Trades at 8.6x ’22 EPS and 4.5% dividend yield.
– Little risk of permanent capital loss.
– Potential take-out target.

Valuation: KTB Trades at a discount to LEVI. 8.6x ’22 EPS and 4.5% dividend yield.

Exp. gain: 20% IRR over the next 3-5 years. +40-90% upside in the takeout scenario.

Full KTB write-up (free guest account required):
https://valueinvestorsclub.com/idea/KONTOOR_BRANDS_INC/8468459547

 

Published on: June 22, 2022  •  Published by:
Category:
Tags:

Leave a Reply